IoT wind port can’t be blown away, graffiti’s "arrogance and prejudice"

In 1991, Professor Kevinash-Ton of the Massachusetts Institute of Technology (MIT) first proposed the concept of the Internet of Things (IoT) for the first time, which can be simply interpreted as "the Internet connected".

Subsequently, Bill Gates also mentioned in the book "The Road to the Future" in 1995 that its concepts have been expanding from proposal to determining and development, covering scope and information perception technology involved.

Nowadays, the Internet industry is moving towards the new era of "Internet of Everything". The technological innovation of network communication in terms of transmission rate and bandwidth capacity has laid the foundation for the network of massive equipment. In addition, the cost of equipment connection will decrease, and the number will further increase.

According to iOTANALYTICS data, the number of global IoT connections in 2020 exceeded 11.3 billion, and the number of non -IoT connections exceeded the first time. It is estimated that the compound annual growth rate from 2021 to 2025 was 21.8%.

According to GSMA data, the size of the global Internet of Things market in 2020 is US $ 248 billion, and it will exceed US $ 1 trillion by 2024, and the compound annual growth rate of 44.6%from 2020-2025 will be 44.6%.

Faced with such an amazing scale, the IoT feast naturally attracted many companies to participate. Among them, I have to mention such a mixed IoT platform -graffiti intelligence.

What is applauding the market is that it took only 7 years to graffiti, and it was listed on the New York Stock Exchange with "TUYA" as the securities code, becoming the "Global IoT Cloud No. 1 share", with a market value of about $ 13.2 billion.

It is also related to this. After the IPO in March 2021, the stock price of graffiti has declined all the way, maintaining about $ 2/share, and it has fallen by nearly 90 % compared to the when it was listed.

On July 5, 2022, graffiti intelligence landed on the Hong Kong Stock Exchange in a dual major listing. On the day of listing, a long -term long -character text was posted on "Leifeng.com" that caused heated discussions in the industry. In response, the graffiti also showed the lawyer's letter sent on his official website, saying that it distorted fabrication, no basis, and malicious attacks.

And aside from the analysis in this article, from the perspective of the performance of the graffiti stock price, the writer is invincible. Of course, the stock price has a certain market volatility. To explore the rise and fall of enterprises, it still needs to return to the underlying logic of the company's entire business system.

History of stepping on the stroke

Behind all accidents, there are certain inevitables.

"A company's genes have been determined as early as its first 18 months. After that, the company could not have any major changes. If DNA is right, it is a piece of gold; if it is not, then it will basically finish it." Sequoia Capital Chairman Michael Moritz expressed the view.

The brand gene of the enterprise comes more from the founder itself, so it is better to explore the founder and CEO Wang Xueji of graffiti.

In fact, before the first listing, the entrepreneurial experience of Wang Xueji has been regarded as a graffiti gold signboard, telling the market to the market that the most popular continuous entrepreneur has won success.

Simply put, this post -80s generation from Wenzhou, Zhejiang Province, established PHPWind with friends Chen Yahan and Lin Yaona during college. In 2008, Alibaba acquired the company at a price of 50 million yuan.

As a result, Wang Xueji also joined the Ali department and became the first person in charge of Alibaba Cloud. Chen Yanhan served as the director of operation. Several people continued to work together for several years.

After the exercise in Ali, the domestic Internet of Things was a blue ocean, Wang Xueji and Chen Yahan and Lin Yaona, who had not been entrepreneurial, left the job, and established graffiti intelligence in 2014 to start secondary entrepreneurship.

When a story is heard too much, it is easy to form a stereotype, that is, it is easy to ignore the real background. Back to PHPWind, since its birth, it has been positioned as the development and value -added service provision of the site construction software, and is committed to providing a simple, effective and sustainable site construction solution for webmasters.

At that time, there was a Discuz! Platform on the market. The two were regarded as two well -known PHP forum systems in China. It was quite tasteful. The fate of the two is also the same. After Phpwind was acquired by Ali, the Discuz! The Cangsheng Company of Discuz was won by Tencent.

The reason for exploring PHPWind's rise has a lot to do with the Internet air outlet. At that time, with the in -depth development of the Internet and the information industry, the cost of entrepreneurship became low, and many people started to start their own businesses through the Internet.

The business direction of PHPWIND is to provide free Internet site -building software for these ordinary entrepreneurs, which greatly reduces the entrepreneurial threshold. Such entrepreneurial genes are naturally reused to the method of breaking the topic of graffiti.

"Lei Feng.com" summarizes the tactics of graffiti intelligence as "four -piece set", that is, to provide high -cost modules for the small bosses of the home appliances, and the hardware of the customer can connect to Amazon Echo through WIFI, and assist customers to help customers to put it through the WiFi, and assist customers in three assistance customers. The goods are sold overseas, and the four -fourth service is given to Haidilao.

In layman's terms, the key to the rise of graffiti is to seize the anchor points at both ends of the supply and demand, while looking for a module for white card companies, while looking for customers and demand overseas, by providing standardized and modular software and hardware, helping merchants solve the solution of merchants. The demand for the Internet of Things of the product.

For a large number of hardware factories and small and medium sellers in Amazon, a platform that is sufficient to fool, enough standardization, enough low price, and solving sales demands will naturally be welcomed. With similar roads similar to PHPWind, graffiti has successfully established in the Internet of Things field. Looking back, the rise of graffiti intelligence also objectively benefits from the maturity of the foreign Internet of Things market. The "IoT Signal Microsoft Annual Report" can divide the progress of the Internet of Things project into four stages: learning, test/concept verification, purchase and use.

In terms of project percentage in the use phase, in 2021, the United States was 27%of its leading position. In the period of entering the use phase, the United States and Spain need 11 months. The Asia -Pacific region is behind, Japan needs 12 months, and both China and Australia take 16 months.

From this perspective, this is why the graffiti still chooses to list in the United States despite the return of the regression of the Chinese stock market.

Cracks in the fundamental surface

On the eve of the listing of the United States, Graffiti Smart CFO Liu Yao said in an interview, "We are a cloud manufacturer, and there are a large number of mature investors in the US stock market. ","

At that time, the top international investment institutions such as Gao Yan, Tiger, Tencent, and Tencent subscribed a total of 500 million US dollars as the cornerstone investors, accounting for 50%of the total IPO fundraising. The current stock price performance of graffiti intelligence is in -depth in the secondary market.

Does this indirectly indicate that behind Waterloo is the fundamentals of the enterprise change? Observing nodes in the first quarter of 2022 can be found that so far, graffiti still faces a problem of losses.

Data show that from 2019 to 2021, the company's net losses over the past three years were US $ 70.48 million, US $ 66.91 million, and $ 175 million. Under NON-GAAP in the first quarter of this year, the smart net loss of graffiti was US $ 37.3 million, an increase of $ 13.5 million compared with the same period last year.

Not only that, it can be found that graffiti intelligence also faces the problem of decline in income growth.

According to the financial report, since its listing in March 2021, the year -on -year growth rate of graffiti revenue was from 118%in the second quarter of 2021 to 44.9%and 19%in the third and fourth quarters; the Q1 revenue in 2022 was US $ 55.324 million. The year -on -year decrease of 2.7%, and the first revenue increased for the first time.

In terms of business, the decline in revenue is mainly related to the performance of the PAAS business of the main business.

What needs to be added here is that the core business of graffiti is mainly divided into three pieces: IoT PaaS (module platform), which accounts for 86.5%of the income in 2021; the distribution of smart equipment, accounting for 6.2%of the income in 2021; SaaS and other business projects, accounting for accounting 7.3%of the income in 2021.

The business of the sales module mentioned above is today's PaaS business. According to the financial report, in the first quarter, PaaS's business revenue was $ 41.8 million, accounting for 75.55%of the revenue, and revenue decreased by 16.1%year -on -year. The reasons for the pressure of PaaS business are related to various factors.

The core of these is a greater relationship with the small and medium -sized customer base of graffiti. Nowadays, when the market education stage is gradually spent, improving product quality is the only choice.

For graffiti, which starts with small and medium -sized customers, biggest customers must overcome the existing business inertia. Most of the large enterprises want to develop their own modules, rather than using other people's modules, which will cause graffiti to be in a dilemma.

According to the first quarter financial report, IOTPAAS customers were 2,600, a year -on -year increase of 21%. Furthermore, IoT PaaS high -quality customers (have contributed more than 100,000 US dollars in the past 12 consecutive months), but contributed about 85.6%of IoT PaaS in total.

In addition to the PAAS business, the SaaS business is regarded as the second growth curve. In the first quarter, the revenue of graffiti SaaS business increased by 146.7%year -on -year to $ 5.75 million, and the gross profit margin of the latter was 75.10%, which was much higher than the PAAS business of 42.30%.

The gross profit margin of the PAAS business is low, mainly because its income mainly relies on sales to encapsulate access capabilities and License's WIFI module implementation. Due to the high bargaining ability of chip manufacturers in the WIFI module, the gross profit margin of graffiti has a certain amount of gross profit margin. influences.

Today, more than 90%of the SaaS business in graffiti is in the Chinese market, but SaaS business Q1 only accounts for 10.49%of total revenue. In addition, at this stage, the graffiti layout has multiple segments, the Industrial Federation, Smart Agriculture, etc., and there is no core focusing on business.

This kind of diversified expansion of the scattered corporate strategic focus is highly spit on the internal employees of the graffiti. ","

The world of IoT

At this stage, the Internet of Things policies will be good news. Some main businesses are not listed companies in the Internet of Things, and they have "蹭" IoT concepts trying to share a cup. Those players who have arranged in the field are even more cheap.

Huatai Finance classified the characteristics of the global providing IoTPAAS suppliers, and divided the IoT supplier into five categories:

Telecom operators, such as China Telecom and China Unicom; Internet giants, such as Alibaba and Amazon; traditional enterprises, such as Haier and Sanyi Heavy Industries; technology companies, such as Huawei and Apple; third -party platforms, such as graffiti. At present, the mainstream manufacturers of the IoT platform layout are actively building the Internet of Things ecological platform based on their core advantages and competing for the leading position of the industrial ecology. Prior to this, a third -party platform graffiti with strong neutrality and compatibility has certain advantages.

According to statistics from the China Information and Communication Research Institute (CAICT), as of 2020, in the leading IoT platform, the number and year -on -year growth rate of newly connected devices were 117 million and 94%, respectively, ranking first.

Followed by Amazon Network Services (AWS; 75 million/26%, 39 million own equipment), Google Cloud (55 million/17%, 26 million own equipment), Haier (40 million/50%50% , 38 million own equipment), Xiaomi (39 million/32%, 37 million own equipment) and Alibaba Cloud (31 million/20%, 14 million own equipment).

As players in the track began to work, graffiti will face increasing competition. For the current more important foreign markets, graffiti will compete with the IoT platform Amazon, Google, and Apple.

On January 7 this year, the graffiti officially announced that it will support the Matter communication protocol to help developers create a seamless smart home experience.

The Matter protocol is the application layer connection protocol launched by the CSA Connection Standard Alliance in 2021. It aims to eliminate compatibility concerns of different ecosystems by building unified "language" and solve the problem of fragmentation in the field of smart home.

At present, Amazon, Google, Apple, etc. have promised Alexa, Googleassistant, and Homekit Ecology to compatible with device that supports the Matter protocol. Graffiti's move is designed to seek the foothold of the third -party platform.

However, it is fatal to put it in front of the graffiti. On July 30 last year, two senior researchers at the American Institute of Enterprise Research published an article in the Congress Mountain News, entitled: "Graffiti may become a more serious threat of China than Russian ransomware."

The author advocates that the U.S. Congress should prohibit graffiti companies from operating in the United States based on security considerations and prohibit their exchanges with American companies. Graffiti's Chinese background has made it more and more abroad.

In China, graffiti also joined the OpenLink Association (OLA Alliance) on April 14, 2021.

The OLA Alliance was established on December 1, 2020. It is the IoT industry alliance jointly launched by the 24 academicians of my country, China Telecom, China Mobile, Tencent, Baidu, Haier and other units. Interoperability standards and industrial ecology.

Regardless of the ambitions of the domestic giants, under the tilt of resources and the blessing of traffic, how much reason does the remaining companies choose a third -party platform to graffiti in addition to the leading enterprises of self -built private clouds?

@创

Author 丨 Camphor Rice Editor 丨 Yi Page

Reference materials:

Leifeng.com "Graffiti:" Pride and Prejudice "of 100 billion yuan"

Huatai Financial "Graffiti Smart Leads AIOT, Intelligent Connection Driven Growth"

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