Xunlei(US:XNET)2023-03-16 16:36Financial Data and Key Metrics Changes - In Q4 2022, Xunlei reported record revenues of $97 million, a sequential increase of 9.8% compared to the previous quarter, and total revenues for 2022 reached $342.6 million, up 43% year-over-year [6][19] - The net profit for 2022 was $21.3 million, reflecting an increase of 1,825.3% compared to 2021, marking both quarterly and annual revenues as the highest in the company's history [6][23] - Gross profit for Q4 2022 was $37.6 million, with a gross profit margin of 38.8%, down from 39.9% in the previous quarter [16] Business Line Data and Key Metrics Changes - Live streaming and IVAS revenue in Q4 2022 was $40.2 million, accounting for 41.4% of total revenues, with a 17.3% quarter-over-quarter growth and 108.6% year-over-year growth [7] - Cloud computing revenue reached $31.9 million in Q4 2022, representing 32.9% of total revenues, up 9.7% sequentially and 13.1% year-over-year [8] - Subscription revenue was $24.9 million in Q4 2022, a slight decrease of 0.2% sequentially and a decline of 5.2% year-over-year, with total annual revenue of $100.6 million, up 10.3% year-over-year [10][19] Market Data and Key Metrics Changes - Shenzhen Onething, a subsidiary of Xunlei, ranked third in the public edge cloud service market with an 11.3% market share in the first half of 2022 [9] - The company reported a total of 4.9 million subscribers by the end of 2022, an increase from 4.39 million at the end of 2021, with the proportion of premium service subscribers rising from 29.9% to 36.7% [10][11] Company Strategy and Development Direction - The company aims to deepen market penetration and enhance brand recognition while focusing on localized operations in existing markets, with no immediate plans for drastic expansion into new countries [25] - Xunlei plans to leverage its strong cash position and robust execution to capitalize on future growth opportunities and drive sustainable growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth prospects, emphasizing the resilience of their business model and the importance of monitoring regulatory policies and industry trends [11][12] - The company does not plan to pay dividends currently, preferring to use cash for potential growth opportunities [27] Other Important Information - The company relocated to its own headquarters at the end of 2022, which is expected to enhance its operational capabilities [12] - Xunlei authorized a share repurchase program of up to $20 million, with $6.8 million spent on repurchases as of December 31, 2022 [24] Q&A Session Summary Question: What countries does Xunlei operate in for its live streaming business? - Xunlei primarily operates in the Middle East, North and Southeast Asia, including countries like Indonesia and the Philippines, with plans to focus on existing markets rather than drastic expansion [25] Question: Does Xunlei have any deposits at SVB and how are they affected by its collapse? - Xunlei confirmed it has no deposits at SVB and is not affected by the incident [27] Question: Will Xunlei pay any dividends now that it is profitable? - Currently, Xunlei has no plans to pay dividends, opting to use cash for growth opportunities instead [27]