Hello and welcome to the uCloudlink Group Inc. Third Quarter 2024 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. 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. I would now like to turn the conference over to Daniel Gao, Investor Relations of uCloudlink. Please go ahead. Hello everyone, and thank you for joining us on uCloudlink's Third Quarter 2024 earnings call. The earnings release and our earnings presentation are now available 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 the company's control, which may cause actual results, performance, and achievements of the company to be materially different from the results, performance, or expectations implied by these forward-looking statements. All forward-looking statements are expressly qualified in their entirety by their conditional statements, risk factors, and details of the company's filings 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, changes in market conditions, or otherwise, except as required by law. Please also note that uCloudlink's earnings press release and this conference call include discussions of non-GAAP financial information and non-GAAP financial metrics. uCloudlink's press release contains a reconciliation of the non-GAAP metrics to their most directly comparable GAAP metrics. I will now turn the call over to Mr. Chen. Please go ahead. Thank you, Daniel. And good morning or evening, everyone. We continue to gain growth momentum during the quarter, with revenue increasing 5.6% year- over- year to $25.2 million. In line with our expectations, our financial position remains solid, with a net income reaching $3.4 million and a positive net cash inflow from the operations of $2.0 million. During the quarter, we actively enhanced our market presence. Our global ecosystem continues to thrive, offering comprehensive data connection solutions and diverse business lines, including GlocalMe Life, GlocalMe SIM, and GlocalMe IoT, that are driving our expansion beyond the travel sector into various aspects of daily life, supported by the further consolidation of our leading position in the low-end market through GlocalMe mobile fixed broadband. This expanding ecosystem is broadening our portfolio of solutions and allowing us to cater to a wider variety of user needs. First, let me start with the progress we have made in our global GlocalMe mobile fixed broadband business line. Our 1.0 international data connectivity services business continued growth, with full-speed 5G network coverage increasing from 60 to 75 countries in the second quarter of the year 2024, fueled by the recovery of international travel and the increasing demand across the key markets. We further consolidate our leading position in the low-mid market and expanded our market share in mainland China and Japan. This growth highlights the strong performance of our service from Chinese travelers during the peak summer travel season, reflecting an expanding segment of our international data connectivity services. Our next-generation portable MiFi product integrates with HyperConn solutions, which will be launched in the near future. According to the Mobile Economy 2024 report from the Global System for Mobile Communications Association, or the GSMA, the global number of 5G connections is expected to rise to 5.5 billion by the year 2030, from 1.6 billion at the end of the year 2023. Second, the first three GlocalMe Life solutions, which include KeyTracker, UniCord, and RoamPlug, made significant progress during the quarter. We rolled out our extensive marketing campaigns and actively developed new distribution channels to support their launch, building what we believe will be a promising new revenue stream going forward. Following the introduction of our GlocalMe Life product series at the Viva Technology in Paris, the series successfully launched in July 2024. We further enhanced our market exposure by attending other leading global expos such as Travel Tech Asia, CES and ITB Expo, and the IFA Berlin 2024, etc. Additionally, we made breakthroughs in developing retail channels, signing with one of America's largest airport retail channels to make UniCord, RoamPlug, and KeyTracker, among other products, available at airports across the U.S. We will develop strategic partnerships with other key channel partners across the U.S. and Europe in the coming quarters. With the other solutions already in development, we're looking forward to launching more new products in the coming quarters. The third, within our global midstream business, we continue to expand the market presence of the over-the-air SIM as more users resubscribe to our data plan service, which is paving the way for our innovative All-SIM solution. This solution, which consolidates OTA SIM, eSIM, and our pioneering CloudSIM technology, is under commercial testing and expected to commercially launch in the near future. Our All-SIM solution is uniquely positioned to break cross-carrier restrictions, empower various smartphones, and set a new pioneer industry benchmark for mobile connectivity and convenience. Lastly, our GlocalMe IoT business line continues to advance, with several products embedding our technology already in a smaller-scale commercial application, demonstrating the strength and capabilities of our solutions to a broader audience in the Internet of Things industry. Leveraging our Soft CloudSIM technology compatible with various IoT device chipset platforms, we are exploring additional application scenarios as we engage with several leading manufacturers in the security IP camera, dashboard camera, and related sectors. We believe that better connection empowers better life. We will continue to leverage GlocalMe Life, GlocalMe SIM, GlocalMe IoT, and their integrated innovative core HyperConn and CloudSIM solutions to expand our global presence through the business partner and channel globally. Over the past 10 years, the GlocalMe mobile broadband business has accumulated millions of user bases, with average Daily Active Terminal (DAT) in the third quarter over 3,200,000. We expect the GlocalMe Life business will accumulate a broader user base to over 10 million. Furthermore, both of the GlocalMe SIM and GlocalMe IoT business have the potential to bring us a user base over 100 million in the future, which will allow us to transition from a provider of mobile data traffic solutions to an integrated and comprehensive marketplace. With each of these business lines fitting into this full marketplace, we expect our user base to diversify beyond the travel sector and grow substantially going forward. We are confident that we have the right strategy in place to generate sustainable growth in the coming quarters. For the fourth quarter of year 2024, we expect total revenue to be between $25 million and $30 million, representing an increase of 15.2%-38.2% compared to the same period of year 2023. I will now turn the call over to Mr. Shi. Thank you, Mr. Chen. And hello, everyone. I will go over our operational and financial highlights for the third quarter of 2024. Average daily active terminal is an important operating metric for us as we measure customer usage trends over each period, which is reflective of our business performance. Average daily active terminal, or DAT, in the third quarter was 320,452, of which 55.4% were from uCloudlink 1.0 international data connectivity service, and 44.6% were from uCloudlink 2.0 local data connectivity service. Average daily data usage per terminal was 1.52 gigabytes in September 2024. As of September 30, 2024, the company had served 2,759 business partners in 61 countries and regions. The company had 183 patents with 158 approved and 25 pending approval. Wide pool of SIM cards were from 389 MNOs globally as of September 30, 2024. Total revenue was $25.2 million, representing an increase of 5.6% from $23.9 million in the third quarter of 2023. Revenue from service was $17.3 million, representing an increase of 3.9% from $16.6 million in the same period of 2023. Revenue from service as a percentage of total revenue was 68.6% during the third quarter of 2024, remained relatively stable when compared to 69.7% during the same period of last year. Geographically speaking, during the third quarter of 2024, Japan contributed 46.6%, Mainland China contributed 27.8%, North America contributed 12.8%, and other countries and regions contributed to the remaining 12.8%, compared to 44.2%, 17.2%, 26.3%, and 12.3% respectively in the same period of 2023. Overall gross profit was $12.19 million compared to $12.21 million in the same period of 2023. Overall gross margins were 48.4% in the third quarter of 2024, compared to 51.2% in the same period of 2023. Gross margins on service increased to 60% in the third quarter of 2024 from 55.9% in the same period of 2023. Gross margins on products decreased to 23.1% in the third quarter of 2024 from 40.1% in the same period of 2023. Excluding share-based compensation, total operating expenses were $9.7 million, or 39% of total revenue in the third quarter of 2024, compared to $8.7 million, or 36% of total revenue in the same period in 2023. Net income was $3.4 million compared to $3.5 million in the same period of 2023. Adjusted EBITDA was $4.4 million in the third quarter of 2024, compared to $4.1 million for the same period of 2023. For the third quarter of 2024, we generated operating cash inflow of $2 million compared to $2.8 million in the same period of 2023. For the third quarter of 2024, capital expenditures were $1.1 million compared to $0.8 million in the same period of 2023. We maintained a solid balance sheet with cash and cash equivalents increasing to $27.7 million as of September 30, 2024, up from $26.8 million as of June 30, 2024. With that, operator, let's open it up for Q&A. We will now begin the question and answer session. To ask a question, you may press star and then one on your telephone keypad. 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 and then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Theodore O'Neill with Litchfield Hills Research. Please go ahead. Thank you. And congratulations on the results in the quarter. I just have a couple of questions. My first question is about the All-SIM solution and your expectation that it will commercially launch in the near future. Can you give us an idea of what sort of milestones you have to meet in order to get to the commercial launch stage? Yes. So I'm Chaohui Chen, CEO of uCloudlink. So about All-SIMs, first, at the beginning of this year, we already get experience from the SIM card business. We already set around nearly 300,000 OTA SIM cards. So we now understand how to play in this industry. So our All-SIM solution, also another name is eSIM Trio, is the official name. And we will be launched at the end of the fourth quarter. So that's the fourth milestone. So we will launch the product. And this product, I think, we call currently is a best second SIM card for people who have an original SIM card, and we are the best SIM card for choice because we overcome the first SIM card limitation for roaming, also for domestic data connectivity for congestion and the coverage issue. Also, we overcome the primary SIM card for the flexibility of the data package. So, also, we are fully software eSIM challenge about handset. So, eSIM has a bigger challenge for adapt to the old handset or some handset. So, we can, our All-SIM can adapt to all handset. Also, we can support eSIM in all handset, not only just new style handset, which can support eSIM handset. That needs a new handset can support it. I think that's our advantage. So, we call our All-SIM is compatible with the OTA SIM, physical SIM, CloudSIM, and eSIM. So, that's our solution, quite unique in this industry. So, I think it's quite in a leading position in this industry. So, we hope next year we will get more promotion and more let the market understand. We can work with the partner in the worldwide local and the carrier with a second-tier or third-tier carrier and the mobile network operator. So we will, I think, attend the MWC to announce this news about this new solution. Okay. That's around the progress we will have in the future. Okay. And in regards to your guidance into Q4, your sequential revenue from Q3 to Q4 historically, some of the Q4 quarters have been lower than Q3. And your guidance here at the high end of the range is that the Q4 will come in much better than sequentially have that growth, higher growth than you've had in the past. What gives you confidence that you could come in near the higher end of the range for Q4? Yeah. Your attention, just our guidance for the fourth quarter of this year, which is a range between $25 million- $30 million. Yeah, in the past years, you say that the fourth quarter's revenue is normally lower than the third quarter revenue. That's the past patterns of revenues in legacy revenue stream from portable Wi-Fi. Yeah. But this year, the fourth quarter, the guidance is a little bit higher than the third quarter's revenue. We think our new product like GlocalMe Life series product has been launched to the market and gained some revenue in the fourth quarter as well. And also, that's a trend we growth with more than just portable Wi-Fi terminal. I think this trend will, this trend has various revenue streams more than portable Wi-Fi will be significant in the next years. So that shows our strategy to grow from $1 billion- $4 billion. That will come to our account from the fourth quarter and the following quarters next year. Okay. That makes sense. Understood. My last question is about the sales and marketing expenses in the quarter. I understand there were some expenses for trade shows and product launch. Can you talk about whether or not you expect the expense is in the Q3 sales and marketing expense? Will it continue at that level, or will that come down somewhat going forward? Yeah. We will spend more. We will invest more on marketing and the different countries like the U.S. market, Japan market, and European market. And as we disclose, we have a partnership with one of the biggest airport retail channels. And we will also have a partnership with more than the top channel in the U.S. and Europe. So also, we will have enhanced our marketing exposure for our new product like GlocalMe Life. And when GlocalMe SIM, the All-SIM solutions will be launched to the market, that solution is innovative to the market. So we need to invest more on the market and to get awareness of our product, our values to the market. So we will invest more on marketing expenditures. And that's absolutely what we need to do that. But at the same time, we will balance the financial positions when we support and invest on growth. So maybe the marketing expenditures will be increased with the balance. We have still maintained growth with profit and positive operating cash flow. Thank you. Okay. Thank you very much. That completes my questions. Thank you. The next question comes from Vivian Zhang with Diamond Equity Research. Please go ahead. Hello. Hello. Good morning and evening. This is Vivian Zhang with Diamond Equity Research, and congratulations on another strong quarter. So my first question will be about the partnership you just mentioned with the U.S. airport retail channel. So can you provide us some more color on this corporation and how it will impact the future product sales? Yes. You know the progress in the second quarter. In May, we just in the IFA exhibition, we announced we will launch the GlocalMe Life product. And we launched three new products in July. So after a quarter effort, so end of the Q3, we signed a contract with one of the largest U.S. airport channel partners. So I think you already can see in the 300 U.S. airports in the shop. So in the airport shop, you can find our three products for UniCord, for RoamPlug, and our quite advanced tracker, so KeyTracker. So you can see these three products. So I think they launched this product in mid-November. So you can see the product. We signed the contract end of the Q3, and the product listed in the shop in the middle of November. So I can also give some guidance. And in the Q4, we already signed another American big channel. So that's the total two big channels in the U.S. airport we all coverage. And the second one will be we already finished contract in the Q4. And we released the product in the next Q1. That's the progress for our progress in the U.S. airport channel, two biggest. I think in the following quarter, we will continue to put our effort in the other U.S. big top three channel. We continue effort to be accepted by these channel buyers. Also, we have some breakthrough in the Q4. So in Europe, some big channel. So we already successfully signed a contract. And that's the progress. Just in three or six months, I think we can break through some top-tier channel in the airport. I hope next year we can break through more top-tier channel with the consumer or pet channel in the next years. Okay. Got it. Got it. So my next question is that can you elaborate on why? Why has Why has SaaS services revenues increased significantly, like over 29% in the third quarter? And is this growth sustainable? Thank you. Yeah. Yeah. We cooperate with our global business partners in various ways. And our SaaS revenues, this model of SaaS revenues have different ways. Hi, can you hear me? Oh, yes. That's the third quarter's SaaS revenues increased significantly because some business partners are willing to pay more platform fee for the future operations efficiencies improvement. So that's our business partner's choice. They can buy different package for our platform service. Okay. Got it. Okay. That makes sense. That's all my questions. Thank you. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Daniel Gao for any 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 has now concluded. Thank you for attending today's presentation. You may now disconnect.