Doodle Smart, after the bonus will be a field of chicken feathers?


With the bonus of IoT, the track is increasingly crowded. Whether The Doodle Intelligence, which is driven by capital, can maintain its technological advantage is still uncertain.During the Spring Festival, with the popularity of IoT smart devices in daily life, related topics have become hot again.As the only IoT platform company listed in the US, The neutrality of Doodle Intelligence, which is different from Xiaomi, Haier, Huawei and other manufacturers, gives it some unique reference value in the industry.But The performance of Doodle Intelligence in the U.S. stock market has not been satisfactory.In 2021, “the first stock of global IoT Cloud platform”, The stock price of Doodle Intelligence started a pattern of continuous decline, from a high of $26 at the beginning of 2021, by the end of January 2022, the stock price of Doodle Intelligence was $5.74, a decline of nearly 80%.Doodle Intelligence is backed by glittering star capital. Tencent is expected to invest at least $100 million, and Hillhouse is expected to invest at least $100 million, according to the prospectus. Hillhouse bought for $12.48 each at the time, meaning that both investors are losing money on their investments.Why is doodle intelligence, so revered in the industry, so absent in the capital markets?In its most recent earnings report, DooSmartreported revenue of $85.6 million in the third quarter of 2021, up 44.9 percent from the same period last year, which is impressive given the amazon blackout and the downward consumer electronics cycle.On the other hand, The net loss of Doodle Intelligence was 262.8 percent and operating loss 256.5 percent, respectively. Net profit margin and operating profit margin both fell 33.7 percent and 34.2 percent year-on-year.In the fourth quarter of 2021, Doodle Intelligence also predicted revenues of $72 million to $77 million, up 14% to 22% year on year, significantly down from the previous quarter. Even in the fourth quarter of 2021, the pressure of shipping costs and capacity will significantly extend the delivery cycle of smart products.In addition, the continuous inflation in Europe and the United States has also weakened residents’ willingness to consume consumer electronic products, which has also triggered concerns about the slowdown in the growth of graffiti intelligent IoT PaaS business in the market.In the third quarter of 2021, Revenue from Internet of Things (PaaS), Doodle Intelligence’s main business, was $72.6 million, up about 37.4% year on year.New business SaaS and other revenues were $5.6 million, an increase of approximately 214.2% year over year.This means that while the SaaS business of Doodle Intelligence has maintained strong growth momentum, the IoT PaaS segment is still the core revenue source for Doodle.Although The gross margin of Doodle Intelligence is increasing, with gross profit of us $36.4 million in q3 2021, up 79.2% from US $20.3 million in the same period of 2020, the operating margin is still negative.Its operating margin was -57.5% in the third quarter of 2021, down from the same period in 2020.The scale of the continued expansion of losses behind the primary inseparable from the soaring costs.In the third quarter, Doosmartsaw a significant increase in operating costs, with sales and marketing expenses of $21.2 million, up 115.8% from $9.8 million in the same period in 2020.Spending on research and development is also growing.In the third quarter of 2020, the r&d expenses of Doodle Intelligence reached 50.74 million US dollars, up 153% year on year, and the technical personnel increased by about 86% year on year, accounting for about 72%.Losing money has become a common problem at this track, and the high investment in research and development costs is endless.After all, for SaaS, PaaS service platform, burning money is the only way, no one can avoid.For example, wechat, which focuses on e-commerce SaaS, spent 304 million yuan on R&D alone in the first half of 2021, with a year-on-year growth of 239%. R&d will inevitably lead to pressure on the profit space of enterprises.Results show that as of September 30, 2021, graffiti intelligence has the cash and cash equivalents and short-term investments of $1.1796 billion, and compared with deep-pocketed competitors, does not seem to have advantage, represented by haier, gree, midea, millet, and ali, the AWS cloud giants such as more have the upper hand in market resources, channels, technology,More efforts will be made to grab the Internet of things pie.Can Doodle Intelligence do SaaS well?Since its listing, Doodle Intelligence has touted the concept of “the first global IoT cloud platform”, and its share price once soared to more than $20. At that time, it was not happy in the New York Stock Exchange. According to CIC, Doodle Intelligence is the largest PaaS provider of Internet of Things in the world.The layout of Doodle Intelligence is also extensive. Doodle Intelligence is not limited to the Internet, many traditional industries such as hotel & AMP;Apartment, real estate, commercial lighting and other areas are the scope of Doodle Intelligence customers.Not everyone can do well in the PaaS market. In the field of PaaS in China, Doodle Intelligence is still facing serious competitors, such as Inspur, Ufida, SAP, Kingdee, enjoying customers and Saleseasy.In the face of many competitors, Doodle Intelligence has grasped the segmentation needs of some customers and focused on the IoT industry, which makes It stand out quickly and is also the reason why It has accumulated a large number of customers in the FIELD of PaaS. The total number of customers in the third quarter of the IoT PaaS is about 3,000, with 306 high-quality customers.Premium customers contributed 89.2% of revenue.However, compared with the more mature PaaS, The size of The SaaS business is relatively small, and the development is still in the preliminary stage, so it cannot become the core business of the company. At present, the two “legs” of PaaS and SaaS are seriously different, rather than balanced and parallel development, which also affects the confidence of investors.As a result, Doodle Intelligence has been looking for new stories over the years in order to reach more SaaS customers.For example, the first is the extensive overseas layout.For example, in terms of hotel apartments, it has covered more than 40,000 hotel and apartment rooms and connected about 500,000 graffiti consumer electronic devices in daily use. In terms of commercial lighting, domestic education, manufacturing and other scenes, it also generates 15% of its income from overseas markets.In addition, Doodle Intelligence is expanding into more scenes, such as real estate & AMP;In terms of community, besides obtaining more SaaS contracts from real estate groups and property management companies, it has also gradually expanded from residential communities to industrial parks, school parks, logistics parks, etc., as well as solutions based on intelligent travel ability and intelligent pet equipment…As Yang Yi, co-founder and COO of Doodle Intelligence, said, “Doodle knows no boundaries.” Doodle is rapidly expanding and developing in every region of the overseas market. According to statistics, doodle developers have been distributed in more than 200 countries and regions.Internet of Things, as a highly digitized and informationized system, is becoming the focus in the field of science and technology, and has penetrated into more and more fields, such as smart agriculture, smart industry, smart retail, smart transportation and so on. These are also the ambition of Doodle Intelligence, but despite expansion, technology still comes first.For example, the face recognition function of the Internet of Things still has room for development, and users’ inaccurate recognition will affect their experience. Therefore, how to defend the city after the “attack” of Doodle Intelligence needs to continue to improve its technological advantages.In the long term, it’s not out of the question that the SaaS business will become a long-term revenue driver for Doodle Intelligence, but it still has a long way to go to catch up with the PaaS core business.In the context of continuous hot demand in the IoT industry, how to get rid of losses as soon as possible and achieve a more balanced development in the long term will be the main task of Doodle Intelligence, after all, the accumulation of domestic and overseas SaaS users is a long-term process.Can it sustain its dominant position?There are generally three types of IoT platform ecology platforms in the market. One is a comprehensive model represented by Xiaomi, which makes both hardware and software. In other words, it provides multi-brand products and open services.The other is represented by Haier Zhijia, whose ecology is limited to its own brand and only does its own single brand service.Doodle Intelligence, on the other hand, aims to provide an open service platform for many brands and manufacturers, including the long tail manufacturers of the Internet of Things. It focuses on the core and makes a lot of difference. This business strategy also brings benefits to Doodle Intelligence.According to the statistics of China Academy of Information and Communication technology, among the top IoT platforms, the number of newly connected devices in 2020 and the year-on-year growth rate were 117 million and 94%, respectively, ranking the first in the industry. The market position also has obvious advantages, which is significantly ahead of Haier, Xiaomi and other IoT platforms based on their own brand ecology.Also ahead of Ali Cloud, AWS and other specialized To B comprehensive platform.But competition in the Internet of Things market remains fierce.In September 2021, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development and other eight departments jointly issued the “Three-year Action Plan for New Infrastructure Construction of the Internet of Things” (2021-2023), which also shows that IoT has become a key word in the new round of technology industry. Under the dividend of The Times, players on the same track will not miss this draught.Today, a large number of Internet giant, the traditional manufacturing enterprises to the Internet of things, naturally make the circuit more crowded, such as ali cloud, millet in the Internet of things, the layout of the smart home, these competitors are higher than graffiti intelligent recognition, customer relationship is more and more perfect, marketing and sales into a much larger scale, graffiti intelligent the challenge is not small.On the other hand, Doodle Intelligence is also stepping up its moat construction. For example, it has launched smart sensor solutions and smart sensor push services related to the Internet of Things infrastructure in more than 190 countries around the world.At the same time, the security of the Internet of Things platform has been questioned, citic Securities published a report on Doodle Intelligence also pointed out that the market has some concerns about data security risks in Some regions of Europe and the United States.To this end, There is still great uncertainty as to whether Doodle Intelligence’s private cloud solution will be able to address data security concerns in some markets.In short, for the Internet of Things platform, the whole Internet of Things industry is still in the development stage, some industry insiders pointed out that the Internet of Things is still highly fragmented, in the head of their respective segments, only the demand insight and technical input can truly conform to the industry trend, there is a possibility of sustainable leadership.CIC expects TAM for IoT PaaS and SaaS platforms to reach $171.7 billion and $237 billion in 2024, with compound growth rates of 18.9% and 12.9%, respectively.Despite its promising prospects, the competition is fierce and the landscape is volatile, making it difficult for Doodle Intelligence to maintain a strong lead.In the long term, it will be interesting to see whether the IoT PaaS business can grow significantly, when the break-even will be achieved, and whether graffiti can continue its competitive advantage.Stay tuned for more content from # DoodleSmart.Copyright, all rights reserved.If involved in infringement, please contact to delete.

Leave a Reply

Your email address will not be published.