Good evening. Welcome to Plover Bay 's first half 2025 post-results conference call. The call tonight will be hosted by Alex Chan, Chairman and Founder of the company, and myself, I'm Christopher Tse, CFO of the company. We have just published the interim results on the Hong Kong Exchange news website, and you can also find our presentation on our website ploverbay.com. To begin, let's start with the financial figures, and then a brief business update by Alex. Finally, we'll go into the Q&A section. In the first half 2025, our sales increased by 9.9% year-on-year to about $63 million. Gross profits were 10.1% year-on-year. It grew 10.1% year-on-year to about $35 million, with gross profit margin at 55.5%, which slightly increased 0.1 percentage point compared to the last period. Total OpEx increased by 4.2% to around $10.1 million.
The total other income and gains and finance cost was $1.8 million, and the increase was mainly due to exchange rate gains. This leads to profit before tax of $26.6 million, increasing by 17% year-on-year. Net profit was $21.7 million, an increase of 13.4% year-on-year. Diluted EPS was $0.0196 per share, and our board approved and declared an interim dividend of HKD 0.1234 per share, maintaining the same payout ratio of 80% for the first interim dividends as in the past. Now, let's dive deeper into the revenue segments. First, sales from fixed-first connectivity segment was $7.6 million, a decrease of 13% year-on-year. Second, sales from mobile-first connectivity segment was $36.8 million, increasing 14.4% year-on-year. Overall, the sales from both product segments increased 8.6% year-on-year. In both segments, the sales of our high-volume products such as BR1 Mini and B One series all increased at a strong pace.
Next, warranty and support services revenue grew 6.9% year-on-year to $13.4 million, while the software licenses segment increased 33.8% year-on-year to about $5 million. This was driven by strong growth of subscriptions for our ecosystem software. Next, in terms of geographic regions, our sales in EMEA increased 39.2% year-on-year to $20.5 million. Asia -Pacific increased 44% year-on-year to $5.9 million, and others, which mainly include Australia, increased 25% year-on-year. During the period, our partners deployed a good number of Peplink products in many large projects across these geographic regions, which lifted our sales. In contrast, our sales to North America decreased 6.4% year-on-year to $34 million. This was mainly because of uncertainties with trade policies, so we chose to temporarily limit our shipments to the U.S. as we seek better clarity on the whole situation.
Shipments to the U.S. have since fully resumed, and despite this temporary pickup, our partners and ourselves, we remain very confident on the overall demand for our products in this region. Next, let's talk about recurring revenue. Recurring revenue increased 12.5% year-on-year in the first half of 2025 and accounted for 28.1% of our sales, which is in line with our previous year. Looking deeper into the components of recurring revenue, embedded organic subscriptions and other services increased around 12% - 13% year-on-year each. The fundamental drivers of recurring revenue remain healthy, with our take-up rate increasing to 36.5% in June versus around 34.1% in the beginning of the year. The number of devices with a subscription also increased almost 18% year-on-year. Our gross margin remained stable during the period.
Gross margin came up to be 55.5% in the first half 2025, which is incrementally better compared to the first half of 2024, even though our product mix of high-volume products continued to increase. At the product level, prices and gross margins remain largely stable. Operating expenses. Our sales growth continued to outpace OpEx growth. Our total OpEx was $10.2 million, which grew 4% year-on-year. Operating expense was 16.1% of revenue compared to 16.9% in the same period last year. Last, our balance sheets and cash flows remain healthy. In terms of working capital turnover days, our trade and receivables turnover increased slightly to 74 days, while inventory turnover days decreased to 97 days, again a better position compared to last year. Our contract liabilities, which will be recognized as recurring revenue in the future, currently stand at $36.1 million, which increased 29% year-on-year.
These all helped to contribute to a healthy operating cash flow of $22 million. Finally, our net cash balance at the end of June 2025 was $53 million. I'll invite Alex to share some business highlights and our prospects.
Yeah, thank you, Chris. Hi everybody. This first half, we see one area which is extremely exciting, that is our business in Europe, Middle East, and Africa. We are seeing a very strong growth in the region. In the past, traditionally, our business mostly is coming from the U.S.A., but now we are seeing a multi-year growth in Europe and the Middle East and Africa. We are very optimistic that this area will become a strong growth driver in the future. At the same time, our partnership with Starlink has expanded to become offering the full Starlink products. In the past, we were limited to one model, which is the high-end FHP model, but now we can cover the entire Starlink product lines. At the same time, in the second half or in the coming 12 months, you will be seeing a lot of new products coming up.
A lot of all these new products are pretty innovative. There are no similar products in the past. These new products are including something that we. We will be also seeing there will be more software products coming up. We are seeing the SpeedFusion ecosystem. Now we can enable a lot of new applications in various vertical markets. That is also giving us an opportunity to create a new series of software packages, including the subscription packages. I think overall, we are pretty optimistic about what we are doing with the long-term growth of space communications, all these satellite operators from Starlink, Iridium, and the other upcoming providers. At the same time, we have one customer, which is the HYROX. The HYROX events are actually pretty iconic. Now HYROX is running all over the world.
In all the HYROX events, they are actually powered, actually the networking technology behind the whole thing is powered by Peplink. In general, I would say our fundamental has not been changed, and the new products and the new opportunities are still exciting. Maybe I think we can start with questions.
Sure.
Let's move on to Q&A. If you have any questions, please use the raise hand function in Zoom. You can also type it out in the chat, but we will give priority to live questions first.
Yes, hi, good afternoon. Gerald here. Can you hear me?
Yes, Gerald, yes, we can hear you.
Hi, thanks for your time this afternoon and congrats for the good numbers. Just have a follow-up on what you mentioned about the U.S. markets. You said that shipments have been, in a way, stopped because of the situation regarding the tariffs, but it has been resumed after the end of the first half. Can you elaborate a bit more on that?
Sure, sure. Actually, as we all know, in April, yeah, in April, actually, just like everybody, we are not so sure about what the tariff might be, what the tariff might look like. Basically, in April, we choose to wait a little bit for the things to settle down before we resume all the shipments. The thing is, we do not want to ship something, and then when it arrives in the U.S.A., there's an unpredictable tariff. At that time, we kind of like stop shipping things in April. It's back in May, back in June, things are resumed. Basically, you can say we almost like lost one month in the first half for the U.S.A.
Is it our initiative or the client's initiative to, in a way, slow down with the shipments?
It's a mutual decision because, you know, during that period of time, things change every day.
Are you confident given the order book for U.S. customers that in the second half we can make up and maybe stabilize the number on the full year basis compared to last?
Absolutely, absolutely. U.S.A. is still our primary market, and we are very optimistic about what's going on.
Okay, great. My second question is regarding what you announced, the new partnership with Iridium, if I'm correct, on the slides. How significant this partnership could be for the company, and how would you compare that with what we are doing currently with Starlink?
Okay, these two technologies are different. The Starlink is a low Earth orbit satellite, and the Iridium is not new. Iridium has been used by almost every maritime customer for years. You can say Iridium is trusted by a group of customers, traditional customers. Now, people are seeing there's a need to connect. When there's a need to connect, they don't care about whether that is GEO or LEO, whether that's the new satellite or the old satellite. People just want to get connected. That's why we see the opportunity is using the Peplink technology to bond Iridium and the Starlink and other available networking technology is useful and important, especially for certain vertical markets like maritime.
Could we say that the project should be smaller than the ones with Starlink?
I would say so. The reason why is Starlink is definitely up and coming. Iridium is more like, okay, it's different things. Because the Iridium thing, you can say it has a slower technology, but it has a global coverage. People would need both. I mean, if you are really in the mission-critical communications, you want the connectivity there anywhere. There's a big advantage in putting all these things together. In terms of the Iridium and the Starlink thing, I would say the momentum of Starlink is definitely very strong. Your question is correct. In terms of numbers, the Iridium numbers will be smaller.
Okay, that's all for me. Thanks so much for sharing. Thank you.
Thank you.
Next, we have Ting Yuan.
My question is, what changes have occurred in the product structure since this year, especially for our cooperation with Starlink?
Now, we have access. Okay, the Peplink Starlink office solution provider program now covers entire Starlink products. Is that what you mean? You're asking for the product mix, right?
Yes, yes. As I am informed from maybe our website, we have the Peplink and 5G products like that. In the future, what new products will we launch into the market?
Okay, so yeah, we have a new product coming up that is called Antenna MAX. We plan to launch that in the middle of August. Basically, that is an outdoor product which integrates the Starlink dish and the Peplink router together in one box. The implication for that is it will be very easy to install for people to put that into automotive vehicles. They can put that into an SUV, or they can put that into smaller boats. That product can be used for agencies that need connectivity anywhere. Today, yes, now, you know, the Starlink dish is one product. The Peplink product is another product. The Antenna MAX S is actually integrating everything into one box with one power source. We actually will see that thing can simplify the installation entirely. It is an all-in-one solution.
Do we have the plans for this product's prices?
I think you will know that in two weeks. Yeah, we plan to launch that in the middle of August.
Okay, thank you so much. For the formal question, maybe I should clarify it more clearly. Like, you know, we have the products that are aimed at families or maybe enterprises. Can you show us the percentages from these different areas?
I think you're talking about our high-volume product lines. Those are generally used by enterprise customers. They use it in situations where probably network speed is not the primary concern. The primary concern is reliability, and price is also a primary concern as well. I think our high-volume product lines right now are around 40%- 50%, around 45% of our entire revenue.
Okay. As for the products we cooperate with, Starlink, do you have any structure of these products?
We do not share the numbers that involve Starlink.
Okay. Thank you so much for your information.
Next, Warren Yang.
Hi, Chris. Hi, Alex. Congrats on the great results. Just wanted to ask a question on your EMEA region. Could you just help us better understand what's driving the very strong growth there and why you refer to it as a multi-year growth driver? Have your customers there communicated this to you?
Yeah, sure. We found actually in Europe, the transportation market is a big market. This market is undergoing an upgrade in a lot of, okay, in Europe, the transportation market is getting an extensive upgrade. When people need connectivity, 5G, Starlink, and all these kinds of things, it's actually there the driving force. That's why we are seeing these projects are multi-year. At the same time, we are also seeing because now we are making some changes. We started to have products dedicated designed for non-U.S. market. In the past, most of our products are designed with U.S. market as the primary goal. That has limited us in using certain chipset or using a different supply chain. The requirements are probably different in other countries. Now we started to build dedicated products to focus on the non-U.S. market. Of course, the software is, yeah, the SpeedFusion thing is the same.
In focusing in these addressing in these different markets, we became a lot more competitive than the past. When I mean competitive, it's not only about the price. It's also about the product features. It's also about the product itself. It's not only about the price.
Understood. One more question would be your subscription take-up rate. Could you just help us better appreciate what steps you have taken to help you increase the subscription take-up rate so well?
So far right now, I think the increase is mainly coming from better awareness from our partners. We have been encouraging our partners to sell more subscription, let them be more aware of how the recurring revenue becomes a very profitable model for their business as well as ours. In the future, I think we spoke to our partners in the recent months, and we did identify some bottlenecks in our own purchasing management portal. I mean, the portal that they use to purchase everything from us. There are certain bottlenecks, and in the coming months, we will try to smooth out these kind of bottlenecks, and then along with adding more features into our software ecosystem to try to continue to grow our subscription take-up rate.
Let me add something on this. Basically, our business model is very simple. We seed the market with our devices.
Along with the devices, we have a lot of advanced features, and these advanced features usually would require subscriptions. While we build up this ecosystem, we keep adding new features. We keep adding new dashboards. We keep adding new software features and packaging for different markets. We are seeing this ecosystem is getting more and more sophisticated. At the same time, we have the Peplink eSIM, we have the SpeedFusion Connect, and now we also have the SpeedFusion mobile app. If we look into this, let's not look at that as a point product. Let's look at that as an ecosystem. When all these things keep growing, this is actually creating new markets as well. For example, we are now seeing there is a SpeedFusion infrastructure market. While we grow all these things together, sometimes the hardware grows faster, sometimes the software grows faster.
Along the road, our business model is to seed the market with hardware, seed the market with devices, and then turn them into subscriptions. I think it's this flywheel. We are still adding new stuff on it every couple of months. Of course, sometimes certain features materialize faster, sometimes not. We don't look into this entirely from a financial perspective. When we look into this, the more important thing for us is how to make all these things valuable to our customer and how to make all these things be more impactful to their connectivity. That's why now you can see the SpeedFusion mobile app. We offer this free of charge. In practice, you can go to the app store, you can go to the iOS or the Android app store and download it. This is free of charge. I think now this is free of charge.
It doesn't mean we will be losing a lot of money or this and that. This is actually an important piece for us to grow the entire ecosystem.
That's very clear. Thanks very much.
Thanks.
Next is Ming Ran.
This is Ming Ran. Can you hear me?
Yeah, Ming Ran, how are you?
Yeah, I'm good. Thank you. Yeah, Alex, congratulations again on the great results this half year. I just have a question on the tariff rate. Do you currently have about zero tariff rate right now?
Yeah, actually, Chris.
Right now it's where semiconductor products, including routers, are exempt from tariffs right now. Of course, we don't know what will happen in the following days.
Okay, and for the antenna and the Wi-Fi router, those things, Wi-Fi access points, basically, pretty much all the things are zero, right?
Yeah, but again, I think it's looking into this. Yes, currently, I don't recall we are paying any tariff. If there are some changes, we will not be alone. All the other players in the same industry, in the same segment, they will be paying. Everybody will be paying the same tariff. Let me recall this. Now, our current supply chain is, these manufacturers are based in Taiwan. As I mentioned earlier, we started to have a design and we started to look into different supply chains that can address the non-U.S. market. It's not only about the cost, but we have now a more regionalized product that can make us more competitive. That's why the European market thing is that we are really optimistic about that and we're excited.
When you say regionalized, you mean for different regions, you have different products?
Yes, that's right. For example, products tailored for the U.S. carrier might be different from what is needed in Europe.
Is that because of the price sensitive side of the business?
It's more than that. For example, when we have our product focusing for the U.S. market, we need the product to be certified with Verizon, T-Mobile, and AT&T. The need for the third market is different from Europe. For example, in Europe, certain LTE products, the market is still welcoming it, and it doesn't need to be 5G for those markets. For example, in Europe, we may have a dual radio product, which we can still sell a lot. In the U.S. market, maybe we need a quad radio product. These are some of the examples.
Okay, got it. Since the tariff, we still have some uncertainties ahead. For example, they may add an electronics category tariff later. Do you see any forward demand pull in for the first half?
No, we don't see that because I think it's our partners, the distributors. Actually, people are seeing all these things could change pretty often. Nobody knows.
Okay, so people think that if they purchase the router right now, they can save on potential future tariff.
We don't see that for a reason. It's because even though this is now at 0%, does that mean this thing will be like 10% or 15% or 25%? Nobody really knows. We are not in the consumer business, but still, our partners are not seeing there's a need to do all these things. At the same time, on our side, we never do the channel stuffing thing because that will just create future problems if anybody does this. We're not embracing that approach.
Okay. Thank you. That's all my question. Thank you.
Next, Kate?
Hi, Alex. Hi, Chris. Thanks for the good results. I have two questions. I think the first one is more about the strategy. You touched on the strong growth momentum in Europe and Asia. We are actually implementing region-specific growth strategies, as you have just touched on, like maybe launching some non-U.S. focused products. Can you give us some color on the customer preferences in different key regions other than price sensitivity? The second question is about receivables. I saw that our receivable increased by over 60%. Just wondering, is there any specific reason behind this? Is it due to large-scale projects that we had in the first half this year, or is it just simply due to some timing issue? Thank you.
Chris, maybe you go for the second question first, and then I'll go back to the first one.
The reason for an increase in current receivables is mainly because we had a strong month in June. Nothing special about that.
It's more like a timing issue. Back to the EMEA strategy, we are seeing, for example, the transportation market. When people are putting this on the train, when people are putting this on the bus, and when people are putting it into the ferry, these products are mobile products. It's different from the products that we were selling in the U.S. in the past. Now we have a product category focusing on these applications and these markets. That's why it has become competitive. Actually, the strategy is very, very simple. We just widen our product line and not focus on the U.S. only.
Of course, all these things, it is not a change of strategy. In fact, we have been doing this for years. It's just that we finally see it has crossed over the tipping point.
Got it. Thank you.
Next is Steve.
Good evening. Congratulations on a very strong quarter in a very difficult environment. Just to get a little clarification from you here, as I look at the product roadmap going forward, this quarter seems to mark a highlighting from you all of you're using the word ecosystem, which you may have used in the past, but I haven't focused upon. I get the sense if we take the combination of the mobile app, Europe, the new product in August with Starlink, and when I think about this deeper relationship with Iridium, do you feel like in the underlining trend, I guess it was two or three calls ago, you spoke about some pretty aggressive three-year targets? Are you calling out here that the ecosystem has expanded to the point where you expect it to accelerate on itself?
You have a level of excitement that I just want to clarify and understand that it's how you think about this in the maturation of the strategy. Thank you. I'm sorry if that's a bit complicated question too.
No, this is good. As we mentioned some time ago, this ecosystem is all about the devices. Now we are seeing a lot of devices are the mobile devices, which is the phone. Running a software app over there, the SpeedFusion app, can be interesting because most of the phones today, there's only one active radio, cellular radio. That means if we have to run SpeedFusion over there, it is always 5G and Wi-Fi. Or maybe they have a USB dongle, but most of the time, people don't use the dongle. Let's treat that like a Wi-Fi and 5G connection, bonded together. We are seeing that when people are starting to use this, they will see the power of SpeedFusion.
At the same time, they will see, in our strategy, in the plan, we believe this could go into a different market because a lot of Android devices are actually embedded into the POS terminal. It is embedded into the digital signage. Having an app working on all these things is bringing unbreakable connectivity or the reliable connectivity to other IoT devices. At the same time, when people are using our routers, when people are using the SpeedFusion infrastructure, the ecosystem, then there will be an infrastructure market too. Along with all these kinds of things, it's actually going to create a flywheel. That's why we are still optimistic about reaching the goal that we shared with you guys before. I would say it's more like a long-term goal. It's probably more like we're going to Mars, we're going to the space. It's a target.
If you ask me, are we going to reach that? We are optimistic. If we are measuring it step by step and are we on track on all these things, then I would say we are optimistic with what we are doing.
Fantastic. Thank you.
Thanks.
Thousands. Maybe we can move on to some questions from the chat. The number of distributors and resellers from the Peplink website is 304 at the end of June. Why did the number reduce to 302 at the end of July?
I think I can take these questions. For underperformance, we just fired them. Maybe there are two underperformance.
Okay. Sorry, we have a question from a live question from Yiti.
Hello. Congratulations for your results. I have a question about our guidance. Our guidance of the growth or the profitability in the second half or for the whole year, if you have the guidance for the different regions, it will be better.
I think in general, we do not provide a specific guidance for any year, but I think we are confident in around 15% - 20% growth over the long term. We have a pretty good operating leverage, and we expect this operating leverage will continue in the second half.
Maybe let me add a little bit on this. We always have a long-term and medium-term goal, but our goal is always not a financial goal. In fact, the $300 million mark we shared with you guys before is more like an internal motivation for all of us. We want to be a great company, and being a great company should be profitable as well. We also understand this, money is important, because the financial strength is important. This is going to give us the resources that we need to build better stuff.
The ultimate goal is to build a great company. I would say we do not offer guidance for this reason, but we always want to continue to build a great company from here.
I see. Thank you very much for your answer. I just want to follow asking about the, do you think we'll be, I see your gross margin is very stable in the past. How do you see the trend in the second half or for the long run? Is there any change to the gross margin? Yeah.
Okay. I think, again, it's because our products are welcomed by our customers, and this margin is generally very stable. Of course, sometimes you might see some fluctuation because if you look back in our nine years of operating history as a public company, you can see this margin is generally stable, but sometimes it may fluctuate a little bit. The reason why is we never focus entirely on financial numbers. We focus on the long-term greatness. I would say now the situation is because the subscription business is getting more, and the contribution of the subscription business is getting, how do you call that? Yeah, strong. Yeah, right, right, right, right, right. Because of this reason, you will see that the gross margin will be even more stable. Don't be shocked if there's a 5%, 5 points like variation.
Sometimes maybe we see we need to win in a certain market. We need to see the certain market. Sometimes maybe it's because of some currency fluctuation in a region, but we still think we should own that market. We still go aggressive with that. The margin will be fluctuated because of those reasons.
I see. We are looking forward to seeing you become greater and greater. Yeah.
Thank you.
Thanks. From Brian, Brian Chung. Previously, we mentioned edge computing on routers. When will we see material impact on revenue? An alert from Ericsson earnings called that they were also focusing on routers, edge computing, particularly on the use case of customer AI deployment at the edge. Do you see the same?
Okay. Yes, absolutely. First of all, we see the edge computing is definitely the trend. What that means to us is it will mean the computing power on the router on these edge devices will be used for computing as well. We see this is important because now people can use our device as the platform to deploy their edge applications. Are these edge applications all AI-related? Probably, but it is not limited to that. We see when people are having a computing platform and the communications platform, let's say a router in different boxes, this is actually creating more difficulty in managing the devices, reliability, stability, things like that, and the power sources. Putting all these things into one platform makes perfect sense. In terms of this edge computing, I think it is more meaningful to us because this is going to expand the ecosystem way further.
Some system integrators, managed service providers, they can run their little software on the devices. This is going to make our product more stickiness to the customer deployment. I would say it's interesting. If we are looking into the revenue implication for that, we do not have, we don't have a way to measure this for the time being. We are still experimenting and trying to learn and trying to find an area that we can be really unique. As you said, as you mentioned, yeah, Cradlepoint, Ericsson, they can do edge computing. Everybody can do edge computing. We are trying to find a way to do that in a proper way that fits our market and our customers.
Next question from Brian is, SpeedFusion Connect app was launched not long ago. Is it the first step to decouple the software and hardware, and perhaps something like SpeedFusion as a service would be developed such that it can be employed in different platforms or hardware?
Yes, absolutely. We see the SpeedFusion Connect app is very interesting because I shared it with everybody earlier. Now, we can go into the POS, we can go into the kiosk, we can go into the digital signage. Because of all these apps, we can even, there are some new interesting developments going on. I cannot share that with you, but we want to see if there are any opportunities that we can make smaller form factor SpeedFusion devices. When we are able to make all these smaller form factor SpeedFusion devices, it will open up another group of new interesting applications. I would say, are we going to launch this as a SpeedFusion as a service? Yes, absolutely. As I mentioned earlier, this is going to create an infrastructure market as well.
That is just one step to go into that bigger, we can say that's a bigger dream for now.
Next question is from Gilbert Lo. Have we thought of taking a page from Apple's Playbook and charge a subscription plan yearly, which allows free hardware and software upgrades?
Okay, yes, we are always open-minded looking into all these things. The thing is, if we are going into this market, we probably want to work with the MSP for this. You know, we always embrace the small giant approach. We cannot do too many things. We just want to stay focused in certain things that we do very well. I would say we like this idea. We think of that, but we will probably work with MSPs for this approach.
Next question from Gilbert is, did the tariffs affect our market share in comparison to Cradlepoint? If we look into the numbers in Ericsson.
Let me answer this. Actually, we don't care. We don't know.
Next is, how is the competition in Europe? Can you comment on our competitive advantage in the European market?
I think generally our brand is very strong as a reliable brand. We are reliable. We are responsible. At the same time, we are innovative. We are not the cheapest product in the market, but at the same time, we are also not expensive. There are a lot more products way more expensive than us, especially when we look into the total cost of ownership. I think our customers, when they buy products, they use that for professional applications, industrial applications, long-term applications. Are they really going to the lowest price product? Not really. That's why we do not see, I think you're referring to Teltonika, a European partner. We do not see Teltonika as really a competitor because we always see that they are definitely a larger product. They are lower priced than us.
Again, I would say if we look into the value, the cost benefit, then we are super competitive.
Next is, how much revenue would HYROX partnership with HYROX generate every year?
I would say the partnership with HYROX is not really about the revenue. It's really about, this is a high-profile event. We are really proud of the thing that they allow us to market that. We have a lot of really cool customers. We have a lot of really cool applications. The problem is we cannot share that, because all those cool applications, a lot of all those cool customers, they do not allow us to talk about that. I would say the HYROX thing is the first of a kind that we can publicly market that. In fact, there is a really substantial value, which is we can bring customers to the HYROX event to see how things work behind the scene. I would say this is more like a global showcase for us. We really love these guys.
Next is from Henry Lu. SpeedFusion Connect. Right now it's free. What is our monetization strategy?
Okay, we feel like, are we going to charge $10 here? Are we going to charge $20 here? Yeah, we think of that. For the time being, that is not the right strategy. For the time being, we want to make this almost like a gold standard. We want people to just keep using that. The great thing about the technology business is there's always new stuff. There's always an upgrade. Eventually, when more people become our customers, when more people are using our products, we will always find a good way to monetize that. I would say the speed of adoption is actually way more than collecting $10 from these guys for now.
Follow-up question is, for long-term investors, how should we visualize the company in five to ten years' time? Is it going to be still a networking connectivity product company, or what is the game plan?
Oh, this is a great question. Yes, we definitely won't, we definitely see connectivity is our long-term goal. We won't limit ourselves as a networking company. We would love to be a connectivity company, because the difference is being a connectivity company is, yes, we can have our networking gears. We can have our networking hardware and software, but at the same time, it's for the connectivity. We could become the booking.com of connectivity. In other words, imagine this. When you have the SpeedFusion Connect app, when you're traveling around and you started to feel like I want to get a Peplink, I want to get the eSIM locally, you may want to use the SpeedFusion Connect app for that. I think all these kinds of things are the real deal that we are working on.
Of course, the pace sometimes is some certain things happen just faster, and sometimes it's not. For all these executions, for all these works, it actually requires a lot of work and integration. That's why sometimes you will see we grow faster. Sometimes we might seem slow in a year or so. Again, in five to ten years' time, we want to be here to make history. That's the thing that motivates us every day.
Henry has another follow-up question. He says, I walked past your office building in Hong Kong last month. It's great for cost control. It speaks a lot about the office culture. Isn't the office too tight? Do you think such one place may discourage talents from joining the company?
Hey, next time, just don't pass by. Come up and see the team because we are in a great location. Yes, we are in an ugly industrial building. Yes, this is true. This is an ugly industrial building, but we have a lot of space inside, and there are a lot of great restaurants around the area. We are five minutes' walk away from the subway. A lot of our colleagues just walk ten minutes to the office, even under Typhoon No. 8. Actually, this is a great location. Next time, just don't pass by. Come up and have a drink. Sorry, there's one more question. We have a global team. Not everybody works in this tatty building. For example, some of our colleagues work in the U.K. They work in their lovely house, and they have a beautiful garden.
These guys maybe just come back to this tatty office once in a year when they come back to Hong Kong. Actually, we have a team in Taiwan, a team in Malaysia, and a team in Lithuania. I would say our best office is probably in Lithuania. In Malaysia, our office is in a great location. It's almost like the City Plaza in K.L. I think they have the most convenient location. For the Lithuania team, they have beautiful offices over there. These days, a lot of our team members work remotely. You're right. If we judge us, when people look into us, they really need to spend time to look into us. Nobody falls in love with us from day one. Nobody falls in love with us on the first sight, but when you know us better, then people usually like us more and more.
Okay, so another question from Lucas Lu. Many of your distributors also sell InHand products. They have recently established a new factory in Canada. How do you see the competition with InHand?
I think it's okay, yes, I'm aware of that. Because on LinkedIn, you know what's going on in the world. At the same time, I think we have a bigger dream than most people. When we look into our bigger dream, then I think it's good to know what other people are doing. I don't think spending much time in seeing what people do and scare ourselves or doing whatever else is that meaningful. I would say, again, the name of the game is speed. We just need to run faster. We just need to run faster than anybody else. We make progress faster. We hit the wall faster. Then we learn. I think actually these are more important to us. At the same time, we do not believe we can run good factories. Our manufacturing partners, they all want world-class factories.
I would rather work with those guys for world-class factories. I would rather work with our partners who are running world-class factories to build the products.
Next is Gerard. What is the number of devices now in our user base? It was around 600,000 last year, if I'm correct. The number of registered devices on our IC2 platform right now is around 680,000. Next is, what is the company's performance target for the next three to five years? Is it mainly provided by the growth of 5G networks?
I think it's more than the growth of the 5G networks. Yes, definitely the growth of 5G networks is one metric. The other thing I would say is the growth of LEO satellite services, low Earth orbit satellites. That is also a good benchmark for us.
Next one is from Gerard again. Could you share the growth of our revenues with Starlink this year to have an idea of the momentum?
I think this year, the first half, the revenue with Starlink was slower than last year. We do not want to talk about the reasons here. I think everybody watched the news and knew what happened in the first half. Long term, we believe the Starlink revenue together with our products is substantial. I think it's the last week, right? Starlink had some outage. I think people also know that in terms of WAN connections, internet connections, the more is better. If there's a device that can put all these multiple connections together in one seamlessly, that is our business. I think that is a good one. Definitely Starlink, Iridium, and 5G, and all these kinds of things, they are all WAN technologies, internet technologies. The more, the better.
Okay, last question. Since we always, we used to talk about having a price folk, but we are also not the cheapest in the market. What would you consider as Plover Bay's folk?
I would say we really listen to the customer. A lot of times, we found customers talk to us and they said, "Oh yeah, can you do this? Can you do that? Do you have a box doing this and that?" We really listen and we really build that thing for them. Actually, a lot of our long-time friends, they started the relationship with us just like that. We were not just building one product based on what they need. We keep evolving the product. We keep developing new versions. We keep enhancing that. We keep evolving that. By the way, it is almost impossible to do that right on the first time. We will do that a couple of times to make it right. Right in one year doesn't mean right in the next couple of years.
In the next couple of years, we will modify the product, enhance the product. We will still listen to what they need to evolve. I think actually this is probably a really difficult way for people to replicate. If you are looking into the financial numbers, then there's a lot of questions about justification. All this and that. We don't look into things like that.
Okay, that's all the questions I see. Thank you everyone for joining our call today. Hopefully, we'll see you speak again in about six months.
Thank you very much. Thank you.
Thank you.