Xunlei Announces Unaudited Fourth Quarter and Full Year 2024 Financial Results

Core Viewpoint - Xunlei Limited reported its financial results for Q4 and full year 2024, highlighting a significant impairment charge to goodwill and a notable decline in cloud computing revenue, while subscription and live-streaming revenues showed growth [1][2][14]. Financial Highlights - Fourth Quarter 2024 Financial Results - Total revenues reached US$84.3 million, up 9.3% year-over-year [2][4]. - Subscription revenues were US$34.4 million, an increase of 9.0% year-over-year [2][5]. - Cloud computing revenues fell to US$22.7 million, down 25.6% year-over-year [2][6]. - Live-streaming and other IVAS revenues surged to US$27.2 million, up 80.7% year-over-year [2][7]. - Gross profit was US$43.6 million, reflecting an 8.7% increase year-over-year, with a gross profit margin of 51.7% [2][10]. - Net loss was US$9.9 million, compared to a net income of US$3.7 million in Q4 2023 [2][17]. - Non-GAAP net income was US$11.3 million, up from US$4.5 million in the same period last year [2][17]. - Diluted loss per ADS was US$0.16, compared to diluted earnings of US$0.06 in Q4 2023 [2][18]. - Full Year 2024 Financial Results - Total revenues were US$324.4 million, down 11.1% year-over-year [22]. - Subscription revenues increased to US$133.7 million, up 12.0% year-over-year [23]. - Cloud computing revenues decreased to US$104.6 million, down 15.3% year-over-year [24]. - Live-streaming and other IVAS revenues fell to US$86.1 million, down 29.5% year-over-year [25]. - Gross profit for the year was US$167.6 million, a 2.8% increase year-over-year, with a gross profit margin of 51.7% [29]. - Net income was US$0.7 million, down from US$14.3 million in the previous year [36]. - Non-GAAP net income remained stable at US$23.9 million [36]. Cost Structure - Costs of Revenues - Costs of revenues totaled US$40.4 million in Q4 2024, representing 47.9% of total revenues [8]. - Bandwidth costs were US$23.9 million, accounting for 28.3% of total revenues, down from 34.2% in Q4 2023 [9]. - Operating Expenses - Research and development expenses were US$18.7 million, 22.2% of total revenues [11]. - Sales and marketing expenses increased to US$12.5 million, 14.8% of total revenues [12]. - General and administrative expenses were US$12.1 million, 14.4% of total revenues [13]. Impairment and Losses - An impairment charge of US$20.7 million was recorded in Q4 2024 due to a decline in cloud computing revenue growth [14][33]. - Operating loss for Q4 was US$20.5 million, compared to a loss of US$0.7 million in Q4 2023 [15]. Cash Position and Share Repurchase - As of December 31, 2024, cash, cash equivalents, and short-term investments totaled US$287.5 million, up from US$272.0 million as of September 30, 2024 [19]. - The company spent US$5.6 million on share buybacks under a new program authorized in June 2024 [20]. Future Outlook - For Q1 2025, Xunlei estimates total revenues between US$85 million and US$89 million, indicating a potential quarter-over-quarter increase of approximately 3.2% [40].