Xunlei Announces Unaudited Financial Results for the Second Quarter Ended June 30, 2024
Xunlei (NASDAQ: XNET) reported its Q2 2024 financial results, showing mixed performance. Total revenues decreased by 23.7% year-over-year to $79.6 million, primarily due to a significant decline in live streaming revenues. However, subscription revenues increased by 10.8% to $32.9 million, driven by subscriber growth. The company remained profitable with a net income of $2.5 million, down from $5.0 million in Q2 2023. Gross profit margin improved to 51.1% from 44.0% year-over-year. Xunlei's focus on product innovation, including the successful launch of Xunlei Browser, aims to drive future growth. The company maintains a strong balance sheet with $263.4 million in cash and short-term investments as of June 30, 2024.
Xunlei (NASDAQ: XNET) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando una performance contrastante. I ricavi totali sono diminuiti del 23,7% rispetto all'anno precedente, raggiungendo i 79,6 milioni di dollari, principalmente a causa di un significativo calo dei ricavi da streaming dal vivo. Tuttavia, i ricavi da abbonamento sono aumentati del 10,8%, arrivando a 32,9 milioni di dollari, grazie alla crescita degli abbonati. L'azienda è rimasta redditizia, con un utile netto di 2,5 milioni di dollari, in calo rispetto ai 5,0 milioni di dollari del secondo trimestre 2023. Il margine di profitto lordo è migliorato al 51,1%, rispetto al 44,0% dell'anno precedente. L'attenzione di Xunlei all'innovazione di prodotto, compreso il lancio di successo di Xunlei Browser, punta a favorire la crescita futura. L'azienda mantiene un bilancio solido con 263,4 milioni di dollari in contante e investimenti a breve termine al 30 giugno 2024.
Xunlei (NASDAQ: XNET) reportó sus resultados financieros del segundo trimestre de 2024, mostrando un rendimiento mixto. Los ingresos totales disminuyeron un 23.7% interanual a 79.6 millones de dólares, principalmente debido a una importante caída en los ingresos de transmisión en vivo. Sin embargo, los ingresos por suscripción aumentaron un 10.8% a 32.9 millones de dólares, impulsados por el crecimiento de los suscriptores. La compañía se mantuvo rentable con un ingreso neto de 2.5 millones de dólares, en comparación con 5.0 millones de dólares en el segundo trimestre de 2023. El margen de ganancia bruta mejoró al 51.1%, frente al 44.0% del año anterior. El enfoque de Xunlei en la innovación de productos, incluyendo el exitoso lanzamiento de Xunlei Browser, tiene como objetivo impulsar el crecimiento futuro. La compañía mantiene un balance sólido con 263.4 millones de dólares en efectivo e inversiones a corto plazo al 30 de junio de 2024.
Xunlei (NASDAQ: XNET)는 2024년 2분기 재무 결과를 발표했으며, 혼합된 성과를 보여주었습니다. 총 수익은 전년 대비 23.7% 감소한 7,960만 달러로, 주로 라이브 스트리밍 수익의 큰 감소 때문입니다. 그러나 구독 수익은 10.8% 증가하여 3,290만 달러에 달하며, 이는 가입자 증가에 의해 촉진되었습니다. 회사는 여전히 수익성이 있으며 순이익은 250만 달러로, 2023년 2분기의 500만 달러에서 감소했습니다. 총 이익률은 전년 대비 44.0%에서 51.1%로 개선되었습니다. Xunlei는 성공적인 Xunlei Browser 출시를 포함한 제품 혁신에 집중하여 미래 성장을 유도할 계획입니다. 2024년 6월 30일 기준으로 회사는 2억 6,340만 달러의 현금 및 단기 투자로 강력한 대차대조표를 유지하고 있습니다.
Xunlei (NASDAQ: XNET) a publié ses résultats financiers du deuxième trimestre 2024, montrant des performances mitigées. Les revenus totaux ont diminué de 23,7 % d'une année sur l'autre, atteignant 79,6 millions de dollars, principalement en raison d'une forte baisse des revenus de streaming en direct. Cependant, les revenus d'abonnement ont augmenté de 10,8 % pour atteindre 32,9 millions de dollars, soutenus par la croissance du nombre d'abonnés. L'entreprise reste rentable avec un bénéfice net de 2,5 millions de dollars, en baisse par rapport à 5,0 millions de dollars au deuxième trimestre 2023. La marge brute s'est améliorée, passant de 44,0 % à 51,1 % d'une année sur l'autre. L'accent mis par Xunlei sur l'innovation produit, y compris le lancement réussi du Xunlei Browser, vise à stimuler la croissance future. L'entreprise maintient un bilan solide avec 263,4 millions de dollars en liquidités et investissements à court terme au 30 juin 2024.
Xunlei (NASDAQ: XNET) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, die eine gemischte Leistung zeigen. Die Gesamtumsätze sind im Jahresvergleich um 23,7 % auf 79,6 Millionen US-Dollar gesunken, hauptsächlich aufgrund eines signifikanten Rückgangs der Live-Streaming-Erlöse. Allerdings stiegen die Abonnementeinnahmen um 10,8 % auf 32,9 Millionen US-Dollar, angetrieben durch das Wachstum der Abonnenten. Das Unternehmen blieb profitabel mit einem Nettoeinkommen von 2,5 Millionen US-Dollar, was einen Rückgang von 5,0 Millionen US-Dollar im zweiten Quartal 2023 darstellt. Die Bruttogewinnmarge verbesserte sich im Jahresvergleich von 44,0 % auf 51,1 %. Xunleis Fokus auf Produktinnovationen, einschließlich des erfolgreichen Starts von Xunlei Browser, zielt darauf ab, zukünftiges Wachstum voranzutreiben. Das Unternehmen verfügt über eine starke Bilanz mit 263,4 Millionen US-Dollar in bar und kurzfristigen Investitionen zum 30. Juni 2024.
- Subscription revenues increased by 10.8% year-over-year to $32.9 million
- Gross profit margin improved to 51.1% from 44.0% year-over-year
- Number of subscribers grew to 5.71 million from 4.72 million year-over-year
- Maintained profitability with net income of $2.5 million
- Strong balance sheet with $263.4 million in cash and short-term investments
- Total revenues decreased by 23.7% year-over-year to $79.6 million
- Cloud computing revenues decreased by 13.8% year-over-year to $26.4 million
- Live streaming and other IVAS revenues decreased by 53.9% year-over-year to $20.3 million
- Net income decreased from $5.0 million in Q2 2023 to $2.5 million in Q2 2024
- Diluted earnings per ADS decreased from $0.08 to $0.04 year-over-year
Insights
Xunlei's Q2 2024 results present a mixed picture. While total revenues decreased by
The gross profit margin improved to
Investors should monitor the company's ability to sustain subscription growth and stabilize other revenue streams in the coming quarters.
Xunlei's strategic shift towards product diversification and user experience enhancement is evident in this quarter's results. The successful launch of Xunlei Browser across major platforms, focusing on video streaming, web browsing and novel reading, demonstrates the company's commitment to innovation and user engagement.
The subscription business growth is particularly noteworthy, as it indicates Xunlei's ability to monetize its user base effectively. With 5.71 million subscribers, up from 4.72 million last year, the company is showing strong user acquisition and retention capabilities.
However, the decline in cloud computing revenues is concerning, as this segment was previously seen as a growth driver. Xunlei needs to address the challenges in this area, possibly by diversifying its customer base or introducing new cloud services to reignite growth.
The company's focus on product refinement and global expansion in the second half of 2024 could potentially offset the current revenue declines if executed effectively.
SHENZHEN, China, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq: XNET), a leading technology company providing distributed cloud services in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.
Second quarter 2024 Financial Highlights:
- Total revenues were US
$79.6 million , representing a decrease of23.7% year-over-year. - Cloud computing revenues were US
$26.4 million , representing a decrease of13.8% year-over-year. - Subscription revenues were US
$32.9 million , representing an increase of10.8% year-over-year. - Live streaming and other internet value-added services (“Live streaming and other IVAS”) revenues were US
$20.3 million , representing a decrease of53.9% year-over-year. - Gross profit was US
$40.7 million , representing a decrease of11.3% year-over-year, and gross profit margin was51.1% in the second quarter, compared with44.0% in the same period of 2023. - Net income was US
$2.5 million in the second quarter, compared with US$5.0 million in the same period of 2023. - Non-GAAP net income was US
$3.2 million in the second quarter, compared with US$8.4 million in the same period of 2023. - Diluted earnings per ADS was approximately US
$0.04 in the second quarter, compared with US$0.08 in the same period of 2023.
Mr. Jinbo Li, Chairman and Chief Executive Officer of Xunlei, stated that, “The second quarter results met our expectations and remained profitable. Specifically, our subscription business has demonstrated robust performance with an increase in revenue of
“In the second half of 2024, our primary focus will be on delivering refined products and services to our customers. We will continue diversifying our product portfolio, innovating interactive features, and organizing tailored local operations to further boost user penetration and drive global business growth. With a strong balance sheet, we believe we are well-positioned to invest in new initiatives. Looking ahead, we remain committed to expanding our business to create long-term value and foster sustainable growth,” concluded Mr. Li.
Second Quarter 2024 Financial Results
Total Revenues
Total revenues were US
Revenues from cloud computing were US
Revenues from subscription were US
Revenues from live streaming and other IVAS were US
Costs of Revenues
Costs of revenues were US
Bandwidth costs, as included in costs of revenues, were US
The remaining costs of revenues mainly consisted of costs related to the revenue-sharing arrangement for our live streaming business, payment handling charges, cost of inventories sold and depreciation of servers and other equipment.
Gross Profit and Gross Profit Margin
Gross profit for the second quarter of 2024 was US
Research and Development Expenses
Research and development expenses for the second quarter were US
Sales and Marketing Expenses
Sales and marketing expenses for the second quarter were US
General and Administrative Expenses
General and administrative expenses for the second quarter were US
Operating Income
Operating income was US
Other Income, Net
Other income, net was US
Net Income and Earnings Per ADS
Net income was US
Diluted earnings per ADS in the second quarter of 2024 was approximately US
Cash Balance
As of June 30, 2024, the Company had cash, cash equivalents and short-term investments of US
Share Repurchase Program
On June 6, 2023, Xunlei announced that its Board of Directors had authorized the repurchase of up to US
On June 4, 2024, Xunlei announced that its Board of Directors had authorized a new plan for the repurchase of up to US
Guidance for the Second Quarter of 2024
For the third quarter of 2024, Xunlei estimates total revenues to be between US
Conference Call Information.
Xunlei's management will host a conference call at 8:00 a.m. U.S. Eastern Time on August 13, 2024 (8:00 p.m. Beijing/Hong Kong Time), to discuss the Company's quarterly results and recent business developments.
Participant Online Registration: https://register.vevent.com/register/BI122c76439b8e42b492824299bb12cecb
Please register to join the conference using the link provided above and dial in 10 minutes before the call is scheduled to begin. Once registered, the participants will receive an email with personal PIN and dial-in information, and participants can choose to access either via Dial-In or Call Me. A kindly reminder that "Call Me" does not work for China number.
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 at https://edge.media-server.com/mmc/p/we7k3gmp
About Xunlei
Founded in 2003, Xunlei Limited (Nasdaq: XNET) is a leading technology company providing distributed cloud services in China. Xunlei provides a wide range of products and services across cloud acceleration, 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," "estimates" and similar statements. Among other things, the management's quotations and the "Guidance" section 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 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, (2) non-GAAP net income, (3) non-GAAP basic and diluted earnings per share for common shares, and (4) non-GAAP basic and diluted earnings per ADS. 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 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) | ||||
June 30, | December 31, | |||
2024 | 2023 | |||
US$ | US$ | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | 129,338 | 170,802 | ||
Short-term investments | 134,079 | 101,078 | ||
Accounts receivable, net | 32,492 | 31,210 | ||
Inventories | 2,018 | 2,219 | ||
Due from related parties | 12,812 | 12,644 | ||
Prepayments and other current assets | 10,124 | 9,423 | ||
Total current assets | 320,863 | 327,376 | ||
| ||||
Non-current assets: | ||||
Restricted cash | 514 | - | ||
Long-term investments | 30,690 | 32,134 | ||
Deferred tax assets | 666 | 478 | ||
Property and equipment, net | 57,972 | 60,028 | ||
Intangible assets, net | 9,120 | 5,697 | ||
Goodwill | 20,697 | 20,826 | ||
Due from a related party, non-current portion | 19,609 | 19,619 | ||
Long-term prepayments and other non-current assets | 3,306 | 1,953 | ||
Right-of-use assets | 438 | 575 | ||
Total assets | 463,875 | 468,686 | ||
| ||||
Liabilities | ||||
Current liabilities: | ||||
Accounts payable | 26,094 | 24,430 | ||
Due to related parties | 17 | - | ||
Contract liabilities, current portion | 38,155 | 36,375 | ||
Lease liabilities | 237 | 276 | ||
Income tax payable | 6,546 | 6,391 | ||
Accrued liabilities and other payables | 43,534 | 53,708 | ||
Short-term bank borrowings and current portion of long-term bank borrowings | 4,209 | 6,906 | ||
Total current liabilities | 118,792 | 128,086 | ||
Non-current liabilities: | ||||
Contract liabilities, non-current portion | 705 | 846 | ||
Lease liabilities, non-current portion | 156 | 229 | ||
Deferred tax liabilities | 1,053 | 513 | ||
Bank borrowings, non-current portion | 14,032 | 15,539 | ||
Total liabilities | 134,738 | 145,213 | ||
Equity | ||||
Common shares (US | 79 | 81 | ||
Additional paid-in-capital | 481,402 | 482,484 | ||
Accumulated other comprehensive loss | (19,978 | ) | (18,913 | ) |
Statutory reserves | 8,142 | 8,142 | ||
Treasury shares (51,476,384 shares and 56,634,999 shares as at December 31, 2023 and June 30, 2024, respectively) | 14 | 12 | ||
Accumulated deficits | (140,550 | ) | (146,944 | ) |
Total Xunlei Limited's shareholders' equity | 329,109 | 324,862 | ||
Non-controlling interests | 28 | (1,389 | ) | |
Total liabilities and shareholders' equity | 463,875 | 468,686 |
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 | ||||||
Jun 30, | Mar 31, | Jun 30, | ||||
2024 | 2024 | 2023 | ||||
US$ | US$ | US$ | ||||
Revenues, net of rebates and discounts | 79,603 | 80,359 | 104,307 | |||
Business taxes and surcharges | (270 | ) | (379 | ) | (302 | ) |
Net revenues | 79,333 | 79,980 | 104,005 | |||
Costs of revenues | (38,632 | ) | (37,139 | ) | (58,140 | ) |
Gross profit | 40,701 | 42,841 | 45,865 | |||
Operating expenses | ||||||
Research and development expenses | (17,470 | ) | (17,642 | ) | (17,175 | ) |
Sales and marketing expenses | (10,867 | ) | (10,061 | ) | (15,372 | ) |
General and administrative expenses | (11,231 | ) | (11,132 | ) | (12,442 | ) |
Credit loss (expenses)/ write-back , net | (166 | ) | 26 | (16 | ) | |
Total operating expenses | (39,734 | ) | (38,809 | ) | (45,005 | ) |
Operating income | 967 | 4,032 | 860 | |||
Interest income | 1,265 | 1,221 | 1,089 | |||
Interest expense | (182 | ) | (242 | ) | (423 | ) |
Other income, net | 2,535 | 290 | 4,699 | |||
Income before income taxes | 4,585 | 5,301 | 6,225 | |||
Income tax expenses | (2,065 | ) | (1,663 | ) | (1,259 | ) |
Net income | 2,520 | 3,638 | 4,966 | |||
Less: net loss attributable to non-controlling interest | (235 | ) | (1 | ) | (33 | ) |
Net income attributable to common shareholders | 2,755 | 3,639 | 4,999 | |||
Earnings per share for common shares | ||||||
Basic | 0.0086 | 0.0113 | 0.0153 | |||
Diluted | 0.0086 | 0.0112 | 0.0152 | |||
Earnings per ADS | ||||||
Basic | 0.0430 | 0.0565 | 0.0765 | |||
Diluted | 0.0430 | 0.0560 | 0.0760 | |||
Weighted average number of common shares used in calculating: | ||||||
Basic | 320,688,429 | 323,341,607 | 326,335,266 | |||
Diluted | 320,922,960 | 323,491,768 | 327,853,441 | |||
Weighted average number of ADSs used in calculating: | ||||||
Basic | 64,137,686 | 64,668,321 | 65,267,053 | |||
Diluted | 64,184,592 | 64,698,354 | 65,570,688 |
XUNLEI LIMITED | ||||||
Reconciliation of GAAP and Non-GAAP Results | ||||||
(Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||||
Three months ended | ||||||
Jun 30, | Mar 31, | Jun 30, | ||||
2024 | 2024 | 2023 | ||||
US$ | US$ | US$ | ||||
GAAP operating income | 967 | 4,032 | 860 | |||
Share-based compensation expenses | 631 | 901 | 3,480 | |||
Non-GAAP operating income | 1,598 | 4,933 | 4,340 | |||
GAAP net income | 2,520 | 3,638 | 4,966 | |||
Share-based compensation expenses | 631 | 901 | 3,480 | |||
Non-GAAP net income | 3,151 | 4,539 | 8,446 | |||
GAAP earnings per share for common shares: | ||||||
Basic | 0.0086 | 0.0113 | 0.0153 | |||
Diluted | 0.0086 | 0.0112 | 0.0152 | |||
GAAP earnings per ADS: | ||||||
Basic | 0.0430 | 0.0565 | 0.0765 | |||
Diluted | 0.0430 | 0.0560 | 0.0760 | |||
Non-GAAP earnings per share for common shares: | ||||||
Basic | 0.0106 | 0.0140 | 0.0260 | |||
Diluted | 0.0105 | 0.0140 | 0.0259 | |||
Non-GAAP earnings per ADS: | ||||||
Basic | 0.0530 | 0.0700 | 0.1300 | |||
Diluted | 0.0525 | 0.0700 | 0.1295 | |||
Weighted average number of common shares used in calculating: | ||||||
Basic | 320,688,429 | 323,341,607 | 326,335,266 | |||
Diluted | 320,922,960 | 323,491,768 | 327,853,441 | |||
Weighted average number of ADSs used in calculating: | ||||||
Basic | 64,137,686 | 64,668,321 | 65,267,053 | |||
Diluted | 64,184,592 | 64,698,354 | 65,570,688 | |||
CONTACT:
Investor Relations
Xunlei Limited
Email: ir@xunlei.com
Tel: +86 755 6111 1571
Website: http://ir.xunlei.com
FAQ
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