Xunlei Limited reports Q3 2024 revenues of $80.1 million, a 4.9% decrease, with mixed performance across business lines.
Quiver AI Summary
Xunlei Limited announced its unaudited financial results for the third quarter of 2024, reporting total revenues of $80.1 million, a decline of 4.9% year-over-year, primarily due to decreases in cloud computing and live streaming revenues. Cloud computing recorded $25.3 million in revenues, down 14.4%, while subscription revenues grew by 15.6% to $33.2 million, reflecting an increase in subscriber numbers. Despite the overall revenue dip, gross profit rose by 7.8% to $40.5 million, resulting in a gross profit margin of 50.8%. Net income remained stable at $4.4 million year-over-year, with diluted earnings per American Depositary Share (ADS) at approximately $0.07. The company highlighted its continued profitability and positive operating cash flows, attributing the mixed revenue performance to operational adjustments. Looking forward, Xunlei expects total revenues between $77 million and $82 million for the fourth quarter of 2024 and plans to continue implementing its share repurchase program.
Potential Positives
- Subscription revenues increased by 15.6% year-over-year, driven by a rise in the number of subscribers from 5.02 million to 5.51 million.
- Gross profit grew by 7.8% year-over-year, with a gross profit margin improvement from 44.6% to 50.8%.
- The company maintained net income at US$4.4 million, consistent with the same period in the previous year, showcasing stability despite overall revenue decline.
- Xunlei reported an increase in cash, cash equivalents, and short-term investments to US$272.0 million, indicating strong liquidity and operating cash flows.
Potential Negatives
- Total revenues decreased by 4.9% year-over-year, indicating struggling business performance.
- Cloud computing revenues experienced a significant decline of 14.4% year-over-year, suggesting challenges in a critical business segment.
- Live streaming and other IVAS revenues also saw a notable decrease of 16.7% year-over-year, reflecting potential issues in maintaining market share or demand in that area.
FAQ
What are the key financial highlights for Xunlei in Q3 2024?
Total revenues were US$80.1 million, with a 4.9% year-over-year decrease, driven by mixed performance across business lines.
How did subscription revenues perform in Q3 2024?
Subscription revenues reached US$33.2 million, marking a 15.6% year-over-year increase, primarily due to a rise in subscribers.
What was Xunlei's net income for the third quarter of 2024?
Net income remained stable at US$4.4 million, the same as in Q3 2023, while non-GAAP net income was US$4.9 million.
What does Xunlei's share repurchase program entail?
Xunlei's board approved a repurchase of up to US$20 million in shares over 12 months, with approximately US$1.5 million spent so far.
What is the revenue guidance for Q4 2024?
Xunlei estimates total revenues will be between US$77 million and US$82 million, reflecting a slight quarter-over-quarter decrease.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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