UCL - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the uCloudlink Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Daniel Gao, Investor Relations Director. Please go ahead.

Daniel Gao

Okay. you. Thank thank Call. us and Quarter [indiscernible] for Earnings XXXX you everyone, on joining Second Hello, release our earnings IR The and website on now at our available ir.uCloudlink.com. release presentation are

and They Mr. Chaohui, will Director today's then will Mr. call Yimeng our Joining and follows. Executive begin Co-Founder, recent be of Q&A for Officer. business Shi, me Directors, Zhiping, discuss with Chief and will on Financial our Co-Founder of of Board Shi the highlights the financial Officer; overview take are Mr. Chief an Chairman Chen the to Mr. quarter. both available in your regional and highlights. questions that section Mr.

turn factors that statements this XXXX. measures, current expectations we are previous of press of and call and otherwise, forward-looking include does may the management's uCloudlink's their directly contain pursuant filing over Mr. These based uncertainties, note non-GAAP Litigation except on of contrary forward-looking cause the result any not the or under the those that a the harbor discussions observations performance, to Before their by Please release audited assume the expectations unknown not will that other outdated law. conference company qualified different Chen. statements forward-looking market to Act are to factors, contents, Reform this in non-GAAP GAAP new implied forward-looking risks, by provisions please details of and and now ahead. company elations measures. I conditions, forward-looking results, and expressly call be the Securities obligation proceed, or part financial GAAP changes statements of components call their Please release from performance statements comparable go measures the by or information, known most risk involve to allocated or note and may information [indiscernible] materially financial press results, The as made actual in All the to statements. or safe the statements, any as company's control, of which SEC. future earnings of revise update with also required events, treatments

Chaohui Chen

or Thank with early had evening, into quarter this the with the we Continuing good solid start morning momentum the year, and you, everyone. guidance. in million, the XX.X reaching revenue carried line in Denise, growth second USD total

beyond our broadband position the million. XX.X% financial with increasing X.X and improving income business, X.X and GlocalMe various as USD of year-over-year connectivity with an is USD consistent million Life, second a solutions of satisfy travel such data aspects Our progress In net expanded operating connection made the lines comprehensive into fixed cash and global to in comprehensive e-mobile aside from GlocalMe GlocalMe of daily expanding the range to our solutions have quarter of wide SIM, reaching needs. data life XXXX, flow IoT array business sector

in me let fixed start have we line. mobile progress broadband business with our made Firstly, GlocalMe the

position leading of connectivity our market grow the expanding our the business in further in data to international X.X long XXXX, Our and second services quarter year midmarket [ ] continued consolidating share.

adoption widespread travel. momentum, international the recovery the As in our solutions supported full-speed XG by of can

XXXX. XXXX of report According to solution and generating forward. Mobile going XX now opportunities from end XG GlocalMe are a or to significant number billion XXXX GSMA. by The stream is Mobile Global fancy billion of extensive to the covers connections rise growth of Our global from us countries stable at System Communication creating the for the revenue, Association, for Economy $X.X expected X.X

market RoamPlug, of Life launched in new XXX showcased our meters. promising Technology to the year forward widespread base the new reached The KeyTracker, the in for capabilities the also innovative stream Paris. active revenue of in up Viva Unicord, unit XXXX. We solution radar XXXX our X positioning, beginning making market GlocalMe going Life GlocalMe only of at with a second Second, in has the made solutions lineup market, of officially not network progress May acclaim the solutions station, significant but consisting quarter and

global providing solutions These and technology the advanced just more various and adapter. more Our WiFi competition the The as ones, and cable bulky to also stream mobile to USDA, make to charging services X billing with a ports GPS, while reliable combines to quarters connected Unicord carry KeyTracker we module. device management, such X including is its companions charge It smart positioning and connected contribute people local expand is universal Bluetooth, and connectivity that radar. checking daily application need the [indiscernible] all-in-one and scenarios charging AGPS, technology, coming mobile well the with Unicord USBC X.X the greater and in the are as to travel an solutions gradually this four is high-frequency as devices including revenue test WiFi ahead hardware. allow ALPS, a revenues loved revenue. Wi-Fi, USBC travel Internet seamlessly is connectivity with GlocalMe X built-in emerging of without than stay technologies, as subscription expected Life communications. active offering life their [indiscernible] to recurring a capabilities. item

SIM continue including solutions way the all-sim expand GlocalMe allow availability for a more OTA of engage solutions, us regions, our solutions to the we Third, powering that will with countries base. more powerful in broader and user gradually to and our eSIM

chip empower cellular the allow us compatible across expected industry the to uniquely connectivities and platforms a report economic software in X.X broader application mobile billion for spectrum in XXXX GlocalMe XXXX. related are cloud new strength SIM the billion to XXXX CNY with business will mobile the This GSMA, In a sectors from a IoT in positioned additional from to cellular the X.X partners IoT mobile are increase GSMA, excluding billion which by XXXX licensed XXXX of near the explore Our camera, engage line, license connections, CNY demonstrate broader According various Pioneer to X.X we future. read to to audience. from CNY the to carrier cloudSIM to our capabilities SIM commissions X.X of IoT are our convenience launch set to in the scenarios. economic All-sim and when leveraging security by and to year they camera, solutions, export grow According technology consolidate benchmark and OTA, technology expected and eSIM, restrictions, various smartphones, report with our XXXX. are to billion from

and mobile positioning value value-added connection travel. ongoing a firmly traffic portable are and transition creating user traffic-sharing base the will daily checking, as travel beyond long-term we marketplace our scenarios We consolidation up mobile various shareholders. GlocalMe solutions scaling to the will Finally, This such ecosystem, of as This a mobile solutions. of [indiscernible] sector we stream our it for market, revenue as sustainable baseline. terminal transition our and the while data empowers primary beyond into data comprehensive mix diversify item from application drive better development WiFi our services traffic believe leading management, global data daily that life

see contribute SIM, market Life, and to in commercialization IoT coming to revenue expect quarters through meaningfully business momentum, more channels. With the of the regular them lines we gaining GlocalMe various

growth right to generate in have the we that in confident are place coming quarters. strategy sustainable the We

turn the of total now period we XX.X year XXXX. to to will million, quarter increase year I to representing over Mr. third XXXX, the For expect same be of to XX.X% revenues USD to million of the Shi. compared USD XX between an X.X% the call

Yimeng Shi

our and XXXX. will you, Thank everyone. financial operational quarter Mr. over the Chen. Hello, second for highlights go I of

pay reflective train of its for as the our active which is an operating important Our us business is performance. terminal customer period, major usage for metric

the of data June Our were XX.X% daily in of the were International Data representing from in anti XX% usage was compared X.X an of International XXX,XXX, in Connectivity XXXX. second per X.X daily terminal average active X.XX DAT which terminal, service increase same period XXXX. gigawatts DAT to Data service, of The Ukraine quarter

an XX cane to from revenue XXXX of and XXXX same XX, China same other XX.X% Total period XXXX, representing of X.X% XX.X% X,XXX quarter to product increase speaking, the on million XXXX, XX.X% region of million the in the Revenue USD from of representing The XX.X service last approved of XXX was XX.X MOS XX.X the of was in XX to period XX.X%, XX.X%, XX.X%. XXXX. Gross from the same XX.X% same increase of gross countries of million, XXXX. in of XXXX, during America the of same USD June the our had XX in on X.X% with period as second margin profit XX.X% second the during Japan increased XX.X% serves percentage tones respectively, during Both period and revenue in from second XXX XXX USD of second increased patents Gross in Geographically the contributed compared quarter regions. company in to XXXX. quarter of June the in total to million, XX.X% the XXX gross in XX% service XXXX. Mainland compared period of of XXXX. service the as from from million Revenue from second to XXXX quarter quarter of was XX.X% down XX.X%, the same XXXX. $X.X in in and countries XX.X% XX%, million year. USD in the X% of and period Overall XXXX. approval an was margin pending revenue. margin period company XXXX. contributed Overall USD the XX, a contributed the second was compared remaining of same from Posima with globally As business the quarter

X.X operating USD revenue period the compared the USD second USD in million same Net the same of 'XX X.X USD the Excluding USD X.X of was XXXX, total total ecos EBITDA in expenses or to compared revenue of the USD X.X million period Adjusted in XX% second compared quarter share-based XXXX. million income quarter in XXXX. X.X XXXX. was or million in compensation, XX% same total of X.X million were period to XXXX to million for the

quarter million, from X.X USD the million inflow of XX.X% operating increasing XXXX. X.X second USD we in by period same the For XXXX, generated cash

X.X With XXXX. USD it million to capital expenditures XXXX. XX.X TWD Q&A. XX, balance increasing June million USD XX, that, the of For We as a period quarter in open let's of same XX.X to and operator, for as at XXXX. second maintained adjusted X.X cash from March sheet the with USD up million up were equivalents compared solid XXXX, million

Operator

from from [Operator Research. Litchfield Instructions] Hills question comes The Theodore first O'Neill

Theodore O'Neill

Congratulations My uses for cash. on about first the question is results quarter. for the

utilize to the cash You're balance either profitable, wondering if I of you expenditures kind? increased you're in quarter. growing, have cash capital And or how some was thoughts some dividends, the you acquisitions, about

Chaohui Chen

Yes, cash quarter. we have the disclosed a is generated strong operations as second $X.X inflow in million from

is strong the next the than improve say, So million. more XX and and indicator. this position now near to trend We keep USD It's the equivalents year this a still overall in will future, position year. cash

don't we We far, any acquisitions. So full specific discussion target a don't have planned. have on a dividends for

So our we improve to our to growth improving improving company want the position on and our Thank focus finance for you. a long-term put filing safer still operations. position position in and we

Theodore O'Neill

My Life the about Okay. is next solutions. question GlocalMe

KeyTracker, additional Are the and Life call. there coming the solutions? in out Unicord GlocalMe RoamPlug, highlighted the here into You've products

Chaohui Chen

we X put-down the launched GlocalMe. for that's Yes,

quarters. following a the have more we are continued We in product coming

Theodore O'Neill

could X.X about how Okay. My or of X.X. question about uCloudlink the you X those talk Can the over outlook last X? you if quarter uCloudlink the about outlook is and next talk between

Yimeng Shi

this but national the this comments have where we million add especially color disclosed Yes, the the have other that, for growth grow service, guidance keep second revenue. and significantly. China's some growth disclosed will connected year. that to quarter, Mainland more which and growth, for CEO million outbound we on that. in add high in this as many same is the USD and to of driving XX in we And Maybe $XX quarter Mainland trend countries the from third top-line Yes, fast third our to quarter, of China think travelers first as there's we

solutions international quarter quarter. launched into travel we third So main from second quarter, also, as fourth the we our will well. Chinese as new look, products more in and like more Life stream other for expect GlocalMe for the mainly the accounts revenue other drive Service the in And regions bring in which and in growth outbound quarter, third our outbound the

series service from we service. life So just growth driver more also believe a is than international there's roaming but

Chaohui Chen

we because have we our business market then understand the to way Yes, the China still market, of because Japan are recovery. X.X they China and on

pandemic, from recovering most now next have X.X. backup. gives need now So from business, in of for And on also time, developed the broadband the also way we fixed they the connection believe advantage okay? X.X This the market on, still for for us I year the high-reliable more so

So because highly X we we second for we I just of see reliable revenue. and more business the and revenue can quarter revenue, X, product, quarter some product, products, data, the connection us not in quarter, And bring to -- newly can the services opportunity X, X.X new bring for of launched the the think for customer. end the new that subscriber mainly in this but and generate new only bring also in a we

Operator

Vivian from Diamond comes [Operator Research. Zhang from Instructions] next Equity The question

Wei Zhang

Good morning evening, and everyone.

achieved. quarter strong the on congrats So

Life. be my first will question of the commercialization So GlocalMe about

So there website? other sales directly on the products easing how of X sales far? any the official your newly launched are channels Are so

Chaohui Chen

Yes.

So for both and we channel product. offline both from -- the to our channel. were new the all and these We also selling offline sell that's also online,

our were partner. our Some is core brand own with brand, under under our some

the I progress is think far, good. very So

partner partner also our the connection bring it's fee-based quite is positive and we and power the end user on because the in So the baseline. there better

take only Let just us revenue cognition. data from not

more come more pad from revenue the control as are services such checking. We we the

a a also to traveler, not and think, car, I camera outdoor also for as also a think can bring I in also, clinicians. daily for Unicord such IoT for Wi-Fi worldwide. like home We use also convenience, future power IoT to travelers, the the but home the clinicians like the it's only like the the

So that's our quite unique value point.

that can relaxed, our easy simplify So high the line. safety travel for and then and make more more that -- quality users can more more

Wei Zhang

Okay. I see.

guidance the strong. next So quarter that is question is the quite my for

So any drivers Thank you. behind that?

Chaohui Chen

the the very stable. But quarter, products. I of for think traditional think new growing, is think from our next I come Yes, I product because our jump our will revenue think, is I big

needed reset just we so we because revenue. some So time newly product, launched to

So uncertainty the is for have some bring back the but new I we period of base how we can think that fleet for good, quick very revenue still the this product.

Wei Zhang

Okay.

the think that gross launched level? current do you will newly products margin do affect So these you Or next will margin quarter? your think you keep

Chaohui Chen

like margins is a new subsequent and in highest margin gross in driver, additional delivered expect higher various to range is main service Like channels. service we in as main the that of I the now will there be are we roaming we quarter. from and second a that revenue service part a Life the in margin see gross market the similar the should as international this account. how year, came which believe service, fee related GlocalMe deliver our the product to gross regions solutions, I

service good we and we margins year well. this in as have future the believe So this

Operator

conference Gao for remarks. over the like turn question-and-answer to to back our closing would concludes This I session. Daniel

Daniel Gao

Okay. again, us once for Thank you, today. joining

free please Investor We uCloudlink's our further speak on Christensen the provided forward to our quarterly again have you all to anniversary. to through contact or you to contact our questions, Relations speaking look information on website, Relations you. Investor Thank feel call. next If form,

Operator

for The conference Thank you attending has concluded. today's now presentation.

You disconnect. may now

Chaohui Chen

you. Thank

uCloudlink (UCL) 14 Aug 242024 Q2 Earnings call transcript