uCloudlink Group, Inc. · NASDAQ:UCL
uCloudlink — Q1 2022 Earnings Presentation
28 slides from uCloudlink's earnings presentation, May 2022
Slide 1: 1Q 2022 Earnings Conference Call Presentation
(Nasdaq: UCL) 1Q 2022 Earnings Conference Call Presentation May 2022
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: uCloudlink Overview
CG uCloudlink Overview —_—_— i}
Slide 4: Vision and Mission Statement
Vision and Mission Statement (Nasdaq: UCL) (Nasdaq: UCL) Connecting and Sharing without Limitations Mission Statement To Make the World More Connected with Maximized Network Utility through the Power of Mobile Data Traffic Sharing Founders’ Story: “To enable people to use mobile data traffic freely
Slide 5: 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 6: Operators Face Two Major Challenges: Coverage and Congestion
Operators Face Two Major Challenges: Coverage and Congestion (Nasdaq: UCL) Challenges for Mobile Network Operators Unreliable Indoor Wi-Fi Coverage Reliable data connection Unreliable data connection/weak signal May have Congestion • Poor coverage • May easily have congestion • Capital Intensive for
Slide 7: Our Solution Can Make for a Better Connection
Our Solution Can Make for a Better Connection (Nasdaq: UCL) Better Data Connection for MNOs and Users Effectively help improve networks’ coverage and congestions 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
Slide 8: Our Rooting Technology Enabling Data Traffic Marketplace (cloud SIM)
Our Rooting Technology Enabling Data Traffic Marketplace (cloud SIM) (Nasdaq: UCL) 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 stored in the to serv
Slide 9: Our Advanced Technology Enabling Secured and Robust Connectivity (HyperConn)
Our Advanced Technology Enabling Secured and Robust Connectivity (Hyper-connectivity “HyperConn”) (Nasdaq: UCL) Cloud SIM Developed to HyperConn Stage and HyperConn™ products delivered to various markets during the first quarter of 2022 and more innovative products and services are in the pipeline,
Slide 10: The Evolution of cloud SIM and HyperConn Business Models
The Evolution of cloud SIM and HyperConn Business Models (Nasdaq: UCL) Increasingly Platform-centric B2C Retail B2B2C Wholesale PaaS/SaaS Platform uCloudlink sells or leases GlocalMe uCloudlink sells GlocalMe hardware and uCloudlink’s partners procure customized hardware and data packages to retail
Slide 11: Clear Growth Strategies Across Business Models
Clear Growth Strategies Across Business Models (Nasdaq: UCL) Between Countries Between Carriers Full Marketplace 2.0 3.0 1.0 Capture Local Data Connectivity Data Traffic with Massive User Base Market Opportunity Strengthen Leadership Position Single Operator Entry Point to Capitalize Scalable user b
Slide 12: 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 204 R&D Staff (2) Across 56 Countries and 184 Patents (1) 145 business development, R
Slide 13: uCloudlink 1.0: Expect Recovery Post COVID-19 Pandemic with More Growth Potential
uCloudlink 1.0：Expect Recovery Post COVID-19 Pandemic with More Growth Potential (Nasdaq: UCL) uCloudlink 1.0: International Data Connectivity Services Established track record and global leading position in the The number of daily active terminal (“DAT”) for the 1.0 business international data conn
Slide 14: uCloudlink 2.0: Rapid Growth Track Record of Local Demand
uCloudlink 2.0: Rapid Growth Track Record of Local Demand and Massive Opportunities (Nasdaq: UCL) Our New HyperConn Technology Contributes to the Further Development and Growth of Our uCloudlink 2.0 Business; We Expanded the Business Scope of Our Local Data Connectivity Services; Our HyperConn Techn
Slide 15: HyperConn Enabled Innovative Products and Services
HyperConn™ Enabled Innovative Products and Services (Nasdaq: UCL) Industrial Wi-Fi Router HyperConn™ technology solution supports and applies to further development of our 1.0 Terminals / Devices and 2.0 businesses as well as continuous development and introduction of innovative products, leading to
Slide 16: 1Q 2022 Operating Highlights
1Q 2022 Operating Highlights
Slide 17: Our Business Performance and Operating Highlights
Our Business Performance and Operating Highlights (Nasdaq: UCL) Daily Active Terminals (DAT) (1) DAT Breakdown by uCloudlink 1.0 vs. 2.0 (1) (1) Daily Data Usage per Terminal # Terminals % GB Strong uCloudlink 2.0 User Adoption 4% (2) 25% 281,398 268,798 265,800 2.01 66% 68% 69% 69% 1.94 196,493 (2)
Slide 18: Our Business and Revenue Are Increasingly Diversified Globally
Our Business and Revenue Are Increasingly Diversified Globally (Nasdaq: UCL) (1) 96% Non-Mainland China Revenue Contribution 25 38 42 49 54 50 56 26% 32% 32% 36% 36% 46% 56% 12% 19% 36% 53% 58% 62% 49% 49% 40% 32% 11% 5% 6% 4% 2017 2018 2019 2020 2021 2021Q1 2022 Q1 Mainland,China Japan Other Countr
Slide 19: 1Q 2022 Financial Highlights
1Q 2022 Financial Highlights
Slide 20: Percentage of Our Service-Related Revenues and COVID-19 Impact
Percentage of Our Service-Related Revenues and COVID-19 Impact (Nasdaq: UCL) Revenue segmentation based on product & services PaaS and SaaS services 12.9% PaaS and SaaS services 15.8% 2.0 local data connectivity services revenues 1.0 international 1.0 international 3.2% data connectivity 2.0 local d
Slide 21: Revenue Breakdown By Our Two Business Segments
Revenue Breakdown By Our Two Business Segments (Nasdaq: UCL) Revenue, US$MM $158.4 $126.4 42% 42% 30% $85.8 $89.6 22% $73.8 48% 70% 58% 49% -11.8%1 $17.7 58% $15.6 78% 53% 78% 37% -37.9%2 52% 51% 47% 63% 53% 17.2%3 47% 48% 2017 2018 2019 2020 2021 2021Q1 2022Q1 Revenue from Services Sales of Product
Slide 22: Higher Service Gross Margin Over Overall Gross Margin
Higher Service Gross Margin Over Overall Gross Margin (Nasdaq: UCL) Gross Profit US$MM Gross margin, % 70% $140.0 61% 60% 50 60% $120.0 45 49% 48% 50% 50% 43% 43% 40 $100.0 39% 40% 35 36% 40% 41% 37% $80.0 37% 30 30% 34% 42% 32% 30% 31% $64.9 30% 25 30% $60.0 20% 20% $46.2 20 22% 48% $40.0 10% 15 10
Slide 23: Controlled Operating Expenses During Pandemic of COVID-19
Controlled Operating Expenses During Pandemic of COVID-19 (Nasdaq: UCL) Operating expenses(1), $US,MM (3) R&D 29% G&A 71% 42% $75.0 64% 70% 20 70% S&M 18 60% $65.0 $59.5 60% 29% 54% 16 60% $55.0 $48.2 $47.1 50% 14 $12.6 50% $45.0 38% 12 40% 40% 10 $9.3 $35.0 30% 8 30% $25.0 6 20% 20% $15.0 4 10% 10
Slide 24: Asset Light Business Model
Asset Light Business Model (Nasdaq: UCL) Operating Cash Flow, $US,MM $5.8 2019 2020 2021 2021Q1 2022Q1 $(2.0) $(4.4) $(6.7) $(21.7) CAPEX, $US,MM $3.00 $2.8 3.5% 1.8% 1.9% 0.4 2.5% 0.6% $2.00 0.04% 2.0% 1.2% 0.3 0.0% $1.7 1.5% $1.00 $0.9 0.2 -2.0% 0.5% $0.1 -4.0% 0.1 -6.0% $0.006 $- -0.5% 0 -8.0% 20
Slide 25: Net Income & Adjusted EBITDA
Net Income & Adjusted EBITDA (Nasdaq: UCL) Net Income/ (Loss) , $US,MM $15.0 $15.0 $5.2 $(5.0) 2019 2020 2021 $(5.0) 2021Q1 2022Q1 (1) $(7.9) (1) $(15.4) $(25.0) $(25.0) $(45.0) (1) $(46.0) $(45.0) $(65.0) Adjusted EBITDA, $US,MM (1) $(63.4) $8.9 $(65.0) 2019 2020 2021 2021Q1 2022Q1 $(3.9) $(6.7) $(
Slide 26: Appendix – Financial Statement
Appendix – Financial Statement (Nasdaq: UCL) 26
Slide 27: Appendix – Financial Statement
Appendix – Financial Statement (Nasdaq: UCL) 27
Slide 28: WG uClod -
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