Xunlei Announces Unaudited Financial Results for the Fourth Quarter and the Fiscal Year Ended December 31, 2020
Xunlei Limited (Nasdaq: XNET) reported strong fourth quarter and fiscal year 2020 financial results. For Q4, total revenues reached US$50.3 million, up 15% quarter-over-quarter, driven by a 22% increase in cloud computing revenues. Gross profit rose to US$26.8 million with a gross margin of 53.3%. The company achieved a net income of US$4.6 million, reversing a prior loss, and showed improved operational efficiency. For FY 2020, total revenues grew 3% to US$186.7 million, though online advertising fell 15.6%. Cash and equivalents stand at US$255.1 million, supporting future growth investments.
- Q4 total revenues increased by 15% to US$50.3 million.
- Net income in Q4 was US$4.6 million, a significant turnaround from a loss.
- Gross margin improved to 53.3%, up from 51.9% in the previous quarter.
- Cloud computing revenues for Q4 rose by 22% to US$25.9 million.
- Cash and cash equivalents totaled US$255.1 million, providing strong financial stability.
- Fiscal year total revenues grew only 3% year-over-year.
- Online advertising revenues decreased 15.6% in FY 2020.
SHENZHEN, China, March 16, 2021 (GLOBE NEWSWIRE) -- Xunlei Limited (“Xunlei” or the “Company”) (Nasdaq: XNET), a leading innovator in shared cloud computing and blockchain technology in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2020.
Fourth Quarter 2020 Financial Highlights:
- Total revenues were US
$50.3 million , representing an increase of15.0% from the previous quarter.
- Cloud computing and other internet value-added services (“Cloud computing and other IVAS”) revenues were US
$25.9 million , representing an increase of22.0% from the previous quarter.
- Subscription revenues were US
$20.7 million , representing an increase of5.5% from the previous quarter.
- Online advertising revenues consisting primarily of revenues from mobile advertising were US
$3.8 million , representing an increase of27.6% from the previous quarter.
- Gross profit was US
$26.8 million , representing an increase of18.3% from the previous quarter, and gross margin was53.3% in the fourth quarter, compared with51.9% in the previous quarter.
- Net income was US
$4.6 million in the fourth quarter, compared with a net loss of US$1.5 million in the previous quarter.
- Diluted earnings per ADS was approximately US
$0.07 as compared with a loss of US$0.02 in the previous quarter.
Fiscal Year Ended December 31, 2020 Financial Highlights:
- Total revenues were US
$186.7 million , representing an increase of3.0% from 2019. - Cloud computing and other IVAS revenues were US
$89.2 million , representing an increase of6.0% from 2019.
- Subscription revenues were US
$84.3 million , representing an increase of3.4% from 2019.
- Online advertising revenues were US
$13.2 million , representing a decrease of15.6% from 2019.
- Gross profit was US
$93.7 million , representing an increase of16.1% from 2019, and gross margin was50.2% , compared with44.5% in the previous year.
- Net loss was US
$14.1 million for fiscal year 2020, compared with a net loss of US$53.4 million for 2019.
- Diluted loss per ADS in 2020 was US
$0.21 , compared with a loss of US$0.79 in the previous year.
Mr. Jinbo Li, Chairman and Chief Executive Officer of Xunlei, stated that, “We closed 2020 with a strong fourth quarter, completing a year of transition and progresses by outperforming our revenue guidance and achieving profitability in the quarter. The successful execution of our strategic focus on our core competitiveness and operational optimization is paying off with excellent results in all key operating and financial metrics. We are pleased to report a
“In 2020, we focused on optimizing our product features to improve user experiences and enhance our long-term competitiveness. Especially, we continued expansion of our cloud computing service capabilities with a growing and diversified enterprise client base. We also furthered our endeavor to improve blockchain technology and explored its applications by cooperating with higher learning institutions and other entities.”
“Looking forward, we have high expectations for 2021 and anticipate it will be a year of continued progresses and accomplishments. We are thrilled that the construction of our long-waited Xunlei headquarters building will soon be completed and we’ll immediately start to prepare for operations. The completion of Xunlei building will release us from a significant capital commitment and allow us to allocate additional resources for business development. Our goal is to continue product innovation and seek breakthroughs in our business development. In particular, we will continue to develop our decentralized digital database technology and computing paradigm and explore game-changing applications. We will also develop differentiated short-video products and set sights on selected international markets. With approximately
Fourth Quarter 2020 Financial Results
Total Revenues
Total revenues were US
Revenues from cloud computing and other IVAS were US
Revenues from subscription were US
Revenues from online advertising were US
Cost of Revenues
Cost of revenues was US
Bandwidth costs as included in cost of revenues were US
The remaining cost of revenues mainly consisted of costs related to the revenue-sharing costs for our live streaming products and depreciation of servers and other equipment.
Gross Profit and Gross Margin
Gross profit for the fourth quarter was US
Research and Development Expenses
Research and development expenses for the fourth quarter were US
Sales and Marketing Expenses
Sales and marketing expenses for the fourth quarter were US
General and Administrative Expenses
General and administrative expenses for the fourth quarter were US
Operating Income/(Loss)
Operating income was US
Other Income/(Loss), Net
Other income was US
Net Income/(Loss) and Earnings/(Loss) Per ADS
Net income was US
Diluted earnings per ADS in the fourth quarter of 2020 was approximately US
Cash Balance
As of December 31, 2020, the Company had cash, cash equivalents and short-term investments of US
Unaudited Financial Results for the Fiscal Year Ended December 31, 2020
Total Revenues
Total revenues were US
Revenues from cloud computing and other IVAS were US
Revenues from subscriptions were US
Revenues from online advertising were US
Cost of Revenues
Cost of revenues were US
Bandwidth costs as included in cost of revenues were US
The remaining cost of revenues mainly consisted of costs related to the revenue-sharing costs for our live streaming products and depreciation of servers and other equipment.
Gross Profit and Gross Margin
Gross profit for the year was US
Research and Development Expenses
Research and development expenses for the year were US
Sales and Marketing Expenses
Sales and marketing expenses for the year were US
General and Administrative Expenses
General and administrative expenses for the year were US
Impairment of Assets, Net of Recoveries
Impairment of assets, net of recoveries for the year was of US
Operating Loss
Operating loss was US
Net Loss and Loss Per ADS
Net loss was US
Diluted loss per ADS in 2020 was US
Cash Balance
As of December 31, 2020, the Company had cash, cash equivalents and short-term investments of US
Guidance for First Quarter of 2021
For the first quarter of 2021, Xunlei estimates total revenues to be between US
Conference Call Preregistration
Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants wishing to attend the call must preregister online before they can receive the dial-in numbers. Preregistration may require a few minutes to complete. The Company would like to apologize for any inconvenience caused by not having an operator as a result of COVID-19.
Please register in advance to join the conference using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.
Participant Online Registration: http://apac.directeventreg.com/registration/event/3372349
Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.
To join the conference, please dial the number you receive, enter the event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.
The Company will also broadcast a live audio webcast of the conference call. The webcast will be available at http://ir.xunlei.com.
Following the earnings conference call, an archive of the call will be available by dialing:
China (Mandarin): | 400-602-2065 |
Hong Kong: | 800-963-117 |
United States: | 1-855-452-5696 |
International: | 61-2-8199-0299 |
Replay Passcode: | 3372349 |
Replay End Date: | March 24, 2021 |
About Xunlei
Founded in 2003, Xunlei Limited (NASDAQ: XNET) is a leading innovator in shared cloud computing and blockchain technology in China. Xunlei provides a wide range of products and services across cloud acceleration, blockchain, shared cloud computing and digital entertainment to deliver an efficient, smart and safe internet experience.
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the management's quotations, the "Outlook" and "Guidance" sections in this press release, as well as the Company's strategic, operational and acquisition plans, contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Forward-looking statements involve inherent risks and uncertainties, including but not limited to: the Company's ability to continue to innovate and provide attractive products and services to retain and grow its user base; the Company's ability to keep up with technological developments and users' changing demands in the internet industry; the Company's ability to convert its users into subscribers of its premium services; the Company's ability to deal with existing and potential copyright infringement claims and other related claims; the risk that Covid-19 or other health risks in China or globally could adversely affect the Company's operations or financial results; the Company’s ability to react to the governmental actions for its scrutiny of internet content in China and the Company's ability to compete effectively. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
About Non-GAAP Financial Measures
To supplement Xunlei's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Xunlei uses the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: (1) non-GAAP operating income/(loss), (2) non-GAAP net income/(loss) from continuing operations, (3) non-GAAP basic and diluted earnings per share for common shares attributable to continuing operations, and (4) non-GAAP basic and diluted earnings per ADS attributable to continuing operations. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Xunlei believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding the Company’s operating performance by excluding share-based compensation expenses, which is not expected to result in future cash payments. These non-GAAP financial measures also facilitate management's internal comparisons to Xunlei's historical performance and assist the Company’s financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in Xunlei’s results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying reconciliation tables at the end of this release include details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.
XUNLEI LIMITED | ||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||
December 31, | December 31, | |
2020 | 2019 | |
US$ | US$ | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | 137,248 | 162,465 |
Short-term investments | 117,821 | 102,847 |
Accounts receivable, net | 22,983 | 27,533 |
Inventories | 1,726 | 5,537 |
Due from related parties | 10,970 | 1,658 |
Prepayments and other current assets | 11,534 | 16,543 |
Total current assets | 302,282 | 316,583 |
Non-current assets: | ||
Restricted Cash | 1,541 | 2,983 |
Long-term investments | 26,734 | 26,365 |
Deferred tax assets | - | 1,118 |
Property and equipment, net | 50,725 | 38,770 |
Intangible assets, net | 8,857 | 9,426 |
Goodwill | 22,607 | 20,382 |
Other long-term prepayments and receivables | 905 | 313 |
Right-of use assets | 1,954 | 8,747 |
Total assets | 415,605 | 424,687 |
Liabilities | ||
Current liabilities: | ||
Accounts payable | 20,644 | 24,213 |
Due to related parties | 5,389 | 5,002 |
Contract liability and deferred income, current portion | 34,040 | 31,988 |
Lease liabilities | 1,961 | 4,693 |
Income tax payable | 2,553 | 2,550 |
Accrued liabilities and other payables | 38,689 | 42,840 |
Total current liabilities | 103,276 | 111,286 |
Non-current liabilities: | ||
Contract liability and deferred income, non-current portion | 920 | 1,223 |
Lease liabilities, non-current portion | 27 | 4,132 |
Deferred tax liabilities, non-current portion | 1,085 | 1,179 |
Interest-bearing bank borrowings | 19,924 | 11,324 |
Total liabilities | 125,232 | 129,144 |
Equity | ||
Common shares(US | 84 | 85 |
Additional paid-in-capital | 469,887 | 472,052 |
Accumulated other comprehensive loss | (2,145) | (13,425) |
Statutory reserves | 5,414 | 5,132 |
Treasury shares (29,711,964 shares and 34,475,224 shares as at December 31, 2019 and December 31, 2020, respectively) | 9 | 7 |
Accumulated deficits | (181,095) | (166,973) |
Total Xunlei Limited's shareholders' equity | 292,154 | 296,878 |
Non-controlling interests | (1,781) | (1,335) |
Total liabilities and shareholders' equity | 415,605 | 424,687 |
XUNLEI LIMITED | |||||||||||
Unaudited Condensed Consolidated Statements of Income | |||||||||||
(Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | |||||||||||
Three months ended | Twelve months ended | ||||||||||
Dec 31, | Sept 30, | Dec 31, | Dec 31, | Dec 31, | |||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||
US$ | US$ | US$ | US$ | US$ | |||||||
Revenues, net of rebates and discounts | 50,285 | 43,722 | 48,292 | 186,683 | 181,267 | ||||||
Business taxes and surcharges | (138) | (34) | (82) | (312) | (602) | ||||||
Net revenues | 50,147 | 43,688 | 48,210 | 186,371 | 180,665 | ||||||
Cost of revenues | (23,322) | (21,004) | (30,297) | (92,637) | (99,913) | ||||||
Gross profit | 26,825 | 22,684 | 17,913 | 93,734 | 80,752 | ||||||
Operating expenses | |||||||||||
Research and development expenses | (12,023) | (12,069) | (14,305) | (55,463) | (68,571) | ||||||
Sales and marketing expenses | (2,794) | (4,185) | (11,139) | (18,064) | (31,820) | ||||||
General and administrative expenses | (7,898) | (7,463) | (10,229) | (33,910) | (38,930) | ||||||
Assets impairment loss, net of recoveries | (29) | - | 94 | (5,090) | 2,147 | ||||||
Total operating expenses | (22,744) | (23,717) | (35,579) | (112,527) | (137,174) | ||||||
Operating income/(loss) | 4,081 | (1,033) | (17,666) | (18,793) | (56,422) | ||||||
Interest income | 162 | 404 | 492 | 1,471 | 1,897 | ||||||
Interest expense | (406) | - | - | (406) | (75) | ||||||
Other income/(loss), net | 579 | (335) | 3,427 | 4,737 | 5,861 | ||||||
Income/(Loss) before income taxes | 4,416 | (964) | (13,747) | (12,991) | (48,739) | ||||||
Income tax benefit / (expense) | 217 | (498) | (4,384) | (1,149) | (4,676) | ||||||
Net income/(loss) | 4,633 | (1,462) | (18,131) | (14,140) | (53,415) | ||||||
Net income/(loss) | 4,633 | (1,462) | (18,131) | (14,140) | (53,415) | ||||||
Less: net loss attributable to non-controlling interest | (13) | (3) | (37) | (300) | (246) | ||||||
Net income/(loss) attributable to common shareholders | 4,646 | (1,459) | (18,094) | (13,840) | (53,169) | ||||||
Earnings/(loss) per share for common shares | |||||||||||
Basic | 0.0139 | (0.0043) | (0.0534) | (0.0410) | (0.1574) | ||||||
Diluted | 0.0139 | (0.0043) | (0.0534) | (0.0410) | (0.1574) | ||||||
Earnings /(loss) per ADS | |||||||||||
Basic | 0.0695 | (0.0215) | (0.2670) | (0.2050) | (0.7870) | ||||||
Diluted | 0.0695 | (0.0215) | (0.2670) | (0.2050) | (0.7870) | ||||||
Weighted average number of common shares used in calculating continuing operations: | |||||||||||
Basic | 334,401,981 | 336,371,957 | 339,111,511 | 337,429,601 | 337,845,675 | ||||||
Diluted | 334,428,660 | 336,371,957 | 339,111,511 | 337,429,601 | 337,845,675 | ||||||
Weighted average number of ADSs used in calculating continuing operations : | |||||||||||
Basic | 66,880,396 | 67,274,391 | 67,822,302 | 67,485,920 | 67,569,135 | ||||||
Diluted | 66,885,732 | 67,274,391 | 67,822,302 | 67,485,920 | 67,569,135 | ||||||
XUNLEI LIMITED | |||||||||||
Reconciliation of GAAP and Non-GAAP Results (Excluding discontinued operations) | |||||||||||
(Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | |||||||||||
Three months ended | Twelve months ended | ||||||||||
Dec 31, | Sept 30, | Dec 31, | Dec 31, | Dec 31, | |||||||
2020 | 2020 | 2019 | 2020 | 2019 | |||||||
US$ | US$ | US$ | US$ | US$ | |||||||
GAAP operating income/(loss) | 4,081 | (1,033) | (17,666) | (18,793) | (56,422) | ||||||
Share-based compensation expenses | 200 | 548 | 1,143 | 2,310 | 5,428 | ||||||
Non-GAAP operating income/(loss) | 4,281 | (485) | (16,523) | (16,483) | (50,994) | ||||||
GAAP net income/(loss) | 4,633 | (1,462) | (18,131) | (14,140) | (53,415) | ||||||
Share-based compensation expenses | 200 | 548 | 1,143 | 2,310 | 5,428 | ||||||
Non-GAAP net income/(loss) | 4,833 | (914) | (16,988) | (11,830) | (47,987) | ||||||
GAAP earnings/(loss) per share for common shares: | |||||||||||
Basic | 0.0139 | (0.0043) | (0.0534) | (0.0410) | (0.1574) | ||||||
Diluted | 0.0139 | (0.0043) | (0.0534) | (0.0410) | (0.1574) | ||||||
GAAP earnings/(loss) per ADS: | |||||||||||
Basic | 0.0695 | (0.0215) | (0.2670) | (0.2050) | (0.7870) | ||||||
Diluted | 0.0695 | (0.0215) | (0.2670) | (0.2050) | (0.7870) | ||||||
Non-GAAP earnings/(loss) per share for common shares: | |||||||||||
Basic | 0.0145 | (0.0027) | (0.0500) | (0.0342) | (0.1413) | ||||||
Diluted | 0.0145 | (0.0027) | (0.0500) | (0.0342) | (0.1413) | ||||||
Non-GAAP earnings/(loss) per ADS: | |||||||||||
Basic | 0.0725 | (0.0135) | (0.2500) | (0.1710) | (0.7065) | ||||||
Diluted | 0.0725 | (0.0135) | (0.2500) | (0.1710) | (0.7065) | ||||||
Weighted average number of common shares used in calculating: | |||||||||||
Basic | 334,401,981 | 336,371,957 | 339,111,511 | 337,429,601 | 337,845,675 | ||||||
Diluted | 334,428,660 | 336,371,957 | 339,111,511 | 337,429,601 | 337,845,675 | ||||||
Weighted average number of ADSs used in calculating: | |||||||||||
Basic | 66,880,396 | 67,274,391 | 67,822,302 | 67,485,920 | 67,569,135 | ||||||
Diluted | 66,885,732 | 67,274,391 | 67,822,302 | 67,485,920 | 67,569,135 |
CONTACT:
Investor Relations
Xunlei Limited
Email: ir@xunlei.com
Tel: +86 755 8633 8443
Website: http://ir.xunlei.com
FAQ
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