Ucloudlink Group Inc (UCL) 2024 Q1 法說會逐字稿

Good day and welcome to the uCloudlink first-quarter 2024 earnings conference call.

美好的一天，歡迎參加優克聯 2024 年第一季財報電話會議。

(Operator Instructions) Please note this event is being recorded.

（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 Liam Xie.

現在我想把會議交給 Liam Xie。

Please go ahead.

請繼續。

Hello, everyone, and thank you for joining us on uCloudlink's first quarter 2024 earnings call.

大家好，感謝您參加 uCloudlink 2024 年第一季財報電話會議。

The earnings release and our earnings presentation are now available on our IR website at ir.ucloudlink.com. Joining me on today's call are Mr. Zhiping Peng, Co-Founder and Chairman of Board of Directors; Mr. Chaohui Chen, Co-Founder, Director and Chief Executive Officer; and Mr. Yimeng Shi, Chief Financial Officer.

收益發布和我們的收益演示現已在我們的投資者關係網站 ir.ucloudlink.com 上發布。參加今天電話會議的有共同創辦人兼董事會主席彭志平先生；陳朝輝先生，聯合創辦人、董事兼執行長；施一猛先生，財務長。

Mr. Chen will begin with an overview of our recent business highlights.

陳先生首先概述了我們近期的業務亮點。

Mr. Shi will then discuss our financial and operational highlights for the quarter.

隨後，施先生將討論我們本季的財務和營運亮點。

They will all be available to take your questions in the Q&A section that follows.

他們都可以在接下來的問答部分回答您的問題。

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.

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》安全港條款做出的前瞻性陳述。

These forward-looking statements are based on management'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 or expectations implied by these forward-looking statements.

這些前瞻性陳述是基於管理階層目前的預期和觀察，涉及已知和未知的風險、不確定性以及公司無法控制的其他因素，可能導致公司的實際結果、績效或成就與結果有重大差異這些前瞻性陳述所暗示的表現或期望。

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.

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、風險因素和詳細資訊。

The company does not assume any obligation to revise or update any forward-looking statement as a result of new information, future events, changes in market conditions, or otherwise, except as required by law.

除法律要求外，本公司不承擔因新資訊、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聲明的義務。

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

另請注意，優克聯在本次電話會議中發布的獲利新聞稿包括對未經審計的 GAAP 財務資訊和未經審計的非 GAAP 財務指標的討論。優克聯的新聞稿包含未經審計的非公認會計準則衡量標準與最直接可比較的未經審計公認會計準則衡量標準的調節表。

I will now turn the call over to Mr. Chen.

我現在將電話轉給陳先生。

Please go ahead.

請繼續。

Thank you, Liam, and good morning or evening, everyone.

謝謝利亞姆，大家早安或晚上好。

We had a promising start for the year with total revenues of USD18.1 million, in line with guidance.

我們今年開局良好，總收入達 1,810 萬美元，符合預期。

With our business now healthy and back on a growth trajectory, and we maintained the profitability we regained last year, achieving a net income of USD0.4 million and generating a net operating cash inflow of USD1.9 million in the fourth quarter of year 2024.

目前，我們的業務健康發展，重回成長軌道，並維持了去年恢復的獲利能力，2024 年第四季實現淨利 40 萬美元，營運淨現金流入 190 萬美元。

Revenue growth was primary driven by the continuous recovery of our 1.0 international data connectivity services business, and in particular, our Roamingman brand services, which continue to rebound strongly.

營收成長主要得益於我們1.0國際數據連結服務業務的持續復甦，特別是我們的Roamingman品牌服務持續強勁反彈。

With coverage expanding from 55 to 60 countries and regions, our full speed 5G roaming network solution further solidified our leading position in this sector and helped expand our market share.

全速5G漫遊網路解決方案的覆蓋範圍從55個擴大到60個國家和地區，進一步鞏固了我們在該領域的領先地位，並幫助擴大了我們的市場份額。

According to the Mobile Economy 2024 report from the Global System for Mobile Communications Association or GSMA, the global number of 5G connections is expected to rise to 5.5 billion by 2027 from 1.6 billion at the end of the year 2023.

根據全球行動通訊系統協會（GSMA）的《行動經濟2024》報告，全球5G連線數預計將從2023年底的16億增加到2027年的55億。

We also made significant progress in rolling out and expanding arrays of comprehensive data connectivity solutions during the quarter to explore opportunities beyond portable Wi-Fi terminals.

本季度，我們在推出和擴展一系列全面的數據連接解決方案方面也取得了重大進展，以探索便攜式 Wi-Fi 終端之外的機會。

Let me start with the progress we have made in our GlocalMe mobile and fixed broadband business lines.

讓我先介紹一下我們在GlocalMe行動和固定寬頻業務方面的進展。

At the Mobile World Congress earlier this year in Barcelona, we showcased the GuardFlex Pro, our highly reliable dual broadband consumer premises equipment or CPE solution, which we believe will redefine industry benchmark for high level connectivity and innovation.

在今年稍早於巴塞隆納舉行的世界行動通訊大會上，我們展示了GuardFlex Pro，這是我們高度可靠的雙寬頻消費者駐地設備或CPE 解決方案，我們相信它將重新定義高水準連接和創新的行業基準。

Unlike other CPE solutions on the market, the GuardFlex Pro supports multiple mobile networks from all available major operators in addition to 10 local fixed networks.

與市場上其他 CPE 解決方案不同，GuardFlex Pro 除了 10 個本地固定網路外，還支援所有可用主要營運商的多個行動網路。

This means it is able to intelligently select and automatically switch networks to maintain the connectivity even when the fiber optic lines fail or are disrupted.

這意味著即使光纖線路發生故障或中斷，它也能夠智慧地選擇並自動切換網路以保持連接。

Fueled by the surge in remote work, online learning, streaming platform in recent years, the demand for ubiquitous and reliable wireless connectivity is poised for substantial growth.

近年來，在遠距工作、線上學習、串流平台激增的推動下，對無處不在且可靠的無線連接的需求預計將大幅增長。

Second, our GlocalMe Life business made significant progress during the quarter with the initial rollout of new products that brings seamless connectivity into various high-frequency daily life application scenarios, such as tag management, item checking, as well as emergency communications.

其次，GlocalMe生活業務本季取得重大進展，新產品初步推出，為標籤管理、物品查詢、緊急通訊等各種高頻生活應用場景帶來無縫連接。

We soft-launched our first daily life product, a smart tracker, powered by our innovation solutions that offer far more accurate and reliable checking something that the other similar tag or tracker product on the market are unable to do.

我們軟啟動了我們的第一個日常生活產品——智慧追蹤器，由我們的創新解決方案提供支持，該解決方案提供更準確、更可靠的檢查，這是市場上其他類似標籤或追蹤器產品無法做到的。

In addition, the smart tracker offer free local emergent Internet access to users for security head.

此外，智慧追蹤器還為安全頭的用戶提供免費的本地緊急網路存取。

Unlike the other similar products on the market, which only support a single network or technologies such as Bluetooth to check items.

與市場上其他同類產品不同，它們僅支援單一網路或藍牙等技術來檢查物品。

Our tracker is able to intelligently select and automatically switch between multiple networks and six different location technologies.

我們的追蹤器能夠智慧選擇並在多個網路和六種不同的定位技術之間自動切換。

Additionally, GlocalMe Life has an exciting slate of Easy Life X series products under development, which would enhance the daily life of smart device users, making them much easier and more convenient.

此外，GlocalMe Life還有一系列令人興奮的Easy Life X系列產品正在開發中，這些產品將改善智慧裝置使用者的日常生活，讓他們更輕鬆、更方便。

We will unveil three GlocalMe Life products and upgraded GlocalMe app on May 23 at the Viva Technology Year 2024 in Paris.

我們將於 5 月 23 日在巴黎舉行的 Viva Technology Year 2024 上推出三款 GlocalMe Life 產品和升級版 GlocalMe 應用程式。

Meaningful revenue generation from the smart tracker and Easy Life X series products is anticipated to begin in the third quarter and recurring revenues from subscription and services are anticipated going forwards.

智慧追蹤器和 Easy Life X 系列產品預計將在第三季開始產生有意義的收入，訂閱和服務的經常性收入預計將持續成長。

By offering more intelligent, convenient data life products that satisfy a wide range of user needs, we are expanding our market research and establishing a broader market presence to diversify our revenue streams and generate long-term sustainable growth.

透過提供更智慧、便利的數據生活產品，滿足廣泛的用戶需求，我們正在擴大市場研究，建立更廣泛的市場份額，以實現收入來源多元化並實現長期可持續增長。

By expanding our business beyond the travel sector into various aspects of daily life and commercial life, customers will enjoy a more intelligent and convenient life through our high-quality data connections for a range of everyday scenarios.

透過將我們的業務從出行領域拓展到日常生活和商業生活的各個方面，客戶將透過我們針對各種日常場景的高品質數據連接享受更智慧、便利的生活。

Third, our newly launched GlocalMe SIM made solid progress during the quarter, ranking highly on a number of e-commercial platforms for travelers heading to destinations such as Japan and Hong Kong.

第三，我們新推出的GlocalMe SIM卡在本季度取得了紮實的進展，在前往日本、香港等目的地的多個電商平台上排名靠前。

Our GlocalMe SIM solutions, including our over-the-air OTA SIM and eSIM solutions will continue to evolve into our innovative All SIM solution, allowing us to engage with a broader end-user base beyond those in the portable Wi-Fi terminals market.

我們的 GlocalMe SIM 解決方案，包括我們的無線 OTA SIM 和 eSIM 解決方案，將繼續發展成為我們創新的 All SIM 解決方案，使我們能夠接觸便攜式 Wi-Fi 終端市場之外更廣泛的最終用戶群。

This pioneering All SIM solution is uniquely poised to break across carrier restrictions and empower various smartphone.

這項開創性的 All SIM 解決方案具有獨特的優勢，能夠突破營運商限制並為各種智慧型手機提供支援。

According to the Mobile Economy Year 2024 report from the GSMA, SIM connection, excluding licensed cellular IoT are expected to increase from 8.6 billion in year 2023 to 9.8 billion by the end of the year 2030.

根據 GSMA 的《2024 年行動經濟年》報告，不包括授權的蜂窩物聯網的 SIM 連線數預計將從 2023 年的 86 億增加到 2030 年底的 98 億。

Last but not least, within our IoT business line, we completed testing of our soft cloud SIM technology for consumer IoT devices, which we expect to begin commercializing in the near future.

最後但並非最不重要的一點是，在我們的物聯網業務線中，我們完成了針對消費者物聯網設備的軟雲 SIM 技術的測試，我們預計該技術將在不久的將來開始商業化。

This unique technology is compatible with a broader array of mainstream chipset platform found in many IoT device and eliminate the need from hardware redesign or redevelopment, allowing global IoT manufacturers to seamlessly deploy it through software cloud installation.

這項獨特的技術與許多物聯網設備中更廣泛的主流晶片組平台兼容，無需重新設計或重新開發硬件，使全球物聯網製造商能夠透過軟體雲端安裝無縫部署它。

This turnkey solution is expected to create significant opportunities for us in the consumer IoT market by having our technology deployed in products such as walkie talkies, security camera, and the two-wheeled electric scooters, which already have a substantial end user base and can significantly contribute to data connectivity services revenue.

透過將我們的技術部署到對講機、安全攝影機和兩輪電動滑板車等產品中，該交鑰匙解決方案預計將為我們在消費物聯網市場創造重大機會，這些產品已經擁有大量的最終用戶群，並且可以顯著為數據連接服務收入做出貢獻。

According to The Mobile Economy Year 2024 report from the GSMA, licensed cellular IoT connections are expected to grow from 3.5 billion in year 2023 to 5.8 billion by 2030.

根據 GSMA 的《2024 年行動經濟年》報告，獲得許可的蜂窩物聯網連接預計將從 2023 年的 35 億增長到 2030 年的 58 億。

We believe that better connection empowers better life.

我們相信更好的連結可以讓生活更美好。

We recognized ourselves into four distinct business lines starting from year 2024 to leverage our existing R&D resource and cutting-edge technologies to explore business opportunities beyond portable Wi-Fi terminals and build and expanded array of comprehensive data connectivity solutions to satisfy a wide range of users' needs.

從2024年開始，我們將自己定位為四個不同的業務線，利用我們現有的研發資源和尖端技術，探索便攜式Wi-Fi終端之外的商機，並建構和擴展一系列全面的數據連接解決案例，以滿足廣泛的用戶需求' 的需要。

By extending our business beyond the travel sector into various aspects of daily and commercial life, these solutions will allow us to engage with a broader end user space by leveraging our cloud SIM and hyper-connectivity technologies, ultimately build out our broader GlocalMe ecosystem and global leading mobile data traffic sharing marketplace.

透過將我們的業務從旅遊領域擴展到日常生活和商業生活的各個方面，這些解決方案將使我們能夠利用我們的雲端SIM 和超連接技術與更廣泛的最終用戶空間互動，最終建立更廣泛的GlocalMe生態系統和全球服務。

Finally, I would like to review our guidance for the second quarter of year 2024.

最後，我想回顧一下我們對 2024 年第二季的指導。

We are optimistic about our future growth prospects.

我們對未來的成長前景感到樂觀。

For the second quarter of year 2024, we expect total revenues to be between USD22 million and USD24 million, representing an increase 0.1% to 9.2% compared to the same period of year 2023.

2024年第二季度，我們預計總營收將在2,200萬美元至2,400萬美元之間，較2023年同期成長0.1%至9.2%。

We maintain our outlook for the year, with total revenues expected to be between USD95 million and USD112 million, representing an increase of 11% to 30.8% for year 2023.

我們維持今年的展望，預計 2023 年總營收將在 9,500 萬美元至 1.12 億美元之間，成長 11% 至 30.8%。

I will now turn the call over to Mr. Shi.

我現在將電話轉給石先生。

Thank you, Mr. Chen.

謝謝陳先生。

Hello, everyone.

大家好。

I will go over our operational and financial highlights for the first quarter of 2024.

我將回顧 2024 年第一季的營運和財務亮點。

Average daily active terminals, DAT, is an important operating metric for us as it measure customer usage trends over the period and is reflective of our business performance.

平均每日活躍終端 (DAT) 對我們來說是一個重要的營運指標，因為它衡量一段時間內的客戶使用趨勢並反映我們的業務績效。

In the first quarter of 24, average DAT were 309,906, of which 13,622 owned by the company and 296,284 owned by our business partners representing an increase of 1.9% from 304,121 in the first quarter of 2023.

24日第一季度，平均DAT為309,906，其中公司擁有13,622，我們的業務夥伴擁有296,284，較2023年第一季的304,121成長1.9%。

During the first quarter of 2024, 57.9% of DAT was from uCloudlink 1.0 international data connectivity service and the 42.1% was attributed to uCloudlink 2.0 local data connectivity service.

2024年第一季，57.9%的DAT來自uCloudlink 1.0國際資料連線服務，42.1%來自uCloudlink 2.0本地資料連線服務。

In March 2023, the average daily data usage per terminal was 1.56 gigabyte.

2023年3月，每個終端日均資料使用量為1.56GB。

As of March 31, 2024, the company had 178 patents with 141 approved and 37 pending approval, while the pool of SIM cards up from 382 MNOs globally, as of March 31, 2024.

截至 2024 年 3 月 31 日，該公司擁有 178 項專利，其中 141 項已批准，37 項待批准，而截至 2024 年 3 月 31 日，SIM 卡池數量已從全球 382 家行動營運商增加到了。

Total revenue for the first quarter of 2024 were USD18.1 million, representing an increase of 0.7% from USD18 million in the same period of 2023.

2024年第一季總營收為1,810萬美元，較2023年同期的1,800萬美元成長0.7%。

Revenue from service in the first quarter was USD13.5 million, representing an increase of 4.8% from USD12.9 million in the same period of 2023.

第一季服務收入為1,350萬美元，較2023年同期的1,290萬美元成長4.8%。

Revenue from service as a percentage of total revenue, was 74.7% over -- during the first quarter of 2024, up from 71.7% during the same quarter last year.

2024 年第一季度，服務收入佔總收入的百分比為 74.7%，高於去年同期的 71.7%。

Geographically speaking, during the first quarter of 2024, Japan contributed 40.9% of our total revenue, North America contributed 16.8%, Mainland China contributed 25.3%, and other country and regions contributed the remaining 17% compared to 43.1%, 33.6%, 5.1%, and 18.2%, respectively in the first quarter of 2023.

從地理來看，2024年第一季度，日本貢獻了我們總收入的40.9%，北美貢獻了16.8%，中國大陸貢獻了25.3%，其他國家和地區貢獻了剩餘的17%，而這一比例分別為43.1%、33.6%、5.1 2023 年第一季分別成長 % 及 18.2%。

Our gross profit rose to USD10 million in the first quarter of 2024, representing an increase of 60.3% from USD8.6 million in the first quarter of 2023.

2024年第一季度，我們的毛利增至1,000萬美元，較2023年第一季的860萬美元成長60.3%。

Overall gross margin in the first quarter of 2024 further rose to 55.2% from 47.8% in same period of 2023.

2024年第一季整體毛利率從2023年同期的47.8%進一步上升至55.2%。

The gross margin on service increased to 65% in the first quarter from 60.5% in same period of 2023.

服務毛利率從2023年同期的60.5%增加至第一季的65%。

Excluding share-based of compensations, total operating expenses were USD8.5 million or 47% of total revenue in the first quarter of 2024 compared to USD6.9 million or 38% of total revenue in the same period in 2023.

不包括以股份為基礎的薪酬，2024 年第一季的總營運費用為 850 萬美元，佔總收入的 47%，而 2023 年同期為 690 萬美元，佔總收入的 38%。

Net income was USD0.4 million in the first quarter of 2024 compared to USD2.1 million in the same period of 2023.

2024 年第一季淨利為 40 萬美元，而 2023 年同期淨利為 210 萬美元。

Adjusted EBITDA was USD1.7 million in the first quarter 2024 compared to USD2.1 million for the same period of 2023.

2024 年第一季調整後 EBITDA 為 170 萬美元，而 2023 年同期為 210 萬美元。

For the first quarter 2024, we achieved an operating cash inflow of USD1.9 billion, up from USD1.6 million in the same period of 2023.

2024 年第一季度，我們實現營運現金流入 19 億美元，高於 2023 年同期的 160 萬美元。

For the first quarter of 2024, our capital expenditure were USD0.6 million compared to USD0.4 million in same period in 2023.

2024 年第一季度，我們的資本支出為 60 萬美元，而 2023 年同期為 40 萬美元。

We maintained a solid balance sheet with cash and cash equivalents increasing to USD24.7 million as of March 31, 2024, up from USD23.4 million as of December 31, 2023.

我們維持穩健的資產負債表，截至 2024 年 3 月 31 日，現金和現金等價物從截至 2023 年 12 月 31 日的 2,340 萬美元增至 2,470 萬美元。

With that, operator, please open up for Q&A.

那麼，運營商，請開放問答。

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

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

Thank you very much.

非常感謝。

And congratulations on a good quarter.

恭喜季度表現良好。

My first question is about the good profit margins in the quarter.

我的第一個問題是關於本季良好的利潤率。

And I was wondering if you could talk about why those numbers came in so well.

我想知道你能否談談為什麼這些數字表現得這麼好。

Is it a pricing issue?

是定價問題嗎？

Was it mix?

是混合的嗎？

Give us some more detail on how you were successful in the gross profit margins in the quarter.

請向我們詳細介紹一下您在本季的毛利率方面取得的成功。

Yeah.

是的。

Thanks, Theo.

謝謝，西奧。

Let me answer the first question.

讓我回答第一個問題。

Yes, as we disclosed that service gross margins are improving significantly in the first quarter of 2024 to -- from 64% to 65% on the service part.

是的，正如我們所揭露的，服務毛利率在 2024 年第一季顯著提高，從 64% 提高到 65%。

And the main attributions for these improvements is improving the proportions of international roaming service, as we are -- these proportions is -- the DAT of roaming service is more than 53%.

這些改進的主要歸功於提高了國際漫遊業務的比例，因為我們——這些比例是——漫遊服務的DAT超過了53%。

And that's the major contributions from the improving proportions of roaming service.

這就是漫遊業務比例提升的主要貢獻。

Yeah, that's a major contribution.

是的，這是一個重大貢獻。

Also, we disclosed our SaaS revenue in the first quarter improving compared with last year as well.

此外，我們也透露第一季的 SaaS 收入與去年相比也有所改善。

So these two sectors has a higher gross margins, which will contribute to our significant improvements in our gross margins on service.

所以這兩個產業的毛利率較高，這將有助於我們服務毛利率的顯著增加。

So looking forward to this year, we expect that as the recoveries accelerated in international roaming travels, and we are -- our roaming service revenue will be improving, as in the past couple of quarters.

因此，展望今年，我們預計，隨著國際漫遊旅行復甦的加速，我們的漫遊服務收入將像過去幾季一樣有所改善。

So we expect this higher service gross margin will be maintained in the next couple of quarters.

因此，我們預計未來幾季將維持較高的服務毛利率。

And yes, we have more revenue from our new product service related, for example, GlocalMe SIM sales, which is a no margins service.

是的，我們從與新產品服務相關的收入中獲得了更多收入，例如 GlocalMe SIM 銷售，這是一項無利潤服務。

So overall, we expect this year the driver for this performance is the main driver is the international roaming service.

因此，總體而言，我們預計今年這項業績的主要驅動力是國際漫遊服務。

So that's my answer to your questions.

這就是我對你問題的回答。

Thank you.

謝謝。

And my next question is about GlocalMe Life.

我的下一個問題是關於GlocalMe Life。

I was wondering, is there -- in terms of expenses to launch that product.

我想知道，推出該產品的費用是否存在。

Obviously, there's going to be some expense associated with the Paris launch of it.

顯然，在巴黎推出它會產生一些相關費用。

But is there any substantial CapEx or R&D expense that we should associate with of this new products line or is this primarily unlocking features that were already existing in the systems that you're selling?

但是，我們是否應該與這個新產品線相關的大量資本支出或研發費用，或者這是否主要解鎖您所銷售的系統中已經存在的功能？

Yeah.

是的。

Let me answer these investments on these new products, GlocalMe Life.

讓我來回答這些新產品GlocalMe Life的投資。

And now about the opportunities for this new business, I will pass this question to our CEO, Mr. Chen.

現在關於這項新業務的機會，我將這個問題轉告給我們的執行長陳先生。

Yeah, as we disclosed, and we invest on this new product development.

是的，正如我們所揭露的，我們投資於新產品的開發。

So in the first quarter of 2024, I was -- the headcounts related to R&D is 148 headcounts that -- which is almost 10 more headcounts compared to the same periods last year's R&D.

因此，在 2024 年第一季度，與研發相關的人員數量為 148 人，與去年同期的研發人員數量相比，幾乎增加了 10 人。

But most investment -- headcount investments is for sales and marketings department.

但大多數投資——人員投資是針對銷售和行銷部門的。

So for the first -- for the end of the first quarter 2024, the headcount for sales is 183 headcount, which is 50 more than the headcount of sales and marketing department in the same period of 2023.

首先，2024年第一季末，銷售部門的員工人數為183人，比2023年同期銷售和行銷部門的員工人數多了50人。

So that we invest in headcount a lot on sales and marketing.

因此，我們在銷售和行銷方面投入了大量人力。

We expect will -- which will support our opportunity in our traditional Wi-Fi business and also the new business as well.

我們預計這將支持我們在傳統 Wi-Fi 業務以及新業務中的機會。

We launched three new business line this year on the top of the Wi-Fi dongles.

今年我們在 Wi-Fi 轉接器之上推出了三條新的業務線。

So I think I'll pass the question to Mr. Chen to give more colors on this opportunity for GlocalMe Life.

所以我想我會把這個問題轉達給陳先生，為GlocalMe Life的這個機會提供更多的色彩。

Yeah.

是的。

So for GlocalMe Life, we mentioned here, I think like the way we launch our product in the next week.

所以對於GlocalMe Life，我們在這裡提到，我認為就像我們下週推出我們產品的方式一樣。

So we have a meeting -- we have event, a launch event in Paris, Viva 2023.

所以我們有一個會議——我們有一個活動，在巴黎舉行的發布會，Viva 2023。

(sic - 2024) So I think, of course we increased R&D for the headcount, not so much, but more efficient.

（原文如此 - 2024）所以我認為，我們當然增加了研發人員數量，不是那麼多，而是效率更高。

And also, we have used -- because majorly, our R&D.

而且，我們也使用了——因為主要是我們的研發。

So during the COVID-19, we are already do the R&D in this four product line.

所以在COVID-19期間，我們已經在這四個產品線上進行研發。

Now is the time for we put a foot for the new product.

現在是我們推出新產品的時候了。

So of course, I think we will continue to invest in these R&D, including AI in the future.

所以當然，我認為我們未來會繼續投資這些研發，包括人工智慧。

We already have a lot of learned, research and R&D for the current product, but also in the long-term product.

我們已經對當前產品以及長期產品進行了大量的學習、研究和研發。

So around about a 10% to 50% of our R&D cost expanding in the two- or three-years life of business.

因此，我們大約 10% 到 50% 的研發成本會在兩年或三年的業務生命週期中擴大。

Thank you very much.

非常感謝。

Vivian Zhang, Diamond Equity Research.

Vivian 張，鑽石股票研究。

Hello.

你好。

This is Vivian with Diamond Equity Research.

我是鑽石股票研究部的維維安。

Congratulations on the quarter.

恭喜本季。

Most of my questions have been answered.

我的大部分問題都得到了解答。

I think of one regarding the selling expenses.

我想到了一個關於銷售費用的問題。

So we see the company's S&M expenses increased over 38% in the quarter, while the product sales were down about 10%.

因此，我們看到該公司的 S&M 費用在本季度增長了 38% 以上，而產品銷售額下降了約 10%。

So I'd like to know how you are allocating like resources to drive the product sales?

所以我想知道你們如何分配類似的資源來推動產品銷售？

Thanks.

謝謝。

Okay.

好的。

Let me further explain this expenditures related to the sales.

讓我進一步解釋一下與銷售相關的支出。

Yeah.

是的。

As I just mentioned in the previous questions, the sales expenses increase is due to the headcounts, 50 more headcounts increased compared with the same periods of last year.

正如我剛才在前面的問題中提到的，銷售費用的增加是由於人員數量的增加，比去年同期增加了50人。

And the second is we invest additional USD0.7 million on promotions and marketing like exhibitions, we mentioned Barcelona exhibitions and CES in America and also the marketing events and promotions on e-commerce platform.

第二個是我們額外投入了70萬美元用於展會等促銷和行銷，我們提到了巴塞隆納展會和美國的CES，還有電子商務平台上的行銷活動和促銷。

So we are we believe these promotions is beneficial to awareness our brand in named GlocalMe.

因此，我們相信這些促銷活動有助於提高我們在 GlocalMe 中的品牌知名度。

And also, we prepare for our launches in new products.

此外，我們也準備推出新產品。

We mentioned we have four business line, and three business line we'll be expanding and launch and commercialize in the near future.

我們提到我們有四個業務線，並且我們將在不久的將來擴展、推出和商業化三個業務線。

So we expect our revenue guidance for this year is we maintain this guidance for the whole year, as mentioned by our CEO, Mr. Chen.

因此，正如我們的執行長陳先生所提到的，我們預計今年的收入指導是我們全年維持這項指導。

So when our revenues increase in the next couple of quarters, I believe the OpEx margin will be lower and improving compared with the first quarter of this year.

因此，當我們的收入在未來幾季增加時，我相信與今年第一季相比，營運支出利潤率將會降低並有所改善。

Thank you.

謝謝。

Yeah.

是的。

Let me add some color.

讓我添加一些顏色。

So I think that totally it's three points.

所以我認為總共是三點。

The first point, our spending in the marketing and sales side had increased just because with recovery in the worldwide, our sales team and market team worldwide for different countries after COVID-19, that's first.

第一點，我們在行銷和銷售方面的支出增加，只是因為隨著全球範圍的復甦，我們的銷售團隊和市場團隊在全球不同國家在COVID-19之後，這是第一名。

Second, we are prepared on the resource and the campaign for the headcount and in China market for the sales and marketing because the summer season is coming.

其次，由於夏季即將到來，我們在人員資源和活動以及中國市場的銷售和行銷方面做好了準備。

We need a quarter early to prepare for all these resource and preparation.

我們需要提前一個季度來準備所有這些資源和準備。

Number three is, we prepare for the new product and for the event and spending also.

第三，我們為新產品、活動和支出做好準備。

This is a new product like eSIM, SIM Card, and GlocalMe Life is a more [too safe] business.

這是一個像eSIM、SIM卡一樣的新產品，GlocalMe Life是一個更[太安全]的業務。

To consumer business, and that's totally new for us in some region.

對於消費者業務來說，這對我們某些地區來說是全新的。

So we need to prepare as for this marketing campaign.

所以我們需要為這次行銷活動做好準備。

Yeah, thank you.

是的，謝謝。

Okay, guys, thank you.

好的，夥計們，謝謝你們。

That's all, thank you.

僅此而已，謝謝。

(Operator Instructions) Xin Li, China Great Wall Securities.

（操作員指令）李鑫，中國長城證券。

Hi, this is Xin Li from China Great Wall Securities.

大家好，我是中國長城證券的李欣。

And many questions have also been answered before.

而且很多問題之前也已經得到了解答。

I have a question and I want to get more details because we got like USD18 million in the first quarter, and we expected to have like the revenue between USD22 million to USD24 million.

我有一個問題，我想了解更多細節，因為我們第一季的收入約為 1800 萬美元，我們預計收入將在 2200 萬美元至 2400 萬美元之間。

And for the whole year, we also have a very like positive expectation.

對於全年，我們也抱持著非常正面的期望。

So I want to know, do you have any like foreseeable or stable sales orders for the -- like our new products?

所以我想知道，你們是否有類似的可預見或穩定的銷售訂單——例如我們的新產品？

Let me answer a bit.

讓我稍微回答一下。

First, for the guidance for the second quarter of USD22 million to USD24 million.

首先，第二季指引為 2,200 萬美元至 2,400 萬美元。

Yeah, the range of the outlook for the second quarter is, will show a small growth compared with the same period of last years, not very significant.

是的，第二季的展望範圍是，與去年同期相比會出現小幅成長，不是非常顯著。

But the peak's selling time is the summertime, which is the third quarters.

但銷售高峰期是夏季，即第三季。

And also, we have launched this new product in this May, and we have an event in Paris, where we'll launch these new products, GlocalMe Life related products in Paris this month.

還有，我們今年五月推出了這個新產品，我們在巴黎有一個活動，這個月我們會在巴黎推出這些新產品，GlocalMe Life相關產品。

So we expect all the new product sales will generate into revenue account in third quarter and fourth quarter as well.

因此，我們預計所有新產品銷售也將計入第三季和第四季的收入帳戶。

So we maintained this over -- the whole year's, this guidance, which is USD95 million to USD112 million.

因此，我們維持了這項全年的指導，即 9,500 萬美元至 1.12 億美元。

Yeah so some more comments.

是的，所以還有一些評論。

Our traditional portable Wi-Fi business is very stable growth because we can see that in the first half years, Japan and China are major market.

我們傳統的便攜式Wi-Fi業務成長非常穩定，因為我們可以看到上半年，日本和中國是主要市場。

So I think the travel, global travel is no growth, as we expected.

所以我認為旅行、全球旅行並沒有像我們預期的那樣成長。

It's a slightly growth.

這是一個輕微的增長。

It's a continued growth, but the recovery speed is lower than our expectation.

這是持續成長，但恢復速度低於我們的預期。

So that's one of the reason.

這就是原因之一。

And for the new product.

對於新產品。

So we just launched in the second quarter, and we generate revenue from Q3, Q4.

所以我們剛在第二季推出，我們從第三季、第四季產生收入。

Majorly, I think it's come from Q4.

我認為主要來自第四季。

Because of these new products, they are a bigger potential.

因為這些新產品，它們的潛力更大。

So that's why we also said there has some uncertainties.

所以這就是為什麼我們也說存在一些不確定性。

So that's why we still keep the same forecast.

這就是為什麼我們仍然保持相同的預測。

Okay.

好的。

Thanks for the answer.

感謝你的回答。

I have no questions.

我沒有問題。

Thank you.

謝謝。

Thank you.

謝謝。

Ladies and gentlemen, there are no further questions at this time.

女士們、先生們，目前沒有其他問題了。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。

Thank you once again for joining us today.

再次感謝您今天加入我們。

If you have further questions, please feel free to contact uCloudlink's Investor Relations through the contact information provided on our website or speak to our Investor Relations firm, Christensen Advisory.

如果您還有其他疑問，請隨時透過我們網站上提供的聯絡資訊聯絡優克聯投資者關係部，或聯絡我們的投資者關係公司 Christensen Advisory。

We look forward to speaking to you all again on our next quarterly call.

我們期待在下一次季度電話會議上再次與大家交談。

Thank you.

謝謝。