Benzinga | May 26, 2021 09:38AM EDT

Ucloudlink Shares Gain After Q1 Earnings Beat, Robust Q2 Guidance

* Ucloudlink Group Inc (NASDAQ:UCL) reported a first-quarter FY21 revenue decline of 47.2% year-on-year to $17.7 million, beating the analyst consensus of $17.3 million.

* Revenues from services declined 51.9% Y/Y to $8.4 million, data connectivity services decreased 60.6% Y/Y to $6.1 million, while PaaS and SaaS services rose 18.3% Y/Y to $2.3 million.

* Revenues from sales of products declined 42.1% Y/Y to $9.3 million.

* Total data consumed through the company's platform declined 32.1% Y/Y to 36,549 terabytes (out of which the company procured 3,901 terabytes).

* Average daily active terminals declined 25.4% Y/Y to 205,082 (out of which the company owned 2,663).

* The gross margin contracted 400 basis points to 31.3%, translating to an adjusted EBITDA loss of $(6.7) million.

* The adjusted net loss was $7.3 million, with an EPS loss of $(0.02) beat the analyst consensus loss of $(0.03).

* Ucloudlink held $24.9 million in cash and equivalents and used $6.7 million in operating cash flow.

* Guidance: UCL sees a Q2 revenue outlook of $18 million - $19 million, compared to the analyst consensus of $18.6 million.

* The launch of 5G-related products and services, multi-network millisecond reselection technology, and hyper-connectivity solution elevated users' experience with a better data connection and enabled Ucloudlink to foray and expand to new industries requiring high-quality data connectivity, CEO Chaohui Chen said.

* Price action: UCL shares traded higher by 9.58% at $11.39 on the last check Wednesday.