uCloudlink Group Inc.

Good day and welcome to the uCloudLink first quarter 2024 earnings conference call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone telephone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Liam Hsieh. Please go ahead.

Hello, everyone, and thank you for joining us on Eucalyptus first quarter 2024 earnings call. The earnings release and our earnings presentation are now available on our IR website at ir.eucalyptus.com. Joining me on today's call are Mr. Zhi Ping Peng, Co-Founder and Chairman of Board of Directors, Mr. Chao-Hui Chen, Co-Founder, Director, and Chief Executive Officer, and Mr. Yi-Men 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. They will all be available to tell your questions in the Q&A session that follows. 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'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. All forward-looking statements are expressly qualified in their entirety by the cautionary statement, 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, changes in market conditions, or otherwise, except as required by law. Please also note that UCLin's earnings, press release, and this conference call include discussions of unaudited GAAP financial information. and unaudited non-GAAP financial measures. You calling the press release contains the reconciliation of the unaudited non-GAAP measures to the most directly compatible unaudited GAAP measures. I will now turn the call over to Mr. Chen. Please go ahead.

Thank you, Liang. And good morning or evening, everyone. we had a promising start to the year with total revenues of US dollar 18.1 million. In line with guidance, with our business now healthy and back on a growth trajectory, and we maintain the profitability we regained last year, achieving a net income of US dollar 0.4 million, and generating a net operating cash inflow of US dollar 1.9 million in the first quarter of year 2024. Revenue growth was primarily driven by the continuous recovery of our 1.0 international data connectivity services business, and in particular, our long-term membrane services which continue to rebound strongly. With coverage expanding from 55 to 60 countries and regions, our full-speed 5G long-wind network solution further solidified our leading position in this sector and has expanded our market share. According to the Mobile Economic 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 2023, from 1.6 billion at the end of the year 2023. We also made significant progress in lowering out and expanding a range of comprehensive data connectivity solutions during the quarter to explore opportunities beyond portable Wi-Fi terminals. Let me start with the progress we have made in our Google Me Mobile and SIX 4-band business line. At the Mobile World Congress earlier this year in Barcelona, we showcased the Gas Flex Pro, our highly reliable dual broadband consumer premises equipment, or CPE. A solution which we believe will redefine industry benchmark for high-reliable connectivity and innovation. Unlike other CPE solutions on the market, the Garflex Pro supports multiple mobile networks from all available major operators in addition to standard local fixed networks. 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. Few pilots search in remote work. Online learning streaming platform in recent years, the demand for ubiquitous and reliable wireless connectivity is policy for substantial growth. Second, our local mean life business makes 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 pet management, item checking, as well as emerging emergency communication. We soft launch our first daily live product, a smart tracker, powered by our innovation solutions that offer far more accurate and reliable tracking, something that the other similar tech or tech products on the market are unable to. In addition, the smart tracker offers free local emergent internet access. to users for security ahead. Unlike the other similar products on the market, which only support a single network or technology such as Bluetooth to track items, our tracker is able to intelligently select and automatically switch between multiple networks and six different location technologies. GlocalMe Live 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. We will unveil three GlocalMe Live products and upgrade GlocalMe app on May 23rd. at Aviva Technology year 2024 in Paris. Meaningful revenue generation from the SmartTracker and EasyLine X series products is anticipated to begin in the third quarter and recurring revenues from subscription and services are anticipated going forward. By offering more intelligent, convenient data-like 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. 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. Third, our newly launched Glocomy theme made a 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. Our global meeting solutions, including our OTA SIM and eSIM solutions, will continue to evolve into our innovation all SIM solutions, allowing us to engage with a broader and user-based beyond those in the portable Wi-Fi terminals market. This pioneering all-SIM solution is uniquely poised to break cross-carrier restrictions and empower various smartphones. According to the Mobile Economics 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. Last but not least, within our IoT business line, we complete testing of our soft cloud sync technology for consumer IoT devices, which we expect to begin commercializing in the near future. This unique technology is compatible with a broader array of mainstream chipset platforms found in many IoT devices and eliminates the need for hardware redesign or redevelopment, allowing global IoT manufacturers to seamlessly deploy it through software pre-installation. 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 Wikitalki, security cameras, and the two-wheel electric scooters, which already have a substantial end-user base and can significantly contribute to data connectivity services revenue. According to the Mobile Economic Year 2024 report from the GSMA, licensed serial IoT connections are expected to grow from 3.5 billion in year 2023 to 5.8 billion by 2030. We believe that better connection empowers better life. We recognize 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 view an expanding array of comprehensive data connectivity solutions to satisfy a wide range of users' needs. 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-thin and hyper-connectivity technologies, optimally build out our broader global meat ecosystem and global leading mobile data traffic sharing marketplace. Finally, I would like to review our guidance for the second quarter of year 2024. We are optimistic about our future growth prospects. For the second quarter of year 2024, we expect total revenues to be between U.S. dollar 22 million and U.S. dollar 24 million. representing an increase of 0.1% to 9.2% compared to the same period of the year 2023. We maintain our outlook for the year with total revenues expected to be between US$95 million and US$112 million, representing an increase of 11% to 30.8% from year 2023. I will now turn the call over to Mr. Si.