uCloudlink Group, Inc. Q4 FY2024 earnings call

• Company closed 2024 with solid performance: revenue up 7.1% to $91.6M, net income $4.6M, net cash flow from ops $9.2M (+41.2% y-o-y).
• Mainland China revenue in 2024 up 97.4% y-o-y due to wider adoption of uCloudlink 1.0 international data connectivity solutions by Chinese consumers.
• 2024 marked 10th anniversary; connectivity services cover over 150 countries, served 2,818 business partners.
• Leveraging AI, HyperConn, CloudSIM, and 6-tech Positioning Technologies for innovation.
• Showcased new technologies at MWC 2025 and CES 2025; subsidiary approved for pilot ops of value-added telecom services in China.
• Product lines market ready with strong partner interest.

In 2024, uCloudlink's total revenue was $91.6 million, a 7.1% year-over-year increase. The Mainland China region saw a 97.4% year-over-year revenue increase. For product segments:

• GlocalMe Life and Pet Connectivity Solutions: Unveiled PetPhone at MWC 2025, targeting the pet market.
• GlocalMe Internet of Things (IoT) Connectivity Solutions: Unveiled CloudSIM Kit, a plug-and-play IoT solution.
• GlocalMe SIM business: Unveiled eSIM TRIO at MWC 2025, enhancing domestic and international coverage.
• GlocalMe mobile fixed broadband: Unveiled MeowGo G50 Max and U40 at MWC 2025, with AI-driven connectivity. Fourth quarter 2024 revenue was $26 million, a 19.5% increase from the prior year. Geographically, Japan contributed 53.6% of fourth quarter 2024 revenue, Mainland China 20%, etc.

• Fourth quarter 2025: Expected total revenue between $80.2 million and $90.5 million, representing a 0.6% to 7.7% increase from the same period in 2024.
• 2025: Expected total revenue between $95 million and $130 million, a 3.7% to 41.9% increase from 2024, driven by recovery of international travel and growth of new business lines.

• Forward-looking statements subject to known and unknown risks, uncertainties, and factors not under the company's control, which may materially differ actual results from implied by forward-looking statements.
• Seasonality impact on quarterly revenue performance.
• Dependence on successful adoption and market acceptance of new products and services.

Q: What's the benefit of the PetPhone and what will it allow me to do?

A: The PetPhone enables pets to communicate needs like being hungry, wanting to go outside, etc., to owners or other pets. It shortens the distance, allowing contact regardless of location, and includes features like 6-positioning, geofencing, and a pet community.

Q: Of the items introduced at MWC, do you think the PetPhone is going to have the biggest impact in 2025?

A: PetPhone is unique as it creates a new device for a growing market. It has attracted significant attention from broadcasters and pet channels, and enables carriers to create new revenue streams.

Q: Can you elaborate on the trends in your cost structure? Will the sales and marketing expense trend continue this year?

A: 2024 invested heavily in new business, spending $5 million more than 2023 on promotion for new business. Investments will continue in 2025 to grow new business, with sales and marketing budget expected to have a growing proportion.

Q: What were the key drivers of revenue growth from Mainland China last year and how do you expect this to evolve?

A: 2024 Mainland China revenue growth was nearly 100% driven by Chinese outbound traveling and the leading branding of Roaming Man. Approval for pilot ops of value-added telecom services in China will expand business domestically and internationally, expected to continue growing market share.