[March 19th, 2021]
In note 4, I was concerned about the noises that accounting change will introduce.
There’s no impact on profit dollar but still it will introduce noises. I expect to feel the impact first from the guidance of 2Q21 when the company reports 1Q21 results. Not sure if we will see a before-after comparison in 2Q21 ER.
So I dropped an email to IR and got the reply. Basically, my understanding was correct and the company “will provide pro forma comparison for the four quarters between 2021Q2 and 2022Q1″. I guess there’s still a time difference. Noise will be introduced when the company announces the 2Q21 guidance but the comparison is provided in the 2Q21 result.
I also asked about the potential of Haibo being a standalone enterprise SaaS product and got standard reply that the company will keep introducing the system to more retail stores and keep the market informed. I always have an impression that China’s SaaS business is different from other places and is less attractive (high cac and low retention). While I’m usually attempted to play around SaaS thesis, I always discount that optionality for players in China. On a different note, if Tuya’s SaaS business really takes off, it’s more likely to be outside of China.