Q1 2022 Ucloudlink Group Inc Earnings Call
Speaker 1: Hello and welcome to the UCloudLink Group Inc. 1st Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions.
Hello, and welcome to the New Cloud Link Group, Inc. First quarter 2022 earnings conference call all participants will be in listen only mode.
If you need assistance. Please signal a conference specialist by pressing Star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions to ask a question. You May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two.
Speaker 1: To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded.
Please note this event is being recorded.
Speaker 1: I would now like to turn the conference over to Jillian Jung, investor relations of the company. Please go ahead.
I would now like to turn the conference over to Jillian Zhang Investor Relations of the company. Please go ahead.
Speaker 2: Thanks everyone for joining us on our first quarter 2022 Ernest's Core Today. The Ernest's release is now available on our IHAR website at ir.uclo-link.com, as well as our Newswell survey. I will give a brief introduction to our EucloLink Management team.
Thanks, everyone for joining us.
First quarter 2022 earnings call. Today are just really now that about all I have upside I ask all your plumbing dot com as well as a new class of it I think.
Give a brief introduction our you calling back the mesquite gypsum Palmer, our co founder and Chairman of Board of Directors Cowboy Chen Our co founder director and Chief Executive Officer.
Speaker 2: Jieting Peng is our co-founder and chairman of Board of Directors. Tao Huichun is our co-founder, director and chief executive officer.
Speaker 2: Yi Mengshi is our Chief Financial Officer. Zhu Tan is our Vice President of Marketing and Sales.
Emil our Chief Financial Officer June 10 is our best President of marketing and sales.
Speaker 2: Our CEO will begin with an overview of our company and business highlights, which will cover Section 1 of the earnings presentation posted on our IR website. Our CFO , Yimeng Xu, will then discuss our operations, highlights, and financial results as presented in Sections 2 and 3.
I will say Oh, well begin with the overview of our company and the business highlights, which well cover in sexual one of the earnings presentation posted on our IR website, I won't say F O chemo shoe well discuss our operation highlights and financial results as presented in that.
Just two and three.
Speaker 2: Before we proceed, please note that this core McIntyre forward-looking statement made pursuit to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on measurements, current expectations, and observations that involve the known and unknown race.
Before we proceed. Please note that this core making forward looking statements made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995. This forward looking statements are based on current expectations and.
That's well above the Darwin and another way.
Speaker 2: uncertainty 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 this forward-looking statement.
Uncertainty and other factors not outside the company's control, which may cause actual results performance or achievements of the company to be.
Materially different from the results cause on us all expectations implied by these forward looking statements.
Speaker 2: Also, while looking statements are expressly qualified in their entirety by the country's statement, risk factors and details of the company's filings with the FCC, the company does not assume any obligation to revise or update any forward looking statements as a result of new information. Future events tend to in market conditions or otherwise as expect as required by law. Please also note that you've trolling...
All forward looking statements I express of late probably five <unk> in Turkey by the constant no restatement race, the fastest and the details of the company's filings with the as you say the company does not assume any obligation to revise or update any forward looking statement.
As a result of new information future events, just in market conditions, Although last expect as required by law. Please.
Please also note that you saw Link's earnings press release and this conference call include discussions of no no no. They take GAAP financial information as well as another change of non-GAAP financial measures. You can call me <unk> press release contains a reconciliation of the non audited non-GAAP .
Speaker 2: press release and this conference call include discussions of the non-audited GAAP financial information as well as audited non-GAAP financial measures. You can link press release contains a reconstitution of the non-audited GAAP measures to the non-audited most directly compared GAAP measures. I will now turn the call over to our co-founder and CEO , Mr. Charlie Chen. Please go ahead.
So it's an unaudited most directly comparable GAAP measures.
I will now turn to hop over to our co founder and CEO . Mr. Chen. Please go ahead.
Speaker 3: Thank you. Page 4 to page 12 are similar contents as the early presentation of first quarter of year 2021.
Yeah. Thank you.
Tasteful to P H class.
I mean, our content.
Presentation.
Oh, Yeah 2021.
Speaker 3: We still encourage you to review in the Q1, Y2O22 and in presentation upload to our investor relationship website with some latest updates.
We fear.
How did you did you in the quarter, one 2022 and in presentations at La <unk>.
West had relationship website with latest update.
Speaker 3: Hence, I will now elaborate on a path similar with quarter four earning result. But we instead focus on...
I will now.
And elaborate on our past sending that we've quoted for.
Result.
We are focused.
Okay.
Speaker 3: our most recent development in the fourth quarter. Please turn to page 13.
Our most recent developments in the fourth quarter.
Please.
Turning to page seven.
<unk>.
Speaker 3: UCLoning 1.0 is our international data connectivity services business.
Youll County, one point, though is a nation that data.
With your services business.
Speaker 3: which has had a strong track record of high-growth margins and profitability with ongoing growth potential.
Which.
Our strong track record.
<unk> gross margins and profitability with ongoing growth potential.
Speaker 3: We have established an intelligent wholesale-to-repair repackaging solution to minimize the unique cost of data traffic. In that, as data packages of single operators or cross mobile network operators, mobile virtual network operators are priced differently.
It's temporary and encouraging wholesale to repair repatriations solution to minimize unit cost data topic in that state that package at a single operators all across mobile operators mobile virtual network operators.
Priced differently.
Speaker 3: This is attributable to our large SIM card pool and our ability to acquire data packages at local wholesale price from operator and partners.
Nice.
I actually feel to boat to our largest seem carpool and power our ability to acquire data packages at the local wholesale price.
Uh huh.
Speaker 3: We further differentiate ourselves with our machine network risk selection and combination technologies, which could ensure high quality data connectivity and improve user experience.
Yes.
We further.
French eight oh ourselves with our marquee NASA work really selection and combination technologies, which you could issue a high quality data connectivity.
And an improved user experience.
Speaker 3: You can only one point out business, monetize, model includes retail to see rental or selling to the end user.
Counting 1.0, basically you said.
To entice more don't include repair to see right now.
Sandy till the end user.
Speaker 3: to be for business partners and our past and such services such as CIM, building management, devices, sharing and rental management, etc.
Or was there to be publishing partners and our pasta and sauce of services such as C. I am BT measurement, Steve I say Saturday, and then home management in central.
Speaker 3: For a host there to be, we can act as a reseller or provide commission services to our business partners. We allowed our business partners to share data traffic pools through our PaaS and SaaS platform and charge a commission fee.
For our wholesale could be we could.
Yes.
Hello, All provide commission so we see to our business partners. We allowed a basically its partners to share the data traffic pools through our Paas and SaaS platform and charge a commission fee.
Speaker 3: During the fourth quarter of year 2022, our 1.0 business revenues have slightly increased by 2.2% compared to the same period in year 2021.
During the fourth quarter, Oh, Yes was Hudson County to our 1.0 business revenues.
Slightly increased by <unk>.
Two 2% compared to the same Peoria.
Yeah 2021.
Speaker 3: As international travelers, this situation around the world continue to abate our time. The number of daily empty terminal DAT for the 1.0 business has increased during the first quarter of year 2022. Indicating that, more and more customers are using our products and services.
Intonation that travel restriction around the world continue to abate over time.
The number of daily emptied Tamino D. A T fall at one point the old business has increased during the fourth quarter 2022.
Indicating that more and more customers.
Using our products and services.
We spend increasing.
Speaker 3: diversify geoglathic market compensation. We are positive, let the revenues from 1.0 business will steadily close and you see the pre-COVID-19 never in the future.
Once you fight geography marquee compensation.
We are poised to take less revenues from one point to one business. We are very close and you'll see that pre COVID-19 never in the future.
Speaker 3: we will continue to develop and enrich our 1.0 product offerings.
We have continued to do better and enrich our 1.0 product offerings.
Speaker 3: Our goal, as always, is to provide the best quality products and services for our global customers, which ensure better international data connectivity.
Our goal.
As always is to provide the best quality product and so we see for our global customers, which ensure better intonation data connectivity.
Speaker 3: Let's move to page 14. UCloring 2.0 is our local data connectivity service is business.
So that's more to that page 14.
You called me to point out is.
Our local data connected with your services business.
Speaker 3: and has become a new driver of revenue growth since year 2020. Its business monetization model is similar to the of U-Cloud in 1.0 with a massive potential.
And that's become a new driver of revenue growth since the year 2020.
It's basically.
These high efficient model.
Similar to that.
You're calling one oh.
With a massive potential local user base.
Speaker 3: our new high-tech technology, contribute to the further development and growth of our U-Cloud in 2.0 business.
Our new Hot Com technology country.
For the further development and growth of our you called in coupon the old business.
Speaker 3: we have expanded the business scope of our local data connectivity services.
We have expanded the scope of our local data have come out here with your seven seas.
Speaker 3: Currently, our innovative hyper-con technology is widely assessed by more biomedical operators and business partners in various industries with great growth potential, such as with local partners in China, US, and Japan.
Currently all but in no way he hypocone technology wisely.
By mobile network operators and business partners in various industries with great with great growth potential.
With local partners in China U S and Japan.
Speaker 3: In the past quarter, we had continued to strengthen our presence in our existing markets, including Japan, North America, South East Asia, where we have had operators improve their data services and solve data connection problems.
In the past quarter, we have continued to strengthen Hudson.
Sure.
15 market, including Japan.
America.
If the Asia, where we have had operators improved layouts status that we see in soft data connection copeland's through our pasta and sauce platform, we provide high quality data connection for a five.
Speaker 3: through our path and SAS platform. We provide high quality data connection for 5G applications in response to.
In this policy to put it.
Speaker 3: to increase demand for better connectivity devices, and service, service things.
Increased demand for beds have kind of thing with this device as a service so we see.
Speaker 3: Furthermore, as people get used to the new normal, our products and services provide better performance solutions for remote work and learning which require reliable connectivity as well.
Furthermore, as people get used to the new normal or a product and so we see her why pent up on me solution for a remote work and the lending which would require reliable kind of stay with you as well.
We've got that all.
Speaker 3: ourselves to involving market by introducing innovative products to address various proponder of business applications in the area.
I sat with til.
Involving market by introducing innovative new products.
Various coupons.
Applications that scenario.
Speaker 3: During the first quarter of the year 2022, our various IoT solutions, which
During the first quarter of 2022, all our various Iot solutions, which.
Speaker 3: has successfully started to gauge customers' interest and have been perceived as reliable and high quality data connectivity services in market like Japan and North American. America achieved further differentiation. Our revenues from 2.0 business increase, increase.
Have a great stock to college customer interest.
The B C S reliable and high quality data kind of tell you what you saw with faith in market like Japan, and North America.
America achieved hotel information already with our revenues so on coupon to all business increased inquiry.
Speaker 3: 185.4% compared to the same period in the pre-out years.
185, 4% compared with a fan pier ARIA in that are in.
In play out yes.
Speaker 3: Our customers were able to realize the reduced operating costs and improve data connectivity experience through these cutting-edge IoT solutions. And we continue to focus on the exploring new business prospects to serve a broader spectrum of partners with IoT needs.
All of our customers were able to realize the refuse operating cost cost and improved data connectivity experience shortly.
H Iot solution solutions.
And we continue to forecast because it's probably new.
Business cross paths to sell a broader spectrum of partner with I O T neat way.
Speaker 3: We expect our 2.0 business to close with the support of our innovative cloud of theme and high-contact knowledge as we continue to introduce our solutions, services and products to the market and strengthen our collaborations with local partners.
We expect our coupon the old business to close with the support of our innovative cloud.
And Hi Tech knowledge, absolutely continue to introduce al solutions, So, we're safe and pothos telematics and strengthen our.
Collaborations with local partners.
That's the most without patient therapy.
Speaker 3: Based on our innovative cloud-themed and high-priced technology solutions, we continue to develop and broaden our portfolio of offerings with new products and services, such as our third-sef developed terminals and third-party devices.
Based on our innovative cloud and hyper Com technology solution, we've continued to do better and for all of them all up.
Podium offerings with new product and so I would say so.
All right. So he will tell me no third party devices.
Speaker 3: our high-percontek technology solution has been web-pachee and relative products including industry Wi-Fi loader, IP camera, power energy services like life broadcasting e-commerce.
Hypersound technology solution.
Well I see I see.
And will that be protested including industrial Wi Fi low tech IP coming up.
Power <unk> energy services.
Our live broadcasting you come much at.
Autopilot.
Speaker 3: augmented reality and virtual reality AR, VR and the cloud computing etc. are gaining recognition proven by a growing user base across a wider spectrum of industries.
Augment.
And as he and virtual reality AR VR.
And clouding computing et cetera.
Any reclamation proven by our growing user base across a wide spectrum of industries.
Speaker 3: In the first quarter of year 2022, we promote more innovative 5G products in countries and regions, such as the US, Japan, and Europe .
In the fourth quarter of 2022 will promote more innovative five keep hold that in countries and regions such as the U S, Japan and Europe .
Speaker 3: Furthermore, we have a leading global 5G long-range solution, which is an easy long-range solution for carriers and we are one of few companies that could provide 5G products with a global pen and global long-range solution.
Furthermore, we have a leading global fast you don't mean solutions, which.
Yeah.
And easy alone mirror solution for carrier and we are one of few company that could provide five key product with a global bank and global economy.
Speaker 3: These reflects our massive confidence and continue efforts on elevating our user experience.
Beef the frac.
I take comfort.
And continue.
Oh elevation.
Are you a set of experiences.
Speaker 3: As this new product equipped with our innovative WebG technology
As these new proton equipped with all are in no way keep five key technologies.
Speaker 3: Mark knows not only the graduate career, but also a new beginning for our close path in the post-apademic era.
No the one not only.
Gradual recovery.
Also a new beginning for our close partner in a post pandemic era.
Speaker 3: In terms of IoT side, we apply GMI, GloCoMe Insight Solution in IP camera commercially and it has been promoted among multiple markets.
In terms of all Iot side, we apply yeah, my glaucoma insight solution.
In Canada.
And it has become mode among multiple market.
Speaker 3: Going forward, we plan to launch more of these type of innovative products and services. You, Clown.
Going forward with.
We plan to launch more of these type of innovative products and services.
We're currently positioned.
Speaker 3: is set as the pioneer technology solution provider in the data connectivity market. Through our mature 1.0 business and the newer 2.0 business, Euclaling is promoting the long-term development of the past and past ecosystem, which has been recognized by various business partners.
It's a step as the pioneers technology solution provider in the data connectivity market.
Oh I'm not sure one point, the old business and the newer coupon to old business.
Sally is promoting the long term development of la pasta and sauce ecosystem.
Pat.
Have been.
Look nice sigh of various.
Partners.
Speaker 3: As a show, it is increased revenue contribution by 7.8.
Sure.
It increased revenue contribution by 7.8.
Speaker 3: uh I think in the first quarter of year 2022. Additionally
Ah I see in the fall.
First quarter of 2022.
Missionary.
Speaker 3: We have entered two new regional markets during the period. Pass and Start platform is built upon
We have entered two new region demand Lucky you would end up here.
And the SaaS platform.
A poll.
Speaker 3: You cloud in 1.0 and 2.0 business 9.
You'll clouding one point and.
In two point or not.
Speaker 3: and its growth reflects our ability to construct a healthy ecosystem.
And its gross reply.
Our ability to.
Construct.
Healthy ecosystem.
Speaker 3: This requires our non-stop efforts in maintaining and expanding a strong partnership base, which includes mobile network operators, mobile virtual network operators, stream-car providers, our business customers, and more will remain confident in our business development teams and to empower the building of our past and past ecosystems.
These requests are nonstop Atlas in men Honey and is pending a strong partnership base, which includes <unk>.
<unk> mobile network operators mobile watch App, that's all operator.
Copco why does.
This customer a mall would be men comfy sent in all our business development team and to empower the building of our pasta and sauce as whole system.
Speaker 3: and in our research and development team to address diversified needs, our customers have passed to us.
In our research and development team to address I want to find me.
Our customer has passed.
Yeah.
And then remind us.
Speaker 3: of year 2022, we expect past and past postponement revenue to close into more a secondary beacon, driver of your cloud-in business.
Oh, Yes, 1022, we expect <unk> and.
Soft pretzel revenue to close into more a significant driver of your polymer business.
Speaker 3: and continues to enlarge its marginal effort and improve margin profiles.
And that continuous to enlarge if margin no.
And improve margin profile.
Speaker 3: We are able to reduce operating expense and decrease the net loss through streamlining our business operations, including optimizing labor costs compared to the fourth quarter of year 2021. Going forward, we expect to further lower operating costs.
We are able to reduce operating expense and decrease the NASA loss through should streamline our business operations, including optimizing labor cost compared with the first quarter of year 2021.
Thank you for what you expect to for the lower operating costs.
Speaker 3: as a way to improve our operating and financial performance.
As a way to improve our operating and financial performance.
Speaker 3: We believe that from the connected to better connection.
We believe lack flown off connected to that definition.
Speaker 3: UClouding is a significant driving force in the transformation of an increasingly advanced information error.
New clouding it sneak.
And if he can driving force.
In that formation also increasingly otherwise information era.
Speaker 3: We are coming to building a more
We are committed to building a more.
Speaker 3: connect the future from more customers and users. And we are trying to make a positive impact.
And that's a huge here from all customers and users and we strive to make a positive impact.
Speaker 3: in serving a global user community.
In summary until boat user community.
Speaker 3: I will now take over to our staff of Yimengshui, who will go through the business and financial highlight.
I will now turn you over to our CFO and I'm sure who were supposed to do in our business and financial highlights.
Speaker 4: Thank you, Mr. Chen. Hello, everyone. Let us turn to page 17 for our bonus highlights. The left-hand side of the slide shows daily active terminus, DAT, as of March 31, 2022. Average daily active terminus in the first quarter were
Thank you Mr. Chen Hello, everyone.
On May 10.
Turning to page 17, we're all doing that our lives.
The hand side of slide shows steady actually determined.
A T S.
Pretty fast 2022.
Average daily active China in the first quarter.
Speaker 4: 270 now than eight hundred seventeen.
273.
Any kind of 17.
Speaker 4: of which one thousand four hundred thirty is owned by the company and the two hundred seventy two thousand four hundred forty two owned by our business partner representing an increase of thirty three point five percent from two hundred or five thousand and eighty two
Which one spot that is owned by the company and a 272442.
Buyout business partner.
And Ping an increase.
Three 5% from 205082.
Speaker 4: in the first quarter of 2021. You can now link to point those service, a county for around, 69.5% of the total DIT during the first quarter of 2022.
The first quarter of 201.
You're calling to pointing out of service accounted for around 59, 5% of total GDP during the first quarter 'twenty to 'twenty two.
Speaker 4: February day that usage, a terminal was 1.74 gigabyte in March 2022.
I've heard you say that usage of terminal was 174 gigabyte in March 2022.
Speaker 4: Let's also tend to pay 18, which shares global diversification of our planet.
Let's turn to page 18, which assures globo diversification goodness.
Speaker 4: We had around 26% of total revenue from outside mainland China. During the first quarter of 2022, Japan contributed to around 40% of total revenue. For all the countries' revenue, the US market had the largest contribution to a business with further development of a US business.
We had around 96% tied to revenue.
Outside mainland China.
During the first quarter of 2022 Japan contributed around 40% of total revenue for all the countries that revenue. The U S market has the largest contribution to our business, which further debate how about your ASP goodness.
Speaker 4: And we will continue to expand all the market, such as Euro and Southeast Asia, et cetera.
And we will continue to expand on the market, such as Europe , and southeast Asia et cetera.
Speaker 4: During the first quarter of 2021, we had 6% of total revenue came from men in China. 58% of the total revenue came from Japan. And 36% of the total revenue came from Japan. And 36% of the total revenue came from Japan.
During the first quarter 2021 we had 6% of total revenue kidney from mainland China.
8% of the total revenue came from Japan, and 36% to the revenue came from all of the countries in the region.
Speaker 4: send to the revenue came from all the countries in the region.
They just tend to Patrick chunky.
Speaker 4: This is 10 to 20. I will go through our financial highlights for the first quarter of 2022.
I will go through our for Nacho highlights for the first quarter up triggering too.
Speaker 4: The service and related revenue of the percentage of total revenue was 62.9% during the first quarter of the 2022. Compared with 43.4% during the first quarter of 2021. Revenue from local data can look to the service and the passing of soft service increase 185.4% and 7.8% year over year respectively.
Some of it's related revenue percentage I've tried to revenue was 62.9% during the first quarter.
Two compared with 26.4% during the first quarter truck can you walk.
From don't go that they can like tier two service and pasta sauce Service Inc.
Kris wind at 85, 4% and seven 8% year over year, respectively.
Speaker 4: This increase was primarily due to the expansion in the number of our business partner that used our paths and the soft services to provide local data connectivity service. Revenue from path and the source of percentage of total revenue also increased to 15.8% due to the first quarter of 2022 compared with 12.9% due to the first quarter of 2021.
This increase was primarily due to the expansion in the number a bit.
And his partner that use our Pos and soft services to provide low code that Te connectivity service.
Revenue from pasta and sauce, a percentage of total revenue also increased to 15.8% during the first quarter two compared with <unk>, 9% during the first quarter I think a new one.
Speaker 4: Next, I've moved to page 21, which shows the revenue breakdowns of our two-dynasticaments, the memory revenue from service and the sales of products. Our total revenue decreased by 11.8% from 17.7%.
Now, let's move to page 21, which shows the revenue breakdown of our two business segments remedy.
From service and a SaaS product.
Total revenue decreased by 11, 8% from 17, 7%.
Speaker 4: million-year dollar in the first quarter of 2001 to 15.6 million-year dollar in the first quarter of 2022.
You didn't you saw that in the first quarter and didn't want to $15 6 million you saw that in the first quarter of 'twenty to 'twenty two.
Speaker 4: Due to the elected impact, a local co-vermountain resurgence and a subsequent lockdown in certain cities in China, including where our men manufacture a business, which has impact a revenue from sales product.
Due to the impact of local COVID-19, resurgence and subsequent lockdown.
China, increasing where our men manufacturer.
Which has impact on revenue from SaaS products.
Speaker 4: Revenue from service were 9.8 million US dollars, representing an increase of 17.2% from 8.4 million for the same period of 2021.
Revenue for the surveys what nine point.
The minute they started representing an increase of 17, 2% from $8 4 million for the same periods of 2001.
Speaker 4: This increase was primarily attributeable to the increased revenue from local data connected to service.
This increase was primarily attributable to the increased revenue from local data connectivity service.
Speaker 4: Next 10 to 2022, of course, margins of our banner.
Ms tend to pick attorney to gross margins I finish.
Speaker 4: Our service gross margin increased to 49% in the first quarter of 2022, compared to 35.9% in the first quarter of 2021. And our overall gross margin was 37.4% in the first quarter of 2022, increased from 31.3% during the same period, 2021.
Oh, so that's gross margin increased to 29%.
Quarter, I'm kind of Jimmy Choo compared to 35, 9%.
Fourth quarter attempting to one and Oh gross margin was 37.4% in the first quarter of 2022 increased from 31, 3% during the same period turning to our near one.
Speaker 4: The increase of service cost margin during the first quarter of 2021 was primarily attributable to the increase of our past and self-service revenue and data connectivity service by in commode returning sales.
The increase of service gross margin during the first quarter I was trying to chew was primarily attributable to increase about policy saw sluggish revenue and third to connectivity service right.
Returning sales.
Speaker 4: Those of which have higher gross margins over other than is nine. Miss us.
Each of which have higher gross margins on the finish line.
Let's move to page 23, which shows the breakdown of operating expenses, excluding share based conversations and all of that.
Speaker 4: which shows the breakdown of operating expenses, including share basis conversations and others.
Speaker 4: It's couldn't share budget conversations operating expensive as a percentage of co-the revenue was 60% in the first quarter of 2022 compared with 71% in the first quarter of 2021. We have further streamlined our business operation, including optimizing neighborhood costs.
It could be share patient concessions operating expenses as a percentage of total revenue was 60% quarter.
<unk> 22, compared with 71% excuse me first quarter Duncan you want we have thought that given my goodness correction, including optimizing cost.
Speaker 4: And our total operating expenses, excluding the share base conversation, were decreased to 9.3 million in the first quarter of 2022, compared to $3.6 million in the same peer raise of 2021.
And our total operating expenses, excluding share based compensation decreased to $9 3 million in the first quarter of 282 compared to <unk> 6 million guests Donna send pra's uptrend in 'twenty one.
Speaker 3: This is our 10th page 24. Operating cash flow was elective $1.4 million given the first quarter of 2022. Compared to elective $6.7 million, given the first quarter of 2021, our cash and the cash equivalent and the shop turned deposits were $11.2 million as at March 31.
So I'll turn to page two.
20, full operating cash flow was negative one 4 million guests order during the first quarter of a country me to.
Compared to $6 7 million during the first quarter of about 2021.
Our cash cash equivalent and short term deposits.
I would point to me that you saw that at March 31.
Speaker 4: 2022. Our care packs were 6,000 compared to 0.1 million each dollar in the same period of 2021.
2022 hour care packs for fixed broadband compared to putting a 1 billion and you saw that same period of 2021.
Speaker 4: This is smooth to page 25. Late law of the only first quarter of 2022 was $10.9 million compared to $15.4 million during first quarter of 2021. Adjust it EBITDA or the lake.
This us move to page 25.
Loss during the fourth quarter I'm trying to get to was $6 9 million compared to $15 4 million you saw that during the first quarter of 2021.
Adjusted EBITDA loss of negative 3.9 million during the first quarter 2022 compared to elective $6 7 million you saw that during the first quarter 'twenty one.
Speaker 4: $3.9 million during first quarter, 2022, compared to elective, $6.7 million during first quarter, 2021. But mention about the company is working towards improving this bottom line results and financial position.
And about the company is working towards improving bottom line results and financial positions.
Speaker 4: With that, let me conclude today's presentation. Thank you. We start our Q&A session.
With that let me conclude today's presentations. Thank you we start our Q&A session.
Okay.
Speaker 1: We will now begin this Q&A session. To ask a question, you may press star, then one.
We will now begin the Q&A session.
To ask a question.
You May press star.
And then one on your telephone keypad.
If you're using a speaker phone.
Speaker 1: Please pick up your hands that before pressing the key.
Please pickup your handset before pressing the keys if at any time. Your question has been addressed and you'd like to withdraw. Your question. Please press Star then two.
Speaker 1: If at any time your question has been addressed, at you'd like to withdraw your question, please press star then two.
Speaker 1: At this time, we will pause woman carefully to assemble our roster.
At this time, we will pause momentarily to assemble our roster.
Speaker 1: First question comes from Vivian Zhang with Diamond Equity Research.
The first question comes from Vivian Zhang with Diamond equity research.
Please go ahead.
Speaker 5: Good evening. This is Vivian Zhang from Diamond Equity Research. Thanks for taking my questions. So my first question is that can you give us some additional color on your Internet of Things solution and its market opportunity?
Good evening, they said they've been junk from diamond active usage. Thanks for taking my question. So my first of classrooms that can you give us some additional color on your internet of things solution and its market opportunity.
[noise] yeah. So.
Mr. Chang can you answer that question.
Speaker 3: Yeah, so for international business, we can see that from the DAT, we can see the first quarter of years 2022. We can see the data is recovery, so DAT is increased.
Yeah, Yeah, yeah for for installation of basically we believe that we can see that from the T. E. T. We can see are not the first quarter of year 2022, we can see the data.
Recovery, So C a T.
Increase so let's the data the data performance from our side, we know the only.
Speaker 3: So let's, the data performance from our point that side.
Speaker 3: We not only have the normal cloud-the-scenes solution, now we have a high-con solution. High-con means that we can provide much better experience for multi-network handover from the more than 10 seconds and now can go to the minute second.
The yeah, the normal our normal how does seem solution now we have a.
Solution, how come you isn't that a we can provide much better even though it's purely just the full Monty network, a hand or from the monetize second now can go to in a minute second that's the one wound up a bunch of new product news situation and nowadays will find the chi.
Speaker 3: That's one of the new product and new service. Another is 5G. We provide 5G product. So we are now really few when almost it's the only one when the full can provide a global 5G network longings.
We provided our five key product. So we are not noteworthy fewer winter almost is the only one vendor who can provide a global five key network looming. So because of all of our five key product waste are almost all are all not all countries are five she'd redo ban.
Speaker 3: So because our 5G product with almost all countries 5G redo band and also 5G, you know, long link capability, let's wear it where in the industry.
And also you know roaming capability are less worried where in the industry. So all these preparation.
Speaker 3: So all these preparation is let us in a good position for, you know, recovery after COVID-19 after COVID-19. So I think we are in a good position.
Net to us in a good position well you know recap.
You know a recovery of the Covid.
COVID-19 after COVID-19, so I think we are in a good position.
Okay, Okay I see.
Speaker 5: So my second question is regarding the COVID-19 impact. Because we've seen some Chinese cities like Shenzhen reopening in the second quarter after the lockdown, but there are some controls may still be in place in the cities.
So my question is regarding the COVID-19 impact cause a big thing some Chinese cities like Shenzhen. They open you the stats on the career after the lockdown.
There are some still some controls nice there'll be UK cities. So do you think there will be some recovery in revenues from sales of products in the second quarter or those countries will continue to affect your lounge wear and manufacturing of five cheaper that's giving us your name.
Speaker 5: So do you think there will be some recovery in revenue from sales of products in the second quarter? Or will those controls continue to affect your launch and manufacturing of 5G products given that your main manufacturers are based in Guangdong, China?
And in fact, you're facing Guangdong China.
Speaker 3: Yes, it is impact in the first quarter, especially both the Sun Zhen and Xianghai, because this supply chain, not part of our supply chain, is in base in the Sun Zhen, and some part of our partner is base in Xianghai. It is impact by the lockdown of the New Zealand COVID-19 in China. But I think we can see that in Guangdong, it's early recovery. I think the second quarter, it's no any problem from the Cullen scenario.
Yeah, Yes. It is the impact in the fourth quarter, especially posted Sunshine Sunshine's Shanghai because.
These supply chain not a part of our supply chain is in basically in the Simpson and some part of all our partners, especially in Shanghai. It is impacted by the lockdown of the field in a COVID-19 in China.
We can see that E are in Guangdong is a rate recovery I think the second quarter.
There's no any preopening, a throne of calling a calling.
You know a scenario.
Speaker 3: Also, we have also removed some of our supply chain from Shanghai to Shenzhen. So in the second quarter, we believe the impact from COVID-19 will be...
Oh, so we Oh sorry.
The mood is somehow a supply chain flow in Shanghai to Sunshine. So in the second quarter, we believe the impact on the COVID-19, a weird be almost almost disappear I seem to have Racine pad a quarter one quarter. Two we can see it's much much better so.
Speaker 3: almost disappear. I think the average impact by the quarter one. Quarter two we can see is much much better.
Speaker 3: So that's the one of the situation. Another is because our first quarter, our new device products delivery, it is in-pad because a lockdown in the first quarter for manufacturer. And also it comes because this quarter, the first quarter of the revenue and delivery, the source order is come from the last quarter, in the year quarter four.
Well, that's a one off.
Situation and not that I used to be culture first.
First quarter how are new.
A new device a proton delivery it is impact.
Because on a locked down at all in the first quarter for a manufacturer and also has come because I know this quarter in the first quarter, often on revenue and delivery and a source of order is come from the last quarter last quarter in the year end.
Fourth quarter fall quite twice as heavily impacted by the.
Speaker 3: KOTO for is a heavy impact by the, you know, all Michelin, wild blood COVID-19. So I think second quarter will be much better.
Oh me Corona well weapon in our COVID-19, so I think our second quarter will be much better.
Okay. That's all thank you.
Okay.
Speaker 1: Again, if you have a question, please press star then one.
Again, if you have a question. Please press Star then one.
Speaker 1: This concludes our question and answer session. I would like to turn the conference back over to Gillian Jung for any closing remarks.
This concludes our question and answer session I would like to turn the conference back over to Julien Zhang.
Any closing remarks.
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Thank you once again for joining us today.
And that's.
James Please feel free to contact Investor relations contact information.
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Speaker 1: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
The conference has now concluded.
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Speaker 6: The the.