Q4 2024 uCloudlink Group Inc Earnings Call
Good day and welcome to the you called Link Group, Inc, fourth quarter and full year 2024 earnings conference call.
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Speaker Change: I would now like to turn the conference over to Daniel Gal. Please go ahead.
Speaker Change: Hello, everyone and thank you for joining us.
Speaker Change: Fourth quarter on a full year of two southern Sunday for earnings calls so the earnings release and our earnings presentation are now available.
Speaker Change: Available on our IR website.
Speaker Change: I also believe Bill Com joining me on today's call are Mr. <unk> co founder and chairman of the board of directors.
Speaker Change: That's always true co founder director and Chief Executive Officer.
Moshe Chu: Mr Moshe Chu.
Speaker Change: Chief Financial Officer.
Speaker Change: Mr. Chen will begin with an overview of our recent business highlights Mr. Sue will then discuss our financial and operational highlights for the quarter.
Speaker Change: It will all be available to take questions in the Q&A section now the photos.
Speaker Change: Before we proceed. Please note that this call may contain forward looking statements made pursuant to the safe Harbor provisions Oh, there could be some segregation litigation Reform Act now.
Speaker Change: 1995 days.
Speaker Change: These forward looking statements are based on multi minutes Karin.
Speaker Change: Mutations on the observations that involves known and unknown risks.
Speaker Change: I'm sorry.
Speaker Change: In Turkey, and other factors not under from Bernie schedule.
Speaker Change: Which may cause actual results performance or two minutes over the components to be materially different from the results performance or exceptional.
Speaker Change: But the patient implied by these forward looking statements.
All forward looking statements.
Speaker Change: Especially qualified India and Turkey.
Speaker Change: Well timna rate statements risk factors and does he tell us all of their current proteins feeling whereas the S E T.
Speaker Change: The company does not assume any obligation to reimburse or update any forward looking statements as a result of new information future events change in market conditions or otherwise except.
Speaker Change: As required by law.
Speaker Change: Please also note that nucleus, earning press release on these timber and show, including discussions and all these G. A a P financial information and adult use 90, a P financial mess Messrs.
Speaker Change: In your press release content.
Speaker Change: Rapidly simulation.
Speaker Change: Those are all on all of these are non <unk> measures to their most directly comparable and they'll get a G. A a P measures.
Speaker Change: I will now turn the call over to Mr. Chang. Please go ahead.
Chang: Thank you Tania and good morning or evening everyone.
Chang: Kudos on the year with a solid Oh, some news as Ala spending local mi ecosystem.
Chang: Continuous to Kenny grows some momentum.
Chang: Revenues in year 2024 increased seven seven.
Chang: So at one point or 1% year over years to U S. Dollar 91 6 million.
Chang: With net income U S dollar falling to $6 million and net cash flow from operations.
Chang: U S dollar 91 to 2 million.
Chang: Representing a kidney.
Significant 141 point or two increase from the last years.
Chang: Total revenue during the year films on mainland China region in particular increased 97, 4% year over years.
Chang: Indicating less.
Chang: Our new cloud being 1.0 international data cannot pay with T solutions I've been more widely adopted by Chinese consumers and extending our leading position in a low market.
Chang: Total revenue during the first quarter, which is typically impacted by seasonality in the third quarter with peak summer activity.
Chang: Tony a consistent upward grows.
Chang: Oh, yes, sorry.
Chang: Yes.
Chang: Mark looked 10 years, I mean, whats the rate since our founding.
Chang: Bonnie all our comprehensive connectivity services powered by called the C and the high Pecan solutions.
Chang: Oh, well hundreds 15 more countries across six continents.
Speaker Change: We have said 2018.
Speaker Change: 818 business partners in 52 countries and gorgeous, indicating a growing ecosystem of go call me solutions for daily use.
Speaker Change: Why are these in passive we have much more install for year 2025, Oh I'll go call me ecosystems continues.
Speaker Change: Continues to thrive.
Speaker Change: We broadened our portfolio of solutions to sublease.
Speaker Change: Ita.
Speaker Change: Oh Wow.
Speaker Change: Loud he of user needs.
Speaker Change: Occupation intelligent AI becomes more widespread we have begun.
Speaker Change: Probably it.
Alright to enhance.
Speaker Change: This operational efficiency and integrate it into.
Speaker Change: All our solutions to improve the user experience.
Ensuring seamless <unk>.
Speaker Change: Car T with tier four users globally.
Oh wait.
Speaker Change: We are leveraging.
Speaker Change: Oh Wow.
Speaker Change: Uh huh.
Speaker Change: Terry.
Speaker Change: Hypercard, how the theme and safe pet attrition in technologies took frac barriers in Ghana.
Speaker Change: Connectivity, creating innovative solutions that enhance the digital experience what.
Speaker Change: And revolutionize.
Speaker Change: He was here for Iot people in Perth.
And Tom do you see 2025.
Speaker Change: We showcased these new and exciting.
Speaker Change: <unk> technologies has.
Speaker Change: Be integrated into.
Speaker Change: In no way tier solutions.
Speaker Change: We are further strengthen that.
Speaker Change: Tayo, we use behind all our broader series of glaucoma and Brooklyn Mediasite solution.
Speaker Change: Furthermore.
Speaker Change: Let's see yes, yes, 2025, our unit call was all done with the best also CES 2025 Breakthrough Award.
Speaker Change: Enjoy authority.
Speaker Change: Underscoring our commitment to innovation.
Speaker Change: In our synchrony.
Speaker Change: Milestone one of your colleagues Cypress.
Speaker Change: Terry what amount of forced a batch offered us 13, falling invest P companies alongside us.
Speaker Change: C H.
Speaker Change: We know the market nation no.
Speaker Change: Core operations, such as Deutsche Telekom Siemens Alba.
Speaker Change: And that's S. P C to receive a call from China Ministry.
Industry, and information technology, and I I T.
Speaker Change: Our pilot operations already had it come how do you come in telecommunication services.
Speaker Change: Cool.
Speaker Change: Grants us the ability to provide internet access and information so it's basically China, making Ah.
Speaker Change: P bolder steps in expanding our global footprint and delivering cutting edge solutions.
Speaker Change: First.
Speaker Change: Let me start with a girl come alive, and pet connectivity solutions, where we just where pet fault.
Speaker Change: At the end up you'll see 2025.
Speaker Change: Evolutionary addition to digital.
Speaker Change: Digital ecosystem.
Speaker Change: The war first a smartphone for pets office.
Speaker Change: For a pet also support a P I pad in the interaction 70, including the six pack global positioning I always see house.
Speaker Change: Samantar Guardians.
Speaker Change: Call Me, a community engagement global pet community.
Speaker Change: Into Morgan Stanley and Youre spending grows in the pet industry could reach 7% by yes with all of a sudden 30.
Speaker Change: But yeah I think so.
Speaker Change: This lady into the total industry spending will increase too.
Speaker Change: Taller.
Speaker Change: 251 billion.
Speaker Change: <unk> the enormous opportunity we are tapping into waste and I said wait till they solution Petzel mess a great addition, alongside long truck unit call key check into.
Speaker Change: Paul flooring.
Speaker Change: Turning to glaucoma Internet of things Iot kind of okay with your solutions.
Speaker Change: Where are we on the way up the cloud the same kit.
Speaker Change: All in one Iot solution.
Speaker Change: Obviously your 2025 hour caused us in case, if I remember you shouldn't read prop plays I O T. A solution designed to delivery is 10 Globo postpaid 45 for cheap connectivity for Iot and the smart devices.
These innovative solutions can seamless integrated into existing shouldn't be wise with the same cost smart.
Speaker Change: Such as the muscle C. P loves her on the Iot enabled hardware biased.
Speaker Change: By simply fly instead of cloud the same kit into loss seems not he always says can unlock globally global connectivity without a need for additional hardware all stopped away a multi fig modifications.
Speaker Change: Eight and idea solution for a wide range of applications.
Speaker Change: Patients in this scenario.
Speaker Change: We used a combination of luck cloud the same kit.
Speaker Change: Pioneering self to cloud the same technology and in no way you've seen cost solutions Carl comes I O T offering now comprehensively address the kind of deal with heat challenge it.
Speaker Change: Across all Iot scenario.
Speaker Change: For ease of 15 legacy devices, all new incremental market our solution provides seamless reliable and.
Scalable connectivity.
Speaker Change: This breath to not only enhance the wifes identity of Iot application, but also significantly expand the market potential for local meat.
Speaker Change: Patricia.
Speaker Change: Either in growth in global Iot kind of deal with your solutions. Following the success small scale commercial application of our self to see that.
Speaker Change: Soft cognizant technology with several leading manufacturer in the security camera basketball cannot tell me that tech sector.
No.
Speaker Change: The commercial application of our critical go.
Speaker Change: So call me Iot solutions.
Speaker Change: A significant today give it in the first quarter go call me I O T. U S numbers are growing rapidly and are expected to attend.
Speaker Change: Going forward.
Speaker Change: I asked to demonstrate has changed and the capabilities of our solutions to an even broader audience across the Iot sectors.
Speaker Change: So call me seen business with just on where you seem to you Ed.
Speaker Change: And I will say year 2025.
Speaker Change: Revolutionary Leap in Siem technology.
Speaker Change: You shouldn't ask the best a second Sim card, you'll kind of have.
Speaker Change: It has it has both domestic and international colleges.
Speaker Change: Providing consumers with a single Siem solution for seamless local and global connectivity.
Speaker Change: In addition, our rate is empower tier two tier three operator and mobile operator.
Speaker Change: Racing challenges such as pool NASA work puzzling this led.
Speaker Change: Intonation allow me.
Speaker Change: And in our ability to be independent.
Speaker Change: Independent networks, enabling enabling them to deliver a superior service days and expand their market reach.
Speaker Change: They eliminate the need for costly international roaming and provides users with reliable high speed connectivity across multi network operator.
Speaker Change: Yeah.
Speaker Change: Lottery.
Speaker Change: For our people centric accounting connectivity, our critical me more by a fixed broadband business, non where which are on the way up.
Speaker Change: Neel go G 15 months.
Speaker Change: Our hyper comp five for T mobile Wi Fi hotspot with a I'd say, even sky took wrong connectivity.
Speaker Change: And obviously 2025 leased.
Mobile Wi Fi hotspot improved network quality waste AI power real time Congress shouldn't detection offering a seamless and better connection experience, regardless of where you are.
Speaker Change: Oh, Wow, otherwise hydro com technology delivery hyphen.
Speaker Change: Local and global Internet access ensuring uses.
Speaker Change: High speed connections and reliable NASA work with what they were like goat without limitation.
Awful lot traditional omi all carrier restriction.
Speaker Change: And obviously your 2025, we unveil the good version upgrade your 40 capable off deliveries peaked three times faster than traditional Ford you'd be wise.
Speaker Change: These ground breaking solutions seamlessly integrate Wifi networks across home and pole cabin offer each cafe and the more while also spring also speak the worth of the device to support in flight Wi Fi connectivity, we also.
Speaker Change: Sure.
Speaker Change: In developing retail channel for our CRO call me mobile fixed broadband and life surgeon last solution.
Speaker Change: Or.
Speaker Change: By signing cooperation agreements with North American loss largest airport retail channel and mechanism widely available across the airport retail located in North America. We are now at a pay rate negotiating to pay these partnership across it.
Speaker Change: Europe student and the look into risk that pre Kate these process through other channels.
Speaker Change: Penn.
Speaker Change: Coaches to a broader audience.
Following our successful launch and I'm going to say 25, all for all fall product that notice.
Speaker Change: Market ready.
Speaker Change: With strong interest from partners.
Speaker Change: In clothing global Pet store, Chen who had initiate.
Speaker Change: High level discussion.
Speaker Change: Sick or not.
Speaker Change: Similarly significant market expansion potential.
Speaker Change: Our goal is to aggressively promote leased non tour a full marketplace vision, Brooklyn, my life, including their pet fall.
Speaker Change: For tens of millions of users.
Speaker Change: Gogo.
Speaker Change: Critical machines and Iot.
Speaker Change: Hundreds of maintenance and growth in global Mi mobile broadband strive for millions of users.
Speaker Change: <unk>.
Speaker Change: So I wouldnt impair the photos across all business a nice.
Speaker Change: So this innovative business nice increasingly are creating.
Speaker Change: Creating new revenue streams fed into our marketplace.
Speaker Change: Our user base is diagnosed in flight and the scale up we have.
Speaker Change: Yeah, 2025 ahead of us with many more solutions in the pipe are not where we are.
Speaker Change: We will further consolidate not convenient secure and premier connectivity between mobile Internet fixed broadband Wifi and satellite communications with our centralized management with all of these.
Speaker Change: <unk> solution is increasingly contributing to our new revenue streams and further scale up our user base.
Speaker Change: I'm confident we are on the right track to build an integrated and comprehensive global mobile data traffic share in the marketplace. That's a weird create.
Speaker Change: Long tons of tenable value for the shareholders.
Speaker Change: The Artemis.
Speaker Change: Optimism for the future in mind.
Speaker Change: I'll conclude with our guidance for the next quarter and the year.
Speaker Change: For the first quarter of 2025.
Speaker Change: Total revenue to be between U S dollar as he pointed to minion and U.
Speaker Change: U S dollar 95 million representing an increase.
Speaker Change: There are probably 6% to seven seven.
Speaker Change: 7% compared to the same period, a year 2000 and fall for the years 2005.
Speaker Change: We expect total revenue to be between U S. Dollar Nike fly median and U S. Dollar has just said he median representing an increase of three seven.
Speaker Change: Hundred percent and 241 point, a night per se for throwing yes, 1000 and fall.
Speaker Change: I will now turn the call over to Mr.
Mr. Chang: Thank you Mr. Chang Hello, everyone Oh wait.
Go over our operational and financial highlights for the fourth quarter and a full years 2024.
Mr. Chang: Average daily active telling us its end.
Mr. Chang: Important.
Mr. Chang: Operating metrics for us.
Mr. Chang: The measures customer used to train each here.
Mr. Chang: Which is the reflective of our business performance.
Mr. Chang: Average daily active terminal D T E.
Mr. Chang: Last quarter or so.
Mr. Chang: <unk> thousand 386.
Mr. Chang: Figure, 4.3% were from that you're calling 1.0 international data connectivity service and a 45, 7% were from you crowding to porno local data connectivity service.
Mr. Chang: Average daily that are used to determine our was 1.5 gigabytes in December of two centers for us.
Mr. Chang: As of December 31st.
Mr. Chang: <unk> 24, the company has tough Tucson 818 has been a partner in 62 countries and regions. The company had 185 patents with 185 proof in the 'twenty pending approval.
Mr. Chang: Why is the pool of Sim cards are from surround and 91.
Mr. Chang: And I was globally as well.
Mr. Chang: At December 31st two strengthening for.
Mr. Chang: Total revenue for fourth quarter were 26 million, representing an increase of 19, 5% from $21 7 billion you saw that in the fourth quarter as a Tucson to New Street revenue from Sunrise was 15.
Mr. Chang: $50 million, representing an increase of <unk> six.
Mr. Chang: And from $14 9 million startup in the same period in Tucson in 'twenty three.
Mr. Chang: From service as a percentage of total revenue was 57, 8% during the fourth quarter of 2024 compared to eight 7% during the same period of 2023.
Mr. Chang: Geographically speaking during the fourth quarter of Tucson to any fall, Japan contributed 53, 6% mainland China contributed 20% North America contributed to a point and a 1% and the other country in the region contributed the remaining 14, 3%.
Mr. Chang: Compared to.
Mr. Chang: 43, 1%.
Mr. Chang: T, 16.5% 21, 3% on a 61.
Mr. Chang: Percent respectively.
Mr. Chang: I'm curious a tucson in 'twenty three.
Mr. Chang: Overall gross profit was $11 2 million in the fourth quarter, two certainly for relatively stable when compared to $11 3 billion in the same period of 2023.
Mr. Chang: Overall gross margin was 43% in the fourth quarter of 2024 compared to four 2% in the same period Tucson.
Mr. Chang: Right.
Mr. Chang: Gross margin on services was 58, 6% in the fourth quarter of Tucson, plentiful compared to 61% in Cynthia to send 23.
Mr. Chang: Gross margins on sales of product decreased to 21, 7% in the fourth quarter of 2024 from 34 point of 2% in the same period of 2023.
Mr. Chang: Excluding share based compensation tied to operating expenses in the fourth quarter of Tucson plentiful were $13 9 million installed at 73% of total revenue compared to $11 6 million you saw that all 53 of the total revenue in the same periods in two.
Mr. Chang: <unk> Street.
Mr. Chang: Loss was $1 5 million dollar in the fourth quarter of 2024 compared to $1 eight millions and superior to send to me three adjusted EBITA was negative.
Mr. Chang: 2.3 million U S dollar in the fourth quarter of Tucson, 24, compared to positive one 5 million U S. Dollar for the same period Tucson chemistry.
Mr. Chang: Moving onto to Tucson, 24, full year's financial results total revenue for Tucson, 24 increased by seven point of 1% to $91 6 million in U S dollars from $85 6 million startup in 2023 previously.
Mr. Chang: Similarly by the revenue increase from data connectivity service and pasta sauce service revenue from data connectivity service were $47 6 million, representing an increase of one 9% from 46.6 million you start up in.
Mr. Chang: Tucson twenty-three within there to kind of keep your service revenue from international data connectivity service rose to $49 5 million startup in Tucson, 'twenty four from 37 point million Gustavo in Tucson 23.
Mr. Chang: Driven primarily by the continued recovery of International Congress, which was.
Mr. Chang: Partially offset by a decrease in revenues from local data connectivity to a service to $8 1 billion dollar eating Tucson 'twenty four from $8 8 million dollar.
Mr. Chang: Tucson 23.
Mr. Chang: Overall gross margin was 48, 4% in Tucson, any full stable when compared to 49% in two center in history and our gross margins on service increased to 68% in Tucson 'twenty four from 58 point of 5% in 2023.
Mr. Chang: Excluding share based compensation total operating expenses in Tucson, 24, or $48 million or 45% of total revenue compared to 34.6, many installer, 40% of total revenue in 2023.
Mr. Chang: Chief a net income of $4 6 million dollar in 2024 up from $2 8 billion Astana in Tucson in 'twenty three.
Mr. Chang: Adjusted EBITDA was $7 1 million compared to 9.8.
Mr. Chang: Many smaller in Tucson 'twenty three.
Mr. Chang: For the full year Tucson plentiful all capital expenditure were four millions dollar compared to two point a one minute to start up in 2023 for the full year 2024, we achieved positive operating cash flow of $9 2 million compared to 6.5 minutes in Tucson.
Mr. Chang: 23.
Mr. Chang: Moving onto balance sheet items, our cash the cash equivalent increased to $31 million as of December 30, 127, 24, compared to 27.7 million Donuts as of September 30, Tucson 24.
Mr. Chang: We remain committed to enhancing the company's magic positions over the course over the years and we are positioned to continue growing our business with them.
Mr. Chang: Operator.
Speaker Change: Open up for Q&A.
Mr. Chang: Yeah.
Mr. Chang: Thank you.
Mr. Chang: We'll now begin the question and answer session.
Mr. Chang: To ask a question you May Press Star then one on your Touchtone phone.
Mr. Chang: If you are using a speakerphone please pick up your handset before pressing the keys.
Mr. Chang: Is it any time your question has been addressed and you would like to withdraw your question. Please press Star then two.
Mr. Chang: At this time, we will pause momentarily to assemble our roster.
Mr. Chang: Okay.
Okay.
Speaker Change: The first question today comes from Theodore O'neill with Litchfield Hills Research. Please go ahead.
Theodore O'Neill: Yes. Thank you very much my first question is about the pet phone and what I'd like to know is what's the benefit of all of the pet phone and what will it allow me to do.
Theodore O'Neill: Yeah, so on the pet food and I think it's the way in April.
Speaker Change: Pat you know like a children's under seven years old is the stimulus money. They can use their smartphones to cope lay our other dog all other pets and their owners are to express the day, a neat moody such as a place.
Speaker Change: Oh they are hungry. They are says he may want to go outside the dam using their friends. So like it used to be a body languages. They can usually a submission at home too. It is Bret leas, if message I'll call them too.
Speaker Change: Ah different brands different pets and their owners so that we shortened.
Speaker Change: The distance so that no matter the owner of France, well lay off so they can contact yeah pets, because especially they are killing each other so that's quite unique so our creation point, let's wait and see.
Speaker Change: Our 2025, we get many many attraction from the low cost headwind I remember seven hebe and Ara, but I'll talk about you know.
Speaker Change: But at famous like this lifeblood at least not at least a famous a broadcaster.
Broadcaster I think approaching huh.
Speaker Change: Understand these proton I can not only just interaction with the people in the past, but also we create.
Speaker Change: Pets community social social for example.
Speaker Change: Talk with our platform.
Speaker Change: With the total apart so if another dog approaching so.
The pet food.
Speaker Change: Like with flash.
Speaker Change: Colm will keep our remaining Oh, yeah, new friend coming or you have a good friend coming all you had a best friend you just like friend country. So we can make things happen.
Speaker Change: So it is quite attractive although we havent you know securities. We have six positioning we can fight leddy onto checking a checker all up and OPEC cannot fly because we have six positioning technologies are unique we already polluted in Lafayette is so high.
Speaker Change: Finally, we have also the same thing we have you know sport nobody can understand they are moody and we can monitor we can alert these if something one off.
Speaker Change: In poke up heavy so it is quite unique for us.
Speaker Change: So we believe.
Speaker Change: In the past it's of a handset.
Yeah, so let's.
Speaker Change: Yeah, Brian the huge huge market by the way I think I said, we are getting.
Speaker Change: Yes.
Speaker Change: I worry a lot half of the carrier are like all product. So you know we are not just sitting on this product. We are we're launching in April.
Speaker Change: We are not just launching this product in the open market, but more importantly, we successfully attract ah.
Speaker Change: Korea, because of we bring with the carrier.
Speaker Change: The revenue not only from people in Iot are more important we create a new market like the market is a growing market. So they can stay out of their subscriber. They can stay at a theme that's quite important to the carrier in such.
Speaker Change: A competitive market.
Speaker Change: It's a very interesting.
Speaker Change: You may have.
Speaker Change: Certainly answered my next question.
Speaker Change: Of the items, you've introduced at M. WC, the pet phone E. Sim trio cloud Sim kit and hyper Con do you think that pet phone is going to have the biggest impact in 2025 of those.
Speaker Change: Yes, that's why I think we have become very famous in in Spain because of the asset.
Speaker Change: That's a good way broadcast approaches us and.
Speaker Change: Long time, an interview with our guys feel that's a that's why recently just about after the antibody assay. Several days later, we already had a successful meeting with the with our biggest pad that channel in Spain. So in the past that's unbelievable, but now it to happen.
Speaker Change: So that's that's quiet that's why.
Speaker Change: Pet food is quite unique we create these these are new new new AR device and for the new market. So that's first of all proposals to our second start are you know are pulled out as the esim twill and simply.
Speaker Change: Because we enable from a it was a totally stopped subscriber subscribe aside.
Speaker Change: If love us and use that use our eastern trio all our cengage letting means they were no more even though a coverage issue the only issue congestion issue. So.
Speaker Change: That's why in this case.
Speaker Change: Unique it is the long term.
Speaker Change: I think people will need a second seems not a second sim card for permanently.
Speaker Change: And then I see us because we can stop such a threep Copa that forced the Sim card.
Speaker Change: We are facing these challenges and also we are also more important will enable a tier two tier three carrier.
Speaker Change: No they no longer have a lonely issue congestion issue coverage issue that means they they use a lot.
Speaker Change: Trio and the C.
Speaker Change: <unk> seen our kids are called there's no contest from kids to soft until you sort of other carriers and they have to work too.
Speaker Change: Talk talk into that business and service so with our technology I don't see in a domestic they can use the other carrier NASA work to be able to add these things without coverage without revenue, but now with change of this situation. We can have a tier two tier three carrier so used to that.
Speaker Change: At the current Antelope, four looming enough for domestic only.
Speaker Change: Normally for congestion and afford college athletes. So that's quite a unique path. So we also are a lot of tier two tier three carrier approaching us and they are kind of interesting because all we can say that they are spending in the base station building. They are no longer need to immediately of train two.
Speaker Change: Local and domestic courage.
Speaker Change: So they had noticed perpetual anymore. They can quickly is pending business so to the to the towards future because they can build their own base station based on their need and their data.
Speaker Change: So by the way also so we have a law.
Speaker Change: Circle that last year, we just show a unit coal pulled that so now we have a free.
Speaker Change: Product for the unit coal this family we are offering so our cable with our power charge, a 60 watt, but also as we support capability in these cable just told him on this for Allah unit called the entry level.
Speaker Change: We have a middle tier level.
Speaker Change: Will it come back are we call. The compound model you can screw up your you know while smaller is a.
Speaker Change: Portable so for battery insight for me find insight for G. P. S. Four six.
Additionally, inside ways. These are unit call away caller I think Lisa is extremely affordable so extreme good for your business and your car and at the 17th at the because attrition. It was always in your neighborhood are missing. The com you can find your Colorado as you know they were losing.
Speaker Change: Your Yada Yada Yada, you lock H O. So you'll get the data and anyway. It's good for your political it's been possible for your payroll you'll need a cable for Paula. So also so we have another we call marquee purpose market functions.
The only call it is high and they could provide high speak for people use all five people use the internet data charge and also it can be a computer talk so and we're not occupy the type C is also a space with a battery and a waste.
Positioning. So your name was also yada yada Yada Yada Yada Yada Yada property. So just one table, we can stop the safety convenience and easy or cheap undergo set to your product.
Speaker Change: Your property so.
Speaker Change: That's the third product the final product is about a lot we provide hyper com a minority in our satellite connection into our traditional mi five proton mobile hotspot worldwide. So that means all up at all actually.
Speaker Change: Not all of them.
Speaker Change: Mobile Wi Fi only apply into the junior people travel outside.
Speaker Change: So.
Speaker Change: To provide a marquee user mobile broadband worldwide at the high speed high quality.
Speaker Change: Hi, five key that's a lot of unit competition now is pension these functions not only 45 cheap oh socially we can manage all the Wi Fi network. This one finance, including the satellite Wifi, all the air and Air Pocket Wi Fi Snapback Wifi.
Speaker Change: I think the cabin.
Kevin Wifi, so what and also even though our home office, so you'll see a need at least the wise because what one device, even they would need to change the condition.
Speaker Change: And there was for example, if normally our how does that go to the outside you'll need to condition 45 key go to the airport you need to go to a collateral airport Wifi go to home you'll go through your home Wi Fi.
Speaker Change: It's convenient.
Speaker Change: For our mobile Wi Fi Pas symmetry.
Speaker Change: I mean, they both were chosen to shoot for NASA work for you.
Speaker Change: At home office.
You'll still have enjoy surfing with a Wi Fi hotspot free by all sorts of ways guarantee reliability for 14, five key backup towards the past natural walk so in the airport in a frac happening Wifi, you don't need to scan and condition for the cabin WAF market. So we can automatically switch.
Speaker Change: Kevin why fine for you so one device for every scenario.
At home, although I'll say, it's extremely convenient so that's why it all.
Speaker Change: For product become more attractive and car unica in and say Ah.
Speaker Change: Yeah, 2025, we are kind of puny.
Speaker Change: Life more easily more convenient and connecting them with better and more certainty.
Speaker Change: Okay. Thank you my last question is about international travel.
Speaker Change: In your forecast for full year revenue.
Wondering what assumptions you've made you've made about international travel going going up or down and the reason I'm asking is because.
Speaker Change: And it may be too soon to tell if the Delta Airlines last week said that they're seeing a drop off in in fliers.
Speaker Change: In their forecast and I was wondering what you if you've made any assumptions about international travel in your full year of 2025 forecast.
Speaker Change: Yes of course.
Speaker Change: The guidance for the year is a 275 ish.
Speaker Change: There's the wrenches and $95 million to $130 million. We we we factories are they recovering your recoveries are either in a nice travel in a carry on in the year 275. So that's.
Speaker Change: Ah that's a that's a nice a nice assumptions are.
Speaker Change: Trying to get 10% to 20%.
Gross.
Speaker Change: Powered by the recovery of the international travel.
Speaker Change: And also we are we are factoring the new business nice gross as a as a Mr. Chen.
Speaker Change: So we we are we launch are so attractive.
Speaker Change: Got it.
Moshe Chu: New solutions and chapter one of widespread market Ah patients. So we are we we expect the new business like pet foam are crossing key and eastern Chu will well expanding.
Speaker Change: This year.
Speaker Change: From from that.
Speaker Change: Studying our point of view so.
Speaker Change: Both new business and the legacy the legacy as a business.
Speaker Change: Traveling.
Speaker Change: Well.
Speaker Change: Provide a momentum of growth for the year 275, So that's a that's a background when we disclose the guidance this year.
Speaker Change: Thank you very much.
Speaker Change: That answers my questions.
Speaker Change: Once again, if you would like to ask a question. Please press Star then one to join the question queue.
Speaker Change: Okay.
Yeah.
Moderator: The next question comes from Debian Shah with Diamond equity Research. Please go ahead.
Debian Shah: Oh Hello, everyone. Thank you so much and most of my questions have been answered, but that still has to occur.
Moderator: The first one is that can you elaborate on the trends in the class.
This structure, because we have seen a significant increase in sales and marketing expenses I don't think the passing year.
Moderator: Will this trend continue this year.
Speaker Change: Yeah. So as you are have you seen that Oh, a disclosure so for the year two centers for.
Moderator:
Speaker Change: Last year, so we invest.
Speaker Change: A lot new business. So we have three new furnace.
Speaker Change: At lunch.
Speaker Change: In the second half of the yes.
Speaker Change: 2020, full so we invest a.
Speaker Change: A large budget spend.
Speaker Change: Spend a larger budget on promotion and end market exposure.
Speaker Change: Without the new goodness, so that that's a compare with.
Speaker Change: The two Sundays three we we invest a $5 million you're still the mole than.
Speaker Change: And then last year I think this investment will work and we can.
Speaker Change: Yeah.
Speaker Change: <unk> 25 as are we just talking about the guidance.
Speaker Change: Our range for the top of mind.
Speaker Change: The top of minds out with our forecast.
Speaker Change: We are we we try to.
Speaker Change: Deliver a new openness and grow a new openness from this yes, I think they really turned that business a bit.
Speaker Change: Especially on will it be will it be come back for this she is so that's a for this year we will.
Speaker Change: Carry on our investment on the new business and so we we we expect that Astellas and masking our budget. This year well have the growing a growing set of Greens are a propulsion compared to the year 2025.
Speaker Change: So I think that's a very important for our long times a growth and a.
Speaker Change: Very importantly, we invest on future.
Speaker Change: Oh Wow to getting our US number two from now is.
Speaker Change: Millions and millions of Atlanta to 10 millions I live in the next couple of years, so investments from that well, well well well going forward to invest on our future. Thank you yeah, no basically no nossa cause nausea and leaves you is all are well.
Really important year. So we are stopped E. A major company become.
Speaker Change: To be able to see and also some more focus on Tuesday company and that's why we need to be a key capability.
Speaker Change: So is that to say it need a mall a heavy investment in our promotion and.
Speaker Change: Brendan.
Speaker Change: Okay got it I see so Oh my last question any thoughts on what was the key drivers of revenue growth from mainland China Lucky here and how do you expect that to evolve in the cough and cold.
Speaker Change: Right.
Speaker Change: Yeah.
Speaker Change: For last year's the Tucson attorneys full we are the growth.
Speaker Change: The revenues gross are ranked with a nearly 100% so that means that there are many that Julien.
Speaker Change: The the other bone the Chinese other bone cavity.
Speaker Change: So out of that that more and more Chinese are more Chinese overseas travel travelers that booking our service. So all of our brand and these are our source of bromine and bromine man.
Speaker Change: Very soon.
Speaker Change: As a leading a leading branding brand is a lane for Chinese Oh, the wrong chagas well in our leading positions. So that's that's accusing our gorilla for them and then on China.
Speaker Change: We will also disclose.
Speaker Change: Disclose we just.
Speaker Change: Court approval of our pilot operations.
Speaker Change: I think telecom service in mainland China recently, the last quiet.
Speaker Change: It's a huge momentum.
Speaker Change: Our business is panties in mainland China domestically not only for other Bom, Dennis but also for inbound.
Speaker Change: This as well so that's a that's a greater potential for our grow our business in mainland China domestically and internationally.
Speaker Change: Yeah, So I have some more to come in.
Speaker Change: You can see in China, domestic Ah Ah Ah Ah trial.
Speaker Change: To the worldwide, so Oh I'm I'm not sure last year is growing.
Speaker Change: We also said last year, we had the Chinese new year Chinese new year, we had a very successful branding and promotion and keep our end user emphasized our five G, who speak and our service quality a compact with China.
Speaker Change: China traditional operator like China mobile are the only service so our quality and also we are so much better. So now we are gradually.
Speaker Change: Our offering us a lonely Brent if I T.
Alrighty high quality surveys is exceeding its far more better than China telecom.
Speaker Change: And also as the telephone.
Speaker Change: Robot travel.
Speaker Change: So are these are becoming very successful in the Chinese new year, we are almost a 50% increase compared a year 2020 are full so are we we are confident that we could we would attack more market share from.
Speaker Change: From the traditional operator and a global.
Speaker Change: Global same com AR.
Speaker Change: Trevor Lumi market. So we believe we can put on a 3% to 5% to 6%. This year certainly nowhere our target we cant go more than 10%. So a week with how confident we can achieve that.
Speaker Change: Okay. Thanks for the details that's helped a lot. So that's all my question. Thank you that's all.
Speaker Change: Okay.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Daniel Gal for any closing remarks.
Daniel Gal: Thank you.
Daniel Gal: Once again for joining us today, if you have further questions. Please feel free to contact you opening investor relations through the contact information provided on our website or speak to our Investor Relations phone Christensen anniversary well look forward to speaking to you all again an hour.
That's a quarterly Colin thank you.
Daniel Gal: The conference is now concluded.
Thank you for attending today's presentation you may now disconnect.
Daniel Gal: Thank you.
Daniel Gal: Yeah.
Daniel Gal: [music].