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 of 23.7%
year-over-year.
- Cloud computing
revenues were US$26.4 million, representing a decrease of
13.8% year-over-year.
- Subscription
revenues were US$32.9 million, representing an increase of
10.8% 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 of
53.9% year-over-year.
- Gross profit was
US$40.7 million, representing a decrease of 11.3% year-over-year,
and gross profit margin was 51.1% in the second quarter, compared
with 44.0% 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 10.8% year-over-year due to our continued
iteration of our product features and cultivation of our user
community. Furthermore, we successfully launched Xunlei Browser on
major platforms, excelling in delivering exceptional experiences in
video streaming, web browsing, and novel reading. We are thrilled
to receive overwhelmingly positive user feedback and intend to
launch additional products in the coming days to better serve our
customers.”
“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$79.6 million,
representing a decrease of 23.7% year-over-year. The decrease in
total revenues was mainly attributable to the decreased revenues
from our live streaming business as a result of the downsizing of
our domestic audio live streaming operations since June 2023.
Revenues from cloud computing were US$26.4
million, representing a decrease of 13.8% year-over-year. The
decrease in cloud computing revenues was mainly due to the
decreased revenues generated from certain of our major customers of
the cloud computing services and a decline in sales of cloud
computing hardware devices.
Revenues from subscription were US$32.9 million,
representing an increase of 10.8% year-over-year. The increase in
subscription revenues was mainly driven by the increase in the
number of subscribers. The number of subscribers was 5.71 million
as of June 30, 2024, compared with 4.72 million as of June 30,
2023. The average revenue per subscriber for the second quarter was
RMB39.5, compared with RMB42.9 in the same period of 2023. The
lower average revenue per subscriber was due to more promotional
activities during the quarter.
Revenues from live streaming and other IVAS were
US$20.3 million, representing a decrease of 53.9% year-over-year.
The decrease of live streaming and other IVAS revenues was mainly
due to the downsizing of our domestic audio live streaming
operations since June 2023, which was partially offset by the
increase in the revenues from our overseas audio live streaming
business.
Costs of Revenues
Costs of revenues were US$38.6 million,
representing 48.5% of our total revenues, compared with US$58.1
million, or 55.7% of the total revenues, in the same period of
2023. The decrease in costs of revenues was mainly attributable to
the decreased revenue-sharing costs for our live streaming
business, as well as the decreased bandwidth costs incurred during
this quarter.
Bandwidth costs, as included in costs of
revenues, were US$25.8 million, representing 32.4% of our total
revenues, compared with US$28.9 million, or 27.7% of the total
revenues, in the same period of 2023. The decrease was primarily
due to the enhanced utilization efficiency and the decrease in
revenues from cloud computing service during the quarter.
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$40.7 million, representing a decrease of 11.3% year-over-year.
Gross profit margin was 51.10% in the second quarter, compared with
44.0% in the same period of 2023. The decrease in gross profit was
mainly driven by the decreased gross profit from our live streaming
business, partially offset by the increased gross profit from our
subscription business. The increase in gross profit margin was
primarily due to the higher portion of subscription revenues, which
have a higher gross profit margin, and the lower portion of live
streaming revenues, which have a relatively lower gross profit
margin.
Research and Development
Expenses
Research and development expenses for the second
quarter were US$17.5 million, representing 21.9% of our total
revenues, compared with US$17.2 million, or 16.5% of our total
revenues, in the same period of 2023.
Sales and Marketing
Expenses
Sales and marketing expenses for the second
quarter were US$10.9 million, representing 13.7% of our total
revenues, compared with US$15.4 million, or 14.7% of our total
revenues, in the same period of 2023. The decrease was primarily
due to a reduction in marketing expenses incurred for our live
streaming business as result of the downsizing of our domestic
audio live streaming operations since June 2023.
General and Administrative
Expenses
General and administrative expenses for the
second quarter were US$11.2 million, representing 14.1% of our
total revenues, compared with US$12.4 million, or 11.9% of our
total revenues, in the same period of 2023. The decrease was
primarily due to the decreased share-based compensation expenses,
partially offset by the increase in labor costs during the
quarter.
Operating Income
Operating income was US$1.0 million, compared
with an operating income of US$0.9 million in the same period of
2023. The increase in operating income was primarily attributable
to the decrease in marketing expenses and share-based compensation
expenses, partially offset by the decrease in gross profit from our
live streaming business during the quarter.
Other Income, Net
Other income, net was US$2.5 million, compared
with other income, net of US$4.7 million in the same period of
2023. The decrease was primarily due to the reduction in exchange
gains and subsidy income received during the quarter.
Net Income and
Earnings Per
ADS
Net income was US$2.5 million, 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 of 2024, compared with US$8.4
million in the same period of 2023. The decreases of net income and
non-GAAP net income were primarily attributable to the decrease in
gross profit and other income, partially offset by the decrease in
operating expenses as discussed above.
Diluted earnings per ADS in the second quarter
of 2024 was approximately US$0.04 as compared to US$0.08 in the
same period of 2023.
Cash Balance
As of June 30, 2024, the Company had cash, cash
equivalents and short-term investments of US$263.4 million,
compared with US$272.5 million as of March 31, 2024. The
decrease was mainly due to the net cash outflow from operating
activities, spending on share buybacks and payment for the
construction of Xunlei headquarters.
Share Repurchase Program
On June 6, 2023, Xunlei announced that its Board
of Directors had authorized the repurchase of up to US$20 million
of its shares over the next 12 months. As of June 30, 2024, the
Company had spent approximately US$4.7 million on share buybacks
under the aforesaid share repurchase program.
On June 4, 2024, Xunlei announced that its Board
of Directors had authorized a new plan for the repurchase of up to
US$20 million of its shares over the next 12 months. As of June 30,
2024, the Company had spent approximately US$0.5 million on share
buybacks under the new share repurchase program.
Guidance for the
Second Quarter of
2024
For the third quarter of 2024, Xunlei estimates total revenues
to be between US$81 million and US$86 million, and the midpoint of
the range represents a quarter-over-quarter increase of
approximately 4.9%. This estimate represents management's
preliminary view as of the date of this press release, which is
subject to change and any change could be material.
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$0.00025 par
value, 1,000,000,000 shares authorized, 375,001,940 shares issued
and 323,525,556 shares outstanding as at December 31, 2023;
375,001,940 issued and 318,366,941 shares outstanding as at June
30, 2024) |
79 |
|
81 |
|
| Additional
paid-in-capital |
481,402 |
|
482,484 |
|
| Accumulated other
comprehensive loss |
(19,978 |
) |
(18,913 |
) |
| Statutory reserves |
8,142 |
|
8,142 |
|
| Treasury shares (51,476,384
shares and 56,634,999 shares as at December 31, 2023 and June 30,
2024, respectively) |
14 |
|
12 |
|
| Accumulated deficits |
(140,550 |
) |
(146,944 |
) |
| Total Xunlei Limited's
shareholders' equity |
329,109 |
|
324,862 |
|
| Non-controlling
interests |
28 |
|
(1,389 |
) |
| Total liabilities and
shareholders' equity |
463,875 |
|
468,686 |
|
|
XUNLEI LIMITED |
|
Unaudited Condensed Consolidated Statements of
Income |
|
(Amounts expressed in thousands of USD, except for share, per share
(or ADS) data) |
| |
| |
Three months ended |
| |
|
| |
Jun 30, |
Mar 31, |
Jun 30, |
| |
2024 |
2024 |
2023 |
| |
US$ |
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 RelationsXunlei LimitedEmail:
ir@xunlei.comTel: +86 755 6111 1571Website:
http://ir.xunlei.com
Xunlei (NASDAQ:XNET)
과거 데이터 주식 차트
부터 7월(7) 2024 으로 8월(8) 2024
Xunlei (NASDAQ:XNET)
과거 데이터 주식 차트
부터 8월(8) 2023 으로 8월(8) 2024
