Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — H1 2024 Earnings Presentation
22 slides from Plover Bay Technologies's earnings presentation, Jul 25, 2024
Slide 1: Supercharging Connectivity - Interim Results 2024
Supercharging Connectivity Interim Results 2024 25 July, 2024
Slide 2: Our Vision, Who Are We, Key Facts
Our Vision We make connectivity reliable, anytime, anywhere Who Are We? Plover Bay Technologies Limited (stock code: 1523 HK) develops networking Key Facts technologies that enable supercharged connectivity. By combining fixed, mobile and satellite connectivity, users can build always-on networks any
Slide 3: What is Connectivity?
Expectation ● Connectivity should be simple ● Connectivity should always work ● Connectivity should be cost effective ● Connectivity should be easily accessible What is Connectivity? Reality ● Existing solutions overcomplicate ● Fixed Lines cannot reach everywhere ● Mobile is not 100% reliable ● The
Slide 4: What We Do: SpeedFusion
What We Do Supercharging Connectivity Connectivity Software & Cloud Services Connectivity Software & Cloud Services Supercharged Fiber/ Consumer Broadband 5G/LTE SpeedFusion ● Faster, more reliable network ● Deploy anywhere Passion Driven ● Enable new use cases Go-to-Market Partners Private LEO 5G/L
Slide 5: What We Do: Supercharged Connectivity
What We Do Supercharged Connectivity Markets Devices Enterprise + Public Safety Broadcasting Bank Enterprise Routers Balance 2500 EC SDX Pro EPX and more Enterprise + Events Construction Telemedicine Maritime Mobility HD1 Dome Pro Dome Pro LR MBX PDX and more Mobile + and more IoT Transport Pop-up R
Slide 6: Business Highlight: New Connectivity Options
Business Highlight New Connectivity Options Create New Opportunities Increasing adoption by enterprises for Further integration Became Starlink with Starlink their critical networks. Authorized Technology Provider in January 2024 Integration with more LEO Over 50 partners Increasing scale and other
Slide 7: Business Highlight: Elevating Market Standing
Business Highlight Elevating Market Standing leading to Larger Opportunities During the period, scale and depth of deployments with a major US carrier increased substantially. Peplink helps the carrier generate multi-million new sales in data plans, on top of equipment sales Secured large multi-year
Slide 8: Business Highlight: New Products
Business Highlight New Products Optimized for Scale, Ease of Use and Versatility In early 2024, we launched the B One series Peplink App - Manage your home or small office network your phone, strong emphasis on ease of use ● Fixed-line only and 5G variants ● Highly versatile, can bond multiple Fixed
Slide 9: Investment Highlights: Growing Peplink Ecosystem
Investment Highlights 1. Growing Peplink Ecosystem Access to a wide range of industry verticals Subscription-Enabled Top 10 verticals by number of deals won (January to June 2024) Convenience Features Maritime 18% Proprietary Connectivity Technologies Public Safety 11% SpeedFusion Retail & Hospitali
Slide 10: Investment Highlights: LEO Services Expand Market
Investment Highlights 2. LEO services expands our addressable market: Jan 2024 - Became Starlink’s first Authorized Technology Provider: ● Built-in management of Starlink dishes provides strong advantage over other solutions ● Created new channel program to promote Peplink + Starlinks solutions Resul
Slide 11: Investment Highlights: Growing Need for Connectivity
Investment Highlights 3. Constant growing need for better connectivity Market trends from 2023 to 2030: ● Number of IoT connections increasing at 16% CAGR¹ ● Mobile data traffic expected to increase at 19% CAGR¹ ● 4G & 5G FWA connections expected to grow from 130 million to 330 million¹ 1. Ericsson Mo
Slide 12: Investment Highlights: Recurring Revenue Pipeline
Investment Highlights 4. Growing recurring revenue pipeline Strategies to drive subscription growth: ● Continue to grow user base with capable devices priced at very competitive price points ● Develop new convenience features & increase content value to drive subscription rates Strong subscription g
Slide 13: Interim Results 2024
technologies Interim Results 2024 eee ee
Slide 14: Financial Summary
Financial Summary Financial summary Period ended 30 June YoY growth (US$’000, unless otherwise stated) 2023 2024 (%) Revenue 44,632 57,298 +28.4% Gross profit 23,799 31,745 +33.4% Other income & gains, Operating expenses, and Finance cost (8,912) (9,035) +1.4% Profit before tax 14,887 22,710 +52.5% Ne
Slide 15: Revenue by Product Segment
Revenue by Product Segment Segment Period ended 30 June YoY Growth (US$’000) 2023 2024 (%) Key drivers Fixed First Connectivity 8,151 8,752 +7.4% Peplink Starlink program contributed to the sales growth of both Connectivity segments Mobile First Connectivity 21,713 32,194 +48.3% Sizeable increase in
Slide 16: Recurring Revenue
Recurring Revenue Period ended 30 June Recurring Revenue highlights Recurring revenue Underlying drivers of recurring revenue remains robust: (US$’000) 2023 2024 ● No. of devices under subscription at June 2024 increased 34.9% YoY Recurring sales 13,945 15,732 ● Take up rate at June 2024 increased t
Slide 17: Revenue by Region
Revenue by Region Region Period ended 30 June Growth US$ thousands 2023 2024 (YoY) North America 26,667 36,761 +37.9% EMEA 12,131 14,725 +21.4% Asia 4,732 4,061 -14.2% Others 1,102 1,751 +58.9% Total 44,632 57,298 +28.4% 17
Slide 18: Gross margin
Gross margin Continued margin improvement during the period ● Gross margin has increased from 53.3% in 1H23 to 55.4% in 1H24 ● Gross margin improved due to: ○ Lower component cost for Fixed First & Wireless First products ○ More concentrated product portfolio enabled better economies of scale 18
Slide 19: Operating expenses
Operating expenses Operating expenses Period ended 30 June % of revenue (US$’000) 2023 2024 2023 2024 Selling & Distribution expenses 1,519 1,853 3.4% 3.2% General & admin expenses 3,454 3,688 7.7% 6.4% Research & development 4,339 4,204 9.7% 7.3% Total Opex 9,312 9,745 20.8% 16.9% 19
Slide 20: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights Balance Sheet Summary Period ended Working capital turnover days Period ended (US$"000) 6/2023 12/2023 6/2024 (Number of days) 6/2023 12/2023 6/2024 Trade and other receivables 15,577 22,385 20,204 Trade and other receivables 62 days 72 days 68 days Inventories
Slide 21: Revenue Recognition of Different Segments
Appendix Revenue Recognition of Different Segments Segment Product Description Revenue Model SD-WAN Routers ● Routers and supporting devices that predominantly use fixed networks Non-recurring Fixed first connectivity ● Purchase includes 12 months warranty and full access to software Supporting Networ
Slide 22: Thank You
Thank You Disclaimer Plover Bay Technologies Limited is listed on the Hong Kong Stock Exchange (Ticker: 1523 HK). Plover Bay Technologies Limited is incorporated in the Cayman Islands with limited liability. The information contained in this presentation is intended solely for your personal referenc
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