Good day, and welcome to the uCloudlink 2nd quarter 2024 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star, then one on your touch-tone phone. To withdraw your question, please press Star, then two. Please note this event is being recorded. I would now like to turn the conference over to Daniel Gao, Investor Relations Director. Please go ahead. Okay, thank you. Hello, everyone, and thank you for joining us on uCloudlink's 2nd quarter 2024 earnings call. The earnings release and our release presentation are now available on our web on our IR website at ir.ucloudlink.com. Joining me on today's call are Mr. Zhiping Peng, Co-founder and Chairman of the Board of Directors, Mr. Chaohui Chen, Co-founder, Director, and Chief Executive Officer, and Mr. Yimeng Shi, Chief Financial Officer. Mr. Chen will begin with an overview of our recent business highlights. Mr. Shi will then discuss our financial and operational highlights for the quarter. They will both be available to take your questions in the Q&A section that follows. Before we proceed, please note that this call may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under 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 those forward-looking statements. All forward-looking statements are expressly qualified in their entirety by the contemporary statements, risk factors, and the details of the company's filing with the SEC. The company does not assume any obligation to revise or update any forward-looking statements as a result of new information, future events, change in market, in market conditions, or otherwise, except as required by law. Please also note that uCloudlink's earnings press release on this conference call include the discussions of audited GAAP financial information and audited non-GAAP financial measures. uCloudlink's press release contains reconciliations of their audited non-GAAP measures to the most directly comparable audited GAAP measures. I will now turn the call over to Mr. Chen. Please go ahead. Thank you, Daniel, and good morning or evening, everyone. Continuing the solid start we had early in this year, growth momentum carried into the 2nd quarter, with the total revenue reaching $22.4 million, in line with the guidance. Our financial position is improving, with net income reaching $2.2 million, and the operating cash flow increasing 38.3% year-over-year to $4.7 million. In the 2nd quarter of 2024, aside from our GlocalMe mobile fixed broadband business, comprehensive data connection solutions and business lines such as GlocalMe Life, GlocalMe SIM, and GlocalMe IoT, have made consistent progress in expanding beyond the travel sector into various aspects of daily life. With an expanded array of the comprehensive data connectivity solutions to satisfy a wider range of our needs. Firstly, let me start with the progress we have made in our GlocalMe mobile fixed broadband business line. Our 1.0 international data connectivity services, this services business continued to grow in the 2nd quarter of 2024, further consolidating our leading position in the roaming market and expanding our market share. As the widespread adoption of our full speed 5G solutions gains momentum, supported by the recovery in international travel, our extensive 5G roaming solution now cover 50 countries and regions, and are generating a stable stream of revenue, creating significant growth opportunities for us going forward. According to the Mobile Economy 2024 report from the Global System for Mobile Communications Association or GSMA, the global number of 5G connections-... is expected to rise to 5.5 billion by 2030, from 1.6 billion at the end of 2023. Second, our GlocalMe Life solution made significant progress in the 2nd quarter of 2024. We officially launched three GlocalMe Life solutions in May at Viva Technology 2024 in Paris. The line-up of new solutions consisting of KeyTracker, RoamPlug, UniCord, has not only showcased our innovative capabilities, but also garnered widespread acclaim in the market, making the beginning of a promising new revenue stream going forward. With the unique multi-network, multi-base station positioning and the active radar reach for up to 100-meter, our KeyTracker is technology ahead of the competition, with its 6 in 1, advanced positioning technology, including GPS, AGPS, LBS, Wi-Fi, Bluetooth, and active radar. The RoamPlug is more than just a universal travel adapter. It is all-in-one device that combines smart charging technology, four charging ports, including three USB-C and one USB-A, and a built-in mobile Wi-Fi module. UniCord is a built half USB-C cable with built-in mobile Wi-Fi capabilities. RoamPlug and the UniCord make great local and global travel companion to charge and connect devices, while also providing reliable internet connectivity without the need to carry a bulky hardware. GlocalMe Life solutions allow people to stay connected to their loved ones, seamlessly offering connectivity to various high-frequency daily life application scenarios, such as pet management, item checking, as well as emerging communications. These solutions are expected to contribute more revenues in the coming quarters as we gradually expand this revenue stream with the recurring subscription and the services revenue. Third, we continue to gradually expand the availability of our GlocalMe SIM solutions, including over-the-air OTA SIM, and the eSIM solutions in more countries and regions, powering the way for more powerful all SIM solutions that will allow us to engage with a broader and user base. Our all-SIM solutions, which consolidate OTA SIM, eSIM, and Cloud SIM, are uniquely positioned to break cross-carrier restrictions, empower various smartphone, and set a new pioneer industry benchmark for mobile connectivities and convenience when they launch in the near future. According to the Mobile Economy 2024 report from the GSMA, SIM connection, excluding licensed cellular IoT, are expected to increase from 8.6 billion in 2023 to 9.8 billion by 2030. In our GlocalMe IoT business line, we are leveraging our Soft CloudSIM technology, compatible with various chipset platform, to engage with a broader spectrum of partners in the security camera, dashboard camera, and the related sectors to explore additional application scenarios. This will allow us to demonstrate the strengths and the capabilities of our technology to a broader audience. According to the Mobile Economy 2024 report from the GSMA, licensed cellular IoT connections are expected to grow from 3.5 billion in year 2023 to 5.8 billion by 2030. Finally, as we transition beyond the portable Wi-Fi terminal market, we are scaling up our user base beyond the travel sector into various comprehensive daily life application scenarios, such as elderly care, pet management, item checking, and daily travel. This transition will diversify our revenue stream from the primarily mobile data traffic solutions to a mix of value-added services and mobile data traffic solutions. This will drive ongoing consolidation and development of our GlocalMe ecosystem, positioning it as a leading global mobile data traffic sharing marketplace, while creating a long-term sustainable value for our shareholders. We firmly believe that better connection empowers better life. With the gradual commercialization of GlocalMe Life SIM and IoT business lines gaining momentum. We expect to see, to see them contribute more meaningfully to revenue in the coming quarter through various markets and channels. We are confident that we have the right strategy in place to generate sustainable growth in the coming quarters. For the 3rd quarter of 2024, we expected total revenues to be, to be between $24.0 million to $28 million, representing an increase of 0.4% to 17.2%, compared to the same period of 2023. I will now turn the call over to Mr. Shi. Thank you, Mr. Chen. Hello, everyone. I will go over our operational and financial highlights for the 2nd of 2024. Our daily active terminal is an important operating metric for us as it measures customer usage trend for each period, which reflective of our business performance. Our daily active terminal, DAT, in the 2nd quarter were 306,289, of which 52.2% were from uCloudlink 1.0 International Data Connectivity Service, representing an increase of 29% in DAT of 1.0 International Data Connectivity Service compared to same period of 2023. Average daily data usage per terminal was 1.35 GB in June 2024. As of June 30, 2024, the company serves 2,699 business partners in 61 countries and regions. The company had 182 patents, with 153 approved and 29 pending approvals, with a pool of SIM card from 392 MNOs globally as of June 30, 2024. Total revenue was $22.4 million, representing an increase of 1.7% from $22 million in the 2nd quarter of 2023. Revenue from service were $14.2 million, representing an increase of 0.5% from $14.1 million in the same period of 2023. Revenue from service, as a percentage of total revenue, was 63.4% during the 2nd quarter of 2024, down from 64.1% during the same period last year. Geographically speaking, during the 2nd quarter of 2024, Japan contributed 46.2% of our total revenue. North America contributed 14.6%. Mainland China contributed 23.5%, and other country in the region contributed the remaining 15.7% compared to 43%, 29.5%, 11.6% and 15.9% respectively, in the same period of 2023. Overall gross profit was $11 million, compared to $9.9 million in the same period of 2023. Overall, gross margin was 49.2% in the 2nd quarter of 2024, compared to 44.9% in the same period of 2023. Gross margin on service increased to 60.3% in the 2nd quarter of 2024, from 58% in the same period of 2023. Gross margin on product increased to 30% in the 2nd quarter of 2024, from 21.5% in the same period of 2023. Excluding share-based compensation, total operating expenses were $8.7 million, or 39% of total revenue in the same 2nd quarter of 2024, compared to $7.3 million, or 33% of the total revenue in the same period in 2023. Net income was $2.2 million, compared to a net loss of $0.9 million in the same period, 2023. Adjusted EBITDA was $3.3 million in the 2nd quarter of 2024, compared to $2.1 million for the same period, 2023. For the 2nd quarter of 2024, we generated operating cash inflow of $4.7 million, increasing by 38.3% from $3.4 million in the same period, 2023. For the 2nd quarter of 2024, capital expenditure were $1.6 million, compared to $0.5 million in the same period, 2023. We maintain a solid balance sheet, with cash and cash equivalent increasing to $26.8 million as of June 30, 2024, up from $24.7 million as of March 31, 2024. With that, operator, let's open it up for Q&A. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. The first question comes from Theodore O'Neill from Litchfield Hills Research. Please go ahead. Thank you, and congratulations on the results for the quarter. My first question is about usage for cash. You're profitable, you increased cash in the quarter, and I was wondering if you have some thoughts about how to utilize the cash balance you're growing. Are there acquisitions or dividends or capital expenditures of some kind? Yeah, we have a strong cash inflow from operations, as disclosed, it's $4.7 million generated in the 2nd quarter. So, the overall cash equivalents now are more than $26 million. And it's a strong financial positions indicator. We still will keep this to improve our position in the near future, say, this year and the next years. So far, we don't have a specific target for acquisitions. We don't have a full discussion on any dividends planned. So, that, that's... So we still focus on improve our growth and improve our financial position, and we want to improve our financial position to make the company in a safer positions for long-term operations. Thank you. Okay. My next question is about the GlocalMe Life Solutions. You've highlighted, you have highlighted the KeyTracker, RoamPlug, and UniCord here in the call. Are there additional products coming out into the GlocalMe Life Solutions? Yes, that's the first three products we launched for GlocalMe. We have continued more products coming in the following quarters. Okay, my last question is about if you could talk about the outlook between uCloudlink 1.0 and uCloudlink 2.0. Can you talk about how the outlook of those two over the next quarter or two? Maybe add some column first, and the CEO will add more comment on that. Yes, as we have disclosed our guidance for the 3rd quarter, which is $24 million-$28 million for revenue. Yes, for this top line growth are mainly driven by this international community service, especially as we disclose in the 2nd quarter's the Mainland China's growth. The outbound traveler from Mainland China to other countries grows significantly, and we think that that trend, where we have kept this same high fast high and fast growth in the second - in the 3rd quarter of this year. So, for outlook, the main driver in the 3rd quarter, mainly from international travelers, growth for Chinese outbound and other regions outbound as well. And also, we expect our new solutions, like GlocalMe Life series products, as we launch in the 2nd quarter, which will bring will brings a more revenue stream into our account in 3rd quarter and more in the 4th quarter. So, that's, so we believe there's a growth driver is more than just international roaming service, but also from a GlocalMe Life series service. Yes, I'm Chaohui Chen. So, for our 1.0 business, you know, you know, because we understand that China, because we have, we have two market, China and Japan market, they are still on the way of the recovery. So, I believe in the next year, from now on, still on the way of the recovery, from the pandemic. So, but need the time, okay? And, also for the 2.0 business, now we are developing most high reliable connection for for fixed broadband backup. This market also, give us, more advantage for this to breakthrough this market for 2.0, so we can see some opportunity in 2.0 business for high reliable connection. That we can bring to the customer.... Then for the new product, because end of the 2nd quarter, we just newly launched the three products. I think in the quarter 3 and mainly in the quarter 4 will bring us generate a more revenue, bring a new revenue for this new product. Of course, bring the not only data, but also the subscriber and the service, and the services revenue. Thank you very much. That, that answers my questions. As a reminder, if you have a question, please press star one. The next question comes from Vivian Zhang, from Diamond Equity Research. Please go ahead. Good morning and evening, everyone. Thanks for taking my questions and congrats on the strong quarter achieved. My first question will be about the commercialization of GlocalMe Life. How are the sales of the three newly launched products so far? Are there any other sales channels besides selling directly on your official website? Hello? Hello, can you hear me? So, yeah. Yeah. So, we both, that's both from the online and offline, and also for channel. We were selling all this via this online and offline also channel to sell our new product. We are—some is under our own brand; some we are under our core brand with our partner. And so far, I think the progress is very good. So, it's our partner, they are... And also, the feedback from the partner and the end user is quite positive because we bring the better connection, empower better life. Better, not only just tech revenue from the data connection, but we are more come from the more revenue. We are come from the services such as the paid, checking. I think also for the convenient, for the traveler, also, I think like a unique core, not only for traveler, but also it's a daily use, like a car, like, also, car power and, and also a home IoT, you know, connections. We can bring the home IoT connections, such as a Wi-Fi camera, to the outdoor, to the worldwide. So that's our quite unique, value point. So that can, that can simplify, that can make our, users, more easy and more relaxed, more safety, and a more high quality, for the travel life. Okay, I see. So my next question will, is that, the guidance for the quarter is quite strong, so any drivers behind that? Thank you. Yeah, I think for the next quarter, I think because our traditional product is close, I think it's very stable, but I think the big jump of our revenue will come from our new product. So, because we just newly launched the product, so we needed some time to bring back the revenue. So I think the feedback is very good, but we still have some uncertainty for the period of how quick we can bring the revenue back for this new product. Okay. So do you think this, like, this very new, newly launched life products, they will affect your margin, gross margin next quarter, or you think you will keep the current level? I expect this, the service gross margins should be in a similar range as we deliver in this year, like the second quarters. As of now, the main driven, the main part of revenue came from international roaming service, which is a higher gross margin of service in our account. And like, subsequent fee related to the new GlocalMe Life service product is, I believe that where is this additional is a highest gross margins solution. And we'll see how we deliver to the market in various regions and the channels. We believe we will keep this good service margins in this years and the future as well. Okay, that helps a lot. That's all my questions. Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Daniel Gao for closing remarks. Okay. Thank you once again for joining us today. If you have further questions, please feel free to contact uCloudlink's Investor Relations through the contact information provided on our website, or speak to our investor relations firm, Christensen Advisory. We look forward to speaking to you all again on our next quarterly call. Thank you. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. Thank you.