uCloudlink Group, Inc. · NASDAQ:UCL
uCloudlink — Q2 2021 Earnings Presentation
27 slides from uCloudlink's earnings presentation, August 2021
Slide 1: 2Q2021 Earnings Presentation
(Nasdaq: UCL) 2Q2021 Earnings Presentation August 2021
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: uCloudlink Company Overview
01 uCloudlink Company Overview (Nasdaq: UCL)
Slide 4: Vision and Mission Statement
Vision and Mission Statement (Nasdaq: UCL) (Nasdaq: UCL) Connecting and Sharing without Limitations Mission Statement To Make the World More Connected with Maximized Network Utility through the Power of Mobile Data Traffic Sharing Founders’ Story: “To enable people to use mobile data traffic freely
Slide 5: 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 6: 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 7: Our Solution Can Make for a Better Connection
Our Solution Can Make for a Better Connection (Nasdaq: UCL) Better Data Connection for MNOs and Users MNO A MNO B MNO C Wi-Fi Operator D Wi-Fi Operator E • Uses existing coverage to create more reliable data connections; help Operators and Users Better 5G Data Connected • Seamless coverage for end u
Slide 8: Our Core Technology Enabling Data Traffic Marketplace (Cloud SIM)
Our rooting Technology enabling Data Traffic Marketplace (Cloud SIM) (Nasdaq: UCL) 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 serv
Slide 9: Our Advanced Technology Enabling Secured and Robust Connectivity (HyperConn)
Our advanced Technology enabling Secured and Robust Connectivity (HyperConn) (Nasdaq: UCL) Cloud SIM Developed to HyperConn Stage and Products are ready to launch to the market after commercial trials Compatible with fast development of 2.0 business, GIocalMe Inside, Wireless Networks, Education, Au
Slide 10: The 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 11: Clear Growth Strategies Across Business Models
Clear Growth Strategies Across Business Models (Nasdaq: UCL) 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 Single Operator Entry Point to Capitalize Scalable user b
Slide 12: 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 249 R&D Staff (2) 160 165 business development, Business Across 52 Countries and Knowhow Paten
Slide 13: uCloudlink 1.0: Expect Recovery Post COVID-19 Pandemic
uCloudlink 1.0：Expect Recovery Post COVID-19 Pandemic with More Growth Potential (Nasdaq: UCL) uCloudlink 1.0: International Data Connectivity Services Established track record and global leading position in the Expect Greater Tourist demand and Recovery of International travel; international data c
Slide 14: uCloudlink 2.0: Rapid Growth Track Record of Local Demand
uCloudlink 2.0: Rapid Growth Track Record of Local Demand and Massive Opportunities (Nasdaq: UCL) Our New HyperConn Technology Contributes to the Development and Growth of Our uCloudlink 2.0 Business. We Expanded the Business Scope of Our Local Data Connectivity Services Help Operators to Win 5G Eve
Slide 15: 2Q 2021 Operating Highlights
02 2Q 2021 Operating Highlights
Slide 16: Our Business Performance and Operating Highlights
Our Business Performance and Operating Highlights (Nasdaq: UCL) 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 50% 249,506 (1) 64% 1.90 66% 67% 68%
Slide 17: Our Business and Revenue Are Increasingly Diversified Globally
Our Business and Revenue Are Increasingly Diversified Globally (Nasdaq: UCL) 92% Non-Mainland China Revenue Contribution 38 42 48 49 49 49 50 52 32% 32% 28% 36% 39% 36% 39% 48% 19% 36% 53% 56% 58% 53% 56% 47% 49% 32% 19% 8% 5% 5% 6% 8% 2018 2019 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 Mainland,Chi
Slide 18: 2Q 2021 Financial Highlights
03 2Q 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 (Nasdaq: UCL) Revenue segmentation based on product & services PaaS and SaaS services PaaS and SaaS services 2.2% 16.4% 2.0 local data connectivity services revenues 2.0 local data connectivity 14.4% services revenues 6.1% Sales of produ
Slide 20: Revenue Breakdown By Our Two Business Segments
Revenue Breakdown By Our Two Business Segments (Nasdaq: UCL) $53.7 Revenue, US$’MM $44.1 54% 54% $35.9 43% $33.5 $24.7 41% 48% $21.0 18% $19.2 -8.5%1 $18.0 $17.7 $17.0 53% 53% 52% 82% 59% 57% 46% 45% 47% 53% -11.2%2 52% 47% 47% 48% 55% 53% 47% -5.5%3 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3
Slide 21: Higher Service Gross Margin Over Overall Gross Margin
Higher Service Gross Margin Over Overall Gross Margin (Nasdaq: UCL) • Gross Profit(loss), US$’MM $40.0 63% 66% 70% 58% $35.0 55% 60% 51% $30.0 49% 45% 50% 43% 41% 37% $25.0 42% 35% 35% 36% 40% 31% 31% $18.9 31% 28% $20.0 $18.9 35% 26% 30% $15.2 $15.0 20% $12.0 $11.8 $10.0 10% $5.5 $5.6 $5.3 $5.5 $5.
Slide 22: Controlled Operating Expenses During Pandemic of COVID-19
Controlled Operating Expenses During Pandemic of COVID-19 (Nasdaq: UCL) (3) R&D Operating expenses(1), $US,MM 26% G&A 43% $18.0 S&M 90% $16.6 31% 83% $16.0 $15.3 80% $14.3 $14.2 71% $14.0 $13.5 $11.8 70% $12.0 65% $12.6 61% $12.0 $11.8 60% $10.2 55% $10.0 50% 49% $8.0 40% 43% $6.0 36% 30% 32% 31% $
Slide 23: Asset Light Business Model with Normal Cash Flow
Asset Light Business Model with Normal Cash Flow (Nasdaq: UCL) Operating Cash Flow, $US,MM $6.3 $6.7 $1.1 $0.3 $(0.4) $(1.9) $(2.8) $(5.5) ($6.1) $(6.7) 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 CAPEX, $US,MM $2.00 2.7% 3.0% 3.5% 2.2% $1.50 $1.2 1.7% 2.5% 1.2% $1.0 1.3% $
Slide 24: Net Income & Adjusted EBITDA
Net Income & Adjusted EBITDA (Nasdaq: UCL) Net Income, $US,MM $3.8 $2.1 $0.3 $0.2 $(2.0) 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 $(0.9) $(12.0) $(9.7) (1) (1) $(8.2) (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
Slide 25: Appendix – Financial Statement
Appendix – Financial Statement (Nasdaq: UCL) 25
Slide 26: Appendix – Financial Statement
Appendix – Financial Statement (Nasdaq: UCL) 26
Slide 27: Q&A
Q&A