NASDAQ:UCL uCloudlink Group Q3 2024 Earnings Report $0.97 -0.01 (-0.80%) Closing price 04/17/2025 03:58 PM EasternExtended Trading$0.98 +0.01 (+1.34%) As of 04/17/2025 05:33 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History uCloudlink Group EPS ResultsActual EPS$0.09Consensus EPS $0.07Beat/MissBeat by +$0.02One Year Ago EPS$0.01uCloudlink Group Revenue ResultsActual RevenueN/AExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AuCloudlink Group Announcement DetailsQuarterQ3 2024Date11/26/2024TimeBefore Market OpensConference Call DateTuesday, November 26, 2024Conference Call Time8:30AM ETUpcoming EarningsuCloudlink Group's Q1 2025 earnings is scheduled for Monday, May 12, 2025, with a conference call scheduled on Wednesday, May 14, 2025 at 8:30 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by uCloudlink Group Q3 2024 Earnings Call TranscriptProvided by QuartrNovember 26, 2024 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00Hello, and welcome to the UCloudLink Group, Inc. 3rd Quarter 20 24 Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Daniel Gao, Investor Relations of Yuke Cloud Link. Operator00:00:38Please go ahead. Speaker 100:00:42Hello, everyone, and thank you for joining us on Yuclind's Q3 2024 Earnings Call. The earnings release and our earnings presentation are now available on our IR website at ir.yukling.com. Joining me on today's call are Mr. Qiu Ping Peng, Co Founder and Chairman of Board of Directors Mr. Cao Wei Chen, Co Founder, Director and Chief Executive Officer and Mr. Speaker 100:01:11Yimeng Shi, Chief Financial Officer. Mr. Chen will begin with an overview of our recent business highlights. Mr. Shi will then discuss our financial and operational highlights for the quarter. Speaker 100:01:25They will both be available to take your questions in the Q and A section that follows. Before we proceed, please note that this call may contain forward looking statements made pursuant to the safe harbor provisions of the previous Securities Litigation Reform Act of 1995. 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 company's control, which may cause actual results, performance and achievements of the company to be materially different from the results, performance or expectations implied by these forward looking statements. All forward looking statements are expressly qualified in their entirety by their conditionary statements, risk factors and detail of the company's filings with the SEC. The company does not assume any obligation to reverse or update any forward looking statements as a result of new information, future events, changes in market conditions or otherwise, except as required by law. Speaker 100:02:53Please also note that Nuclein's earnings press release and this conference call include discussions of Annalate's GAP Financial Information and annotate non GAP Financial Measures. Yucline's press release contents a recommendation of the annotate non GAP measures to their most directly comparable annotate GAP measures. I will now turn the call over to Mr. Chen. Please go ahead. Speaker 200:03:27Thank you, Daniel, and good morning or evening, everyone. We continued to gain growth momentum during the quarter with revenue increasing 5.6% year over year to US25.2 million dollars in line with our expectations. Our financial position remains solid with a net income reaching US3.4 million dollars and a positive net cash inflow from operations of $2,000,000 During the quarter, we actively enhanced our market presence. Our Glocomi ecosystem continues to thrive, offering comprehensive data connection solutions and diverse business lines, including Glocomi Life, Glocomi SIM and Glocomi IoT that are driving our expansion beyond the travel sector into various aspects of daily life, supported by the further consolidation of our leading position in the roaming market through glokomi mobile, Vix4band. This expanding ecosystem is broadening our portfolio of solutions and allowing us to cater to a wider variety of user needs. Speaker 200:04:58First, let me start with the progress we have made in our GoCommi mobile fixed broadband business line. Our 1.0 international data connectivity services business growth, with full speed 5 gs network coverage increasing from 75 countries and regions from 60 in the Q2 of year 2024, fueled by the recovery of international travel and increasing demand across the key markets. We further consolidated our leading position in the long term market and expanding our market share in Mainland China and Japan. This growth highlights the strong performance of Chinese travelers from our service during the peak summer travel season, reflecting an expanding segment of our international data connectivity services. Our next generation portable MiFi product integrated with hypercar solutions will be launched in the near future. Speaker 200:06:11According to the Mobile Economic 20 24 report from the Global System for Mobile Communications Association, or the GSMA. The global number of 5 gs connections is expected to rise to RMB 5,500,000,000 by year 2030 from RMB 1,600,000,000 at the end of the year 2023. 2nd, the first three global line solutions, which include KeyTracker, Unicorp and LoanPark, make significant progress during the quarter. We lower our extensive market content and actively develop new distribution channel to support their launch, building what we believe will be a promising new revenue stream going forward. Following the introduction of our Blokomen Live product series at VIVA Technology in Maine, the series commercial launch in July year 2024, we further enhanced our market exposure by attending other leading global expos such as Travel Mid Asia, Pet and Vet Esports and IFA Berlin 2024, etcetera. Speaker 200:07:40Additionally, we make breakthroughs in developing repair channels, signing with 1 of American largest airport repair channels to make Unicor, Loan Plugs and KeyTrak, among other products, available at airports across the U. S. We will develop strategy partnerships with other key channel partners across the U. S. And Europe in the coming quarters. Speaker 200:08:10With the other solution already in development, we're looking forward to launching more new products in the coming quarters. The third, within our global mixing business, we continue to expand the market presence of the over the air thing as more users resubscribe to our data plan service, which is having the way for our innovative AllSim solution. This solution, which consolidates OTA SIM, eSIM and our pioneer cloud SIM technology, is under commercial testing and expected to commercially launch in the near future. Our AllSIM solution is uniquely positioned to break cross carrier restriction, empower various smartphones and set a new Pioneer industry benchmark for mobile connectivity and convenience. Lastly, our glottome IoT business line continued to advance with several products embedded our technology already in a smaller scale commercial application, demonstrating the strength and capabilities of our solutions to a broader audience in the IoT of Things Industry. Speaker 200:09:40Leveraging our software cloud SIEM technology compatible with various IoT device chipset platform, we are exploring additional application scenarios as we engage with several reading manufacturers in the security IP camera, dashboard camera and related sectors. We believe that better condition empower better life. We will continue to leverage Glocomin Life, Glocomin SIM, Glocomin IoT and their integrated innovative core headcount and cloud SIEM solutions to expand our global presence through the business partner and channel globally. Over the past 10 years, the Glocomi mobile broadband business has accumulated millions of user bases, with leverage daily active terminal DAT in the Q3 over 3,200,000. We expect the Glocomid Live business will accumulate a broader user base to over 10,000,000. Speaker 200:10:56Furthermore, both of the growth of the Glocomixim and Glocomixim IoT business have the potential to bring us a user base over 100,000,000 in the future, which will allow us to transition from a provider of mobile data traffic solutions to an integrated and comprehensive marketplace. With each of these business lines fading into this full marketplace, we expect our user base to diversify beyond the travel sector and grow substantially going forward. We are confident that we have the right strategy in place to generate sustainable growth in the coming quarters. For the Q4 of year 2024, we expect total revenue to be between US25 $1,000,000 and US30 $1,000,000 representing an increasing of 15.2 percent to 38.2% compared to the same period of year 2023. I will now turn the Speaker 300:12:21call over to Mr. Thank you, Mr. Chen, and hello, everyone. I will go over our operational and financial highlights for the Q3 of 2024. Average daily active terminal is an important operating metric for us as it measures customer usage trends over its periods, which is reflective of our business performance. Speaker 300:12:51Average daily active terminal, or DAP, in the 3rd quarter was 320,452, of which 55.4% were from Eucralink 1.0 International Data Connectivity Service and 44.6% were from EuclearLink 2.0 Local Data Connectivity Service. Average daily data usage per terminal were 1.52 gigabyte in September 2024. As of September 30, 2024, the company had served 2,759 business partners in 61 countries and regions. The company had 183 patents with 158 approved and 25 pending approval, while the PUA SIM cards were from 389 MNOs globally as of September 30, 2024. Total revenue was US25.2 million dollars representing an increase of 5.6 percent from US23.9 million dollars in Q3 of 2023. Speaker 300:14:17Revenue from service was US17.3 million dollars representing an increase of 3.9 percent from US16.6 million dollars in the same period of 2023. Revenue from service as a percentage of total revenue was 68.6% during the Q3 of 2024, remained relatively stable when compared to 69.7% during the same period of last year. Geographically speaking, during the Q3 of 2024, Japan contributed 46.6%, Mainland China contributed 27.8 percent North America contributed 12.8% and other country regions contributed to the remaining 12.8% compared to 44.2%, 17.2%, 26.3% and 12.3%, respectively, in the same period, 2023. Overall gross profit was US12.19 million dollars compared to US12.21 million dollars in the same period of 2023. Overall gross margins was 48.4% in Q3 of 2024 compared to 51.2% in the same period of 2023. Speaker 300:15:50Gross margins on service increased to 60 percent in the Q3 of 2024 from 55.9 percent in the same period of 2023. Gross margins on products decreased to 23.1% in the Q3 of 2024 from 40.1% in the same period of 2023. Excluding share based compensation, total operating expenses were US9.7 million dollars or 39 percent of total revenue in the Q3 2024 compared to US8.7 million dollars or US36 million dollars of total revenue in the same period in 2023. Net income was US3.4 million dollars compared to US3.5 million dollars in the same period of 2023. Adjusted EBITDA was US4.4 million dollars in the Q3 of 2024 compared to US4.1 million dollars for the same period of 2023. Speaker 300:17:00For the Q3 of 2024, we generated operating cash inflow of US2 $1,000,000 compared to US2.8 million dollars in same period of 2023. For the Q3 of 2024, capital expenditures were US1.1 million dollars compared to US0.8 million dollars in the same period 2023. We maintained a solid balance sheet with cash and cash equivalents increasing to US27.7 million dollars as of September 30, 2024, up from US26.8 million dollars as of June 30, 2024. With that, operator, let's open it up for Q and A. Operator00:17:50We will now begin the question and answer session. The first question comes from Theodore O'Neill with Litchfield Hills Research. Please go ahead. Speaker 400:18:27Thank you and congratulations on the results in the quarter. I just have a couple of questions. My first question is about the AllSim solution and your expectation that it will launch commercially launch in the near future. Can you give us an idea of what sort of milestones you have to meet in order to get to the commercial launch stage? Speaker 200:18:55Yes. So I'm Chao Wei Chen, CEO of UCLAR Link. So about all SIMs, first, at the beginning of this year, we already get experience from the SIM card business. We already set around nearly 300,000 OTA SIM card. So we now understand how to play in this industry. Speaker 200:19:23So our all sims solution also another name is e sim Trio, its official name, and we have to launch at the end of the Q4. So that's a first milestone. So we will launch the product. And this product, I think, is we call is currently is best your second SIM card car for people who has original SIM car, and we are the best SIM car for choice because we overcome the 1st SIM car limitation for roaming, also for domestic data connectivity for congestion and the coverage issue. Also, we overcome the primary SIMCAR for the flexibility of the data package. Speaker 200:20:22So also we are fully solved the eSIM challenge about handset. So eSIM has a bigger challenge for adapt to the old handset or some handset. So we can our all SIM adapt to all handsets. Also, so we can support eSIM in all handsets, not only just a new style handset, which can support eSIM handset that need a new handset can support it. I think that's our advantage. Speaker 200:20:58So we call our All SIM is compatible with the OTA SIM, physical SIM, cloud SIM and e SIM. So that's our solution, quite unique in this industry. So I think quite in a leading position in this industry. So we hope next year, we will get more promotion and more let the market understand. We can working with the partner in the worldwide local and the carrier with a 2nd tier or 3rd tier carrier and the mobile watch operator. Speaker 200:21:37So we will, I think, attend the NWC to announce this news about this new solution. Okay. That's around the progress we will have in the future. Speaker 400:21:57Okay. And in regards to your guidance into Q4, your sequential revenue from Q3 to Q4 historically, some of the quarters some of the Q4 quarters have been lower than Q3. And your guidance here at the high end of the range is that the Q4 will come in much better than sequentially have that growth higher growth than you've had in the past. What gives you confidence that you could come in at the near the higher end of the range for Q4? Speaker 300:22:37Yes. Your attention is our guidance for the Q4 this year, which is a range between US25 $1,000,000 to US30 $1,000,000 Yes, in the past years, you said the 4th quarter revenue is normally lower than the 3rd quarter revenue. That's the past patterns of revenues in Speaker 200:23:14legacy's Speaker 300:23:16revenue stream from portable WiFi, but this year, the Q4, the guidance is a little bit higher than the 3rd quarter's revenue. We think our new product like Gourmet Life series product has been launched to the market and gain some revenues in Q4 as well. And also that's a trend we grow with more than just portable WiFi terminal. I think this trend will this trend as Varex revenue streams more than portable WiFi will be significant in the next years. So that shows our strategy to grow from 1 business line to 4 business line and that will be come to our account from this Q4 and following the quarters next year. Speaker 400:24:35Okay, that makes sense. Understood. My last question is about the sales and marketing expenses in Speaker 100:24:42the Speaker 400:24:42quarter. I understand there were some expenses for trade shows and product launch. Can you talk about whether or not you expect the expense is in the Q3 sales and marketing expense will continue at that level or will that come down somewhat going forward? Speaker 300:25:04Yes, we will spend more. We will spend invest more on marketing and as different countries like the U. S. Market, Japan markets and European markets. And as we disclose, we have a corporate with one biggest airport retail channel. Speaker 300:25:32We also have a corporate with more, there's a top channel in U. S. And European. So also we will have enhanced our marketing's exposure for our new product like Gloomi Life and when Glomi is seen, all same solutions will be launched to the market. That solution is innovative to the market. Speaker 300:26:04So we need to invest more on the market and to get awareness of our product, our values to the market. So we will invest more on market expenditures and that's absolutely we will need to do that. But at the same time, we'll balance the financial positions when we support and invest on growth. So maybe the marketing expenditures will be increased with the balance. We have still maintained growth with the profit and positive operating cash flow. Speaker 300:26:53Thank you. Speaker 400:26:53Okay. Thank you. Thank you very much. That concludes my questions. Thank you. Operator00:26:58The next question comes from Vivien Jiang with Diamond Equity Research. Please go ahead. Speaker 500:27:07Hello. Good morning and evening. This is Vivian Zhang with Diamond Equity Research and congratulations on another strong quarter. So my first question will be about the partnership you just mentioned with the U. S. Speaker 500:27:21Airport retail channel. So can you provide us some more color on this corporation and how it will impact the future product sales? Speaker 200:27:34Yes. We the progress in the Q2, we in May, we just in the VIVA exhibition, we announced we will launch the Glocomid Live product. And the launch we launched 3 new products in July. So and after a quarter ever, so end of the Q3, we signed a contract with 1 of the largest U. S. Speaker 200:28:09Airport channel partner. So I think you already can see in the 38 U. S. Airport in the shop. So in airport shop, you can find our 3 products for Unicor, for long plaque and our advanced tracker, so T Tracker. Speaker 200:28:37So you can see these 3 products. So I think they just they launched this product in November middle of November. So you can see the product. We signed the contract end of Q3 and the product leased in the shop in the middle of November. So I can also give some guidance. Speaker 200:29:03And in the Q4, we already signed another American big channel. So that's the total 2 big channels in the U. S. Airport we all encourage. And the second one will be we already finished a winning contract in the Q4, and we'll release the product in the next Q1. Speaker 200:29:29That's the progress for our progress in the U. S. Airport channel, 2 biggest. I think in the following quarter, we will continue put our effort in the other U. S. Speaker 200:29:44Big top 3 channel. We continue effort to be assessed by this channel buyer. Also, so we have some breakthrough in Q4. So in Europe, some big channel. So we already successfully to sign a contract, and that's the progress. Speaker 200:30:03Just in 3 or 6 months, I think we can break through some top tier channel in airport. So I hope next year, we can break through more top tier channel with the consumer or pet channel in the next years. Speaker 500:30:26Okay, got it. Got it. So my next question is that, can you elaborate on why like why pass on SaaS services revenues increased significantly like over 29% in the Q3? And is this growth sustainable? Thank you. Speaker 300:30:50Yes. We cooperate with our global business partners in various way. Our pass out revenues, the business model pass out revenues have a way Speaker 500:31:05Can you hear Speaker 200:31:09me? Speaker 500:31:10Yes. Speaker 300:31:12Okay. Yes. That's the Q3's pass out revenues increased significantly because some business partners are willing to pay more platform fee for the future operations efficiencies improvement. So that's our business partners' choice. You can buy different package for our platform service. Speaker 500:31:51Okay, got it. Okay, that makes sense. That's all my questions. Thank you. Speaker 300:31:58Thank you. Operator00:32:01This concludes our question and answer session. I would like to turn the conference back over to Daniel Gao for any closing remarks. Speaker 100:32:12Okay. Thank you once again for joining us today. If you have further questions, please feel free to contact Yuclen's Investor Relations through the contact information provided on our website or speak to our Investor Relations firm, Christensen Adversary. We look forward to speaking to you all again on our next quarterly call. Thank you.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CalluCloudlink Group Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K) uCloudlink Group Earnings HeadlinesUCLOUDLINK GROUP INC. to Sponsor the LD Micro Invitational XV April 9-10, 2025March 27, 2025 | globenewswire.comUCLOUDLINK GROUP INC. Files 2024 Annual Report on Form 20-FMarch 27, 2025 | globenewswire.comClaim Your FREE Protection GuideIn the final days of his first term, Trump quietly left open an "off the books" wealth-protection loophole hidden in the 6,871 pages of the IRS Tax Code... And since then, "in the know" patriots have quietly used this same "Trump loophole" to shield their life savings from the economic chaos. But with Trump now forcefully bringing back millions of manufacturing jobs from Mexico, China, and the entire BRICS anti-dollar coalition...April 18, 2025 | American Alternative (Ad)UCLOUDLINK’s GlocalMe eSIM TRIO Receives SlashGear’s “MWC Innovation Award”March 26, 2025 | markets.businessinsider.comUCLOUDLINK's GlocalMe eSIM TRIO Receives SlashGear's “MWC Innovation Award”March 26, 2025 | globenewswire.comuCloudlink Group Inc. (NASDAQ:UCL) Q4 2024 Earnings Call TranscriptMarch 15, 2025 | msn.comSee More uCloudlink Group Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like uCloudlink Group? Sign up for Earnings360's daily newsletter to receive timely earnings updates on uCloudlink Group and other key companies, straight to your email. Email Address About uCloudlink GroupuCloudlink Group (NASDAQ:UCL) operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.View uCloudlink Group ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Archer Aviation Unveils NYC Network Ahead of Key Earnings Report3 Reasons to Like the Look of Amazon Ahead of EarningsTesla Stock Eyes Breakout With Earnings on DeckJohnson & Johnson Earnings Were More Good Than Bad—Time to Buy? 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There are 6 speakers on the call. Operator00:00:00Hello, and welcome to the UCloudLink Group, Inc. 3rd Quarter 20 24 Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Daniel Gao, Investor Relations of Yuke Cloud Link. Operator00:00:38Please go ahead. Speaker 100:00:42Hello, everyone, and thank you for joining us on Yuclind's Q3 2024 Earnings Call. The earnings release and our earnings presentation are now available on our IR website at ir.yukling.com. Joining me on today's call are Mr. Qiu Ping Peng, Co Founder and Chairman of Board of Directors Mr. Cao Wei Chen, Co Founder, Director and Chief Executive Officer and Mr. Speaker 100:01:11Yimeng Shi, Chief Financial Officer. Mr. Chen will begin with an overview of our recent business highlights. Mr. Shi will then discuss our financial and operational highlights for the quarter. Speaker 100:01:25They will both be available to take your questions in the Q and A section that follows. Before we proceed, please note that this call may contain forward looking statements made pursuant to the safe harbor provisions of the previous Securities Litigation Reform Act of 1995. 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 company's control, which may cause actual results, performance and achievements of the company to be materially different from the results, performance or expectations implied by these forward looking statements. All forward looking statements are expressly qualified in their entirety by their conditionary statements, risk factors and detail of the company's filings with the SEC. The company does not assume any obligation to reverse or update any forward looking statements as a result of new information, future events, changes in market conditions or otherwise, except as required by law. Speaker 100:02:53Please also note that Nuclein's earnings press release and this conference call include discussions of Annalate's GAP Financial Information and annotate non GAP Financial Measures. Yucline's press release contents a recommendation of the annotate non GAP measures to their most directly comparable annotate GAP measures. I will now turn the call over to Mr. Chen. Please go ahead. Speaker 200:03:27Thank you, Daniel, and good morning or evening, everyone. We continued to gain growth momentum during the quarter with revenue increasing 5.6% year over year to US25.2 million dollars in line with our expectations. Our financial position remains solid with a net income reaching US3.4 million dollars and a positive net cash inflow from operations of $2,000,000 During the quarter, we actively enhanced our market presence. Our Glocomi ecosystem continues to thrive, offering comprehensive data connection solutions and diverse business lines, including Glocomi Life, Glocomi SIM and Glocomi IoT that are driving our expansion beyond the travel sector into various aspects of daily life, supported by the further consolidation of our leading position in the roaming market through glokomi mobile, Vix4band. This expanding ecosystem is broadening our portfolio of solutions and allowing us to cater to a wider variety of user needs. Speaker 200:04:58First, let me start with the progress we have made in our GoCommi mobile fixed broadband business line. Our 1.0 international data connectivity services business growth, with full speed 5 gs network coverage increasing from 75 countries and regions from 60 in the Q2 of year 2024, fueled by the recovery of international travel and increasing demand across the key markets. We further consolidated our leading position in the long term market and expanding our market share in Mainland China and Japan. This growth highlights the strong performance of Chinese travelers from our service during the peak summer travel season, reflecting an expanding segment of our international data connectivity services. Our next generation portable MiFi product integrated with hypercar solutions will be launched in the near future. Speaker 200:06:11According to the Mobile Economic 20 24 report from the Global System for Mobile Communications Association, or the GSMA. The global number of 5 gs connections is expected to rise to RMB 5,500,000,000 by year 2030 from RMB 1,600,000,000 at the end of the year 2023. 2nd, the first three global line solutions, which include KeyTracker, Unicorp and LoanPark, make significant progress during the quarter. We lower our extensive market content and actively develop new distribution channel to support their launch, building what we believe will be a promising new revenue stream going forward. Following the introduction of our Blokomen Live product series at VIVA Technology in Maine, the series commercial launch in July year 2024, we further enhanced our market exposure by attending other leading global expos such as Travel Mid Asia, Pet and Vet Esports and IFA Berlin 2024, etcetera. Speaker 200:07:40Additionally, we make breakthroughs in developing repair channels, signing with 1 of American largest airport repair channels to make Unicor, Loan Plugs and KeyTrak, among other products, available at airports across the U. S. We will develop strategy partnerships with other key channel partners across the U. S. And Europe in the coming quarters. Speaker 200:08:10With the other solution already in development, we're looking forward to launching more new products in the coming quarters. The third, within our global mixing business, we continue to expand the market presence of the over the air thing as more users resubscribe to our data plan service, which is having the way for our innovative AllSim solution. This solution, which consolidates OTA SIM, eSIM and our pioneer cloud SIM technology, is under commercial testing and expected to commercially launch in the near future. Our AllSIM solution is uniquely positioned to break cross carrier restriction, empower various smartphones and set a new Pioneer industry benchmark for mobile connectivity and convenience. Lastly, our glottome IoT business line continued to advance with several products embedded our technology already in a smaller scale commercial application, demonstrating the strength and capabilities of our solutions to a broader audience in the IoT of Things Industry. Speaker 200:09:40Leveraging our software cloud SIEM technology compatible with various IoT device chipset platform, we are exploring additional application scenarios as we engage with several reading manufacturers in the security IP camera, dashboard camera and related sectors. We believe that better condition empower better life. We will continue to leverage Glocomin Life, Glocomin SIM, Glocomin IoT and their integrated innovative core headcount and cloud SIEM solutions to expand our global presence through the business partner and channel globally. Over the past 10 years, the Glocomi mobile broadband business has accumulated millions of user bases, with leverage daily active terminal DAT in the Q3 over 3,200,000. We expect the Glocomid Live business will accumulate a broader user base to over 10,000,000. Speaker 200:10:56Furthermore, both of the growth of the Glocomixim and Glocomixim IoT business have the potential to bring us a user base over 100,000,000 in the future, which will allow us to transition from a provider of mobile data traffic solutions to an integrated and comprehensive marketplace. With each of these business lines fading into this full marketplace, we expect our user base to diversify beyond the travel sector and grow substantially going forward. We are confident that we have the right strategy in place to generate sustainable growth in the coming quarters. For the Q4 of year 2024, we expect total revenue to be between US25 $1,000,000 and US30 $1,000,000 representing an increasing of 15.2 percent to 38.2% compared to the same period of year 2023. I will now turn the Speaker 300:12:21call over to Mr. Thank you, Mr. Chen, and hello, everyone. I will go over our operational and financial highlights for the Q3 of 2024. Average daily active terminal is an important operating metric for us as it measures customer usage trends over its periods, which is reflective of our business performance. Speaker 300:12:51Average daily active terminal, or DAP, in the 3rd quarter was 320,452, of which 55.4% were from Eucralink 1.0 International Data Connectivity Service and 44.6% were from EuclearLink 2.0 Local Data Connectivity Service. Average daily data usage per terminal were 1.52 gigabyte in September 2024. As of September 30, 2024, the company had served 2,759 business partners in 61 countries and regions. The company had 183 patents with 158 approved and 25 pending approval, while the PUA SIM cards were from 389 MNOs globally as of September 30, 2024. Total revenue was US25.2 million dollars representing an increase of 5.6 percent from US23.9 million dollars in Q3 of 2023. Speaker 300:14:17Revenue from service was US17.3 million dollars representing an increase of 3.9 percent from US16.6 million dollars in the same period of 2023. Revenue from service as a percentage of total revenue was 68.6% during the Q3 of 2024, remained relatively stable when compared to 69.7% during the same period of last year. Geographically speaking, during the Q3 of 2024, Japan contributed 46.6%, Mainland China contributed 27.8 percent North America contributed 12.8% and other country regions contributed to the remaining 12.8% compared to 44.2%, 17.2%, 26.3% and 12.3%, respectively, in the same period, 2023. Overall gross profit was US12.19 million dollars compared to US12.21 million dollars in the same period of 2023. Overall gross margins was 48.4% in Q3 of 2024 compared to 51.2% in the same period of 2023. Speaker 300:15:50Gross margins on service increased to 60 percent in the Q3 of 2024 from 55.9 percent in the same period of 2023. Gross margins on products decreased to 23.1% in the Q3 of 2024 from 40.1% in the same period of 2023. Excluding share based compensation, total operating expenses were US9.7 million dollars or 39 percent of total revenue in the Q3 2024 compared to US8.7 million dollars or US36 million dollars of total revenue in the same period in 2023. Net income was US3.4 million dollars compared to US3.5 million dollars in the same period of 2023. Adjusted EBITDA was US4.4 million dollars in the Q3 of 2024 compared to US4.1 million dollars for the same period of 2023. Speaker 300:17:00For the Q3 of 2024, we generated operating cash inflow of US2 $1,000,000 compared to US2.8 million dollars in same period of 2023. For the Q3 of 2024, capital expenditures were US1.1 million dollars compared to US0.8 million dollars in the same period 2023. We maintained a solid balance sheet with cash and cash equivalents increasing to US27.7 million dollars as of September 30, 2024, up from US26.8 million dollars as of June 30, 2024. With that, operator, let's open it up for Q and A. Operator00:17:50We will now begin the question and answer session. The first question comes from Theodore O'Neill with Litchfield Hills Research. Please go ahead. Speaker 400:18:27Thank you and congratulations on the results in the quarter. I just have a couple of questions. My first question is about the AllSim solution and your expectation that it will launch commercially launch in the near future. Can you give us an idea of what sort of milestones you have to meet in order to get to the commercial launch stage? Speaker 200:18:55Yes. So I'm Chao Wei Chen, CEO of UCLAR Link. So about all SIMs, first, at the beginning of this year, we already get experience from the SIM card business. We already set around nearly 300,000 OTA SIM card. So we now understand how to play in this industry. Speaker 200:19:23So our all sims solution also another name is e sim Trio, its official name, and we have to launch at the end of the Q4. So that's a first milestone. So we will launch the product. And this product, I think, is we call is currently is best your second SIM card car for people who has original SIM car, and we are the best SIM car for choice because we overcome the 1st SIM car limitation for roaming, also for domestic data connectivity for congestion and the coverage issue. Also, we overcome the primary SIMCAR for the flexibility of the data package. Speaker 200:20:22So also we are fully solved the eSIM challenge about handset. So eSIM has a bigger challenge for adapt to the old handset or some handset. So we can our all SIM adapt to all handsets. Also, so we can support eSIM in all handsets, not only just a new style handset, which can support eSIM handset that need a new handset can support it. I think that's our advantage. Speaker 200:20:58So we call our All SIM is compatible with the OTA SIM, physical SIM, cloud SIM and e SIM. So that's our solution, quite unique in this industry. So I think quite in a leading position in this industry. So we hope next year, we will get more promotion and more let the market understand. We can working with the partner in the worldwide local and the carrier with a 2nd tier or 3rd tier carrier and the mobile watch operator. Speaker 200:21:37So we will, I think, attend the NWC to announce this news about this new solution. Okay. That's around the progress we will have in the future. Speaker 400:21:57Okay. And in regards to your guidance into Q4, your sequential revenue from Q3 to Q4 historically, some of the quarters some of the Q4 quarters have been lower than Q3. And your guidance here at the high end of the range is that the Q4 will come in much better than sequentially have that growth higher growth than you've had in the past. What gives you confidence that you could come in at the near the higher end of the range for Q4? Speaker 300:22:37Yes. Your attention is our guidance for the Q4 this year, which is a range between US25 $1,000,000 to US30 $1,000,000 Yes, in the past years, you said the 4th quarter revenue is normally lower than the 3rd quarter revenue. That's the past patterns of revenues in Speaker 200:23:14legacy's Speaker 300:23:16revenue stream from portable WiFi, but this year, the Q4, the guidance is a little bit higher than the 3rd quarter's revenue. We think our new product like Gourmet Life series product has been launched to the market and gain some revenues in Q4 as well. And also that's a trend we grow with more than just portable WiFi terminal. I think this trend will this trend as Varex revenue streams more than portable WiFi will be significant in the next years. So that shows our strategy to grow from 1 business line to 4 business line and that will be come to our account from this Q4 and following the quarters next year. Speaker 400:24:35Okay, that makes sense. Understood. My last question is about the sales and marketing expenses in Speaker 100:24:42the Speaker 400:24:42quarter. I understand there were some expenses for trade shows and product launch. Can you talk about whether or not you expect the expense is in the Q3 sales and marketing expense will continue at that level or will that come down somewhat going forward? Speaker 300:25:04Yes, we will spend more. We will spend invest more on marketing and as different countries like the U. S. Market, Japan markets and European markets. And as we disclose, we have a corporate with one biggest airport retail channel. Speaker 300:25:32We also have a corporate with more, there's a top channel in U. S. And European. So also we will have enhanced our marketing's exposure for our new product like Gloomi Life and when Glomi is seen, all same solutions will be launched to the market. That solution is innovative to the market. Speaker 300:26:04So we need to invest more on the market and to get awareness of our product, our values to the market. So we will invest more on market expenditures and that's absolutely we will need to do that. But at the same time, we'll balance the financial positions when we support and invest on growth. So maybe the marketing expenditures will be increased with the balance. We have still maintained growth with the profit and positive operating cash flow. Speaker 300:26:53Thank you. Speaker 400:26:53Okay. Thank you. Thank you very much. That concludes my questions. Thank you. Operator00:26:58The next question comes from Vivien Jiang with Diamond Equity Research. Please go ahead. Speaker 500:27:07Hello. Good morning and evening. This is Vivian Zhang with Diamond Equity Research and congratulations on another strong quarter. So my first question will be about the partnership you just mentioned with the U. S. Speaker 500:27:21Airport retail channel. So can you provide us some more color on this corporation and how it will impact the future product sales? Speaker 200:27:34Yes. We the progress in the Q2, we in May, we just in the VIVA exhibition, we announced we will launch the Glocomid Live product. And the launch we launched 3 new products in July. So and after a quarter ever, so end of the Q3, we signed a contract with 1 of the largest U. S. Speaker 200:28:09Airport channel partner. So I think you already can see in the 38 U. S. Airport in the shop. So in airport shop, you can find our 3 products for Unicor, for long plaque and our advanced tracker, so T Tracker. Speaker 200:28:37So you can see these 3 products. So I think they just they launched this product in November middle of November. So you can see the product. We signed the contract end of Q3 and the product leased in the shop in the middle of November. So I can also give some guidance. Speaker 200:29:03And in the Q4, we already signed another American big channel. So that's the total 2 big channels in the U. S. Airport we all encourage. And the second one will be we already finished a winning contract in the Q4, and we'll release the product in the next Q1. Speaker 200:29:29That's the progress for our progress in the U. S. Airport channel, 2 biggest. I think in the following quarter, we will continue put our effort in the other U. S. Speaker 200:29:44Big top 3 channel. We continue effort to be assessed by this channel buyer. Also, so we have some breakthrough in Q4. So in Europe, some big channel. So we already successfully to sign a contract, and that's the progress. Speaker 200:30:03Just in 3 or 6 months, I think we can break through some top tier channel in airport. So I hope next year, we can break through more top tier channel with the consumer or pet channel in the next years. Speaker 500:30:26Okay, got it. Got it. So my next question is that, can you elaborate on why like why pass on SaaS services revenues increased significantly like over 29% in the Q3? And is this growth sustainable? Thank you. Speaker 300:30:50Yes. We cooperate with our global business partners in various way. Our pass out revenues, the business model pass out revenues have a way Speaker 500:31:05Can you hear Speaker 200:31:09me? Speaker 500:31:10Yes. Speaker 300:31:12Okay. Yes. That's the Q3's pass out revenues increased significantly because some business partners are willing to pay more platform fee for the future operations efficiencies improvement. So that's our business partners' choice. You can buy different package for our platform service. Speaker 500:31:51Okay, got it. Okay, that makes sense. That's all my questions. Thank you. Speaker 300:31:58Thank you. Operator00:32:01This concludes our question and answer session. I would like to turn the conference back over to Daniel Gao for any closing remarks. Speaker 100:32:12Okay. Thank you once again for joining us today. If you have further questions, please feel free to contact Yuclen's Investor Relations through the contact information provided on our website or speak to our Investor Relations firm, Christensen Adversary. We look forward to speaking to you all again on our next quarterly call. Thank you.Read morePowered by