Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — FY2022 Earnings Presentation
23 slides from Plover Bay Technologies's earnings presentation, Feb 23, 2023
Slide 1: Supercharging Connectivity: Annual Results 2022
Supercharging Connectivity Annual Results 2022 23 February, 2023
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) Key Facts supercharges connectivity with a range of routers and software features, enabling easy-to-use, fast and reliable connectivity anywhere. ● Revenue (2022): US$86.8M ●
Slide 3: What is Connectivity?
Expectation ● Connectivity should be simple ● Connectivity should always work ● Connectivity should be cost effective ● Connectivity should be there when needed What is Connectivity? Reality ● Existing solutions overcomplicate ● Fixed Lines cannot reach everywhere ● Mobile is not 100% reliable ● You
Slide 4: What We Do: Supercharging Connectivity
What We Do Supercharging Connectivity Connectivity Software & Cloud Services Supercharged ● Fiber / Broadband ● Consumer 5G/LTE ● Faster, more reliable network ● Private 5G/LTE ● Deploy anywhere ● LEO satellite Passion Driven Go-to-Market Partners ● Enable new use cases Purpose-Designed SpeedFusion
Slide 5: What We Do: Supercharging Connectivity
What We Do Supercharging Connectivity ● Mission critical connectivity Public Safety Broadcasting Telemedicine Maritime ● Essential connectivity Bank Enterprise Construction Large Events ● Better connectivity Retail Small Offices Pop-up Stores Home Offices ● Wireless connectivity Remote WFH Transport
Slide 6: Case Study Spotlight: Starlink x Peplink
Case Study Spotlight Starlink x Peplink Background One of the world’s largest cruise ship operators explored using Starlink to provide better onboard experience for guests and crews fleetwide A single Starlink connection is not sufficient for all passengers and crew onboard. Using multiple but separ
Slide 7: Case Study Spotlight: Malaysian Fast Food Chain
Case Study Spotlight Branch network deployment for a Malaysian fast food chain Background The customer is a fast food chain operator in Malaysia with over 1,000 locations. The customer is seeking to upgrade its network infrastructure to improve store operations. Previously, the customer relied on on
Slide 8: Case Study Spotlight: Network as a Service Business Model
Case Study Spotlight Extending the Network as a Service Business Model Background Solution Result A corporate shuttle bus service ● NaaS business model: Provided ● Project revenue exceeded 1% of 2022 provider for tech companies in networking equipment, built-in 5G/LTE data total revenue California,
Slide 9: Investment Highlights: Peplink ecosystem
Investment Highlights 1. Peplink ecosystem… … enables long-tail market reach. Vertical breakdown of number of deals won in 2022 1 Purpose-designed Proprietary connectivity Routers and Devices technologies (SpeedFusion) Subscription-enabled Passion Driven convenience features Go-to-Market Partners 1.
Slide 10: Investment Highlights: Growing wireless connectivity need and ecosystem
Investment Highlights 2. Growing need for wireless connectivity worldwide ● Number of IoT connections increasing at 19% CAGR¹. ● Mobile data traffic increasing at 29% CAGR¹. 3. Growing Peplink ecosystem >1,000 14% 436,000 +33% YoY attendants CAGR (+25% YoY) Starlink x Peplink webinar, Routers shippe
Slide 11: Investment Highlights: Growing recurring revenue pipeline
Investment Highlights 4. Growing recurring revenue pipeline ● Overall growth ○ Recurring revenue reached US$23.8m, +37% YoY ● Strong subscription growth: ○ Number of devices under a subscription¹ at 31 Dec 2022 increased 33% YoY ○ New subscription bookings² increased 49% YoY ○ Will continue to enhan
Slide 12: Gearing up to Accelerate Growth: Private 5G / LTE
Gearing up to Accelerate Growth Growth Initiatives in Short to Medium Term 1. Develop Private 5G / LTE network capability What is Private 5G network? ● Non-telecom entities (large enterprise, manufacturing sites) Connectivity Software directly lease RF spectrum to create their own private 5G / & Clo
Slide 13: Gearing up to Accelerate Growth: Partnerships
Gearing up to Accelerate Growth Growth Initiatives in Short to Medium Term 2. Explore partnership or crossover opportunities with IoT/SaaS service providers ● Leverage service provider partners’ expertise and customer base in their domestic markets ● Leverage our extensive product portfolio to enhan
Slide 14: Results 2022
technologies Results 2022 eee ee
Slide 15: Financial Summary
Financial Summary Year ended 31 December Financial period 2022 (US $'000) 2018 2019 2020 2021 2022 vs. 2021 Revenue 41,806 45,910 52,818 74,128 86,757 +17% Gross profit 26,189 28,774 30,800 43,155 46,507 +8% Operating expense, Other income & Finance cost -13,976 -14,780 -14,758 -18,428 -20,126 +9% Pr
Slide 16: Revenue by Product Segment
Revenue by Product Segment Product Segment/ Segment Revenue Growth (YoY) Financial Period Key drivers 2021 2022 (%) (US$’000) Wired SD-WAN 12,463 14,430 +16% ● Strong growth in 5G routers, small ● Many LTE products on older platforms face enterprise routers and supporting discontinuation of key comp
Slide 17: Geographical Breakdown
Geographical Breakdown Geographic Segment Segment Revenue Growth (YoY) Financial Period Key drivers 2021 2022 (%) (US$’000) ● Strong growth in warranty and support services, particularly 5G/LTE service North America 43,087 52,017 +21% ● Strong growth in 5G routers offset by slower sales of LTE route
Slide 18: Recurring Revenue
Recurring Revenue Year ended 31 December Recurring Revenue highlights Recurring revenue ● 33% YoY increase in number of devices under a subscription (at 31 (US$’000) 2020 2021 2022 Dec 2022) Recurring sales 13,458 17,313 23,753 ● Subscription booking increased by 49% YoY ● Sales from 5G/LTE data ser
Slide 19: Lean Operating Structure
Lean Operating Structure Segment Gross Margin Net Margin vs. Opex/Sales Ratio Gross margin decreased due to: ● Continued operating leverage: Opex¹ increased by 9% YoY vs ● Strategy to pursue installed base growth to accelerate future Revenue increase of 17% YoY subscription growth ● Net profit margin
Slide 20: Balance Sheet and Cash Flow Summaries
Balance Sheet and Cash Flow Summaries Balance Sheet Summary (US$"000) 2018 2019 2020 2021 2022 Trade and other receivables 6,413 8,245 9,199 13,692 14,688 Inventories 8,372 7,387 12,509 18,622 32,333 Trade and other payables 2,274 2,614 4,452 5,626 6,900 ● Subscription booking increased 49% during t
Slide 21: Working Capital Summary
Working Capital Summary Working Capital summary (US$"000) 2018 2019 2020 2021 2022 Inventory: ● Increased inventory to ensure we Inventory 8,372 7,387 12,509 18,622 32,333 can continue to capture Raw materials and consumables 6,033 5,006 7,939 13,083 17,992 opportunities and accelerate % of Inventor
Slide 22: Revenue Recognition of Different Segments
Appendix Revenue Recognition of Different Segments Product Description Revenue Model Segment Non-recurring: 85%1 Wired & Wireless SD-WAN SD-WAN Routers and ● Hardware sales with 1 year embedded warranty Supporting Networking Devices Recurring: 15%1 Warranty and support ● Different tiers of subscript
Slide 23: 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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