Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — H1 2023 Earnings Presentation
22 slides from Plover Bay Technologies's earnings presentation, Jul 27, 2023
Slide 1: Supercharging Connectivity – Interim Results 2023
Supercharging Connectivity Interim Results 2023 27 July, 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) develops Key Facts networking technologies that enable supercharged connectivity. By combining fixed, mobile and satellite connectivity, users can ● Revenue (1H23): US$44.6M b
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 are complex to setup and maintain ● Incomplete coverage by individual fixed and mobile ne
Slide 4: What We Do: Supercharging Connectivity
What We Do Supercharging Connectivity Connectivity Software & Cloud Services ● Fiber / Broadband Supercharged network ● Consumer 5G/LTE ● Private 5G/LTE ● Faster, more reliable ● 5G Fixed Wireless Access ● Deploy and relocate anywhere Passion Driven ● LEO satellite Go-to-Market Partners ● Enable new
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 Highlight: Starlink x Peplink
Case Study Highlight Starlink x Peplink Deployments Continue to Gain Momentum Peplink’s capability to supercharge Starlink is creating new possibilities on multiple fronts Large mining service provider World’s largest cruise ship A Southeast Asian network in Australia uses Peplink to company uses Pe
Slide 7: Case Study Highlight: FusionSIM for Intercity Transport Operator
Case Study Highlight FusionSIM for an Intercity Passenger Transport Operator Background A passenger bus transport operator based in Germany with more than 3,000 intercity buses across 40 European and North American cities. In its equipment upgrade, the customer chose Peplink because our FusionSIM te
Slide 8: Case Study Highlight: Network as a Service Business Model
Case Study Highlight Extending the Network as a Service Business Model Background Solution Result Peplink began to provide a ● NaaS business model: Provided ● Project revenue over 2% of 1H23 total “Network-as-a-service” business networking equipment, built-in 5G/LTE data revenue model, providing equ
Slide 9: Case Study Highlight: Large Scale Branch Network Deployment
Case Study Highlight Large Scale Branch Network Deployment Diverse range of opportunities happening around the world US construction company Subway operator of a major Large veterinarian group in Convenient store chain in attaches hundreds of Peplink city in Asia attaches hundreds Europe deploys Pep
Slide 10: Investment Highlights: Peplink ecosystem
Investment Highlights 1. Peplink ecosystem… … enables long-tail market reach Proprietary connectivity technologies (SpeedFusion) Purpose-designed Breakdown of number of deals won in 1H23, by vertical Routers and Devices Subscription-enabled Passion Driven convenience features Go-to-Market Partners 1
Slide 11: Investment Highlights: Growing need for wireless connectivity
Investment Highlights 2. Growing need for wireless connectivity worldwide, more wireless options Market secular trends: ● Number of IoT connections increasing at 19% CAGR¹ ● Mobile data traffic increasing at 29% CAGR¹ Low Earth Orbit (LEO) services are expanding the frontier of wireless connectivity:
Slide 12: Investment Highlights: Growing recurring revenue pipeline
Investment Highlights 3. Growing recurring revenue pipeline Increasing portion of sales is recurring ● 31% of total sales in 1H23 was recurring, vs 27% in 2022 Strong subscription growth: ● Number of devices under a subscription¹ at 30 June 2023 increased 34% YoY ● New subscription bookings² increas
Slide 13: Interim Results 2023
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Slide 14: Financial Summary
Financial Summary Interim period Financial period (US $'000) 1H22 1H23 Growth (YoY) Revenue 40,114 44,632 +11.3% Gross Profit 22,345 23,799 +6.5% Operating Expense, Other Income & Finance cost (10,062) (8,912) -11.4% Profit before Tax 12,283 14,887 +21.2% Net Profit 10,308 12,323 +19.5% Gross Profit Mar
Slide 15: Revenue by Product Segment
Revenue by Product Segment Product Segment/ Segment Revenue Growth (YoY) Key drivers Financial Period (US$’000) 1H22 1H23 (%) Fixed First Connectivity (formerly Wired SD-WAN) 6,562 8,151 +24.2% ● Strong sales growth of Fixed First products to enable Starlink or 5G FWA applications ● Strong adoption
Slide 16: Recurring Revenue
Recurring Revenue YoY Period ended Recurring revenue Growth (US$’000) 1H22 1H23 % Recurring Sales 10,868 13,945 28.3% Drivers of Recurring Revenue ● Overall take up slightly increased to 27% ● Registered device reached over 475K at June 2023 ● Number of devices with a subscription at June 2023 incre
Slide 17: Geographical Breakdown
Geographical Breakdown Geographic Segment Revenue Growth (YoY) Financial Period (US$’000) 1H22 1H23 (%) North America 23,638 26,667 +12.8% EMEA 10,634 12,131 +14.1% Asia 4,733 4,732 0.0% Others 1,109 1,102 -0.6% Total 40,114 44,632 +11.3% 17
Slide 18: Lean Operating Structure
Lean Operating Structure Segment Gross Margin Net Margin vs. Opex¹/Sales Ratio ● Gross margin decreased in 1H23 vs 1H22 on a year-on-year basis, as we continue to make our products more affordable in more markets to expand our ecosystem to build future recurring revenue ● Gross margin in 1H23 was 53
Slide 19: Balance Sheet and Cash Flow Summaries
Balance Sheet and Cash Flow Summaries Balance Sheet Summary (US$"000) 2019 2020 2021 2022 1H23 Trade and other receivables 8,245 9,199 13,692 14,688 15,577 Inventories 7,387 12,509 18,622 32,333 24,826 Trade and other payables 2,614 4,452 5,626 6,900 3,161 ● Subscription booking increased 24% during
Slide 20: Working Capital Summary
Working Capital Summary Working Capital summary (US$"000) 2019 2020 2021 2022 1H23 Inventory: ● Inventory reduced to a more Inventory 7,387 12,509 18,622 32,333 24,826 normalized level Raw materials and consumables 5,006 7,939 13,083 17,992 12,675 % of Inventory 68% 63% 70% 56% 51% Finished goods 2,
Slide 21: Revenue Recognition of Different Segments
Appendix Revenue Recognition of Different Segments Product Description Revenue Model Segment Fixed First & Mobile First Non-recurring: 85%1 Routers and Supporting Connectivity ● Hardware sales with 1 year embedded warranty Networking Devices Recurring: 15%1 Warranty and support ● Different tiers of
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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