uCloudlink Group, Inc. · NASDAQ:UCL
uCloudlink — Q4 2023 Earnings Presentation
30 slides from uCloudlink's earnings presentation, March 2024
Slide 1: 4Q and Full Year 2023 Earnings Conference Call Presentation
(Nasdaq: UCL) 4Q and Full Year 2023 Earnings Conference Call Presentation Mar 2024
Slide 2: Disclaimer
Disclaimer (Nasdaq: UCL) 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 I
Slide 3: Strong Set of Results in 2023
Strong Set of Results in 2023 (Nasdaq: UCL) Total Revenues Operating cash Net Income of inflow of increased US$2.8 US$6.5 19.8% million YoY million 3
Slide 4: Expanding Application Scenarios: Always Better Connection
Expanding Application Scenarios: “Always Better Connection” (Nasdaq: UCL) 1.0 International Data Connectivity Services • Continued to recover, especially in China and Japan • Chinese tourists using our Roamingman brand services further enhance our Chinese market share • Solidify our leading position
Slide 5: Four Distinct Product Lines
Better Connection Empowers Better Life ：Four Distinct Product Lines (Nasdaq: UCL) GlocalMe Mobile/Fixed Broadband GlocalMe • Continue to strengthen the foundation of our business: GlocalMe mobile/fixed GlocalMe broadband Mobile/Fixed SIM • Commercial upgrades for our 5G Customer Premises Equipment (
Slide 6: GlocalMe Life: Expanding Market Reach and Presence
GlocalMe Life: Expanding Market Reach and Presence (Nasdaq: UCL) Customers can enjoy our services anytime and anywhere through proprietary Upgraded GlocalMe APP terminals or third-party devices integrated with GlocalMe Inside (GMI) Search and Location Translation Services Services Digital Accessorie
Slide 7: Operating Highlights
Operating Highlights (Nasdaq: UCL) Daily Active Terminals (DAT) (1) DAT Breakdown: uCloudlink 1.0 vs. 2.0 (1) Daily Data Usage per Terminal (1) # Terminals GB 25% (2) 308,917 (3) 47% 47% 50% 52% 297,082 54% 57% 62% 66% 68% 69% (3) 1.68 (2) 1.55 75% 53% 53% 50% 48% 46% 43% 38% 34% 32% 31% Jan Feb Mar
Slide 8: Increasingly Diversified Global Revenue Streams
Increasingly Diversified Global Revenue Streams (Nasdaq: UCL) (1) 83% Non-Mainland China Revenues Contribution 49 54 59 61 60 63 63 61 59 61 16% 12% 16% 16% 18% 19% 36% 46% 44% 27% 58% 24% 24% 29% 34% 34% 53% 44% 43% 43% 43% 43% 49% 43% 44% 39% 13% 17% 17% 17% 11% 12% 5% 3% 5% 3% 2020 2021 2022 2023
Slide 9: Revenues Breakdown
Revenues Breakdown (Nasdaq: UCL) Revenues, US$MM 42% 100.0 $89.6 90.0 $85.6 80.0 $73.8 $71.4 70.0 32% 48% 60.0 49% 35% 50.0 $22.0 $23.9 $21.7 10.8%1 $19.6 $21.7 40.0 68% $18.0 30% 31% 30.0 52% 65% 36% 36% 31% -3.8%2 28% 20.0 51% 72% 64% 70% 69% 69% 19.1%3 10.0 64% - 2020 2021 2022 2023 Q1'23 Q2'23 Q
Slide 10: uCloudlink Services Increasingly Contributing to Revenues
uCloudlink Services Increasingly Contributing to Revenues (Nasdaq: UCL) Revenues Segmentation PaaS and SaaS services PaaS and SaaS services revenues revenues 12.8% 13.5% 1.0 international 2.0 local data connectivity 1.0 international 2.0 local data connectivity data connectivity services revenues da
Slide 11: Services Gross Margin Exceeds Overall Gross Margin
Services Gross Margin Exceeds Overall Gross Margin (Nasdaq: UCL) Gross Profit US$MM Gross margin 50.00 70.0% 50.00 70.0% 60.00 70.0% 60.5% 60.1% 45.00 59.4% 60.1% 58.5% 45.00 56.0% 58.0% 55.9% 60.0% 60.0% 60.0% 50.00 49.0% 40.00 52.0% 40.00 51.3% 52.0% 45.5% 50.0% 47.8% 51.2% 43.0% 43.0% $42.0 50.0%
Slide 12: Improving Operational Efficiency
Improving Operational Efficiency (Nasdaq: UCL) (3) Operating expenses(1), $US,MM 19% 27% R&D S&M 17% 35% 35.0 G&A 100% 60.0 100% 55% 48% 35.0 100% 90% 90% 30.0 50.0 $48.2 $47.1 90% 30.0 80% 80% 80% 25.0 70% 70% 25.0 70% 40.0 $34.4 $34.6 60% 53% 53% 60% 64% 20.0 53% 60% 20.0 50% 30.0 50% 54% 50% 38%
Slide 13: Asset Light Business Model
Asset Light Business Model (Nasdaq: UCL) Operating Cash Flow, $US,MM $6.5 $5.2 $4.4 $3.4 $2.8 $1.6 2020 2021 2022 2023 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q4'23 $(2.0) ($1.3) ($1.3) $(21.7) CAPEX, $US,MM 2.4% 2.5 2.5% 2.5 3.5% 4.0% 2.5 4.0% 1.9% 3.5% 3.5% 2.0 2.0% 2.0 3.0% 2.0 3.0% 2.2% 2.1% 1.5 1.2% 1.5%
Slide 14: Net Income & Adjusted EBITDA (non-GAAP)
Net Income & Adjusted EBITDA (non-GAAP) (Nasdaq: UCL) Net Income/ (Loss) , $US,MM (1) (1) (1) $2.1 $3.5 2020 2021 2022 2023 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q4'23 (1) (1) (1) (1) ($0.9) ($1.8) ($1.1) ($1.8) (1) (1) (1) Adjusted EBITDA (non-GAAP), $US,MM $4.1 $9.8 $2.1 $2.1 $1.5 $1.6 $1.5 2020 2021 2022
Slide 15: Appendix
G uCloudlink Appendix
Slide 16: Connecting and Sharing without Limitations
Vision and Mission Statement (Nasdaq: UCL) (Nasdaq: UCL) Connecting and Sharing without Limitations Mission Statement To Make the World Better Connected with Maximized Network Utility through the Power of Mobile Data Traffic Sharing Founders’ Story: “To enable people to use mobile data traffic freel
Slide 17: The World's First and Leading Mobile Data Traffic Sharing Marketplace
The World’s First and Leading Mobile Data Traffic Sharing Marketplace (Nasdaq: UCL) 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 Recy
Slide 18: Marketplace Evolution
Evolution of Our Business (Nasdaq: UCL) Phase I Phase II Phase III Startup Marketplace One-Stop Marketplace Sharing Marketplace 2014-2023 2023- Next MNO A MNO B MNO C uCloudlink 1.0 uCloudlink 2.0 uCloudlink 3.0 Between Countries Between Carriers Between Users Roaming Services Local Services Full Ma
Slide 19: uCloudlink's Unique Position in the Market
From Connected To Better Connection (Nasdaq: UCL) uCloudlink’s Unique Position in the Market to Address These Demands Peer-to-Peer Data Traffic Sharing 19
Slide 20: One-stop Mobile Data Traffic Sharing Marketplace Application
One-stop Mobile Data Traffic Sharing Marketplace Application (Nasdaq: UCL) One-stop Marketplace Within One APP Top up and go MNOs GlocalMe SIM (GlocalMe terminals) Marketplace Repackaging Re- Activation online distributing GlocalMe Inside (eSIM) (Third party devices) MVNOs Service Providers Dynamic
Slide 21: Clear Growth Strategies Across Business Models
Clear Growth Strategies Across Business Models (Nasdaq: UCL) Between Countries Between Carriers Full Marketplace 3.0 1.0 2.0 Capture Local Data Connectivity Data Traffic with Massive User Base Market Opportunity Strengthen Leadership Position Capitalize Scalable user base Single Operator Entry Point
Slide 22: Unique Business Model with High Barriers to Entry
Unique Business Model with High Barriers to Entry (Nasdaq: UCL) Telecom Class Service Quality Operational Strategic Global Proprietary Technology Team & Talent Complex Value Chain Track-record Partnerships (2) Business 146 R&D Staff 184 176 business development, Across 61 Countries and Regions (3) K
Slide 23: Operators Face Two Major Challenges: Coverage and Congestion
Operators Face Two Major Challenges: Coverage and Congestion (Nasdaq: UCL) Challenges for Mobile Network Operators Unreliable Indoor Wi-Fi Coverage Reliable data connection Unreliable data connection/weak signal May have Congestion • Poor coverage • May easily have congestion • Capital Intensive for
Slide 24: Our Solution Makes for a Better Connection
Our Solution Makes for a Better Connection Better Data Connection for MNOs and Users Effectively help improve networks’ coverage and congestions indoors and outdoors MNO A MNO B MNO C Wi-Fi Operator D Wi-Fi Operator E • Uses existing coverage to create more reliable data connections; Offers Better 5
Slide 25: Advanced Technology and Solutions Enable Secure Connectivity
Our Advanced Technology and Solutions Enable Secure and Robust Connectivity Cloud SIM Technology HyperConn Solutions Seed SIM Pool of SIM Cards (2) from 382 MNOs (3) Globally 184 Patents (1) Software-based Ready to Support All Three Generations of our Businesses Notes: 1. As of December 31, 2023, wi
Slide 26: Evolution of cloud SIM and HyperConn Business Models
The Evolution of cloud SIM and HyperConn Business Models (Nasdaq: UCL) Increasingly Platform-centric B2C Retail B2B2C Wholesale PaaS/SaaS Platform uCloudlink sells or leases GlocalMe uCloudlink sells GlocalMe hardware and uCloudlink’s partners procure customized hardware and data packages to retail
Slide 27: Ecosystem Powered by Our PaaS and SaaS Platform
Ecosystem Powered by Our PaaS and SaaS Platform PaaS Platform Industrial SaaS Platform Wi-Fi Router Terminals / Devices Full Business Software Solutions Hosting Partners’ SIM cards Hyperconn Customer Management and Billing Intelligent Selection of Best- performing Network Internet of Everything Traf
Slide 28: Financial Statement
Financial Statement (Nasdaq: UCL) 28
Slide 29: Financial Statement
Financial Statement (Nasdaq: UCL) 29
Slide 30: Q&A
Q&A