Feng Huang Wang·2025-08-16 03:49Core Insights - Xunlei's Q2 net profit saw a significant year-on-year increase, primarily due to investments in YingShi Innovation [1][2] - The company reported total revenue of $104 million for Q2, marking a 30.6% increase compared to the previous year [1] - The growth in revenue was driven by increases in core business income, including overseas voice live streaming, membership services, and advertising [1][2] Financial Performance - Q2 gross profit reached $51.2 million, up 25.9% year-on-year [1] - Net profit based on GAAP was $727.4 million, a staggering increase of 28,996% from $2.5 million in the same period last year [1] - Non-GAAP net profit for Q2 was $8.3 million, up 159% from $3.2 million year-on-year [1] Business Segments - Membership services revenue was $36.4 million, reflecting a 10.5% increase, driven by growth in membership numbers and average revenue per member [2] - Live streaming and other services revenue surged to $37.6 million, an 85.5% increase, attributed to the development of overseas voice live streaming and growth in advertising post-acquisition of Hupu [2] - Cloud computing services revenue reached $30 million, up 13.6%, due to increased demand from major clients [2] Strategic Investments - The successful investment in YingShi Innovation, which went public on June 11, 2024, generated a pre-tax gain of $720 million for the company [2][3] - YingShi Innovation's stock price increased significantly, closing at $224.42 per share as of August 15, 2024, with a market capitalization of 90 billion [3] Future Outlook - The company anticipates Q3 total revenue to be between $116 million and $124 million, indicating a projected quarter-on-quarter growth of approximately 15.4% [4] - The company plans to focus on business transformation and the adoption of decentralized and AI-driven technologies to enhance operations and user experience [3] R&D Investment - R&D expenses increased to $18.4 million, accounting for 17.7% of total revenue, compared to $17.5 million in the same period last year [3]