uCloudlink Group, Inc. · NASDAQ:UCL
uCloudlink — Q1 2021 Earnings Presentation
27 slides from uCloudlink's earnings presentation, May 2021
Slide 1: uCloudlink 1Q2021 Earnings Presentation
uCloudlink 1Q2021 Earnings Presentation May 2021
Slide 2: Disclaimer
Disclaimer By viewing, accessing, or participating in this presentation, you agree to be bound by the following limitations. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. This presentation has been prepared by UCLOUDLINK GROUP INC. (the “Comp
Slide 3: Company Overview
01 Company Overview
Slide 4: Vision and Mission
Vision and Mission Founders’ Story: “To enable people to use mobile data traffic freely anytime, anywhere like breathing the air” Vision Mission Connecting and Sharing without Make the World More Connected with Limitations Maximized Network Utility through the Power of Mobile Data Traffic Sharing 4
Slide 5: The World's First and Leading Mobile Data Traffic Sharing Marketplace
The World’s First and Leading Mobile Data Traffic Sharing Marketplace Data Traffic Sharing back Data Traffic Intelligent Data Traffic Factory International MNOs Travelers MVNOs Repackaging Re- Data Users Local Users Data Suppliers distributing SIM Card Resellers Dynamic Allocation Recycling Corporat
Slide 6: Innovatively apply "Navigation + Electronic Toll Pass" Concept to Data Connectivity
Innovatively apply “Navigation + Electronic Toll Pass” Concept to Data Connectivity Services Market Help elevate user experience and improve network efficiency Reliable data connection Unreliable data connection Users’ Major Pain Points We Always have Marginal Areas With Poor Network Coverage Our so
Slide 7: Our Innovative Cloud SIM Technology Facilitates Data Traffic Marketplace
Our Innovative Cloud SIM Technology Facilitates Data Traffic Marketplace Two Key Passes: 1 2 Global roaming pass: Seed SIM Local data connectivity pass: SIM Pool 5 Authentication response of 1 Seed-SIM sends initial signal 2 Server identifies SIM in the the remote SIM stored in the to server, includ
Slide 8: Hyper-Connectivity Solution Would Guarantee Network Data Connectivity
Hyper-Connectivity Solution Would Guarantee Network Data Connectivity 5 Crosses Cross Physical 3 methods Boundaries Identification Cross SIM Form Factors Hyper- Connectivity Monitoring Cross Networks Solution Cross Countries Optimization Cross Layers Navigation + Electronic Guarantee Data Multi-netw
Slide 9: Hyper-Connectivity Solution Provides Industries and Users with Robust Connection
Hyper-Connectivity Solution Would Provide Industries and Users with Robust Connection Robust Connection (Reliable, Speed, Safe) To Industries To Users • Education, Remote Working • Cargos and Logistics • • Internet of Vehicles, Hyper-Connectivity • Video and Entertainment • Autonomous Driving • AR/V
Slide 10: Multi-Network Millisecond Reselection – The Engine of the 5G Cloud Era
Multi-Network Millisecond Reselection – The Engine of the 5G Cloud Era Multi-network millisecond reselection technology of Cloud SIM - Accelerating the 5G Cloud Era GLOBAL 1 2 Local 5G Global 5G • Challenge: limited network coverage and lack of network • Challenge: high latency due to roaming, host-
Slide 11: The Evolution of Cloud SIM Business Models
The Evolution of Cloud SIM Business Models Increasingly Platform-centric Stage 1: B2C Retail Stage 2: B2B2C Wholesale Stage 3: PaaS/SaaS Platform Business Model • uCloudlink sells or leases GlocalMe • uCloudlink sells GlocalMe hardware • uCloudlink’s partners procure Description hardware and data pa
Slide 12: Clear Growth Strategies Across Business Models
Clear Growth Strategies Across Business Models Between Countries Between Carriers Full Marketplace 2.0 3.0 1.0 Capture Local Data Connectivity Data Traffic with Massive User Base Market Opportunity Strengthen Leadership Position Capitalize Scalable user base GlocalMe Inside App, accumulated through
Slide 13: Cloud SIM Technology Could Help Mobile Network Operators Decrease Churn Rate
Cloud SIM Technology Through PaaS and SaaS Platform Could Help Mobile Network Operators Decrease Churn Rate Main Reasons for China Users Mobile Number Portability (1) (switch mobile network operators) Alliance with Mobile Network Operators (MNOs) + Mobile Handset manufactories Cloud SIM Smart Multi-
Slide 14: Strategic Development and 5G Opportunities of Our Business
Strategic Development and 5G Opportunities of Our Business uCloudlink Business Alliances with MNOs, MBB + FBB Business and 5G Enhanced Sales and MVNOs and Business IoT Opportunities Opportunities Opportunities Marketing Partners Multi-network millisecond Japan and China reselection e-commerce Effort
Slide 15: 1Q 2021 Operating Highlights
02 1Q 2021 Operating Highlights
Slide 16: Our Business Performance and Operating Highlights
Our Business Performance and Operating Highlights Daily Active Terminals (DAT) (2) DAT Breakdown by uCloudlink 1.0 vs. 2.0 (2) (2) Daily Data Usage per Terminal # Terminals % GB Strong uCloudlink 2.0 User Adoption 4% 9% 13% 15% 265,800 25% (1) 2.01 1.98 50% (1) 64% 211,585 66% 67% 196,493 1.94 74% 7
Slide 17: Our Business and Revenue Are Increasingly Diversified Globally
Our Business and Revenue Are Increasingly Diversified Globally 94% Non-Mainland China Revenue Contribution 25 38 42 48 49 49 50 32% 32% 28% 36% 39% 36% 48% 19% 36% 53% 56% 58% 56% 47% 49% 32% 19% 8% 5% 5% 6% 2018 2019 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 Mainland,China Japan Other Countries Number of
Slide 18: 1Q 2021 Financial Highlights
03 1Q 2021 Financial Highlights
Slide 19: Percentage of Our Service-Related Revenues and COVID-19 Impact
Percentage of Our Service-Related Revenues and COVID-19 Impact Revenue segmentation based on product & services PaaS and SaaS services PaaS and SaaS services 5.8% 12.9% 2.0 local data connectivity 2.0 local data connectivity services revenues services revenues 7.3% 3.2% Sales of products 52.0% 1.0 i
Slide 20: Revenue Breakdown By Our Two Business Segments
Revenue Breakdown By Our Two Business Segments • Revenue, US$’MM $53.7 $44.1 $35.9 54% 54% $33.5 43% $24.7 48% 41% $21.0 18% 48% $18.0 $17.0 $17.7 -47.2%1 53% 57% 46% 45% 47% 53% -42.1%2 82% 59% 52% 52% 47% 55% 53% 47% -51.9%3 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 Revenue fr
Slide 21: Higher Service Gross Margin Over Overall Gross Margin
Higher Service Gross Margin Over Overall Gross Margin • Gross Profit(loss), US$’MM $40.0 63% 66% 70% 58% $35.0 55% 60% 51% $30.0 49% 50% 43% 41% 37% $25.0 42% 35% 35% 36% 40% $18.9 31% 31% $18.9 31% $20.0 35% 26% 30% $15.2 $15.0 $12.0 $11.8 20% $10.0 $5.5 $5.6 $5.3 $5.5 10% $5.0 0% $- -10% 2019Q1 20
Slide 22: Controlled Operating Expenses During Pandemic of COVID-19
Controlled Operating Expenses During Pandemic of COVID-19 R&D 3 • Operating expenses1, $US,MM 29% G&A 47% $18.0 S&M 90% $16.6 24% 83% $16.0 $15.3 80% $13.5 $14.3 $14.2 $14.0 71% 70% 65% $12.6 $12.0 $11.8 $12.0 60% 55% $10.2 $10.0 49% 50% $8.0 40% 43% $6.0 36% 30% 32% 31% $4.0 20% $2.0 10% $- 0% 2019
Slide 23: Asset Light Business Model with Normal Cash Flow
Asset Light Business Model with Normal Cash Flow • Operating Cash Flow, $US,MM $6.3 $6.7 $1.1 $0.3 $(0.4) $(1.9) $(2.8) $(5.5) $(6.7) 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 CAPEX, $US,MM $2.00 2.7% 3.0% 3.5% 2.2% $1.50 $1.2 1.7% 2.5% 1.2% 1.1% $1.0 $1.00 $0.9 1.0% 0.8% 1.5% 0
Slide 24: Net Income & Adjusted EBITDA
Net Income & Adjusted EBITDA Net Income, $US,MM $3.8 $2.1 $0.3 $0.2 $(2.0) 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 $(0.9) $(12.0) (1) $(9.7) (1) $(12.3) (1) $(15.4) $(22.0) $(32.0) $4.6 $(42.0) $(41.6) (1) Adjusted EBITDA, $US,MM $2.9 $1.2 $1.0 $0.2 2019Q1 2019Q2 2019Q3 2019Q4
Slide 25: Appendix – Financial Statement
Appendix – Financial Statement 25
Slide 26: Appendix – Financial Statement
Appendix – Financial Statement 26
Slide 27: Q&A
Q&A