Wei Zhang's questions to Ucloudlink Group Inc (UCL) leadership • Q4 2024
Question
Wei Zhang asked for an elaboration on the company's cost structure, specifically the significant increase in sales and marketing expenses and whether this trend would continue. She also questioned the key drivers of revenue growth from Mainland China and the expected evolution of this market.
Answer
CFO Yimeng Shi explained that the 2024 increase in sales and marketing spend was a strategic investment to launch new businesses, and this investment would continue in 2025 to drive long-term user growth. CEO Chaohui Chen added this supports the company's shift to a 2C focus. Regarding China, Mr. Shi attributed the nearly 100% growth in 2024 to outbound travel recovery and noted a recent regulatory approval will unlock domestic market potential. Mr. Chen emphasized their growing market share due to superior 5G service quality.