uCloudlink Group, Inc. · NASDAQ:UCL
uCloudlink — Q3 2024 Earnings Presentation
35 slides from uCloudlink's earnings presentation, Nov 26, 2024
Slide 1: 3Q 2024 Earnings Conference Call Presentation
(Nasdaq: UCL) 3Q 2024 Earnings Conference Call Presentation November 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: Financial Highlights: Consistent Profitability and Solid Operating Cash Flow
Financial Highlights: Consistent Profitability and Solid Operating Cash Flow (Nasdaq: UCL) Total Revenues(1) Net Operating Net Income (1) Cash Inflow (1) US$25.2 million US$3.4 million US$2.0 million Note: 1. In Q3 2024 Related image Related image 3
Slide 4: Actively Attending Global Exhibitions to Enhance Market Exposure
Actively Attending Global Exhibitions to Enhance Market Exposure (Nasdaq: UCL) Expo 6 IFA Berlin Expo 1 Berlin CES 2024 Expo 5 Las Vegas Pet & Vet Expo Expo 4 Saudi Expo 3 Expo 2 Travel Meet Asia Viva Tech 2024 Jakarta MWC 2024 Paris Barcelona Related image Related image 4
Slide 5: GlocalMe MBB: Enhancing Leading Position in the Global Roaming Market
GlocalMe MBB: Enhancing Leading Position in the Global Roaming Market (Nasdaq: UCL) (Nasdaq: UCL) Innovative global full-speed 5G solutions Revenues from international data connectivity services cover 75 countries and regions, an (in US$MM) increase from 60 in the 2Q 2024. $11.5 $11.4 Q3'23 Q3'24 Re
Slide 6: GlocalMe Life: Breakthroughs Achieved in Major Channels
GlocalMe Life: Breakthroughs Achieved in Major Channels (Nasdaq: UCL) Breakthroughs achieved in several key market channels and expect more in the future Further Expansion Future Pipeline Plans to expand North American New solutions in distribution into Distribution development and Commercial German
Slide 7: GlocalMe SIM: Paving the Way For the More Powerful "All SIM" Solutions
GlocalMe SIM: Paving the Way For the More Powerful “All SIM” Solutions (Nasdaq: UCL) Upgrading and developing our GlocalMe SIM solutions Sales of OTA SIM service Paving the way “ALL SIM” OTA SIM resubscription for “ALL SIM” solution launch solution Expanding market Growing user base Highly-anticipat
Slide 8: GlocalMe IoT: Small-scale Commercial Application by Leading Manufacturers
GlocalMe IoT: Small-scale Commercial Application by Leading Manufacturers (Nasdaq: UCL) 2025 2024 Scale up user 2024 base Commercial Demonstrate the Internal testing application strength and Internal testing by Small-scale capabilities of our leading manufacturers commercial application technologies
Slide 9: Scaling User Base with Diverse Solutions to Build a Full Marketplace
Scaling User Base with Diverse Solutions to Build a Full Marketplace (Nasdaq: UCL) Full Marketplace GlocalMe GlocalMe IoT SIM GlocalMe GlocalMe Global potential Global potential Life MBB market of ~100 market of ~100 Global potential Global potential million of million of market of tens market of us
Slide 10: Operational Highlights
Operational 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 308,917 25% (2) 313,468 38% 42% 45% 45% 50% 297,082 52% 2.01 268,798 66% 1.94 68% 69% 1.73 265,894 1.68 (2) 1.55 1.52 196,493 75% 62% 58% 5
Slide 11: Geographically Diversified Revenue Streams
Geographically Diversified Revenue Streams (Nasdaq: UCL) (1) 72.2% 42 49 54 59 61 61 61 61 63 61 Non-Mainland China Revenue Contribution 10% 13% 12.8% 12.3% 12.8% 20% 16% 17.0% 15.7% 22% 12.8% 12.8% 26% 14.6% 10% 16.8% 26.3% 33% 28% 38% 36% 46.6% 46.6% 40.9% 46.2% 53% 44.2% 43% 49% 39% 32% 27.8% 27.
Slide 12: Revenue Breakdown
Revenue Breakdown (Nasdaq: UCL) Revenues US$mm $158.4 (Nasdaq: UCL) 42% 42% $89.6 $85.6 $73.8 $71.4 58% 32% 32% 48% 49% 35% 58% 68% $25.2 $23.9 $25.2 52% $18.1 $22.4 5.6%1 51% 68% 65% 9.3%2 75% 63% 69% 70% 69% 3.9%3 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Q3'23 Q3'24 Note: Revenue from Services R
Slide 13: Revenue Segmentation
Revenue Segmentation (Nasdaq: UCL) PaaS and SaaS services PaaS and SaaS services revenues Revenues12.0% 9.8% 2.0 local data 1.0 international 2.0 local data 1.0 international connectivity services data connectivity connectivity services data connectivity revenues 10.1% 69.7% services and Other servi
Slide 14: Gross Margin from Services Consistently Higher than Overall Gross Margin
Gross Margin from Services Consistently Higher than Overall Gross Margin (Nasdaq: UCL) Gross Profit US$mm Gross margin 70% 65.0% 80 60.9% 60.3% 60.0% 60.0% 58.5% 55.9% 56.0% 60% 55.2% 70 49.0% 49.2% 48.4% 45.5% 50% 60 42.8% 43.0% 51.2% 41.0% 48.4% 40% 50 31.6% 29.6% 30% 40 $64.9 20% 30 22% $42.0 $28
Slide 15: Improving Operational Efficiency
Improving Operational Efficiency (Nasdaq: UCL) (3) Operating expenses(1) US$mm R&D 19% 15% 27% G&A 30% 0 120% S&M $59.5 55%55% 0 35 120% 100% 0 $48.2 $47.1 30 100% 80% 64% 25 0 80% 54% $34.4 $34.6 60% 20 0 60% 38% 15 $9.7 48% 40% $8.7 $9.7 $8.7 0 40% $8.5 40% 10 20% 36% 39% 0 47% 39% 39% 20% 5 0% 0
Slide 16: Asset Light Business Model
Asset Light Business Model (Nasdaq: UCL) Operating Cash Flow US$mm $5.8 $6.5 $4.7 $4.4 $2.0 $1.9 $2.0 $2.8 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Q3'23 Q3'24 $(2.0) $(21.7) CAPEX US$mm 2.4% 7.2% 1.8% 1.9% 1.2% 4.4% 4.4% 0.6% 3.5% 3.5% $2.8 $1.7 $2.1 $1.6 $1.1 $1.1 $0.9 $0.8 $0.4 $0.6 2019 2020 2
Slide 17: Net Income & Adjusted EBITDA (non-GAAP)
Net Income & Adjusted EBITDA (non-GAAP) (Nasdaq: UCL) $15.0 Net Income/(Loss) US$mm (1) $15.0 $5.2 (1) (1) (1) $2.2 (1) $3.4 (1) $3.5 (1) $3.4 $2.8 $0.4 $5.0 $(5.0) 2019 2020 2021 2022 2023 Q1'24 Q2'24 $(5.0) Q3'24 Q3'23 Q3'24 (1) $(25.0) $(19.9) $(15.0) $(45.0) $(46.0) (1) $(25.0) $(65.0) $(63.4) (
Slide 18: Q&A
Q&A
Slide 19: Appendix
CG uCloudlink Appendix
Slide 20: Vision and Mission Statement
Vision and Mission Statement (Nasdaq: UCL) (Nasdaq: UCL) Connecting and Sharing without Limitations Better Connection Empowers Better Life To Make the World Better Connected with Maximized Network Utility through the Power of Mobile Data Traffic Sharing Related image Related image 20
Slide 21: World's First and Leading Mobile Data Traffic Sharing Marketplace
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 Recyclin
Slide 22: Addressing Data Connectivity Pain Points for Businesses and Consumers
Addressing Data Connectivity Pain Points for Businesses and Consumers (Nasdaq: UCL) “Enabling people to use mobile data traffic freely, anytime and anywhere” Consumers All Stakeholders Businesses International travel Everyday life All scenarios MNOs/MVNOs ➢ Cost of data roaming ➢ Keeping touch of ➢
Slide 23: Evolution of our Business
Evolution of our Business (Nasdaq: UCL) 2014 2018 - present - present 2024 - Vision MNO A MNO B MNO C uCloudlink 1.0 uCloudlink 2.0 uCloudlink 3.0 uCloudlink 3.0 Between Carriers GlocalMe Ecosystem Sharing Marketplace Between Countries (Trial Phase) (Next Phase) for cross-border travelers for local
Slide 24: Massive Market Opportunity and Scalable User Base
Massive Market Opportunity and Scalable User Base (Nasdaq: UCL) 9.8bn Global mobile Revenues E2030: US$1.2 8.6bn trillion 1,491.5mm 1,461.6mm 5.8bn 5.5bn 4.7bn 3.5bn 2024E International Tourist Arrivals 2019 International Tourist Arrivals 2030E SIM connections (excluding licensed cellular IoT) 2023
Slide 25: Scaling Up User Base to Build a Full Marketplace
Scaling Up User Base to Build a Full Marketplace (Nasdaq: UCL) Marketplace Embedded in Empower terminals third-party and third-party smart devices devices to intelligently select and dynamically switch between Seamless multiple local carriers connectivity to GlocalMe Inside worldwide Break out of cr
Slide 26: Expanding Business Beyond the Travel Sector into Various Aspects of Daily Life
Expanding Business Beyond the Travel Sector into Various Aspects of Daily Life (Nasdaq: UCL) GlocalMe Mobile/Fixed Broadband GlocalMe Life 01 02 Strengthen our leadership position Offering seamless connectivity to in the sector and redefine industry various high-frequency daily life benchmarks for c
Slide 27: Better Connection Empowers Better Life: Three GlocalMe Life Solutions Launched
Better Connection Empowers Better Life: Three GlocalMe Life Solutions Launched (Nasdaq: UCL) Pet Management 01 Search and Location 02 Item Tracking 03 Wi-Fi Hotspot 04 Others… The first three GlocalMe Life solutions launched in May at Viva Technology 2024 in Paris attracted widespread attention from
Slide 28: Profitable Monetization Model: Recurring Revenues with Scalable User Base
Profitable Monetization Model: Recurring Revenues with Scalable User Base (Nasdaq: UCL) Sales of Products Data Connectivity Services PaaS / SaaS Services … Retail Wholesale Usage-based Revenue-sharing and subscription-based ➢ Providing our business partners with cloud SIM platform services and ➢ The
Slide 29: 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 157 R&D Staff 183 169 business development, Across 61 Countries and Regions (3) K
Slide 30: Our Solution Enables Better Connections
Our Solution Enables Better Connections (Nasdaq: UCL) Better Data Connections for MNOs and Users Improves network coverage and alleviates congestion both 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, provid
Slide 31: Our Advanced Technology and Solutions Enable Secure and Robust Connectivity
Our Advanced Technology and Solutions Enable Secure and Robust Connectivity (Nasdaq: UCL) Cloud SIM Technology HyperConn Solutions Seed SIM Pool of SIM Cards (2) from 389 MNOs (3) Globally 183 Patents (1) Software-based Ready to Support All Three Generations of our Businesses Notes: 1. As of Septemb
Slide 32: Ecosystem Powered by Our PaaS and SaaS Platform
Ecosystem Powered by Our PaaS and SaaS Platform (Nasdaq: UCL) 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 E
Slide 33: 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 Trial phase for GlocalMe Ecosystem Single Operator Entry
Slide 34: Financial Statement
Financial Statement (Nasdaq: UCL) Related image Related image 34
Slide 35: Financial Statement
Financial Statement (Nasdaq: UCL) Related image Related image 35