uCloudlink Group, Inc. · NASDAQ:UCL
uCloudlink — FY2020 Earnings Presentation
26 slides from uCloudlink's earnings presentation, March 2021
Slide 1: 4Q and Full Year 2020 Earnings Presentation
uCloudlink 4Q and Full Year 2020 Earnings Presentation March 2021
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: Innovatively apply "Navigation + Electronic Toll Pass" Concept to Data Connectivity
Innovatively apply “Navigation + Electronic Toll Pass” Concept to Data Connectivity Services Market Help elevate user experience and improve network efficiency Reliable data connection Unreliable data connection Users’ Major Pain Points We Always have Marginal Areas With Poor Network Coverage Our so
Slide 7: Smart Multi-Network Reselection – The Engine of the 5G Cloud Era
Smart Multi-Network Reselection– The Engine of the 5G Cloud Era Smart multi-network reselection technology of Cloud SIM - Accelerating the 5G Cloud Era GLOBAL 1 2 Local 5G Global 5G • Challenge: limited network coverage and lack of network • Challenge: high latency due to roaming, host- enabler shar
Slide 8: 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 9: Our Innovative Cloud SIM Technology - Hyper Connectivity Facilitates Data Traffic Marketplace
Our Innovative Cloud SIM Technology - Hyper Connectivity Facilitates Data Traffic Marketplace 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
Slide 10: Clear Growth Strategies Across Business Models
Clear Growth Strategies Across Business Models 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 Capitalize Scalable user base GlocalMe Inside App, accumulated through
Slide 11: Cloud SIM Technology Could Help Mobile Network Operators Decrease Churn Rate
Cloud SIM Technology Through PaaS and SaaS Platform Could Help Mobile Network Operators Decrease Churn Rate Main Reasons for China Users Mobile Number Portability (1) (switch mobile network operators) Alliance with 60% Mobile Network Operators (MNOs) + Mobile Handset 50% manufactories 43% 40% 34% Cl
Slide 12: Strategic Development and 5G Opportunities of Our Business
Strategic Development and 5G Opportunities of Our Business uCloudlink Business Alliances with Tier One MVNOs and Business Business and 5G Enhanced Sales and IoT Opportunities MNOs Partners Opportunities Marketing Smart multi-network reselection Cargos and logistics Beijing Huaxiang Lianxin e-commerc
Slide 13: New Appointment of Chief Supply Chain Officer and Restructure of Senior Management
New Appointment of Chief Supply Chain Officer and Restructure of Senior Management Recent appointment of new Chief Supply Chain Officer We announced recent role changes for senior management. Shubao Pei, Chief R&D Officer, assumed the role of Chief R&D Officer and Chief Supply Chain Officer, replaci
Slide 14: 4Q 2020 Operating Highlights
02 4Q 2020 Operating Highlights
Slide 15: Our Business Performance and Operating Highlights
Our Business Performance and Operating Highlights Daily Active Terminals (DAT) (2) DAT Breakdown by uCloudlink 1.0 vs. 2.0 (2) (2) Daily Data Usage per Terminal # Terminals % GB Strong uCloudlink 2.0 User Adoption 4% 9% 13% 15% 265,800 25% 2.01 (1) 50% 64% 67% 196,493 (1) 1.94 74% 74% 96% 91% +2.3x
Slide 16: Our Business and Revenue Are Increasingly Diversified Globally
Our Business and Revenue Are Increasingly Diversified Globally 95% Non-Mainland China Revenue Contribution 25 38 42 48 49 49 32% 32% 28% 36% 39% 48% 19% 36% 53% 56% 56% 47% 49% 32% 19% 8% 5% 5% 2018 2019 2020Q1 2020Q2 2020Q3 2020Q4 Mainland,China Japan Other Countries Number of countries and regions
Slide 17: 4Q 2020 Financial Highlights
03 4Q 2020 Financial Highlights
Slide 18: 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 revenues 2.0 local data connectivity services 2.8% revenues 7.3% Sales of products 45.7% 1.0 international data connectivity 52.9% 1.0 international da
Slide 19: Revenue Breakdown By Our Two Business Segments
Revenue Breakdown By Our Two Business Segments • Revenue, US$’MM $53.7 $44.1 $35.9 54% $33.5 $24.7 43% 54% 41% $21.0 18% 48% -68.3%1 $18.0 $17.0 57% 46% 45% -72.5%2 53% 47% 82% 59% 57% 46% 52% 47% 55% 53% -63.3%3 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 Revenue from Services Sales of
Slide 20: Higher Service Gross Margin Over Overall Gross Margin
Higher Service Gross Margin Over Overall Gross Margin • Gross Profit(loss), US$’MM $40.0 66% 70% 63% 58% $35.0 55% 60% 51% $30.0 49% 50% 43% 41% 37% $25.0 42% 35% 35% 40% $18.9 $18.9 31% 31% $20.0 35% 26% 30% $15.2 $15.0 $12.0 20% $11.8 $10.0 10% $5.5 $5.6 $5.3 $5.0 0% $- -10% 2019Q1 2019Q2 2019Q3 2
Slide 21: Controlled Operating Expenses During Pandemic of COVID-19
Controlled Operating Expenses During Pandemic of COVID-19 R&D 27% 3 • Operating expenses1, $US,MM G&A 46% $18.0 S&M 90% $16.6 27% 83% $16.0 $15.3 80% $13.5 $14.3 $14.2 $14.0 70% $12.0 65% $12.0 $11.8 60% $10.2 55% $10.0 49% 50% $8.0 40% 43% $6.0 36% 30% 32% 31% $4.0 20% $2.0 10% $- 0% 2019Q1 32% 201
Slide 22: 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 $(0.4) $(1.9) $(2.8) 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 $(5.5) CAPEX, $US,MM $2.00 2.7% 3.0% 3.5% 2.2% $1.50 $1.2 1.7% 2.5% 1.2% 1.1% $1.0 $1.00 $0.9 1.0% 0.8% 1.5% $0.4 $0.50 $0.3
Slide 23: 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 2020Q3 2020Q4 $(0.9) $(12.0) $(9.7) (1) (1) $(12.3) $(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 2020
Slide 24: Appendix – Financial Statement
Appendix – Financial Statement 24
Slide 25: Appendix – Financial Statement
Appendix – Financial Statement 25
Slide 26: Q&A
Q&A