Tuya Inc. (NYSE: TUYA), a global leading cloud platform service provider, saw its stock price surge 6.59% in after-hours trading on Tuesday following the release of its impressive first quarter 2025 financial results. The company reported significant growth in revenue and profitability, exceeding market expectations.

For the first quarter ended March 31, 2025, Tuya's total revenue reached $74.7 million, marking a substantial 21.1% increase compared to the same period last year. This growth was primarily driven by a 17.9% rise in IoT platform-as-a-service (PaaS) revenue to $53.7 million and a notable 47.1% jump in smart solution revenue to $11.0 million. The company's software-as-a-service (SaaS) and other revenues also grew by 15.5% to $10.0 million.

In a significant turnaround, Tuya reported a GAAP net profit of $11.0 million for the quarter, compared to a net loss of $3.5 million in the same period of 2024. This translates to a record-high GAAP net margin of 14.8%. The company's non-GAAP net profit increased by 57.2% year-over-year to $19.3 million, demonstrating Tuya's ability to sustain strong profitability. Additionally, Tuya maintained a healthy financial position with $1,023.7 million in cash and cash equivalents as of March 31, 2025.

The market's positive reaction to these results underscores investor confidence in Tuya's growth strategy and its ability to capitalize on the expanding IoT and AI markets. Despite ongoing macroeconomic uncertainties, Tuya's focus on enhancing its AIoT capabilities and supporting global developers in integrating AI with smart devices appears to be paying off, driving the intelligent transformation of the industry.