uCloudlink Group, Inc. · NASDAQ:UCL
uCloudlink — Q2 2020 Earnings Presentation
24 slides from uCloudlink's earnings presentation, August 2020
Slide 1: uCloudlink 2Q2020 Earnings Presentation
uCloudlink 2Q2020 Earnings Presentation August 2020
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: Founders' Story: 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: uCloudlink Enables the First Global 5G Connectivity Platform
uCloudlink Enables the First Global 5G Connectivity Platform GLOBAL 1 2 Local 5G Global 5G • Challenge: limited network coverage and lack of network • Challenge: high latency due to roaming, host- enabler sharing carriers imposing speed / usage limits on 5G • Cloud SIM Solution: Connects local 5G ne
Slide 7: 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 8: Our Innovative Cloud SIM Technology
Our Innovative Cloud SIM Technology - Enables Marketplace Access to the Best Connectivity Globally 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 store
Slide 9: Clear Growth Strategies Across Business Models
Clear Growth Strategies Across Business Models Between Countries Between Carriers Full Marketplace 2.0 3.0 1.0 Full marketplace of Data Traffic with Massive Capture Local Data Connectivity User Base Market Opportunity Strengthen Leadership Position Capitalize Scalable user base GlocalMe Inside App,
Slide 10: New Appointment of Co-CSO
New Appointment of Co-CSO Recent appointment of Mr. Xinquan (Victor) Xu as our Co-Chief Sales Officer Mr. Xu possesses strong track record in managing the end to end product cycle from development to strategic global marketing of consumer goods such as mobile phone products, in addition to his exten
Slide 11: 2Q 2020 Operating Highlights
02 2Q 2020 Operating Highlights
Slide 12: Our Business Performance and Operating Highlights
Our Business Performance and Operating Highlights (2) Daily Active Terminals (DAT) (2) DAT Breakdown by uCloudlink 1.0 vs. 2.0 (2) Daily Data Usage per Terminal # Terminals % GB Strong uCloudlink 2.0 User Adoption 256,503 265,800 (1) (1) 2.16 4% 9% 1.94 13% 15% 25% 50% +2.3x 64% 74% +2.3x 114,540 96
Slide 13: Our Business and Revenue Are Increasingly Diversified Globally
Our Business and Revenue Are Increasingly Diversified Globally 92% Non-Mainland China Revenue Contribution 25 38 42 48 49 26% 28% 32% 32% 36% 12% 19% 36% 53% 56% 62% 49% 32% 19% 8% 2017 2018 2019 2020Q1 2020Q2 Mainland,China Japan Other Countries Number of countries and regions based on partners’ re
Slide 14: 2Q 2020 Financial Highlights
03 2Q 2020 Financial Highlights
Slide 15: 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 2.0 local data connectivity services 2.0 local Data 1384% YoY Growth revenues connectivity services 0.6% revenues 14.7% Sales of products 59.5% 1.0 International data connectivity 46.9% 1.
Slide 16: Revenue Breakdown By Our Two Business Segments
Revenue Breakdown By Our Two Business Segments $53.7 2.0 local data connectivity • Revenue, US$’MM services revenues has a C.14X $44.1 YoY Growth $35.9 54% $33.5 43% 43% 54% $24.7 41% $21.0 48% 48% 18% -41.5%1 57% 46% 53% -24.0%2 57% 46% 52% 82% 59% 47% -53.5%3 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 202
Slide 17: Higher Service Gross Margin Over Overall Gross Margin
Higher Service Gross Margin Over Overall Gross Margin • Gross Profit(loss), US$’MM $40.0 66% 70% 63% 58% $35.0 55% 60% 51% $30.0 49% 50% 43% $25.0 42% 35% 35% 40% $18.9 $18.9 $20.0 35% 26% 30% $15.2 $15.0 $12.0 $11.8 20% $10.0 $5.5 10% $5.0 0% $- -10% 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 Gross
Slide 18: Controlled Operating Expenses During Pandemic of COVID-19
Controlled Operating Expenses During Pandemic of COVID-19 R&D • Operating expenses1, $US,MM 29% G&A 3 41% S&M $18.0 60% $16.6 30% $16.0 55% $15.3 $14.3 49% 50% $14.0 $13.5 $12.0 $12.0 43% 40% $10.2 $10.0 36% 32% 30% $8.0 31% $6.0 20% $4.0 10% $2.0 $- 0% 2019Q1 38% 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2
Slide 19: Asset Light Business Model with Normal Cash Flow
Asset Light Business Model with Normal Cash Flow • Operating Cash Flow, $US,MM $6.7 $6.3 $1.1 $0.3 $(1.9) $(2.8) 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 CAPEX, $US,MM $2.00 2.7% 3.0% 3.5% $1.50 $1.2 1.7% 2.5% 1.2% 1.1% $1.0 $1.00 $0.9 1.0% 1.5% $0.50 $0.3 $0.4 $0.2 0.5% $- -0.5% 2019Q1 2019Q2 2019
Slide 20: 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 $(0.9) $(12.0) $(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 2020Q1 2020Q2 $(3.1) Note: 1. Including share-based com
Slide 21: Appendix – Financial Statement
Appendix – Financial Statement 21
Slide 22: Appendix – Financial Statement
Appendix – Financial Statement 22
Slide 23: Appendix – Financial Statement
Appendix – Financial Statement 23
Slide 24: Q&A
Q&A