Xunlei Announces Unaudited Financial Results for the First Quarter Ended March 31, 2024

Core Viewpoint - Xunlei Limited reported a decrease in total revenues for Q1 2024, primarily driven by a significant decline in live streaming revenues, while subscription revenues showed growth, indicating a mixed performance in its business segments [2][4][5]. Financial Highlights - Total revenues for Q1 2024 were US$80.4 million, a decrease of 19.0% year-over-year [2][4]. - Cloud computing revenues were US$30.2 million, down 7.8% year-over-year [2][4]. - Subscription revenues increased to US$33.1 million, reflecting a growth of 12.9% year-over-year [2][5]. - Live streaming and other IVAS revenues fell to US$17.1 million, a decrease of 54.1% year-over-year [2][6]. - Gross profit was US$42.8 million, up 8.2% year-over-year, with a gross profit margin of 53.3% compared to 39.9% in Q1 2023 [2][9]. - Net income for the quarter was US$3.6 million, compared to US$1.2 million in the same period of 2023 [2][15]. - Non-GAAP net income was US$4.5 million, down from US$5.5 million year-over-year [2][15]. Revenue Breakdown - The decline in total revenues was mainly due to reduced revenues from the live streaming business, attributed to downsizing operations since June 2023 [4][6]. - The increase in subscription revenues was driven by a larger premium subscriber base, which grew to 5.76 million from 4.84 million year-over-year [5]. - The average revenue per subscriber decreased to RMB39.5 from RMB41.0, influenced by promotional activities [5]. Cost and Profitability - Costs of revenues were US$37.1 million, representing 46.2% of total revenues, down from 59.8% in the same period of 2023 [7]. - Bandwidth costs were US$27.1 million, accounting for 33.8% of total revenues, a decrease from 29.3% year-over-year [7]. - Operating income was US$4.0 million, an increase from US$0.7 million in Q1 2023 [13]. Cash Position and Share Repurchase - As of March 31, 2024, the company had cash, cash equivalents, and short-term investments totaling US$272.5 million, slightly up from US$271.9 million at the end of 2023 [16]. - The company initiated a share repurchase program in June 2023, with approximately US$4.7 million spent on buybacks by March 31, 2024 [17]. Guidance - For Q2 2024, Xunlei estimates total revenues to be between US$79 million and US$84 million, indicating a potential quarter-over-quarter increase of approximately 1.4% [18].