UCLOUDLINK GROUP INC. Announces Unaudited Fourth Quarter and Full Year 2020 Financial Results
UCLOUDLINK Group Inc. (NASDAQ: UCL) announced its unaudited financial results for Q4 and full year 2020, revealing significant losses and declining revenues. Q4 revenue reached US$17.0 million, down 68.3% from US$53.7 million in 2019. Yearly revenue fell 43.4% to US$89.6 million. Net loss for Q4 was US$12.4 million, including US$5.9 million in share-based compensation. The company anticipates Q1 2021 revenues between US$17.0 million and US$17.5 million, reflecting a decrease of up to 49.3%. Despite challenges, UCLOUDLINK is focusing on enhancing its PaaS and SaaS platforms.
- Strategic partnership established with China United Network Communications Group to broaden user base.
- Increased investment in R&D to enhance operational efficiency and expand capabilities.
- Growth in average daily active terminals, indicating potential market recovery.
- Q4 2020 revenues decreased by 68.3% compared to Q4 2019.
- Net loss rose to US$12.4 million in Q4 2020, a significant decline from net income in the previous year.
- Total operating expenses increased to US$20.1 million, impacting profitability.
HONG KONG, March 25, 2021 (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 ended December 31, 2020.
Fourth Quarter 2020 Financial Highlights
- Total revenues were US
$17.0 million , representing a decrease of68.3% from US$53.7 million in the fourth quarter of 2019. - Gross profit was US
$5.3 million , representing a decrease of71.7% from US$18.9 million in the fourth quarter of 2019. - Loss from operations was US
$12.3 million , compared with income from operations of US$2.2 million in the fourth quarter of 2019. - Net loss was US
$12.4 million , including share-based compensation of US$5.9 million , compared with net income of US$2.1 million in the fourth quarter of 2019. - Adjusted net loss (non-GAAP) was US
$8.5 million , excluding share-based compensation of US$5.9 million , compared with an adjusted net income of US$2.1 million in the fourth quarter of 2019. - Adjusted EBITDA (non-GAAP) was negative US
$7.9 million , compared with positive US$2.9 million in the fourth quarter of 2019.
Full Year 2020 Financial Highlights
- Total revenues were US
$89.6 million , representing a decrease of43.4% from US$158.4 million in 2019. - Gross profit was US
$28.3 million , representing a decrease of56.4% from US$64.9 million in 2019. - Loss from operations was US
$63.0 million , compared with income from operations of US$5.5 million in 2019. - Net loss was US
$63.4 million , including share-based compensation of US$50.6 million , compared with net income of US$5.2 million in 2019, including share-based compensation of US$0.2 million . - Adjusted net loss (non-GAAP) was US
$17.7 million , excluding share-based compensation of US$50.6 million , compared with an adjusted net income of US$5.4 million in 2019, excluding share-based compensation of US$0.2 million . - Adjusted EBITDA (non-GAAP) was negative US
$15.0 million , compared with positive US$8.9 million in 2019.
Fourth Quarter and Full Year 2020 Operational Highlights
- Total data consumed in the fourth quarter through the Company’s platform was 37,553 terabytes (3,649 terabytes the Company procured and 33,904 terabytes our business partners procured) representing a decrease of
7.1% from 40,428 terabytes in the fourth quarter of 2019. Total data consumed through the Company’s platform in 2020 was 193,467 terabytes (19,286 terabytes the Company procured and 174,181 terabytes our business partners procured), representing an increase of113.5% from 90,603 terabytes in 2019. - Average daily active terminals in the fourth quarter were 206,400 (3,006 owned by the Company and 203,394 that are not), representing a decrease of
17.6% from 250,491 in the fourth quarter of 2019.66.5% of daily active terminals was from uCloudlink 2.0 local data connectivity services and33.5% of daily active terminals was from uCloudlink 1.0 international data connectivity services during the fourth quarter of 2020. Average daily active terminals were 246,618, (8,647 owned by the Company and 237,971 that are not), representing an increase of31.3% from 187,781 in 2019.69.5% of daily active terminals was from uCloudlink 2.0 local data connectivity services and30.5% of daily active terminals was from uCloudlink 1.0 international data connectivity services during 2020. Average daily data usage per terminal was 2.01 GB in December 2020. - As of December 31, 2020, we had served 2,150 business partners in 49 countries and regions. We had 153 patents with 74 approved and 79 pending approval, while our pool of SIM cards was from 209 MNOs globally as of December 31, 2020.
Executive Commentary
“Despite 2020 being a challenging year, we demonstrated resilience and agility amidst uncertainties during the COVID-19 pandemic, culminating in fourth quarter revenue of US
In the Japanese market, we cooperated with numerous partners and mobile network operators (MNOs), such as NTT, to further develop local mobile broadband services and strengthen our existing relationships, which contributed to continuous growth momentum. In US and European markets, we optimized our websites to enhance our GlocalMe brand e-commerce efforts as a part of our global expansion strategy. The recent launch of three GlocalMe products represents our efforts to offer more wide-ranging solutions in order to connect users worldwide. In the US, our GlocalMe brand had a
“Looking ahead, we continue to focus on user experience and one way we are developing it is through our “Navigation + Electronic Toll Pass” service over mobile network via our hyper-connectivity technology through PaaS and SaaS platform. We are also looking to capture additional business opportunities, such as MNOs’ mobile broadband, improving network coverage for carriers and also elevating user experience. In addition, we are targeting opportunities related to network management, such as remote working and education and 5G opportunities for products and services. Our Cloud SIM technology, such as smart multi-network reselection technology which reduces network crossing time to milliseconds, is an accelerator of 5G cloud application and already for commercial use. We believe our technology is highly compatible with various application scenarios where high-quality connection is necessary, for example, internet of vehicles, autonomous driving, AR and VR, cargos and logistics and cloud computing. With “hyper-connectivity”, we are dedicated to crossing and connecting with all global networks and technical systems, improving the user experience by optimization of all layers including access, routing and application layers. We expect all above opportunities will further expand our PaaS and SaaS ecosystem. We will continue to form alliances and strengthen cooperation with MNOs, MVNOs and business partners globally, which will facilitate us to establish the leading technological position of our PaaS and SaaS platform during the 5G cloud era.”
“We took decisive action over the past 12 months to improve operational efficiency and strategically invest in R&D where our solutions better fit the needs of our users and business partners. We undertook comprehensive cost control measure to offset any negative impact from COVID-19. We continued to be steady in our business operations with improved development of our uCloudlink 2.0 business during 2020. The percentage of uCloudlink 2.0 daily active terminals (DAT) of total daily active terminals, has been increased to
Fourth Quarter 2020 Financial Results
Revenues
Total Revenues were US
- Revenues from services were US
$9.0 million , representing a decrease of63.3% from US$24.6 million in the same period of 2019. This decrease was primarily attributable to the decrease in revenues from international data connectivity services and PaaS and SaaS services to certain extent, mainly because of the continuous and prolonged impact of COVID-19 which resulted in international travel bans.- Revenues from data connectivity services were US
$7.0 million , representing a decrease of66.3% from US$20.7 million in the same period of 2019. The decrease was primarily attributable to the decrease in revenues from international data connectivity services from US$19.2 million in the fourth quarter of 2019 to US$5.8 million in the fourth quarter of 2020, and the decrease in revenues from local data connectivity services from US$1.5 million in the fourth quarter of 2019 to US$1.2 million in the fourth quarter of 2020. The decrease in revenues from international data connectivity services was mainly due to the prolonged negative impact from global travel bans as a result of the COVID-19 pandemic. - Revenues from PaaS and SaaS services were US
$1.9 million , representing a decrease of47.3% from US$3.5 million in the same period of 2019. This decrease was primarily due to the negative impact of COVID-19 on our business partners that use our PaaS and SaaS services to provide international data connectivity services.
- Revenues from data connectivity services were US
- Revenues from sales of products were US
$8.0 million , representing a decrease of72.5% from US$29.1 million in the same period of 2019, primarily due to the continuous negative impact of the COVID-19 pandemic during the fourth quarter of 2020. - Geographic Distribution
During the fourth quarter of 2020, we had4.5% of total revenue coming from Mainland China,46.5% of total revenue coming from Japan and49.0% of total revenue coming from other countries and regions.
Cost of Revenues
Cost of revenues was US
- Cost of services was US
$5.3 million , representing a decrease of37.1% from US$8.4 million in the same period of 2019. - Cost of products sold was US
$6.4 million , representing a decrease of75.8% from US$26.4 million in the same period of 2019.
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
$5.0 million , representing an increase of45.3% from US$3.5 million in the same period of 2019. The increase was primarily due to an increase of US$1.2 million in share-based compensation expenses, and an increase of US$0.4 million in staff costs. - Sales and marketing expenses were US
$5.5 million , representing a decrease of22.3% from US$7.1 million in the same period of 2019. The decrease was primarily due to a decrease of US$0.6 million in staff costs related to cost control measures and policies for social security benefits and a decrease of US$2.2 million in promotion fees due to the impact of the COVID-19 pandemic on sales and marketing activities, partially offset by an increase of US$1.6 million in share-based compensation expenses. - General and administrative expenses were US
$9.6 million , representing an increase of56.8% from US$6.1 million in the same period of 2019. The increase was primarily due to an increase of US$3.1 million in share-based compensation expenses and an increase of US$0.6 million in professional service fees.
Loss from Operations
Loss from operations was US
Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA (Non-GAAP), which excludes the impact of share-based compensation and fair value gain/loss in other investment, net of tax, interest expense, 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 and the fair value gain/loss in other investment, 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, 2020, the Company had cash and cash equivalents, restricted cash and short-term deposits of US
Capital Expenditures (“CAPEX”)
CAPEX was US
Full Year 2020 Financial Results
Revenues
Total Revenues were US
- Revenues from services were US
$46.2 million , representing a decrease of49.3% from US$91.1 million in 2019. This decrease was primarily attributable to the decrease in revenues from international data connectivity services and PaaS and SaaS services to certain extent, mainly because of the continuous and prolonged impact of COVID-19 which resulted in international travel bans.- Revenues from data connectivity services were US
$40.0 million , representing a decrease of50.4% from US$80.5 million in 2019. The decrease was primarily attributable to the decrease in revenues from international data connectivity services from US$78.0 million in 2019 to US$30.8 million in 2020, which was partially offset by the increase in revenues from local data connectivity services from US$2.5 million in 2019 to US$9.2 million in 2020. The decrease in revenues from international data connectivity services was mainly due to the prolonged negative impact of global travel bans as a result of the COVID-19 pandemic. - Revenues from PaaS and SaaS services were US
$5.7 million , representing a decrease of37.4% from US$9.1 million in 2019. This decrease was primarily due to the negative impact of COVID-19 on our partners that use our PaaS and SaaS services to provide international data connectivity services.
- Revenues from data connectivity services were US
- Revenues from sales of products were US
$43.4 million , representing a decrease of35.5% from US$67.3 million in 2019, primarily due to the continuous negative impact of COVID-19 pandemic during 2020. - Geographic Distribution
During 2020, we had10.8% of total revenue coming from Mainland China,53.1% of total revenue coming from Japan and36.1% of total revenue coming from other countries and regions.
Cost of Revenues
Cost of revenues was US
- Cost of services was US
$26.4 million , representing a decrease of25.9% from US$35.6 million in 2019. - Cost of products sold was US
$34.9 million , representing a decrease of39.7% from US$57.9 million in 2019.
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
$26.4 million , representing an increase of74.5% from US$15.1 million in 2019. The increase was primarily due to an increase of US$13.7 million in share-based compensation expenses, partially offset by a decrease of US$2.2 million in staff costs related to internal control measures while optimizing R&D efficiency and policies for social security benefits. - Sales and marketing expenses were US
$29.3 million , representing an increase of20.1% from US$24.4 million in 2019. The increase was primarily due to an increase of US$14.0 million in share-based compensation expenses, partially offset by a decrease of US$2.7 million in staff costs related to cost control measures and policies for social security benefits and a decrease of US$5.6 million in marketing and promotion activities due to the COVID-19. - General and administrative expenses were US
$43.2 million , representing an increase of113.7% from US$20.2 million in 2019. The increase was primarily due to an increase of US$22.7 million in share-based compensation expenses and an increase of US$2.7 million in write down of accounts receivable, partially offset by a decrease of US$2.1 million in professional service fees.
Loss from Operations
Loss from operations was US
Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA (Non-GAAP), which excludes the impact of share-based compensation and fair value gain/loss in other investment, net of tax, interest expense, 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 and the fair value gain/loss in other investment, 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 2021, 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 carefully monitor COVID-19 related factors such as the vaccines roll-out, the impact of which is difficult to analyze and predict, and subject to change.
Recent Development
We announced the latest developments and progress in the U.S. and China patent infringement disputes (reference our press release dated January 13, 2021). We also announced recent role changes for senior management. Shubao Pei, our Chief R&D Officer, assumed the role of Chief R&D Officer and Chief Supply Chain Officer, replacing Zhongqi Kuang in the latter role. These changes took effect on January 27, 2021. We also announced an investment in iQsim (open virtual SIM platform provider) in France (reference to our press release dated February 1, 2021).
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)/income 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)/income is defined as net (loss)/income excluding share-based compensation and fair value gain/loss in other investment. Adjusted EBITDA is defined as net (loss)/income excluding share-based compensation and fair value gain/loss in other investment, net of tax, interest expense, depreciation and amortization.
The Company believes that adjusted net (loss)/income 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)/income from operations and net (loss)/income. The Company believes that adjusted net (loss)/income 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)/income and adjusted EBITDA is that they do not reflect all items of income and expense that affect the Company’s operations. Share-based compensation and fair value gain/loss in other investment have been and may continue to be incurred in the Company’s business and is not reflected in the presentation of adjusted net (loss)/income. 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 8:00 a.m. Eastern Time on Thursday, March 25, 2021 (8:00 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 |
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 April 1, 2021 by dialing:
| US (Toll Free): | +1-877-344-7529 |
| International: | +1-412-317-0088 |
| Canada (Toll Free): | 855-669-9658 |
| Replay Passcode: | 10153320 |
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:
| In China: |
| UCLOUDLINK GROUP INC. |
| Bob Shen |
| Tel: +852-2180-6111 |
| E-mail: ir@ucloudlink.com |
| The Piacente Group, Inc. |
| Yang Song |
| Tel: +86 (10) 6508-0677 |
| E-mail: UCL@tpg-ir.com |
| In the United States: |
| The Piacente Group, Inc. |
| Brandi Piacente |
| Tel: +1-212-481-2050 |
| E-mail: UCL@tpg-ir.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, | |||||
| 2019 | 2020 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 37,320 | 21,989 | ||||
| Restricted cash | 2,954 | 8,237 | ||||
| Short-term deposit | 193 | 196 | ||||
| Accounts receivable, net | 25,767 | 6,745 | ||||
| Inventories | 10,518 | 5,847 | ||||
| Prepayments and other current assets | 7,828 | 7,477 | ||||
| Other investments | - | 19,185 | ||||
| Amounts due from related party | 692 | 2,264 | ||||
| Total current assets | 85,272 | 71,940 | ||||
| Non-current assets | ||||||
| Prepayments | - | 2,116 | ||||
| Long-term investment | 430 | 1,306 | ||||
| Other investments | - | 17,824 | ||||
| Property and equipment, net | 3,793 | 3,029 | ||||
| Intangible assets, net | 602 | 1,039 | ||||
| Total non-current assets | 4,825 | 25,314 | ||||
| TOTAL ASSETS | 90,097 | 97,254 | ||||
| LIABILITIES | ||||||
| Current liabilities | ||||||
| Short term borrowings | 6,659 | 3,704 | ||||
| Accrued expenses and other liabilities | 21,319 | 25,742 | ||||
| Accounts payables | 16,728 | 8,701 | ||||
| Amounts due to related party | 1,022 | 1,503 | ||||
| Contract liabilities | 1,925 | 889 | ||||
| Total current liabilities | 47,653 | 40,539 | ||||
| Non-current liabilities | ||||||
| Other non-current liability | - | 321 | ||||
| Total non-current liabilities | - | 321 | ||||
| TOTAL LIABILITIES | 47,653 | 40,860 | ||||
| MEZZANINE EQUITY | ||||||
| Series A redeemable convertible preferred shares | 22,977 | - | ||||
| TOTAL MEZZANINE EQUITY | 22,977 | - | ||||
| SHAREHOLDERS’ EQUITY | ||||||
| Pre-IPO ordinary shares | 11 | - | ||||
| Class A ordinary shares | - | 8 | ||||
| Class B ordinary shares | - | 6 | ||||
| Additional paid-in capital | 118,818 | 220,292 | ||||
| Accumulated other comprehensive income | 706 | (429 | ) | |||
| Accumulated losses | (100,068 | ) | (163,483 | ) | ||
| TOTAL SHAREHOLDERS’ EQUITY | 19,467 | 56,394 | ||||
| TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY | 90,097 | 97,254 | ||||
UCLOUDLINK GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(In thousands of US$, except for share and per share data)
| For the three months ended | For the year ended | |||||||||||
| December 31, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||||||
| Revenues | 53,696 | 17,026 | 158,381 | 89,569 | ||||||||
| Revenues from services | 24,552 | 9,013 | 91,110 | 46,150 | ||||||||
| Sales of products | 29,144 | 8,013 | 67,271 | 43,419 | ||||||||
| Cost of revenues | (34,802 | ) | (11,680 | ) | (93,463 | ) | (61,264 | ) | ||||
| Cost of services | (8,420 | ) | (5,300 | ) | (35,594 | ) | (26,392 | ) | ||||
| Cost of products sold | (26,382 | ) | (6,380 | ) | (57,869 | ) | (34,872 | ) | ||||
| Gross profits | 18,894 | 5,346 | 64,918 | 28,305 | ||||||||
| Research and development expenses | (3,463 | ) | (5,033 | ) | (15,108 | ) | (26,359 | ) | ||||
| Sales and marketing expenses | (7,028 | ) | (5,464 | ) | (24,367 | ) | (29,261 | ) | ||||
| General and administrative expenses | (6,112 | ) | (9,584 | ) | (20,224 | ) | (43,221 | ) | ||||
| Other income, net | (92 | ) | 2,462 | 290 | 7,554 | |||||||
| Income/(loss) from operations | 2,199 | (12,273 | ) | 5,509 | (62,982 | ) | ||||||
| Interest income | 24 | 3 | 193 | 37 | ||||||||
| Interest expenses | (102 | ) | (14 | ) | (438 | ) | (285 | ) | ||||
| Income/(loss) before income tax | 2,121 | (12,284 | ) | 5,264 | (63,230 | ) | ||||||
| Income tax expense | (57 | ) | (98 | ) | (57 | ) | (185 | ) | ||||
| Net income/(loss) | 2,064 | (12,382 | ) | 5,207 | (63,415 | ) | ||||||
| Accretion of Series A Preferred Shares | (635 | ) | - | (2,540 | ) | (1,293 | ) | |||||
| Income allocation to participating preferred shareholders | (159 | ) | - | (296 | ) | - | ||||||
| Attributable to: | ||||||||||||
| Equity holders of the Company | 1,270 | (12,382 | ) | 2,371 | (64,708 | ) | ||||||
| Non-controlling interests | - | - | - | - | ||||||||
| Earnings/(loss) per share for Class A and Class B ordinary shares | ||||||||||||
| Basic | 0.01 | (0.04 | ) | 0.01 | (0.25 | ) | ||||||
| Diluted | 0.01 | (0.04 | ) | 0.01 | (0.25 | ) | ||||||
| Loss per ADS (10 Class A shares equal to 1 ADS) | ||||||||||||
| Basic | 0.05 | (0.44 | ) | 0.10 | (2.49 | ) | ||||||
| Diluted | 0.05 | (0.44 | ) | 0.10 | (2.49 | ) | ||||||
| Shares used in earnings per Class A and Class B ordinary share computation: | ||||||||||||
| Basic | 232,451,900 | 281,686,468 | 232,178,037 | 259,852,204 | ||||||||
| Diluted | 232,451,900 | 281,686,468 | 232,178,037 | 259,852,204 | ||||||||
| Net income/(loss) | 2,064 | (12,382 | ) | 5,207 | (63,415 | ) | ||||||
| Other comprehensive income, net of tax | ||||||||||||
| Foreign currency translation adjustment | 492 | (1,233 | ) | 32 | (1,135 | ) | ||||||
| Total comprehensive income/(loss) | 2,556 | (13,615 | ) | 5,239 | (64,550 | ) | ||||||
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, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||||||
| Net cash generated from/(used in) operating activities | 1,062 | (5,526 | ) | 5,761 | (2,038 | ) | ||||||
| Net cash used in investing activities | (863 | ) | (138 | ) | (3,267 | ) | (35,444 | ) | ||||
| Net cash generated from financing activities | 4 | 2,792 | 1,528 | 26,685 | ||||||||
| Increase/(decrease) in cash, cash equivalents and restricted cash | 203 | (2,872 | ) | 4,022 | (10,797 | ) | ||||||
| Cash, cash equivalents and restricted cash at beginning of the period/year | 39,850 | 32,567 | 36,627 | 40,274 | ||||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 221 | 531 | (375 | ) | 749 | |||||||
| Cash, cash equivalents and restricted cash at end of the period/year | 40,274 | 30,226 | 40,274 | 30,226 | ||||||||
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, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||||||
| Reconciliation of Net Income/(Loss) to Adjusted Net Income/(Loss) | ||||||||||||
| Net income/(loss) | 2,064 | (12,382 | ) | 5,207 | (63,415 | ) | ||||||
| Add: share-based compensation | - | 5,883 | 169 | 50,607 | ||||||||
| Less: fair value gain in other investments | - | (2,036 | ) | - | (4,909 | ) | ||||||
| Adjusted net income/(loss) | 2,064 | (8,535 | ) | 5,376 | (17,717 | ) | ||||||
| For the three months ended | For the year ended | |||||||||||
| December 31, 2019 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||||||
| Reconciliation of Net Income/(Loss) to Adjusted EBITDA | ||||||||||||
| Net income/(loss) | 2,064 | (12,382 | ) | 5,207 | (63,415 | ) | ||||||
| Add: | ||||||||||||
| Interest expense | 102 | 14 | 438 | 285 | ||||||||
| Income tax expenses | 57 | 98 | 57 | 185 | ||||||||
| Depreciation and amortization | 690 | 556 | 3,044 | 2,268 | ||||||||
| EBITDA | 2,913 | (11,714 | ) | 8,746 | (60,677 | ) | ||||||
| Add: share-based compensation | - | 5,883 | 169 | 50,607 | ||||||||
| Less: fair value gain in other investments | - | (2,036 | ) | - | (4,909 | ) | ||||||
| Adjusted EBITDA | 2,913 | (7,867 | ) | 8,915 | (14,979 | ) | ||||||
FAQ
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