• Total Revenue (Q4 2024): $84.3 million, up 9.3% year over year.
• Subscription Revenue (Q4 2024): $34.4 million, up 9% year over year.
• Cloud Computing Revenue (Q4 2024): $22.7 million, down 25.6% year over year.
• Live Streaming and IVAS Revenue (Q4 2024): $27.2 million, up 80.7% year over year.
• Gross Profit (Q4 2024): $43.6 million, up 8.7% year over year.
• Gross Profit Margin (Q4 2024): 51.7%, compared to 51.9% in Q4 2023.
• Operating Loss (Q4 2024): $20.5 million, compared to $0.7 million in Q4 2023.
• Net Loss (Q4 2024): $9.9 million, compared to net income of $3.7 million in Q4 2023.
• Non-GAAP Net Income (Q4 2024): $11.3 million, compared to $4.5 million in Q4 2023.
• Cash, Cash Equivalents, and Short-term Investments (Dec 31, 2024): $287.5 million.
• Full-Year 2024 Total Revenue: $324.4 million, down 11.1% year over year.
• Full-Year 2024 Subscription Revenue: $133.7 million, up 12% year over year.
• Full-Year 2024 Cloud Computing Revenue: $104.6 million, down 15.3% year over year.
• Full-Year 2024 Live Streaming and IVAS Revenue: $86.1 million, down 29.5% year over year.
• Full-Year 2024 Gross Profit Margin: 51.7%, compared to 44.7% in 2023.
• Full-Year 2024 Operating Loss: $15.7 million, compared to $1.6 million in 2023.
• Full-Year 2024 Net Income: $0.7 million, compared to $14.3 million in 2023.
• Guidance for Q1 2025 Revenue: Estimated between $85 million and $89 million.

• Warning! GuruFocus has detected 6 Warning Sign with XNET.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Xunlei Ltd (NASDAQ:XNET) closed 2024 with solid fourth-quarter operating results, exceeding the upper end of their revenue guidance range.
• The subscription business achieved a record-breaking 6.38 million subscribers in Q4, demonstrating strong growth and strategic partnerships.
• Live streaming and IVAS revenue increased by 80.7% year-over-year, driven by strategic pivots to emerging regions like Southeast Asia and MENA.
• The company reported a gross profit margin of 51.7% for the fourth quarter, indicating efficient cost management.
• Xunlei Ltd (NASDAQ:XNET) announced the acquisition of Hupu, expected to unlock significant cross-platform synergies and enhance user experiences.

Negative Points

• Cloud computing revenue fell by 25.6% year-over-year in Q4 due to intensified competition and pricing pressures.
• The company recorded a non-cash goodwill impairment expense of $20.7 million, impacting financial results.
• Operating loss increased to $20.5 million in Q4, primarily due to the goodwill impairment.
• Net loss for Q4 was $9.9 million, a significant decline from a net income of $3.7 million in the same period of 2023.
• Total revenues for the full year 2024 decreased by 11.1% year-over-year, mainly due to declines in cloud computing and live streaming revenues.

Q & A Highlights

Q: What are Xunlei's plans following Yingshi's IPO, and will the company sell its shares? A: Eric Zhou, Chief Financial Officer, stated that it is too early to address this question as the IPO has not been completed yet. However, the company has high confidence in Yingshi and expects it to achieve great success in the future.

Q: Can you provide details on the business model and financial conditions of Hupu, which Xunlei recently acquired? A: Eric Zhou explained that Hupu is a sports platform established in 2004, offering comprehensive sports coverage and expert commentary. Its main revenue source is advertising. The acquisition is expected to be earnings accretive after closing in the first half of the year, but financial details cannot be disclosed until the deal is finalized.

Q: How did Xunlei's subscription business perform in Q4 2024? A: Jinbo Li, Chairman and CEO, highlighted that the subscription business generated $34.4 million in revenue, a 9% year-over-year increase. The number of subscribers reached a record 6.38 million, driven by strategic partnerships and an ecosystem-driven strategy.

Q: What challenges did Xunlei face in its cloud computing business during Q4 2024? A: Jinbo Li noted that cloud computing revenue fell 25.6% year over year due to intensified competition, pricing pressures, and unfavorable industry conditions. The company decided to write off the full amount of goodwill on the balance sheet as a result.

Q: What is the outlook for Xunlei's live streaming and IVAS business? A: Jinbo Li reported that the live streaming and IVAS business saw an 80.7% year-over-year revenue increase in Q4, driven by a strategic pivot to emerging regions like Southeast Asia and MENA. The company expects this positive trend to continue, leveraging product refinement and user engagement.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.