UCLOUDLINK GROUP INC. Announces Unaudited Fourth Quarter and Full Year 2021 Financial Results
UCLOUDLINK GROUP INC. (NASDAQ: UCL) announced its unaudited financial results for Q4 and FY 2021. Q4 total revenues grew 3.2% year-over-year to $17.6 million, while full-year revenues fell 17.6% to $73.8 million. Q4 net loss widened to $15.5 million compared to $12.4 million in Q4 2020, with an adjusted net loss of $5.8 million. PaaS and SaaS revenues surged 88.4% to $10.8 million. Despite a decline in international connectivity services due to COVID-19, the company anticipates revenue growth for 2022, projecting $85.0 million to $100.0 million. A restructuring in China aims to enhance local business operations.
- Q4 2021 revenues increased by 3.2% to $17.6 million.
- PaaS and SaaS service revenues rose 88.4% year-over-year to $10.8 million.
- Average daily active terminals grew 28.7% year-over-year in Q4 2021.
- Full-year 2021 revenues decreased by 17.6% to $73.8 million.
- Q4 2021 net loss widened to $15.5 million, compared to $12.4 million in Q4 2020.
- Adjusted net loss increased to $5.8 million in Q4 2021, up from $8.5 million in Q4 2020.
Company to Host Conference Call on Thursday, March 24, 2022, at 8:30 A.M. ET with Accompanying Investor Presentation
HONG KONG, March 24, 2022 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“UCLOUDLINK” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced its unaudited financial results for the three months and year ended December 31, 2021.
Fourth Quarter 2021 Financial Highlights
- Total revenues were US
$17.6 million , representing an increase of3.2% from US$17.0 million in the fourth quarter of 2020. - Gross profit was US
$5.4 million , representing an increase of1.8% from US$5.3 million in the fourth quarter of 2020. - Loss from operations was US
$15.4 million , compared with a loss from operations of US$12.3 million in the fourth quarter of 2020. - Net loss was US
$15.5 million , including share-based compensation of US$1.2 million , compared to a net loss of US$12.4 million in the fourth quarter of 2020, including share-based compensation of US$5.9 million . - Adjusted net loss (non-GAAP) was US
$5.8 million , excluding share-based compensation of US$1.2 million , compared to an adjusted net loss of US$8.5 million in the fourth quarter of 2020, excluding share-based compensation of US$5.9 million . - Adjusted EBITDA (non-GAAP) was negative US
$5.1 million , compared to negative US$7.9 million in the fourth quarter of 2020.
Full Year 2021 Financial Highlights
- Total revenues were US
$73.8 million , representing a decrease of17.6% from US$89.6 million in 2020. - Gross profit was US
$21.8 million , representing a decrease of22.9% from US$28.3 million in 2020. - Loss from operations was US
$45.9 million , compared with a loss from operations of US$63.0 million in 2020. - Net loss was US
$46.0 million , including share-based compensation of US$8.8 million , compared with a net loss of US$63.4 million in 2020, including share-based compensation of US$50.6 million . - Adjusted net loss (non-GAAP) was US
$25.2 million , excluding share-based compensation of US$8.8 million , compared with an adjusted net loss of US$17.7 million in 2020, excluding share-based compensation of US$50.6 million . - Adjusted EBITDA (non-GAAP) was negative US
$22.6 million , compared to negative US$15.0 million in 2020.
Fourth Quarter and Full Year 2021 Operational Highlights
- In the fourth quarter of 2021, total data consumed through the Company’s platform was 42,184 terabytes (4,502 terabytes the Company procured and 37,682 terabytes our business partners procured) representing an increase of
12.3% from 37,553 terabytes in the fourth quarter of 2020. - In the fourth quarter of 2021, average daily active terminals were 265,595 (1,585 owned by the Company and 264,010 owned by our business partners), representing an increase of
28.7% from 206,400 in the fourth quarter of 2020. During the fourth quarter of 2021,69.0% of daily active terminals were from uCloudlink 2.0 local data connectivity services and31.0% of daily active terminals were from uCloudlink 1.0 international data connectivity services. - During fiscal year 2021, total data consumed through the Company’s platform was 162,879 terabytes (19,040 terabytes the Company procured and 143,839 terabytes our business partners procured), representing a decrease of
15.8% from 193,467 terabytes in 2020. - During fiscal year 2021, average daily active terminals were 241,046 (2,154 owned by the Company and 238,892 owned by our business partners), representing a decrease of
2.3% from 246,618 in 2020. In 2021,67.7% of daily active terminals were from uCloudlink 2.0 local data connectivity services and32.3% of daily active terminals were from uCloudlink 1.0 international data connectivity services. Average daily data usage per terminal was 1.73 GB in December 2021. - As of December 31, 2021, we had served 2,214 business partners in 54 countries and regions. We had 179 patents with 100 approved and 79 pending approval, while our SIM card pool included SIM cards from 239 MNOs globally as of December 31, 2021.
Executive Commentary
Chaohui Chen, Director and Chief Executive Officer of uCloudlink, noted, “In 2021, we began to see a positive trend in the top line results during the second half of the year as a result of our continued resilience and ability to grow our business despite a weakened international travel market due to lingering effects of the COVID-19 pandemic. During the year, uCloudlink made conscious efforts to strengthen our innovative advantages as the pioneer technology solution provider using its PaaS and SaaS platform based on cloud SIM and hyper-connectivity (“HyperConn”) technology solution in the early stage of the 5G cloud era. We were able to initiate and deepen existing and potential relationships with our business partners during 2021, and are now supported by an increasingly diversified revenue streams from Japan, North America, Mainland China and other countries and regions.”
Mr. Chen continued, “We remain optimistic about the future of our 1.0 and 2.0 business as well as our PaaS and SaaS services with the gradual recovery of international travel and the growth of demand for better data connectivity. While we do anticipate the COVID-19 pandemic will continue to have some impacts on our business in 2022, we expect to overcome these challenges by expanding our scope of innovative solutions, services and products. With our patented technologies including HyperConn technology via our PaaS and SaaS platform following years-long investment, uCloudlink looks forward to extending its footprint into more application scenarios, including but not limited to Internet of Things (“IoT”) modules, industry Wi-Fi router, IP Camera, Power, emergency services, live broadcasting e-commerce and Autopilot by working closely with our business partners and are actively exploring new business prospects to serve a broader spectrum of IoT applications.
We will further strengthen our global PaaS and SaaS ecosystem with additional emphasis on the partnerships with Mobile Network Operators (“MNOs”), through which uCloudlink can access a greater market for local connectivity services both domestically and internationally. We believe that people have shifted their focus from the basic availability of network connection to a better and high-quality connection, and we are dedicated to leading the change by meeting that demand.”
Yimeng Shi, Chief Financial Officer of uCloudlink, stated, “Revenues from PaaS and SaaS services increased
Fourth Quarter 2021 Financial Results
Revenues
Total Revenues were US
- Revenues from services were US
$9.6 million , representing an increase of6.8% from US$9.0 million in the same period of 2020. This increase was primarily attributable to the increase in revenues from local data connectivity services and PaaS and SaaS services.- Revenues from data connectivity services were US
$6.7 million , representing a decrease of3.3% from US$7.0 million in the same period of 2020. The decrease was primarily attributable to the decrease in revenues from international data connectivity services which went from US$5.8 million in the fourth quarter of 2020 to US$5.2 million in the fourth quarter of 2021, and offset by the increase in revenues from local data connectivity services, which went from US$1.2 million in the fourth quarter of 2020 to US$1.5 million in the fourth quarter of 2021. The decrease in revenues from international data connectivity services was mainly due to the negative impact of global travel bans caused by the COVID-19 pandemic. - Revenues from PaaS and SaaS services were US
$2.7 million , representing an increase of43.5% from US$1.9 million in the same period of 2020. This increase was primarily attributable to the expansion in the number of our business partners that use our PaaS and SaaS services to provide local data connectivity services.
- Revenues from data connectivity services were US
- Revenues from sales of products were US
$7.95 million , representing a slight decrease of0.8% from US$8.01 million in the same period of 2020. - Geographic Distribution
During the fourth quarter of 2021, as a percentage of our total revenues, Japan contributed37.4% , Mainland China contributed3.1% and other countries and regions contributed the remaining59.5% , compared with46.5% ,4.5% and49.0% contributed from Japan, Mainland China and other countries and regions respectively in the fourth quarter of 2020.
Cost of Revenues
Cost of revenues was US
- Cost of services was US
$5.2 million , representing a decrease of2.2% from US$5.3 million in the same period of 2020. The decrease was contributed by the rising proportion of revenues from PaaS and SaaS services which had higher gross margin. - Cost of products sold was US
$6.9 million , representing an increase of8.8% from US$6.4 million in the same period of 2020. The increase was mainly resulted from products mix and rising material costs due to global supply chain constraints.
Gross Profit
Overall gross profit was US
Our gross profit on services was US
Our gross profit on sales of products was US
Operating Expenses
Total operating expenses were US
- Research and development expenses were US
$3.4 million , representing a decrease of33.3% from US$5.0 million in the same period of 2020. The decrease was primarily due to a decrease of US$1.2 million in share-based compensation expenses, and a decrease of US$0.5 million in staff cost. - Sales and marketing expenses were US
$3.3 million , representing a decrease of39.2% from US$5.5 million in the same period of 2020. The decrease was primarily due to a decrease of US$1.5 million in share-based compensation expenses, and a decrease of US$0.5 million in staff cost. - General and administrative expenses were US
$5.4 million , representing a decrease of43.2% from US$9.6 million in the same period of 2020. The decrease was primarily due to a decrease of US$2.0 million in share-based compensation expenses, a decrease of US$1.3 million in professional service fees, and a decrease of US$0.8 million in write down of accounts receivable.
Loss from Operations
Loss from operations was US
Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA (Non-GAAP), which excludes the impact of share-based compensation, fair value gain/loss in other investment, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization, was negative US
Net Interest Expenses
Net interest expenses were US
Net Loss
Net loss was US
Adjusted Net Loss (Non-GAAP)
Adjusted net loss, which excludes the impact of share-based compensation, fair value gain/loss in other investment and share of profit/loss in equity method investment, net of tax, was US
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS attributable to ordinary shareholders were US
Cash and Cash Equivalents, Restricted Cash and Short-Term Deposits
As of December 31, 2021, the Company had cash and cash equivalents, and short-term deposits of US
Capital Expenditures (“CAPEX”)
CAPEX was US
Full Year 2021 Financial Results
Revenues
Total Revenues were US
- Revenues from services were US
$37.8 million , representing a decrease of18.1% from US$46.2 million in 2020. This decrease was primarily attributable to the decrease in revenues from data connectivity services, partially offset by higher revenues from PaaS and SaaS services.- Revenues from data connectivity services were US
$26.4 million , representing a decrease of33.9% from US$40.0 million in 2020. The decrease was primarily attributable to the decrease in revenues from international data connectivity services from US$30.8 million in 2020 to US$21.7 million in 2021 due to the prolonged negative impact of global travel bans as a result of the COVID-19 pandemic, as well as the decrease in revenues from local data connectivity services from US$9.2 million in 2020 to US$4.7 million in 2021 due to certain customers converted from local data connectivity services to our PaaS and SaaS services. - Revenues from PaaS and SaaS services were US
$10.8 million , representing an increase of88.4% from US$5.7 million in 2020. This increase was primarily contributed to the expansion in the number of our business partners that use our PaaS and SaaS services to provide local data connectivity services.
- Revenues from data connectivity services were US
- Revenues from sales of products were US
$36.0 million , representing a decrease of17.0% from US$43.4 million in 2020, primarily due to the continuous negative impact of COVID-19 pandemic. - Geographic Distribution
During 2021, as a percentage of our total revenues, Japan contributed48.6% , Mainland China contributed5.2% and other countries and regions contributed the remaining46.2% , compared with53.1% ,10.8% and36.1% contributed from Japan, Mainland China and other countries and regions respectively in 2020.
Cost of Revenues
Cost of revenues was US
- Cost of services was US
$21.6 million , representing a decrease of18.3% from US$26.4 million in 2020. The decrease was contributed to the lower revenues from data connectivity services and the rising proportion of revenues from PaaS and SaaS services which had higher gross margin. - Cost of products sold was US
$30.4 million , representing a decrease of12.7% from US$34.9 million in 2020. The decrease was contributed to the lower revenues from sales of products.
Gross Profit
Overall gross profit was US
Our gross profit on services was US
Our gross profit on sales of products was US
Operating Expenses
Total operating expenses were US
- Research and development expenses were US
$13.7 million , representing a decrease of48.0% from US$26.4 million in 2020. The decrease was primarily due to a decrease of US$13.3 million in share-based compensation expenses, partially offset by an increase of US$0.8 million in professional service fees. - Sales and marketing expenses were US
$13.6 million , representing a decrease of53.5% from US$29.3 million in 2020. The decrease was primarily due to a decrease of US$13.8 million in share-based compensation expenses, and a decrease of US$1.5 million in staff cost. - General and administrative expenses were US
$28.6 million , representing a decrease of33.9% from US$43.2 million in 2020. The decrease was primarily due to a decrease of US$14.7 million in share-based compensation expenses and a decrease of US$2.7 million in write down of accounts receivable, partially offset by an increase of US$2.8 million in staff cost.
Loss from Operations
Loss from operations was US
Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA (Non-GAAP), which excludes the impact of share-based compensation, fair value gain/loss in other investment, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization, was negative US
Net Interest Expenses
Net interest expenses were US
Net Loss
Net loss was US
Adjusted Net Loss (Non-GAAP)
Adjusted net loss, which excludes the impact of share-based compensation, fair value gain/loss in other investment and share of profit/loss in equity method investment, net of tax, was US
Basic and Diluted Loss per ADS
Basic and diluted loss per ADS attributable to ordinary shareholders were US
Capital Expenditures (“CAPEX”)
CAPEX was US
Business Outlook
For the first quarter of 2022, UCLOUDLINK expects total revenues to be between US
The above outlook is based on current market conditions and reflects the Company’s preliminary estimates of market and operating conditions and customer demand, particularly in light of the potential impact of COVID-19. The global outbreak of COVID-19, which had a severe and negative impact on the global economy since the first quarter of 2020, presents continuous and various global risks with the full impact of the outbreak continuing to evolve. We will continue to carefully monitor COVID-19 related factors.
The Company incurred loss from operations of US
Recent Development
We announced the private placement of customary convertible debentures to the Purchaser, YA II PN, Ltd., a limited partnership managed by Yorkville Advisor Global, at a purchase price equal to
As we continued to evaluate our business plan, we have decided to adjust our business model in China, which we believe will no longer require the specific certificate for offering internet access services that could fall within the scope of prohibited or restricted categories for foreign investment in China. As a result, the contractual arrangements with our variable interest entities, or our VIEs, including Beijing uCloudlink New Technology Co., Ltd. and Shenzhen uCloudlink Network Technology Co., Ltd., and their shareholders are no longer necessary. We are in the process of the restructuring (the “Restructuring”) to adjust our local business in China and unwind the aforementioned contractual arrangements so that our VIEs become wholly-owned subsidiaries of Shenzhen uCloudlink Technology Limited. On March 17, 2022, the equity of our VIEs was transferred to Shenzhen uCloudlink Technology Limited, and the original VIE agreements were terminated. We believe that the Restructuring will not affect our uCloudlink 1.0 international data connectivity services in China. We will transform and carry out the PaaS and SaaS platform services in China in cooperation with local business partners, such as Beijing Huaxianglianxin Technology Company, which have the required licenses to provide local data connectivity services in China. The Restructuring is expected to complete in the third quarter of 2022.
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents, adjusted net loss and adjusted EBITDA, as supplemental measures to review and assess the Company’s operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. Adjusted net loss is defined as net loss excluding share-based compensation, fair value gain/loss in other investment and share of profit/loss in equity method investment, net of tax. Adjusted EBITDA is defined as net loss excluding share-based compensation, fair value gain/loss in other investment, share of profit/loss in equity method investment, net of tax, interest expense, income tax expenses and depreciation and amortization.
The Company believes that adjusted net loss and adjusted EBITDA help identify underlying trends in its business that could otherwise be distorted by the effect of certain expenses that are included in loss from operations and net loss. The Company believes that adjusted net loss and adjusted EBITDA provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. The non- GAAP financial measures have limitations as analytical tools. One of the key limitations of using adjusted net loss and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation, fair value gain/loss in other investment and share of profit/loss in equity method investment, net of tax, have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of adjusted net loss. Further, the non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.
The Company compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating its performance. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.
Conference Call
UCLOUDLINK will hold a conference call at 8:30 a.m. Eastern Time on Thursday, March 24, 2022 (8:30 p.m. Beijing Time on the same day) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:
| International: | +1-412-902-4272 |
| US (Toll Free): | +1-888-346-8982 |
| UK (Toll Free) | 0-800-279-9489 |
| UK (Local Toll) | 0-207-544-1375 |
| Mainland China (Toll Free): | 400-120-1203 |
| Hong Kong (Toll Free): | 800-905-945 |
| Hong Kong (Local Toll): | +852-3018-4992 |
| Singapore (Toll Free): | 800-120-6157 |
| Australia (Toll Free): | 1-800-121301 |
Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for “UCLOUDLINK GROUP INC.”
Additionally, a live and archived webcast of the conference call will be available at https://ir.ucloudlink.com.
A telephone replay will be available one hours after the end of the conference until March 31, 2022 by dialing:
| US (Toll Free): | +1-877-344-7529 |
| International: | +1-412-317-0088 |
| Canada (Toll Free): | 855-669-9658 |
| Replay Passcode: | 6481690 |
About UCLOUDLINK GROUP INC.
UCLOUDLINK is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the financial guidance and quotations from management in this announcement, as well as UCLOUDLINK’s strategic and operational plans, contain forward-looking statements. UCLOUDLINK may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about UCLOUDLINK’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: UCLOUDLINK’s strategies; UCLOUDLINK’s future business development, financial condition and results of operations; UCLOUDLINK’s ability to increase its user base and usage of its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service industry; changes in UCLOUDLINK’s revenues, costs or expenditures; governmental policies and regulations relating to the global mobile data connectivity service industry, general economic and business conditions globally and in China; the impact of the COVID-19 pandemic to UCLOUDLINK’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and UCLOUDLINK undertakes no duty to update such information, except as required under applicable law.
For more information, please contact:
UCLOUDLINK GROUP INC.
Jillian Zeng
Tel: +852-2180-6111
E-mail: ir@ucloudlink.com
Investor Relations:
The Equity Group Inc.
Alice Zhang, Investor Relations Analyst
Tel: +1-212-836-9610
E-mail: azhang@equityny.com
In China:
Lucy Ma, Associate
Tel: +86 10 5661 7012
E-mail: lma@equityny.com
| UCLOUDLINK GROUP INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (In thousands of US$, except for share and per share data) | |||||||
| As of December 31, | As of December 31, | ||||||
| 2020 | 2021 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 21,989 | 7,868 | |||||
| Restricted cash | 8,237 | - | |||||
| Short-term deposit | 196 | 196 | |||||
| Accounts receivable, net | 6,745 | 14,923 | |||||
| Inventories | 5,847 | 6,133 | |||||
| Prepayments and other current assets | 7,477 | 6,225 | |||||
| Other investments | 19,185 | 12,587 | |||||
| Amounts due from related parties | 2,264 | 1,153 | |||||
| Total current assets | 71,940 | 49,085 | |||||
| Non-current assets | |||||||
| Prepayments | 2,116 | 1,310 | |||||
| Long-term investments | 1,306 | 1,867 | |||||
| Other investments | 17,824 | 12,058 | |||||
| Property and equipment, net | 3,029 | 1,796 | |||||
| Intangible assets, net | 1,039 | 1,009 | |||||
| Total non-current assets | 25,314 | 18,040 | |||||
| TOTAL ASSETS | 97,254 | 67,125 | |||||
| LIABILITIES | |||||||
| Current liabilities | |||||||
| Short term borrowings | 3,704 | 3,177 | |||||
| Accrued expenses and other liabilities | 25,742 | 27,580 | |||||
| Accounts payable | 8,701 | 12,986 | |||||
| Amounts due to related parties | 1,503 | 1,453 | |||||
| Contract liabilities | 889 | 1,575 | |||||
| Total current liabilities | 40,539 | 46,771 | |||||
| Non-current liabilities | |||||||
| Other non-current liabilities | 321 | 262 | |||||
| Total non-current liabilities | 321 | 262 | |||||
| TOTAL LIABILITIES | 40,860 | 47,033 | |||||
| SHAREHOLDERS’ EQUITY | |||||||
| Class A ordinary shares | 8 | 8 | |||||
| Class B ordinary shares | 6 | 6 | |||||
| Additional paid-in capital | 220,292 | 230,048 | |||||
| Accumulated other comprehensive loss | (429 | ) | (446 | ) | |||
| Accumulated losses | (163,483 | ) | (209,524 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 56,394 | 20,092 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 97,254 | 67,125 | |||||
| UCLOUDLINK GROUP INC. UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In thousands of US$, except for share and per share data) | ||||||||||||||||
| For the three months ended | For the year ended | |||||||||||||||
| December 31, 2020 | December 31, 2021 | December 31, 2020 | December 31, 2021 | |||||||||||||
| Revenues | 17,026 | 17,569 | 89,569 | 73,824 | ||||||||||||
| Revenues from services | 9,013 | 9,622 | 46,150 | 37,798 | ||||||||||||
| Sales of products | 8,013 | 7,947 | 43,419 | 36,026 | ||||||||||||
| Cost of revenues | (11,680 | ) | (12,129 | ) | (61,264 | ) | (51,990 | ) | ||||||||
| Cost of services | (5,300 | ) | (5,186 | ) | (26,392 | ) | (21,556 | ) | ||||||||
| Cost of products sold | (6,380 | ) | (6,943 | ) | (34,872 | ) | (30,434 | ) | ||||||||
| Gross profits | 5,346 | 5,440 | 28,305 | 21,834 | ||||||||||||
| Research and development expenses | (5,033 | ) | (3,359 | ) | (26,359 | ) | (13,697 | ) | ||||||||
| Sales and marketing expenses | (5,464 | ) | (3,324 | ) | (29,261 | ) | (13,620 | ) | ||||||||
| General and administrative expenses | (9,584 | ) | (5,444 | ) | (43,221 | ) | (28,551 | ) | ||||||||
| Other income/(loss), net | 2,462 | (8,694 | ) | 7,554 | (11,876 | ) | ||||||||||
| Loss from operations | (12,273 | ) | (15,381 | ) | (62,982 | ) | (45,910 | ) | ||||||||
| Interest income | 3 | 2 | 37 | 14 | ||||||||||||
| Interest expenses | (14 | ) | (45 | ) | (285 | ) | (188 | ) | ||||||||
| Loss before income tax | (12,284 | ) | (15,424 | ) | (63,230 | ) | (46,084 | ) | ||||||||
| Income tax expense | (98 | ) | (248 | ) | (185 | ) | (244 | ) | ||||||||
| Share of profit in equity method investment, net of tax | - | 174 | - | 287 | ||||||||||||
| Net loss | (12,382 | ) | (15,498 | ) | (63,415 | ) | (46,041 | ) | ||||||||
| Accretion of Series A Preferred Shares | - | - | (1,293 | ) | - | |||||||||||
| Attributable to: | ||||||||||||||||
| Equity holders of the Company | (12,382 | ) | (15,498 | ) | (64,708 | ) | (46,041 | ) | ||||||||
| Non-controlling interests | - | - | - | - | ||||||||||||
| Loss per share for Class A and Class B ordinary shares | ||||||||||||||||
| Basic | (0.04 | ) | (0.05 | ) | (0.25 | ) | (0.16 | ) | ||||||||
| Diluted | (0.04 | ) | (0.05 | ) | (0.25 | ) | (0.16 | ) | ||||||||
| Loss per ADS (10 Class A shares equal to 1 ADS) | ||||||||||||||||
| Basic | (0.44 | ) | (0.54 | ) | (2.49 | ) | (1.61 | ) | ||||||||
| Diluted | (0.44 | ) | (0.54 | ) | (2.49 | ) | (1.61 | ) | ||||||||
| Shares used in earnings per Class A and Class B ordinary share computation: | ||||||||||||||||
| Basic | 281,686,468 | 287,048,380 | 259,852,204 | 285,979,036 | ||||||||||||
| Diluted | 281,686,468 | 287,048,380 | 259,852,204 | 285,979,036 | ||||||||||||
| Net loss | (12,382 | ) | (15,498 | ) | (63,415 | ) | (46,041 | ) | ||||||||
| Other comprehensive loss, net of tax | ||||||||||||||||
| Foreign currency translation adjustment | (1,233 | ) | (57 | ) | (1,135 | ) | (17 | ) | ||||||||
| Total comprehensive loss | (13,615 | ) | (15,555 | ) | (64,550 | ) | (46,058 | ) | ||||||||
| UCLOUDLINK GROUP INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of US$) | ||||||||||||||||
| For the three months ended | For the year ended | |||||||||||||||
| December 31, 2020 | December 31, 2021 | December 31, 2020 | December 31, 2021 | |||||||||||||
| Net cash used in operating activities | (5,526 | ) | (3,169 | ) | (2,038 | ) | (21,738 | ) | ||||||||
| Net cash used in investing activities | (138 | ) | (200 | ) | (35,444 | ) | (935 | ) | ||||||||
| Net cash generated from/ (used in) financing activities | 2,792 | (3,113 | ) | 26,685 | 735 | |||||||||||
| Decrease in cash, cash equivalents and restricted cash | (2,872 | ) | (6,482 | ) | (10,797 | ) | (21,938 | ) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of the period/year | 32,567 | 14,339 | 40,274 | 30,226 | ||||||||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 531 | 11 | 749 | (420 | ) | |||||||||||
| Cash, cash equivalents and restricted cash at end of the period/year | 30,226 | 7,868 | 30,226 | 7,868 | ||||||||||||
| UCLOUDLINK GROUP INC. UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS (In thousands of US$) | |||||||||||||||||
| For the three months ended | For the year ended | ||||||||||||||||
| December 31, 2020 | December 31, 2021 | December 31, 2020 | December 31, 2021 | ||||||||||||||
| Reconciliation of Net Loss to Adjusted Net Loss | |||||||||||||||||
| Net loss | (12,382 | ) | (15,498 | ) | (63,415 | ) | (46,041 | ) | |||||||||
| Add: share-based compensation | 5,883 | 1,206 | 50,607 | 8,757 | |||||||||||||
| fair value (gain)/loss in other investments | (2,036 | ) | 8,637 | (4,909 | ) | 12,363 | |||||||||||
| Less: share of profit in equity method investment, net of tax | - | (174 | ) | - | (287 | ) | |||||||||||
| Adjusted net loss | (8,535 | ) | (5,829 | ) | (17,717 | ) | (25,208 | ) | |||||||||
| For the three months ended | For the year ended | ||||||||||||||||
| December 31, 2020 | December 31, 2021 | December 31, 2020 | December 31, 2021 | ||||||||||||||
| Reconciliation of Net Loss to Adjusted EBITDA | |||||||||||||||||
| Net loss | (12,382 | ) | (15,498 | ) | (63,415 | ) | (46,041 | ) | |||||||||
| Add: | |||||||||||||||||
| Interest expense | 14 | 45 | 285 | 188 | |||||||||||||
| Income tax expenses | 98 | 248 | 185 | 244 | |||||||||||||
| Depreciation and amortization | 556 | 446 | 2,268 | 2,165 | |||||||||||||
| EBITDA | (11,714 | ) | (14,759 | ) | (60,677 | ) | (43,444 | ) | |||||||||
| Add: share-based compensation | 5,883 | 1,206 | 50,607 | 8,757 | |||||||||||||
| fair value (gain)/loss in other investments | (2,036 | ) | 8,637 | (4,909 | ) | 12,363 | |||||||||||
| Less: share of profit in equity method investment, net of tax | - | (174 | ) | - | (287 | ) | |||||||||||
| Adjusted EBITDA | (7,867 | ) | (5,090 | ) | (14,979 | ) | (22,611 | ) | |||||||||
FAQ
What were UCLOUDLINK's Q4 2021 financial results?
How did PaaS and SaaS services perform in 2021?
What is the revenue outlook for UCLOUDLINK in 2022?
What were the total revenues for UCLOUDLINK in 2021?
What is UCLOUDLINK's adjusted net loss for Q4 2021?
