Ucloudlink Group Inc (UCL) 2023 Q1 法說會逐字稿

Good morning, and welcome to the UCLOUDLINK first quarter 2023 earnings conference call. (Operator Instructions) Please note this event is being recorded.

早上好，歡迎參加 UCLOUDLINK 2023 年第一季度財報電話會議。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Jillian Zeng, Investor Relations for UCLOUDLINK. Please go ahead.

現在我想將會議交給 UCLOUDLINK 投資者關係部的 Jillian Zeng。請繼續。

Thanks, everyone for joining us on our first quarter 2023 earnings call today. The earnings release is now available on our IR website at ir.ucloudlink.com and on our newswire surveys.

感謝大家今天參加我們的 2023 年第一季度財報電話會議。該財報現已在我們的投資者關係網站 ir.ucloudlink.com 和我們的新聞專線調查中發布。

I will give a brief introduction to our UCLOUDLINK management team. Mr. Zhiping Peng is our Co-Founder and Chairman of Board of Directors; Mr. Chaohui Chen is our Co-Founder, Director, and Chief Executive Officer; Mr. Yimeng Shi is our Chief Financial Officer.

我簡單介紹一下我們UCLOUDLINK的管理團隊。彭志平先生是我們的聯合創始人兼董事會主席；陳朝輝先生是我們的聯合創始人、董事兼首席執行官；施一猛先生是我們的首席財務官。

Mr. Chaohui Chen, our Co-Founder and CEO will begin with an overview of the company's recent business highlights, which will cover the earnings presentation posted on our IR website. Mr. Yimeng Shi, our CFO will then discuss the company's operational highlights and the financial results.

我們的聯合創始人兼首席執行官陳朝輝先生將首先概述公司最近的業務亮點，其中將涵蓋我們的投資者關係網站上發布的收益報告。隨後，我們的首席財務官施一猛先生將討論公司的運營亮點和財務業績。

Before we proceed, please note that this call may contain forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management team's current expectations and observations that involve known and unknown risks, uncertainties and, other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance, expectations implied by these forward-looking statements.

在我們繼續之前，請注意，本次電話會議可能包含根據1995 年《私人證券訴訟改革法案》的安全港條款做出的前瞻性陳述。這些前瞻性陳述基於管理團隊當前的預期和觀察，其中涉及已知和未知的風險、不確定性和其他不受公司控制的因素，可能導致公司的實際結果、業績或成就與這些前瞻性陳述所暗示的結果、業績和預期存在重大差異。

All forward-looking statements are expressly qualified in their entirety by the cautionary statements, risk factors, and details of the company's filings with the SEC. The company does not assume any obligation to revise or update any forward-looking statements as a result of new information, future events, change in market conditions or otherwise, except as required by law.

所有前瞻性陳述均明確符合公司向 SEC 提交的文件中的警示性陳述、風險因素和詳細信息。除法律要求外，公司不承擔因新信息、未來事件、市場條件變化或其他原因而修改或更新任何前瞻性陳述的義務。

Please also note that UCLOUDLINK's earnings press release and this conference call include discussions of an unaudited GAAP financial information and an unaudited non-GAAP measures. UCLOUDLINK's press release contains a reconciliation of unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

另請注意，UCLOUDLINK 的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息和未經審計的非 GAAP 指標的討論。 UCLOUDLINK 的新聞稿包含未經審計的非 GAAP 衡量標準與未經審計的最直接可比較的 GAAP 衡量標準的調節表。

I will now turn the call over to our Co-Founder and CEO, Mr. Chaohui Chen. Please go ahead.

現在我將把電話轉給我們的聯合創始人兼首席執行官陳朝暉先生。請繼續。

Thank you, Jillian, and good morning, everyone. Thank you for joining us on our first quarter of year 2023 earning call today. We appreciate everyone's time.

謝謝吉莉安，大家早上好。感謝您今天參加我們的 2023 年第一季度財報電話會議。我們感謝每個人的時間。

We are pleased to start off 2023 with strong first-quarter results, which is the first time that we achieved both positive net income and a positive cash flow generated from operations with growth in revenue since the outbreak of the COVID-⁠19 pandemic. The average daily active terminals continue to be in an upward trend and reached a historic height of over 300,000 in this quarter as we continue to expand our global PaaS and SaaS ecosystem, reflecting the accelerated market demand for UCLOUDLINK's services across the global market.

我們很高興以強勁的第一季度業績開啟 2023 年，這是自 COVID-19 大流行爆發以來，我們首次實現了正淨收入和正現金流，且收入增長。隨著我們不斷拓展全球PaaS和SaaS生態系統，日均活躍終端持續呈上升趨勢，本季度達到超過30萬的歷史新高，反映出全球市場對UCLOUDLINK服務的加速需求。

uCloudlink 1.0 1.0 is our international data connectivity services business, which tends to be a higher-margin line of business and has historically been one of our key growth drivers. During the first quarter of year 2023, uCloudlink 1.0 1.0 business revenues increased 38.5% year over year to USD7.8 million. We are delighted that our uCloudlink 1.0 1.0 business demonstrates significant growth as a result of accelerated international travel recovery across our major markets particularly in Japan.

uCloudlink 1.0 1.0是我們的國際數據連接服務業務，該業務往往是利潤率較高的業務線，歷來是我們的主要增長動力之一。 2023年第一季度，優克聯1.0 1.0業務收入同比增長38.5%至780萬美元。我們很高興看到，由於我們主要市場（尤其是日本）國際旅行的加速復蘇，我們的 uCloudlink 1.0 1.0 業務呈現出顯著增長。

We also have observed increased demand from our 1.0 Roamingman business in Mainland China and Southeast Asia, which are historically strong markets with wide coverage of Roamingman brand. Average daily active terminals for uCloudlink 1.0 1.0 business increased by 55.3% compared with the same period of year 2022, which indicates the significant growth of our business.

我們還觀察到中國大陸和東南亞的1.0漫遊業務需求有所增加，這些市場歷來都是漫遊客品牌覆蓋範圍廣泛的強勁市場。優克聯1.0 1.0業務日均活躍終端較2022年同期增長55.3%，業務大幅增長。

We remain optimistic in our ability to further grow our uCloudlink 1.0 business, thereby solidifying our leading global position in the international roaming solutions market. And we look forward to serving our users globally as the market continues to pick up.

我們對進一步發展uCloudlink 1.0業務的能力保持樂觀，從而鞏固我們在國際漫遊解決方案市場的全球領先地位。隨著市場持續回暖，我們期待為全球用戶提供服務。

uCloudlink 2.0 is our local data connectivity services business, which focuses on local residents and solve challenges among their carrier. This business line took off during the pandemic as we seize the opportunities in the local markets by offering reliable local data connection services. Over the past two years, we continue to strengthen our presence in local markets, including Japan and North America, where we help operators and business partners improve their data connectivity services and resolve data connection problems through our PaaS and SaaS platform based on our patent technologies including cloud SIM and HyperConn technology solutions.

uCloudlink 2.0是我們的本地數據連接服務業務，專注於本地居民，解決運營商的挑戰。該業務線在疫情期間起飛，我們抓住當地市場的機遇，提供可靠的本地數據連接服務。兩年來，我們不斷加強在日本、北美等當地市場的佈局，通過基於我們專利技術的PaaS和SaaS平台，幫助運營商和業務合作夥伴改善數據連接服務，解決數據連接問題。包括雲SIM和HyperConn技術解決方案。

Our uCloudlink 2.0 business reported USD2.2 million in revenues, up by 37% in the first quarter of year 2023, as compared to USD1.6 million in the same period of year 2022. We received recognition from business partners in established markets like Japan and North America and continued our efforts in expanding our PaaS and SaaS platform ecosystem.

我們的uCloudlink 2.0業務報告收入為220萬美元，2023年第一季度增長37%，而2022年同期為160萬美元。我們得到了日本等成熟市場業務合作夥伴的認可和北美，並繼續努力擴展我們的PaaS 和SaaS 平台生態系統。

We expect our high-quality, reliable data connectivity services based on our innovative HyperConn technology will receive more industry recognitions and applications, especially in the mobile and fixed broadband industry. We expect to launch more innovative HyperConn products catering to the needs of a diverse set of mobile network operators, business partners, and individual customers in the near future.

我們期望基於創新的HyperConn技術的高質量、可靠的數據連接服務將獲得更多行業的認可和應用，特別是在移動和固定寬帶行業。我們期望在不久的將來推出更多創新的 HyperConn 產品，以滿足不同的移動網絡運營商、業務合作夥伴和個人客戶的需求。

On the IoT -- Internet of Things, IoT, side of our business, we have shared updates on multi-application scenario support by our IoT modules, including WiFi router, IP cameras, et cetera, which have been welcomed by our customers in various markets for their competitive advantages. In Japan, we are actively working with our business partners to explore and expand application scenarios for the IoT business to further improve the data connectivity experience for their customers.

在物聯網方面——物聯網、物聯網，我們的業務方面，我們分享了我們的物聯網模塊支持多應用場景的最新動態，包括WiFi路由器、IP攝像頭等，受到了各個領域客戶的歡迎。市場以發揮其競爭優勢。在日本，我們積極與業務夥伴合作，探索和拓展物聯網業務的應用場景，進一步提升客戶的數據連接體驗。

At the same time, our team continues to leverage existing resources in the research and development to develop uCloudlink 3.0 business. The one-stop mobile data traffic sharing marketplace application is planned to launch the first version in the near future, which leverages our efforts in building scalable users base through our uCloudlink 1.0 and 2.0 models. This marketplace enables end users' devices to connect to available network anytime, anywhere, utilizing the GlocalMe app new version.

同時，我們的團隊繼續利用現有的研發資源來發展uCloudlink 3.0業務。一站式移動數據流量共享市場應用程序計劃在不久的將來推出第一個版本，該版本利用我們通過 uCloudlink 1.0 和 2.0 模型構建可擴展用戶群的努力。該市場使最終用戶的設備能夠利用新版本的 GlocalMe 應用程序隨時隨地連接到可用網絡。

We remain confident in the market conditions ahead for the demand of year 2023 and we're prepared to take advantage of the peak season of international travel during the summer. We believe our track record of delivering reliable and high-quality data connectivity experience and our history of introducing innovative products and solutions enable us to maintain a leading position in the international data connectivity services industry.

我們對 2023 年需求的未來市場狀況仍然充滿信心，並準備充分利用夏季國際旅行旺季的機會。我們相信，我們提供可靠和高質量數據連接體驗的記錄以及推出創新產品和解決方案的歷史使我們能夠在國際數據連接服務行業保持領先地位。

We are always committed to continuous development of innovative solutions and plan to expand our cloud SIM and HyperConn technology solutions to more application scenario. Our business aims to deliver value-add services to our customers by continuously improving their mobile data connectivity experience. And we'll continue to execute our growth strategies with our expanding portfolio of offerings.

我們始終致力於不斷開發創新解決方案，併計劃將我們的雲SIM和HyperConn技術解決方案擴展到更多應用場景。我們的業務旨在通過不斷改善客戶的移動數據連接體驗，為他們提供增值服務。我們將繼續通過不斷擴大的產品組合來執行我們的增長戰略。

I will now turn the call over to our CFO, Mr. Yimeng Shi.

我現在將電話轉給我們的首席財務官施一猛先生。

Thank you, Mr. Chen.Hello, everyone. I will go over our operational and financial highlights for the first quarter of 2023.

謝謝陳老師，大家好。我將回顧 2023 年第一季度的運營和財務亮點。

Average daily active terminal, DAT, is an important operating metrics for uCloudlink as it measures the trend of customer usage over the period, reflecting our ongoing business performance. In the first quarter of 2023, average daily active terminal were 304,121, of which 3,483 owned by the company and 300,638 owned by our business partners, up by 11% from 273,870 in the first quarter of 2022. The average DAT for our uCloudlink 1.0 and uCloudlink 2.0 business accounted for around 42.7% and 57.3% of the total DATs, respectively, during the first quarter of 2023.

日均活躍終端 DAT 是優克聯的一個重要運營指標，它衡量一段時間內客戶使用情況的趨勢，反映我們持續的業務績效。 2023年第一季度，日均活躍終端數為304,121個，其中公司擁有3,483個，業務合作夥伴擁有300,638個，較2022年第一季度的273,870個增長11%。優克聯1.0和1.0的平均DAT 2023年第一季度，優克聯2.0業務分別佔DAT總量的42.7%和57.3%左右。

Average daily data usage per terminal was 1.62 gigabytes in March 2023.

2023 年 3 月，每個終端的平均每日數據使用量為 1.62 GB。

Total revenue for the first quarter of the 2023 were USD18 million, representing an increase of 15.3% from $15.6 million in the same period for 2022. Revenue from service in the first quarter of '23 were USD12.9 million, an increase of 31.4% from USD9.8 million in the same period of 2022. Revenue from service as percentage of total revenue was 71.7% during the first quarter of 2023, up from 62.9% during the same period of 2022.

2023年第一季度的總收入為1800萬美元，較2022年同期的1560萬美元增長15.3%。2023年第一季度的服務收入為1290萬美元，增長31.4%較2022 年同期的980 萬美元增加。2023 年第一季度服務收入佔總收入的比例為71.7%，高於2022 年同期的62.9%。

During the first quarter of 2023, Japan contributed 43.1%; North America contributed 33.6%; Mainland China contributed 5.1%; and other countries and regions contributed the remaining 18.2% of the total revenue, compared to 40.2%, 37.9%, 1.9%, and 18%, respectively, in the first quarter of 2022.

2023年第一季度，日本貢獻了43.1%；北美地區貢獻了33.6%；中國大陸貢獻5.1%；其他國家和地區貢獻了總收入的剩餘18.2%，而2022年第一季度分別為40.2%、37.9%、1.9%和18%。

Overall gross margins improved to 47.8% in the first quarter of 2023 as compared to 37.4% in the same period of 2022. And our gross margins on service increased to 60.5% in the first quarter of 2023 from 49% in the same period of 2022.

2023年第一季度的整體毛利率從2022年同期的37.4%提高到47.8%。服務毛利率從2022年同期的49%提高到2023年第一季度的60.5% 。

Excluding the share-based compensations, our total operating expenses decreased to USD6.9 million, or 38% of total revenues in the first quarter of 2023 as compared to USD9.3 million, or 60% of total revenue in the same period of 2022.

不計入股權激勵，我們的總運營費用下降至 690 萬美元，佔 2023 年第一季度總收入的 38%，而 2022 年同期為 930 萬美元，佔總收入的 60% 。

We realized net income of USD2.1 million in the first quarter of 2023, which represents a significant improvement on our bottom-line results as compared to a net loss of USD7.9 million in the same period 2022. Similarly, adjusted EBITDA improved to USD2.1 million during the first quarter of 2023 as compared to negative USD3.9 million in the same period 2022.

我們在 2023 年第一季度實現了 210 萬美元的淨利潤，與 2022 年同期 790 萬美元的淨虧損相比，我們的利潤有了顯著改善。同樣，調整後的 EBITDA 也改善至2023 年第一季度為210 萬美元，而2022 年同期為負390 萬美元。

We're pleased as this is the first time we achieved positive net income since the outbreak of COVID-⁠19 pandemic and adjusted EBITDA has remained positive for three consecutive quarters.

我們很高興，因為這是自 COVID-19 大流行爆發以來我們首次實現正淨利潤，並且調整後 EBITDA 已連續三個季度保持正值。

We have achieved positive operating cash flow, USD1.6 million during the first quarter of 2023, which compared to negative USD4.4 million during the same period of 2022. We have significantly improved our bottom line in the first quarter of 2023 and have generated positive cash flow from operation for four consecutive quarters. Our strengthened financial position enable us to execute our growth strategies.

我們在 2023 年第一季度實現了 160 萬美元的正經營現金流，而 2022 年同期為負 440 萬美元。我們在 2023 年第一季度顯著改善了利潤，並創造了經營現金流連續四個季度為正。我們增強的財務狀況使我們能夠執行我們的增長戰略。

With that, operator, let's open it for Q&A.

那麼，操作員，讓我們打開它進行問答。

(Operator Instructions) Theodore O'Neill, Litchfield Hills Research.

（操作員說明）Theodore O'Neill，Litchfield Hills Research。

Thank you very much. Can you hear me okay?

非常感謝。你能聽到我說話嗎？

Yes.

是的。

Yes, good. Congratulations on the good quarter. I have three questions for you. The first on gross profit.

對很好。祝賀季度業績良好。我有三個問題要問你。首先是毛利潤。

I can see that the overall margin was better in the quarter because you had a greater mix of services. But I wanted to understand the margins got better on both products and services, is that due to pricing or was there some efficiencies in the products?

我可以看到本季度的整體利潤率更好，因為您擁有更多的服務組合。但我想了解產品和服務的利潤率都提高了，這是由於定價還是產品效率提高了？

So we'll answer your questions one by one. So you just raised the first question, right? Yeah. Regarding the gross profit, you will see we improve gross profit, gross margins in the past couples of quarters. So that's massive improvements on quarter-to-quarter basis.

那麼我們將一一解答您的問題。所以你剛才提出了第一個問題，對嗎？是的。關於毛利潤，你會看到我們在過去幾個季度的毛利潤、毛利率有所提高。所以這是逐季度的巨大改進。

For the service gross margin, it's improving depending on a mix of the service categories. So that's a mixture of the three categories of main service revenues. One is the international roaming connectivity service, one is a local connectivity service, and the PaaS and SaaS service.

對於服務毛利率來說，它的改善取決於服務類別的組合。這是三類主要服務收入的混合體。一種是國際漫遊連接服務，一種是本地連接服務，還有PaaS和SaaS服務。

So the improving gross margins will reflect the proportions of the revenue generating from international roaming service and from PaaS, SaaS is growing faster than the local connectivity service. So that's where we get the improving result of the gross margins improving over the past couples of quarters.

因此，毛利率的提高將反映出國際漫遊服務和PaaS、SaaS收入的增長速度快於本地連接服務的收入比例。這就是我們在過去幾個季度毛利率改善的結果。

So we are looking forward in the near future this year because the border has been open up for most countries so the people can move in cross border more freely than before. We expect there's more revenue we'll generate from the international roaming connectivity service.

因此，我們期待今年不久的將來，因為邊境已經對大多數國家開放，因此人們可以比以前更自由地跨境流動。我們預計國際漫遊連接服務將帶來更多收入。

So if you zoom in the proportions of international roaming service, we'll be improving in the future. So we expect the overall service cost margin will be improving a bit out, and at least keep stables in following quarters for this year. That's my opinion.

所以如果你放大國際漫遊服務的比例，我們未來將會有所改善。因此，我們預計整體服務成本利潤率將略有改善，並至少在今年接下來的幾個季度保持穩定。這是我的意見。

Thank you. My next question is about the research and development expense. It says there in the prepared remarks that you had a decrease of $0.2 million in testing and certification expenses.

謝謝。我的下一個問題是關於研發費用。它在準備好的評論中說，你們的測試和認證費用減少了 20 萬美元。

Can you give me some insight into how that number for testing and certification? I would have thought it would go up and down with new products, but can you give us a little more sense of how that goes up or down quarter to quarter?

您能否給我一些關於該數字如何進行測試和認證的見解？我本以為它會隨著新產品的推出而上下波動，但你能否讓我們更多地了解一下它是如何逐季度上升或下降的？

Yes. I answer the first half part regarding the decreasing and expenses. Our CEO may give some colors on the new product.

是的。我回答前半部分關於減少和費用的問題。我們的首席執行官可能會給新產品一些顏色。

Yes. It's a very -- we report the streamlines, our operations since the year 2021 and that's reflecting our overall headcount is decreasing compared with the year 2022. So the number of headcounts has been cut off for some certain part for improving our operational efficiency. And so, that's what reflecting on comparable basis. So our overall expenditures have been decreased on year-to-year basis and that's similar story for this R&D functions as well.

是的。我們報告了自 2021 年以來我們的運營精簡情況，這反映出我們的整體員工人數與 2022 年相比正在減少。因此，為了提高我們的運營效率，某些部分的員工數量已被削減。所以，這就是在可比基礎上反映的情況。因此，我們的總體支出逐年減少，研發職能部門的情況也類似。

We invest a lot in the past couple of years. We invest huge investments on research and development functions. So that support our -- every year we launch a different new products and new features, and upgrades platform as well. But we will still invest or leverage on this R&D to support to develop a new product. So regarding the new products developments, our CEO will give some more color on that.

過去幾年我們投入了大量資金。我們在研發職能上投入巨額投資。因此，這支持我們——每年我們都會推出不同的新產品和新功能，併升級平台。但我們仍然會投資或利用這項研發來支持新產品的開發。因此，關於新產品的開發，我們的首席執行官將對此進行更多闡述。

Yeah, I'm Chaohui Chen. Yeah, I'll add some comment. Because two years ago, how we invest in R&D side, you can see our loss last two years ago -- the heavy loss, that's because we have invested in R&D side. So [here, 56 and] HyperConn, we finish all the development. Then end of last year we start to control the cost and control the R&D investment, but this did not impact our new product launch in these years.

是的，我是陳朝暉。是的，我會添加一些評論。因為兩年前，我們在研發方面的投資，你可以看到我們兩年前的虧損——損失慘重，那是因為我們在研發方面進行了投資。所以[這裡，56和]HyperConn，我們完成了所有的開發。然後去年年底我們開始控製成本，控制研發投入，但這並沒有影響我們這些年的新產品推出。

So in my presentation, I already tell some -- the truth we will launch in near future. For our HyperConn product, this will meet for mobile broadband and fixed broadband. This is a huge opportunity for the mobile broadband operator market. I think in the next quarter, we are prepared to launch -- around this time, we will launch this new series of new products in the second quarter and out third quarter.

因此，在我的演講中，我已經告訴了一些事實——我們將在不久的將來推出。對於我們的 HyperConn 產品，這將滿足移動寬帶和固定寬帶的要求。這對於移動寬帶運營商市場來說是一個巨大的機遇。我認為在下個季度，我們準備推出——大約在這個時候，我們將在第二季度和第三季度推出這個新系列的新產品。

So we continue this HyperConn product launch to enhance high quality, reliable quality, because no matter fixed broadband or mobile broadband operator, their network will face the failure. Once the failure happened, we can help them to improve the experience. That's a quite unique solution. We expand this HyperConn connection product to expand to the different scenario for carrier and for cable carrier, fixed broadband carrier, and mobile broadband carrier.

所以我們繼續推出HyperConn產品來提升高質量、可靠的品質，因為無論是固定寬帶還是移動寬帶運營商，他們的網絡都會面臨故障。一旦發生故障，我們可以幫助他們改善體驗。這是一個非常獨特的解決方案。我們擴展了這個HyperConn連接產品，擴展到運營商的不同場景，以及有線運營商、固定寬帶運營商和移動寬帶運營商。

And also, we will launch some new products for 1.0 business to enhance, to meet a more convenient, more compact, and more -- and a 5G product leading tradition at both of these two directions. And we will launch more new products to meet 1.0 fast growth market as well.

另外，我們還會推出一些新產品，對1.0業務進行增強，滿足更便捷、更緊湊、更多——以及5G產品在這兩個方向上的領先傳統。我們也將推出更多新產品來滿足1.0快速增長的市場。

And also, for IoT. So we will launch an IoT product to improve reliable -- we apply the HyperConn this technology into the IoT product because we know the autopilot like Lobot like this IoT technology scenario also need a very high reliable connection.

而且，對於物聯網。所以我們會推出一個物聯網產品來提高可靠性——我們把HyperConn這個技術應用到物聯網產品中，因為我們知道像Lobot這樣的自動駕駛儀這樣的物聯網技術場景也需要非常高的可靠連接。

So in this high reliable connection, we do a lot of breakthrough. We hope in the coming quarter we can give this good news to everyone. So basically, once our growth of recovery from the pandemic, so I think our R&D will also give very stable investment and also our new product new solution because of historic investment. And after this year, we will also strengthen our R&D investment. I believe we will get more good result and bright future for our HyperConn and cloud SIM.

所以在這個高可靠連接方面，我們做了很多突破。我們希望在下個季度能夠向大家傳達這個好消息。所以基本上，一旦我們的增長從大流行中復蘇，我認為我們的研發也將給予非常穩定的投資，並且由於歷史性投資，我們的新產品新解決方案也會給予我們。而且今年之後我們也會加強研發投入。相信我們的HyperConn和雲SIM將會取得更好的成績和美好的未來。

Okay, thank you. And my last question is about accounts receivable. You've done a remarkable job at keeping receivables low relative to revenue. Is that primarily because the services are prepaid?

好的謝謝。我的最後一個問題是關於應收賬款的。你們在將應收賬款相對於收入保持在較低水平方面做得非常出色。這主要是因為服務是預付費的嗎？

Yeah. I think the improvements on the balance account receivable depends on the couples of factors. The first one is we pay more attention and effort on improving our business term, as you say -- mentioned, prepared terms and the credit term -- the short-term credit term. And we have got some more bigger orders from this good credit customer as well. So that's the first -- I think first contributors for the improving balance.

是的。我認為應收賬款餘額的改善取決於幾個因素。第一個是我們更加關注和努力改善我們的業務條款，正如你所說的——準備好的條款和信用條款——短期信用條款。我們還從這個信用良好的客戶那裡得到了一些更大的訂單。所以這是第一個——我認為是改善平衡的第一個貢獻者。

And the second part, I think, we pay effort to collect the cash from some agents' account receivables that some customers suffered this pandemic one year ago, two years ago. So now, they recover gradually in terms of making profit or something, generating more cash flow from the [then is] activities. So we have -- our efforts on cash collections have achieved a positive result that helped reducing -- improving the balance of the account receivables.

第二部分，我認為，我們努力從一些代理商的應收賬款中收回現金，這些應收賬款是一些客戶一年前、兩年前遭受這種流行病的。所以現在，他們在盈利或其他方面逐漸恢復，從[當時]的活動中產生更多的現金流。因此，我們在現金催收方面的努力取得了積極成果，有助於減少和改善應收賬款餘額。

And the third part depends -- we're selling to a more -- to individual customers via ecommerce, via some our website. So this ecommerce generates just a cash -- prepaid cash at all before they use our service. So this also varies as contributors help our improving managements. So we will take this managements in the future.

第三部分取決於——我們通過電子商務、通過我們的一些網站向更多的個人客戶銷售。因此，這種電子商務只產生現金——在他們使用我們的服務之前預付現金。因此，隨著貢獻者幫助我們改進管理，這也會有所不同。所以我們以後也會採取這樣的管理。

We'll maintain well our cash positions. So I expect our operating cash flow will keep this positive trend in the following couples of this year. I believe we will achieve a better than last year that we expect, yes.

我們將保持良好的現金狀況。因此，我預計我們的經營現金流將在今年接下來的幾年中保持這種積極的趨勢。我相信我們會取得比去年更好的成績，是的。

By the way, because our customer situation and finance situation also are so much better compared to during the pandemic, so they are willing to accept our more better payment condition.

順便說一句，因為我們的客戶情況和財務狀況也比疫情期間好很多，所以他們願意接受我們更好的付款條件。

Thank you very much. That concludes my questions.

非常感謝。我的問題到此結束。

(Operator Instructions) Vivian Zhang, Diamond Equity Research.

（操作員指令） Vivian 張，鑽石股票研究。

Hello, this is Vivian Zhang with Diamond Equity. Congrats on the great quarter.

大家好，我是 Diamond Equity 的 Vivian 張。祝賀這個偉大的季度。

Most of my questions have answered but I still have one left, which is regarding your new business, the mobile data traffic sharing marketplace application. Can you give us a specific update on this business and when do you expect it to be launched and generate meaningful revenue? Thank you.

我的大部分問題已經得到解答，但我還剩下一個問題，那就是關於您的新業務，即移動數據流量共享市場應用程序。您能否向我們介紹該業務的具體最新情況？您預計該業務何時推出並產生可觀的收入？謝謝。

Okay, yeah. So because currently, we are, I think, only majorly we sell in both local and international data. And this data is high quality and reliable cross-carrier network. So that's currently our business majorly come from. But I know this industry, we have people -- they may be not willing to carry the extra MiFi.

好吧，是的。因為目前，我認為我們主要只銷售本地和國際數據。並且這些數據是高質量且可靠的跨運營商網絡。這就是目前我們業務的主要來源。但我了解這個行業，我們有人——他們可能不願意攜帶額外的 MiFi。

We have a GlocalMe inside, also it's like eSIM, software SIM. There are many kinds of technology. Even their connection quality may not as good as our cloud SIM, but they have some advantage as well, for example, more convenient, no need to install MiFi. Then we could now wait for our cloud SIM in the GMI, GlocalMe Inside [invertible] handset.

我們裡面有一個GlocalMe，也像eSIM，軟件SIM。技術有很多種。即使它們的連接質量可能不如我們的雲SIM卡，但它們也有一些優勢，例如更方便，無需安裝MiFi。然後我們現在可以在 GMI、GlocalMe Inside [可逆] 手機中等待我們的雲 SIM 卡。

Even these years, our GlocalMe Inside is still on the progress, but we already develop or shared in marketplace this concept. So we will launch a marketplace. This marketplace contains several technologies inside, not only including the physical SIM, cloud SIM, eSIM, and also software SIM as well.

即使這些年，我們的GlocalMe Inside仍在進步，但我們已經在市場上開發或分享了這個概念。所以我們將推出一個市場。這個市場裡麵包含了多種技術，不僅包括物理SIM、雲SIM、eSIM，還包括軟件SIM。

We can provide all kinds of data connectivity and different advantage and convenient and price and high quality, these data connectivity quality, and convenient scenario product to meet the different user's requirement. For example, if like iPhone, now, you can use our MiFi solution to provide a better connection for family use, multi-people use, and best quality network.

我們可以提供各種數據連接以及不同的優勢和便利性以及價格和高品質，這些數據連接優質、便捷的場景產品可以滿足不同用戶的需求。例如，如果像iPhone一樣，現在您可以使用我們的MiFi解決方案來為家庭使用、多人使用提供更好的連接以及最優質的網絡。

But also, you can embed our software SIM or our eSIM solution. Then we can provide more users and we'll educate them people understand that the customer understand, oh, they are one stop, can provide all kinds of technology. And this all kind of technology, at least one or two, can meet your requirements. Then we can -- this marketplace can help us.

而且，您還可以嵌入我們的軟件 SIM 或 eSIM 解決方案。然後我們可以提供更多的用戶，我們會教育他們人們了解客戶了解，哦，他們是一站式的，可以提供各種技術。而這一切技術，至少一兩項，是可以滿足你的要求的。那麼我們就可以——這個市場可以幫助我們。

First, we will show -- demonstrate in our brand -- under our brand. Then we will copy this technology and this brand, this scenario to all our business partners. Then this becomes a marketplace. And this will help us, I think enlarge our user base because we are currently -- only 20% or 30% people know us. Another 70% or 80% haven't used our technology.

首先，我們將在我們的品牌下展示——以我們的品牌展示。然後我們會把這個技術、這個品牌、這個場景複製給我們所有的商業夥伴。然後這就變成了一個市場。我認為這將幫助我們擴大我們的用戶群，因為目前只有 20% 或 30% 的人認識我們。另外 70% 或 80% 沒有使用過我們的技術。

With new launch of this version of the marketplace, we will cover all the technology, all the requirement of the users. This helps us and help our partner to meet all the requirements of the user application. So help us acquire a huge base of the user base. That's our first version of when we launch in near term for this marketplace app -- GlocalMe app first. And then we will copy this one to our partner. That's our initial plan.

隨著該版本市場的新推出，我們將涵蓋所有技術、用戶的所有要求。這有助於我們和我們的合作夥伴滿足用戶應用程序的所有要求。從而幫助我們獲得龐大的用戶群。這是我們近期推出的這個市場應用程序的第一個版本——首先是 GlocalMe 應用程序。然後我們將把這個複制給我們的合作夥伴。這是我們最初的計劃。

Okay, that makes sense. Thank you.

好吧，這是有道理的。謝謝。

[Stephanie Lee], China Great Wall Securities

[Stephanie Lee]，中國長城證券

Hi. Yeah. I'm Stephanie Lee from China Great Wall Securities. And can you hear me?

你好。是的。我是中國長城證券的Stephanie Lee。你能聽到我說話嗎？

Yes.

是的。

Okay, I have a small question about SaaS and PaaS sector, because, like from the report of our first quarter, the revenue of PaaS and SaaS did not grow much from the year on year or quarter to quarter. So what's the plan and also the outlook for the whole year on this sector because I feel this is also the main focus of our company. And I want to know about what's our plan for the PaaS and the client expands or the technology development in this sector. Thank you.

好的，我有一個關於SaaS和PaaS行業的小問題，因為就像我們第一季度的報告一樣，PaaS和SaaS的收入同比或環比增長不大。那麼全年這個領域的計劃和展望是什麼呢，因為我覺得這也是我們公司的主要關注點。我想知道我們對 PaaS 和客戶擴展或該領域的技術開發有何計劃。謝謝。

Okay, thank you. First, I answer these questions and then our CEO will give some more supplementary. Yeah. For the first quarter, it seems the PaaS, SaaS revenue is still growing compared with last year with small percentage growth by 3.7% growth compared with the same period last year.

好的謝謝。首先我回答一下這些問題，然後我們的CEO會再做一些補充。是的。從第一季度來看，PaaS、SaaS收入與去年相比仍在小幅增長，​​與去年同期相比增長了3.7%。

But underlying this figure, our daily activities terminal has achieved historical height over 300,000, and you will see our revenue -- service revenue generated from 1.0 and 2.0 increased massively compared last year. For example, the international roaming service grows over 38.5% over the last years, and uCloudlink 2.0 grows 37% over the last year.

但在這個數字的背後，我們的日常活動終端已經達到了30萬以上的歷史高度，你會看到我們的收入——1.0和2.0產生的服務收入比去年大幅增長。例如，國際漫遊業務同比增長超過38.5%，uCloudlink 2.0同比增長37%。

So in our business models, PaaS, SaaS play a central platform to build up a global ecosystem to support our global business partner to provide a better high-quality connectivity service, either to international roaming or to a local restraint. So this gives us more flexible business model with our partners.

因此，在我們的商業模式中，PaaS、SaaS 扮演著建立全球生態系統的中心平台，以支持我們的全球業務合作夥伴提供更好的高質量連接服務，無論是國際漫遊還是本地限制。因此，這為我們與合作夥伴提供了更靈活的商業模式。

So our partners have options either to pay a PaaS, SaaS service to us and they supply their data from their own resource, or they can choose or buy from a data package from uCloudlink and then we provide the SaaS function to support, to provide service to the customers. So we will treat this overall service package in one pool to view our growth trend. So in the future, we give this option flexibility to our business partners.

所以我們的合作夥伴可以選擇要么向我們支付PaaS、SaaS服務，他們從自己的資源中提供數據，要么他們可以選擇或購買優克聯的數據包，然後我們提供SaaS功能來支持、提供服務給客戶。因此，我們將把這個整體服務包放在一個池中，以查看我們的增長趨勢。所以在未來，我們會為我們的業務合作夥伴提供這種選擇的靈活性。

So for this in the future, we expect we disclose our guidance as well. So the guidance give us a growth. It's a trend around [20] something to the guidance $85 million to $100 million revenues. In this guidance, I think the overall growth will give us a message, PaaS, SaaS and 1.0, 2.0 business will be growing as well in this guidance.

因此，在未來，我們希望我們也能披露我們的指導意見。所以指導讓我們成長。這是一種大約 [20] 指導收入 8500 萬至 1 億美元的趨勢。在這個指引中，我認為整體的增長會給我們一個信息，PaaS、SaaS以及1.0、2.0業務也會在這個指引中增長。

Okay. So I add more comment. Because initially, recovery from the international travel from COVID-⁠19 is step by step, so at this stage, our partner, they prefer to use our data then immediately increase their PaaS, SaaS capacity. So that's the reason I answer why our data traffic increase a lot, but platform, no increase such significantly. That's because of the reason I mentioned first.

好的。所以我添加更多評論。因為最初，從 COVID-⁠19 的國際旅行中恢復是一步一步的，所以在這個階段，我們的合作夥伴，他們更喜歡使用我們的數據，然後立即增加他們的 PaaS、SaaS 容量。這就是我回答為什麼我們的數據流量增加很多，但平台沒有增加這麼顯著的原因。這是因為我首先提到的原因。

Personally, I believe once the second quarter or third quarter, the recovery from the China, Japan, all these Southeast Asia countries, for international roaming business becomes stable and recover more apparently and more significantly, I think some part of our data will transfer to be PaaS, SaaS increase. So that's the reason.

我個人認為一旦第二季度或者第三季度，中國、日本、所有這些東南亞國家的國際漫遊業務的複蘇趨於穩定，恢復得更加明顯、更加顯著，我認為我們的一部分數據將會轉移到得到PaaS、SaaS的增加。這就是原因。

Personally, I believe for the PaaS, SaaS, for 1.0 business, following the quarter, will keep -- continue to increase. That's the first part. And second part I just mentioned, because currently, our new solution -- we will launch a new solution for mobile broadband, fixed broadband, for HyperConn ⁠series new product in the second quarter and third quarter, this will bring a lot of PaaS, SaaS revenue for us as well in the following quarter.

就我個人而言，我相信 PaaS、SaaS、1.0 業務，繼本季度之後，將保持——繼續增長。這是第一部分。還有我剛才提到的第二部分，因為目前我們新的解決方案——我們會在第二季度和第三季度推出針對移動寬帶、固定寬帶的新解決方案，針對HyperConn系列新產品，這會帶來很多PaaS，我們下個季度的 SaaS 收入也是如此。

And also, for IoT. I think IoT, we have a lot of the big customer now on the way. So if this customer we acquire, I think the PaaS, SaaS will be increased as well.

而且，對於物聯網。我認為物聯網，我們現在有很多大客戶。所以如果我們獲得這個客戶，我認為PaaS、SaaS也會增加。

Finally, so I mentioned our marketplace, the first new version will been launch in near term. And also, once we copy this new model to our partner, also will bring the PaaS, SaaS increase. And I think especially for HyperConn, for the mobile broadband and fixed broadband carrier, this carrier majorly is operator. They are preferring our PaaS, SaaS solution, follow this solution for the HyperConn for fixed solution. Once achieved, adopt by more and more carrier, I believe the PaaS and SaaS revenue will increase a lot. That's the general information.

最後，我提到了我們的市場，第一個新版本將在近期推出。而且，一旦我們把這個新模式複制給我們的合作夥伴，也會帶來PaaS、SaaS的增長。我認為特別是對於HyperConn，對於移動寬帶和固定寬帶運營商來說，這個運營商主要是運營商。他們更喜歡我們的PaaS、SaaS解決方案，遵循此解決方案作為HyperConn的固定解決方案。一旦實現，被越來越多的運營商採用，我相信PaaS和SaaS的收入將會增加很多。這是一般信息。

Okay. That's very clear. They did makes sense. Thank you.

好的。這非常清楚。他們確實有道理。謝謝。

This concludes our question-and-answer session. I would now like to turn the conference back over to Jillian Zeng for any closing remarks.

我們的問答環節到此結束。現在我想將會議轉回給曾吉蓮 (Jillian Zeng)，讓其發表閉幕詞。

Thank you once again for joining us today. If you have further questions, please feel free to contact uCloudlink's Investor Relations through the contact information provided on our website, or contact our Investor Relations firm, The Equity Group. Look forward to speaking to you again on our next quarterly call. Thank you.

再次感謝您今天加入我們。如果您還有其他疑問，請隨時通過我們網站上提供的聯繫方式聯繫優克聯投資者關係部，或聯繫我們的投資者關係公司The Equity Group。期待在下一次季度電話會議上再次與您交談。謝謝。

Thank you.

謝謝。

Thank you. Thank you, everyone.

謝謝。謝謝大家。

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。