uCloudlink Group, Inc. · NASDAQ:UCL
uCloudlink — Q1 2024 Earnings Presentation
29 slides from uCloudlink's earnings presentation, May 2024
Slide 1: 1Q 2024 Earnings Conference Call Presentation
(Nasdaq: UCL) 1Q 2024 Earnings Conference Call Presentation May 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: Strong Operating Cash Flow and Financial Position
Financial Highlights: Strong Operating Cash Flow and Financial Position (Nasdaq: UCL) Net Operating Total Revenues(1) Net Income (1) cash inflow (1) US$18.1 US$0.4 US$1.9 million million million Note: 1. In Q1 2024 3
Slide 4: Strengthening Leadership Position in the Global Roaming Market
Strengthening Leadership Position in the Global Roaming Market (Nasdaq: UCL) Business Performance Key Drivers Revenues from uCloudlink 1.0 business (in US$MM) Innovative Global 5G Solutions, providing $9.0 full-speed 5G network coverage across 60 $7.8 YOY countries and regions, enhancing our leadi
Slide 5: Expanding Business Beyond Travel Sector to Various Aspects of Daily Life
Expanding Business Beyond Travel Sector to Various Aspects of Daily Life (Nasdaq: UCL) GlocalMe Mobile/Fixed Broadband Four Distinct Business Lines • Continue to strengthen our leadership position in the sector and redefine industry benchmarks for connectivity and innovation • Recent upgrades includ
Slide 6: GlocalMe Life: Better Connection Empowers Better Life
GlocalMe Life: Better Connection Empowers Better Life (Nasdaq: UCL) Soft launched GlocalMe Life’s first product in Hong Kong during the first quarter of 2024; GlocalMe Life Launch Event Will formally Launch three GlocalMe Life products and app on May 23 at Viva Technology 2024. on May 23, 2024 i
Slide 7: Operational Highlights
Operational Highlights (Nasdaq: UCL) Daily Active Terminals (DAT) (1) DAT Breakdown: uCloudlink 1.0 vs. 2.0 (1) Daily Data Usage per Terminal (1) # Terminals GB (2) 315,154 308,917 25% 42% 297,082 52% 2.01 57% 268,798 1.94 66% 68% 69% 1.73 265,894 (2) 1.68 1.56 1.55 196,493 75% 58% 48% 43% 34% 32% 3
Slide 8: Geographically Diversified Revenue Streams
Geographically Diversified Revenue Streams (Nasdaq: UCL) (1) 74.7% 42 49 54 59 61 60 61 Non-Mainland China Revenue Contribution 10% 13% 20% 16% 18.2% 17.0% 22% 26% 16.8% 10% 33% 28% 33.6% 38% 36% 40.9% 53% 43% 49% 43.1% 39% 32% 25.3% 11% 13% 5% 3% 5.1% 2019 2020 2021 2022 2023 Q1'23 Q1'24 Mainland,C
Slide 9: Revenue Breakdown
Revenue Breakdown (Nasdaq: UCL) Revenues US$mm $158.4 42% 42% $89.6 $85.6 $73.8 $71.4 32% 48% 35% 49% 58% 28% 68% 36% $18.0 $18.1 0.7%1 52% 72% 65% 51% 64% -9.8%2 72% 75% 4.8%3 2019 2020 2021 2022 2023 Q1'23 Q1'24 Note: Revenue from Services Sales of Products 1. Q1 2024 total revenues YoY% 2. Q1 202
Slide 10: Higher-Margin Services Increasing as a Proportion of Total Revenue
Higher-Margin Services Increasing as a Proportion of Total Revenue (Nasdaq: UCL) Revenues Segmentation PaaS and SaaS services PaaS and SaaS services revenues revenues 14.2% 14.6% 2.0 local data 1.0 international 2.0 local data 1.0 international connectivity services data connectivity connectivity se
Slide 11: Gross Margin from Services Consistently Higher than Overall Gross Margin
Gross Margin from Services Consistently Higher than Overall Gross Margin (Nasdaq: UCL) Gross Profit US$mm Gross margin 70% 80 65.0% 70.0% 60.9% 60.5% $140.0 58.5% 56.0% 60% 70 55.2% 60.0% $120.0 47.8% 45.5% 50% 60 50.0% 42.8% 43.0% 41.0% 49.0% $100.0 40% 50 40.0% 31.6% $80.0 29.6% 30% 40 30.0% $64.9
Slide 12: Improving Operational Efficiency
Improving Operational Efficiency (Nasdaq: UCL) Operating expenses(1) US$mm R&D G&A 19% (3) 17% 27% 36% $70.0 120% S&M $59.5 47%55% $60.0 35 120% 100% $50.0 $48.2 $47.1 30 100% 80% 64% 25 $40.0 80% 54% $34.4 $34.6 60% 20 $30.0 60% 38% 47% 15 48% 40% 38% $20.0 40% 40% 10 $8.5 $6.9 20% $10.0 5 20% $-
Slide 13: Asset Light Business Model
Asset Light Business Model (Nasdaq: UCL) Operating Cash Flow US$mm $5.8 $6.5 $4.4 $1.9 $1.6 2019 2020 2021 2022 2023 Q1'23 Q1'24 $(2.0) $(21.7) CAPEX US$mm 5.00 2.4% 3.5% 1.8% 1.9% 4 2.2% 4.0% 4.00 1.2% 0.6% 3 2.0% 3.00 $2.8 $1.7 $2.1 2 0.0% 2.00 1.00 $0.9 1 $0.4 $0.6 -2.0% $0.4 $- 0 -4.0% 2019 2020
Slide 14: Net Income & Adjusted EBITDA (non-GAAP)
Net Income & Adjusted EBITDA (non-GAAP) (Nasdaq: UCL) $15.0 Net Income/(Loss) US$mm $15.0 $5.2 (1) (1) $2.1 (1) $2.8 $5.0 $0.4 (1) $(5.0) 2019 2020 2021 2022 2023 $(5.0) Q1'23 Q1'24 $(25.0) $(19.9) (1) $(15.0) $(45.0) (1) $(25.0) $(46.0) $(65.0) $(63.4) (1) $(35.0) Adjusted EBITDA (non-GAAP) US$mm $
Slide 15: Q&A
Q&A
Slide 16: Appendix
G uCloudlink Appendix
Slide 17: 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 17
Slide 18: The World's First and Leading Mobile Data Traffic Sharing Marketplace
The 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 Recy
Slide 19: Addressing Pain Points of Data Connectivity for Businesses and Consumers
Addressing Pain Points of Data Connectivity 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 20: Evolution of our Business
Evolution of our Business (Nasdaq: UCL) 2014 2018 - present - present 2024 - Next MNO A MNO B MNO C uCloudlink 1.0 uCloudlink 2.0 uCloudlink 3.0 uCloudlink 3.0 Between Countries Between Carriers GlocalMe Ecosystem Sharing Marketplace (Trial Phase) (Next Phase) for cross-border travelers for local us
Slide 21: Scaling Up our User Base to Build a Full Marketplace
Scaling Up our User Base to Build a Full Marketplace (Nasdaq: UCL) ~1,491.5 Mn (1) 5.5 Bn (2) 9.8 Bn (2) 5.8 Bn (2) Marketplace 2024E: International Tourist 2030E: Mobile internet users 2030E: SIM connections (excluding 2030E: Licensed cellular Arrivals (2% increase by FY2019) licensed cellular IoT)
Slide 22: Our Monetization Model
Our Monetization Model (Nasdaq: UCL) Sales of Products Data Connectivity Services PaaS / SaaS Services … Retail Wholesale Usage-based Revenue-shared based Subscription-based Providing our business partners with cloud SIM platform services and The introduction of our Retail: Providing products
Slide 23: 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 Business 178 (2) 148 R&D Staff Across 61 Countries and Knowhow 9+ Years 183 business developme
Slide 24: 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 • Creating more reliable data connections based on existing coverage to p
Slide 25: 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 382 MNOs (3) Globally 178 Patents (1) Software-based Ready to Support All Three Generations of our Businesses Notes: 1. As of March 3
Slide 26: 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 27: 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 28: Financial Statement
Financial Statement (Nasdaq: UCL) 28
Slide 29: Financial Statement
Financial Statement (Nasdaq: UCL) 29