Plover Bay Technologies Ltd. · HKEX:1523
Plover Bay Technologies — FY2023 Earnings Presentation
22 slides from Plover Bay Technologies's earnings presentation, Feb 29, 2024
Slide 1: Supercharged Connectivity - Annual Results 2023
Supercharged Connectivity Annual Results 2023 29 February, 2024
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 (2023): US$94.3M b
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: SpeedFusion
What We Do Supercharging Connectivity Connectivity Software & Cloud Services Connectivity Software & Cloud Services Supercharged Fiber/ Consumer Broadband 5G/LTE SpeedFusion ● Faster, more reliable network ● Deploy anywhere Passion Driven ● Enable new use cases Go-to-Market Partners Private LEO 5G/L
Slide 5: Supercharged Connectivity use cases
What We Do Supercharged Connectivity Mission Critical Connectivity Essential Connectivity Public Safety Better Connectivity Bank Wireless Connectivity Broadcasting Retail Enterprise Remote WFH Small Offices Telemedicine Transport Construction Pop-up Stores IoT Ships Home Offices Large Events Maritim
Slide 6: Business Highlight: New Connectivity Options
Business Highlight New Connectivity Options Create New Opportunities First adopters begin using Peplink-Starlink Awareness of Peplink-Starlink Became Starlink solutions in small solutions spread. Larger Authorized Technology deployments such as RV deployments seen in more and small remote sites. ver
Slide 7: Business Highlight: New Products
Business Highlight New Products Optimized for Scale, Ease of Use and Versatility In early 2024, we launched the B One series Peplink App - Manage your home or small office network your phone, strong emphasis on ease of use ● Fixed and 5G variants ● Friendly price point and strong features for ● Avai
Slide 8: Business Highlight: Increasing Deployment Scale and Depth
Business Highlight Increasing Deployment Scale and Depth Global leading electric vehicle manufacturer deployed hundreds of Peplink routers in its factory in Texas, US. Further opportunity to scale to the manufacturer’s other factories in Germany and China. Data services exceed 2% of revenue in 2023.
Slide 9: Investment Highlights: Growing Peplink Ecosystem
Investment Highlights 1. Growing Peplink Ecosystem Trusted by customers across many industry verticals Subscription-Enabled Top 10 verticals by number of deals won in 2023 Convenience Features Maritime 15% Proprietary Connectivity Technologies Public Safety 11% SpeedFusion Retail & Hospitality 10% T
Slide 10: Investment Highlights: LEO services expands addressable market
Investment Highlights 2. LEO services expands our addressable market: We recently became Starlink’s first Authorized Technology Provider: ● Tapping into Starlink’s fast-growing user base (2.2 million in Dec 2023) ● Enabling Peplink + Starlink enterprise solutions and support ● Increasing brand profile
Slide 11: Investment Highlights: Multiple drivers for connectivity
Investment Highlights 3. Multiple drivers pushing the need for Supercharged Connectivity Market trends from 2023 to 2030: ● Number of IoT connections increasing at 16% CAGR¹ ● Mobile data traffic expected to increase at 19% CAGR¹ ● 4G & 5G FWA connections expected to grow from 130 million to 330 milli
Slide 12: Investment Highlights: Growing recurring revenue pipeline
Investment Highlights 4. Growing recurring revenue pipeline Underlying drivers of subscription growth: ● Increasing user base, driven by device sales ● Increasing subscription content value to drive user subscription rates Strong subscription growth: ● Number of devices under a subscription¹ at 31 D
Slide 13: Results 2023
technologies Results 2023 cece ee
Slide 14: Financial Summary
Financial Summary Year ended 31 December Financial period Growth 2022 2023 (US $'000) YoY Revenue 86,757 94,259 +8.6% Gross profit 46,507 50,913 +9.5% Operating expenses, Other income & gains, and Finance cost (20,126) (17,963) n.m. Profit before tax 26,381 32,950 +24.9% Net profit 22,659 28,099 +24.0%
Slide 15: Revenue by Product Segment
Revenue by Product Segment Product Segment / Segment Revenue Growth Key drivers Financial Period (US$’000) 2022 2023 YoY Fixed First Connectivity ● In Fixed First, sales of a key product line slowed as it approached late product (formerly Wired SD-WAN) 14,430 14,589 +1.1% cycle. New Fixed First prod
Slide 16: Recurring Revenue
Recurring Revenue Year ended 31 December Recurring Revenue highlights Recurring revenue ● No. of devices under subscription increased 40.2% YoY at Dec 2023 (US$’000) 2022 2023 ● Take up rate increased to 28.0% at Dec 2023 (Dec 2022: 24.5%) Recurring sales 23,753 28,680 ● Subscription booking dollar
Slide 17: Revenue by Region
Revenue by Region Geographic Segment Segment Revenue Growth Financial Period (US$’000) 2022 2023 (YoY) North America 52,017 54,386 +4.6% EMEA 21,736 27,536 +26.7% Asia 11,121 9,976 -10.3% Others 1,883 2,361 +25.4% Total 86,757 94,259 +8.6% 17
Slide 18: Gross margin
Gross margin Recurring revenue now contributes over 50% of gross profit ● Overall gross margin has increased from 53.6% to 54.0% ● 52% of gross profit comes from recurring revenues ● Gross margin improved YoY due to: ○ Increasing sales mix of recurring revenue ○ Leveraging economies of scale ○ Product
Slide 19: Operating expenses
Operating expenses Operating expenses Amount % of revenue Financial Period (US$’000) 2022 2023 2022 2023 Selling & Distribution expenses 3,100 3,544 3.6% 3.8% General & admin expenses 8,173 7,021 9.4% 7.4% Research & development 8,792 8,411 10.1% 8.9% Total Opex 20,065 18,977 23.1% 20.1% Exclude: FX
Slide 20: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights Balance Sheet Summary Working capital average turnover days (US$"000) 2021 2022 2023 (Number of days) 2021 2022 2023 Trade and other receivables 13,692 14,688 22,385 Trade and other receivables 56 days 60 days 72 days Inventories 18,622 32,333 16,938 Inventorie
Slide 21: Revenue Recognition of Different Segments
Appendix Revenue Recognition of Different Segments Segment Product Description Revenue Model ● Routers and supporting devices that are predominantly deployed in fixed SD-WAN Routers environments Non-recurring Fixed first connectivity Supporting Networking Devices ● Purchase includes 12 months warranty
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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