Xunlei Announces Unaudited Fourth Quarter and Full Year 2024 Financial Results
Rhea-AI Summary
Xunlei (NASDAQ: XNET) reported mixed Q4 2024 and full-year financial results. Q4 total revenues increased 9.3% YoY to $84.3 million, driven by growth in subscription (+9.0%) and live-streaming (+80.7%) revenues, while cloud computing declined 25.6%. The company recorded a Q4 net loss of $9.9 million, compared to net income of $3.7 million in Q4 2023.
Full-year 2024 revenues decreased 11.1% to $324.4 million. Despite revenue decline, gross profit increased 2.8% to $167.6 million, with margin improving to 51.7%. The company recorded a $20.7 million goodwill impairment charge due to declining cloud computing performance. Subscriber base grew to 6.38 million, up from 5.99 million year-over-year.
The company announced the acquisition of Hupu in January 2025, expecting immediate earnings accretion after closing. As of December 31, 2024, cash position stood at $287.5 million, and the company spent $5.6 million on share buybacks under its $20 million repurchase program.
Positive
- Record subscriber base of 6.38 million, driving 9.0% YoY growth in subscription revenue
- Live-streaming revenue increased 80.7% YoY in Q4
- Gross profit margin improved to 51.7% in 2024 from 44.7% in 2023
- Strong cash position of $287.5 million
- Strategic acquisition of Hupu expected to be immediately earnings accretive
Negative
- $20.7 million goodwill impairment charge in Q4 2024
- Cloud computing revenue declined 25.6% YoY in Q4 due to competition and regulatory pressures
- Full-year 2024 revenue decreased 11.1% to $324.4 million
- Q4 net loss of $9.9 million compared to $3.7 million profit in Q4 2023
- Full-year net income declined to $0.7 million from $14.3 million in 2023
News Market Reaction 1 Alert
On the day this news was published, XNET declined 1.22%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SHENZHEN, China, March 13, 2025 (GLOBE NEWSWIRE) -- Xunlei Limited ("Xunlei" or the "Company") (Nasdaq: XNET), a leading technology company providing distributed cloud services in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights:
- Total revenues were US
$84.3 million , representing an increase of9.3% year-over-year.
- Subscription revenues were US
$34.4 million , representing an increase of9.0% year-over-year.
- Cloud computing revenues were US
$22.7 million , representing a decrease of25.6% year-over-year. - Live-streaming and other internet value-added services (“Live-streaming and other IVAS”) revenues were US
$27.2 million , representing an increase of80.7% year-over-year.
- Gross profit was US
$43.6 million , representing an increase of8.7% year-over-year, and gross profit margin was51.7% in the fourth quarter, compared with51.9% in the same period of 2023.
- Net loss was US
$9.9 million in the fourth quarter, compared with net income of US$3.7 million in the same period of 2023.
- Non-GAAP net income1 was US
$11.3 million in the fourth quarter, compared with non-GAAP net income of US$4.5 million in the same period of 2023.
- Diluted loss per ADS was US
$0.16 in the fourth quarter, compared with diluted earnings per ADS of US$0.06 in the same period of 2023. - Non-GAAP diluted earnings per ADS2 were US
$0.18 in the fourth quarter, compared with non-GAAP diluted earnings of US$0.07 in the same period of 2023.
Full Year 2024 Financial Highlights:
- Total revenues were US
$324.4 million , representing a decrease of11.1% from 2023.
- Subscription revenues were US
$133.7 million , representing an increase of12.0% from 2023.
- Cloud computing revenues were US
$104.6 million , representing a decrease of15.3% from 2023.
- Live-streaming and other IVAS revenues were US
$86.1 million , representing a decrease of29.5% from 2023.
- Gross profit was US
$167.6 million , representing an increase of2.8% from 2023, and gross profit margin was51.7% , compared with44.7% in the previous year.
- Net income was US
$0.7 million , compared with net income of US$14.3 million in the previous year.
- Non-GAAP net income was US
$23.9 million , the same as the previous year. - Diluted earnings per ADS were US
$0.02 , compared with diluted earnings per ADS of US$0.22 in the previous year.
- Non-GAAP diluted earnings per ADS were US
$0.38 , compared with non-GAAP diluted earnings per ADS of US$0.37 in the previous year.
The financial highlights include an impairment charge to goodwill. This non-cash impairment charge, amounting to US
“Our performance was impacted by the notable decline in our cloud computing revenue. In the fourth quarter of 2024, cloud computing revenue fell
“In January 2025 we announced the acquisition of Hupu in an effort to deepen our content ecosystem and unlock new cross-platform synergies. We expect the deal to be immediately earnings accretive after closing. Going forward, we will continue to implement growth initiatives as well as explore corporate restructuring moves to be more focused and dynamic. Harnessing our deep-rooted technical expertise, we will strategically integrate emerging technologies across our operations, product development and user engagement efforts to create value for our shareholders,” Mr. Li concluded.
Fourth Quarter 2024 Financial Results
Total Revenues
Total revenues were US
Revenues from subscription were US
Revenues from cloud computing were US
Revenues from live-streaming and other IVAS were US
Costs of Revenues
Costs of revenues were US
Bandwidth costs, as included in costs of revenues, were US
The remaining costs of revenues mainly consisted of costs related to the revenue-sharing from our live-streaming business, payment handling charges and cost of inventories sold.
Gross Profit and Gross Profit Margin
Gross profit for the fourth quarter of 2024 was US
Research and Development Expenses
Research and development expenses for the fourth quarter were US
Sales and Marketing Expenses
Sales and marketing expenses for the fourth quarter were US
General and Administrative Expenses
General and administrative expenses for the fourth quarter were US
Impairment of Goodwill
An impairment of goodwill of US
Operating Loss
Operating loss was US
Other Income, Net
Other income, net was US
Net (Loss)/Income and (Loss)/Earnings Per ADS
Net loss was US
Diluted loss per ADS in the fourth quarter of 2024 was US
Cash Balance
As of December 31, 2024, the Company had cash, cash equivalents and short-term investments of US
Share Repurchase Program
On June 4, 2024, Xunlei announced that its Board of Directors had authorized a new plan for the repurchase of up to US
During the quarter ended December 31, 2024, the Company had repurchased a total of 1,981,792 ADSs for a total of US
Full Year 2024 Financial Results
Total Revenues
Total revenues were US
Revenues from subscription were US
Revenues from cloud computing were US
Revenues from live-streaming and other IVAS were US
Costs of Revenues
Costs of revenues were US
Bandwidth costs, a major component of the costs of revenues, were US
The remaining costs of revenues mainly consisted of costs related to the revenue-sharing costs for our live-streaming business, payment handling charges and cost of inventories sold.
Gross Profit and Gross Profit Margin
Gross profit for the year was US
Research and Development Expenses
Research and development expenses for the year were US
Sales and Marketing Expenses
Sales and marketing expenses for the year were US
General and Administrative Expenses
General and administrative expenses for the year were US
Impairment of Goodwill
An impairment of goodwill of US
Operating Loss
Operating loss was US
Other Income, Net
Other income, net was US
Net Income and Earnings Per ADS
Net income was US
Diluted GAAP earnings per ADS was US
Cash Balance
As of December 31, 2024, the Company had cash, cash equivalents and short-term investments of US
Share Repurchase Program
During the year ended December 31, 2024, the Company spent US
Guidance for the First Quarter of 2025
For the first quarter of 2025, Xunlei estimates total revenues to be between US
Conference Call Information
Xunlei's management will host a conference call at 8:00 a.m. U.S. Eastern Time on March 13, 2025 (8:00 p.m. Beijing/Hong Kong Time), to discuss the Company's quarterly results and recent business developments.
Participant Online Registration: https://register.vevent.com/register/BI571290b28e04470f8c18382c10e6680e
Please register to join the conference using the link provided above and dial in 10 minutes before the call is scheduled to begin. Once registered, the participants will receive an email with personal PIN and dial-in information, and participants can choose to access either via Dial-In or Call Me. A kindly reminder that "Call Me" does not work for China number.
The Company will also broadcast a live audio webcast of the conference call. The webcast will be available at http://ir.xunlei.com. Following the earnings conference call, an archive of the call will be available at https://edge.media-server.com/mmc/p/vrokw38a
About Xunlei
Founded in 2003, Xunlei Limited (Nasdaq: XNET) is a leading technology company providing distributed cloud services in China. Xunlei provides a wide range of products and services across cloud acceleration, shared cloud computing and digital entertainment to deliver an efficient, smart and safe internet experience.
Safe Harbor Statement
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "future," "intends," "plans," "estimates" and similar statements. Among other things, the management's quotations and the "Guidance" section in this press release, as well as the Company's strategic, operational and acquisition plans, contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Forward-looking statements involve inherent risks and uncertainties, including but not limited to: the Company's ability to continue to innovate and provide attractive products and services to retain and grow its user base; the Company's ability to keep up with technological developments and users' changing demands in the internet industry; the Company's ability to convert its users into subscribers of its premium services; the Company's ability to deal with existing and potential copyright infringement claims and other related claims; the Company’s ability to react to the governmental actions for its scrutiny of internet content in China and the Company's ability to compete effectively. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
About Non-GAAP Financial Measures
To supplement Xunlei's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Xunlei uses the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: (1) non-GAAP operating (loss)/income, (2) non-GAAP net income, (3) non-GAAP basic and diluted earnings per share for common shares, and (4) non-GAAP basic and diluted earnings per ADS. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Xunlei believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding the Company's operating performance by excluding share-based compensation expenses and impairment loss of goodwill, which are not expected to result in future cash payments. These non-GAAP financial measures also facilitate management's internal comparisons to Xunlei's historical performance and assist the Company's financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a recurring expense in Xunlei's results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying reconciliation tables at the end of this release include details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.
| XUNLEI LIMITED | ||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||
| December 31, | December 31, | |||
| 2024 | 2023 | |||
| US$ | US$ | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | 177,329 | 170,802 | ||
| Short-term investments | 110,209 | 101,078 | ||
| Accounts receivable, net | 32,662 | 31,210 | ||
| Inventories | 1,255 | 2,219 | ||
| Due from related parties | 31,519 | 12,644 | ||
| Prepayments and other current assets | 10,058 | 9,423 | ||
| Total current assets | 363,032 | 327,376 | ||
| Non-current assets: | ||||
| Restricted cash | 218 | - | ||
| Long-term investments | 30,599 | 32,134 | ||
| Deferred tax assets | 10,528 | 478 | ||
| Property and equipment, net | 55,430 | 60,028 | ||
| Intangible assets, net | 8,310 | 5,697 | ||
| Goodwill | - | 20,826 | ||
| Due from a related party, non-current portion | - | 19,619 | ||
| Long-term prepayments and other assets | 5,334 | 1,953 | ||
| Operating lease assets | 450 | 575 | ||
| Total assets | 473,901 | 468,686 | ||
| Liabilities | ||||
| Current liabilities: | ||||
| Accounts payable | 22,964 | 24,430 | ||
| Due to related parties, current | 17 | - | ||
| Contract liabilities, current portion | 39,936 | 36,375 | ||
| Lease liabilities | 253 | 276 | ||
| Income tax payable | 9,386 | 6,391 | ||
| Accrued liabilities and other payables | 52,093 | 53,708 | ||
| Short-term bank borrowings and current portion of long-term bank borrowings | 2,087 | 6,906 | ||
| Total current liabilities | 126,736 | 128,086 | ||
| Non-current liabilities: | ||||
| Contract liabilities, non-current portion | 458 | 846 | ||
| Lease liabilities, non-current portion | 161 | 229 | ||
| Deferred tax liabilities | 1,154 | 513 | ||
| Bank borrowings, non-current portion | 27,127 | 15,539 | ||
| Other long-term payables | 480 | - | ||
| Total liabilities | 156,116 | 145,213 | ||
| Equity | ||||
| Common shares (US | 77 | 81 | ||
| Additional paid-in-capital | 477,244 | 482,484 | ||
| Accumulated other comprehensive loss | (21,694 | ) | (18,913 | ) |
| Statutory reserves | 8,718 | 8,142 | ||
| Treasury shares (51,476,384 shares and 67,650,744 shares as at December 31, 2023 and December 31, 2024, respectively) | 16 | 12 | ||
| Accumulated deficits | (146,305 | ) | (146,944 | ) |
| Total Xunlei Limited's shareholders' equity | 318,056 | 324,862 | ||
| Non-controlling interests | (271 | ) | (1,389 | ) |
| Total liabilities and shareholders' equity | 473,901 | 468,686 | ||
| XUNLEI LIMITED Unaudited Condensed Consolidated Statements of (Loss)/Income (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| Dec 31, | Sept 30, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| US$ | US$ | US$ | US$ | |||||||||||||
| Revenues, net of rebates and discounts | 84,302 | 80,141 | 77,143 | 324,405 | 364,911 | |||||||||||
| Business taxes and surcharges | (313 | ) | (303 | ) | (287 | ) | (1,265 | ) | (1,189 | ) | ||||||
| Net revenues | 83,989 | 79,838 | 76,856 | 323,140 | 363,722 | |||||||||||
| Cost of revenues | (40,416 | ) | (39,380 | ) | (36,785 | ) | (155,567 | ) | (200,649 | ) | ||||||
| Gross profit | 43,573 | 40,458 | 40,071 | 167,573 | 163,073 | |||||||||||
| Operating expenses | ||||||||||||||||
| Research and development expenses | (18,716 | ) | (17,744 | ) | (19,497 | ) | (71,572 | ) | (74,201 | ) | ||||||
| Sales and marketing expenses | (12,461 | ) | (11,453 | ) | (9,350 | ) | (44,842 | ) | (43,509 | ) | ||||||
| General and administrative expenses | (12,102 | ) | (11,362 | ) | (11,618 | ) | (45,827 | ) | (46,875 | ) | ||||||
| Credit loss expenses, net | (75 | ) | (73 | ) | (293 | ) | (288 | ) | (100 | ) | ||||||
| Impairment of goodwill | (20,748 | ) | - | - | (20,748 | ) | - | |||||||||
| Total operating expenses | (64,102 | ) | (40,632 | ) | (40,758 | ) | (183,277 | ) | (164,685 | ) | ||||||
| Operating loss | (20,529 | ) | (174 | ) | (687 | ) | (15,704 | ) | (1,612 | ) | ||||||
| Interest income | 1,173 | 1,233 | 1,318 | 4,892 | 4,619 | |||||||||||
| Interest expense | (139 | ) | (165 | ) | (300 | ) | (729 | ) | (1,514 | ) | ||||||
| Other income, net | 1,541 | 4,817 | 3,523 | 9,183 | 16,904 | |||||||||||
| (Loss)/income before income taxes | (17,954 | ) | 5,711 | 3,854 | (2,357 | ) | 18,397 | |||||||||
| Income tax benefit /(expense) | 8,083 | (1,335 | ) | (137 | ) | 3,020 | (4,131 | ) | ||||||||
| Net (loss)/income | (9,871 | ) | 4,376 | 3,717 | 663 | 14,266 | ||||||||||
| Less: net (loss)/income attributable to non-controlling interest | (97 | ) | (219 | ) | 12 | (552 | ) | 41 | ||||||||
| Net (loss)/income attributable to common shareholders | (9,774 | ) | 4,595 | 3,705 | 1,215 | 14,225 | ||||||||||
| (Loss)/earnings per share for common shares | ||||||||||||||||
| Basic | (0.0312 | ) | 0.0145 | 0.0114 | 0.0038 | 0.0436 | ||||||||||
| Diluted | (0.0312 | ) | 0.0145 | 0.0114 | 0.0038 | 0.0435 | ||||||||||
| (Loss)/earnings per ADS | ||||||||||||||||
| Basic | (0.1560 | ) | 0.0725 | 0.0570 | 0.0190 | 0.2180 | ||||||||||
| Diluted | (0.1560 | ) | 0.0725 | 0.0570 | 0.0190 | 0.2175 | ||||||||||
| Weighted average number of common shares used in calculating continuing operations: | ||||||||||||||||
| Basic | 313,664,089 | 317,410,168 | 325,898,568 | 318,758,374 | 326,390,687 | |||||||||||
| Diluted | 313,664,089 | 317,921,168 | 326,160,722 | 319,146,281 | 326,849,502 | |||||||||||
| Weighted average number of ADSs used in calculating continuing operations: | ||||||||||||||||
| Basic | 62,732,818 | 63,482,034 | 65,179,714 | 63,751,675 | 65,278,137 | |||||||||||
| Diluted | 62,732,818 | 63,584,234 | 65,232,144 | 63,829,256 | 65,369,900 | |||||||||||
| XUNLEI LIMITED | ||||||||||||
| Reconciliation of GAAP and Non-GAAP Results (Excluding discontinued operations) | ||||||||||||
| (Amounts expressed in thousands of USD, except for share, per share (or ADS) data) | ||||||||||||
| Three months ended | Year ended | |||||||||||
| Dec 31, | Sept 30, | Dec 31, | Dec 31, | Dec 31, | ||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||
| US$ | US$ | US$ | US$ | US$ | ||||||||
| GAAP operating loss | (20,529 | ) | (174 | ) | (687 | ) | (15,704 | ) | (1,612 | ) | ||
| Share-based compensation expenses | 390 | 531 | 787 | 2,453 | 9,676 | |||||||
| Impairment of goodwill | 20,748 | - | - | 20,748 | - | |||||||
| Non-GAAP operating income | 609 | 357 | 100 | 7,497 | 8,064 | |||||||
| GAAP net (loss)/income | (9,871 | ) | 4,376 | 3,717 | 663 | 14,266 | ||||||
| Share-based compensation expenses | 390 | 531 | 787 | 2,453 | 9,676 | |||||||
| Impairment of goodwill | 20,748 | - | - | 20,748 | - | |||||||
| Non-GAAP net income | 11,267 | 4,907 | 4,504 | 23,864 | 23,942 | |||||||
| GAAP (loss)/earnings per share for common shares: | ||||||||||||
| Basic | (0.0312 | ) | 0.0145 | 0.0114 | 0.0038 | 0.0436 | ||||||
| Diluted | (0.0312 | ) | 0.0145 | 0.0114 | 0.0038 | 0.0435 | ||||||
| GAAP (loss)/earnings per ADS: | ||||||||||||
| Basic | (0.1560 | ) | 0.0725 | 0.0570 | 0.0190 | 0.2180 | ||||||
| Diluted | (0.1560 | ) | 0.0725 | 0.0570 | 0.0190 | 0.2175 | ||||||
| Non-GAAP earnings per share for common shares: | ||||||||||||
| Basic | 0.0362 | 0.0161 | 0.0138 | 0.0766 | 0.0732 | |||||||
| Diluted | 0.0362 | 0.0161 | 0.0138 | 0.0765 | 0.0731 | |||||||
| Non-GAAP earnings per ADS: | ||||||||||||
| Basic | 0.1810 | 0.0805 | 0.0690 | 0.3830 | 0.3660 | |||||||
| Diluted | 0.1810 | 0.0805 | 0.0690 | 0.3825 | 0.3655 | |||||||
| Weighted average number of common shares used in calculating: | ||||||||||||
| Basic | 313,664,089 | 317,410,168 | 325,898,568 | 318,758,374 | 326,390,687 | |||||||
| Diluted | 313,664,089 | 317,921,168 | 326,160,722 | 319,146,281 | 326,849,502 | |||||||
| Weighted average number of ADSs used in calculating: | ||||||||||||
| Basic | 62,732,818 | 63,482,034 | 65,179,714 | 63,751,675 | 65,278,137 | |||||||
| Diluted | 62,732,818 | 63,584,234 | 65,232,144 | 63,829,256 | 65,369,900 | |||||||
CONTACT:
Investor Relations
Xunlei Limited
Email: ir@xunlei.com
Tel: +86 755 6111 1571
Website: http://ir.xunlei.com
_______________
1 Non-GAAP net income is a non-GAAP financial measure. For more information, please see the section of “About Non-GAAP Financial Measures” and the table captioned “Reconciliation of GAAP and Non-GAAP Results (Excluding discontinued operations)” set forth at the end of this press release.
2 Non-GAAP earnings per ADS is a non-GAAP financial measure. For more information, please see the section of “About Non-GAAP Financial Measures” and the table captioned “Reconciliation of GAAP and Non-GAAP Results (Excluding discontinued operations)” set forth at the end of this press release.
FAQ
What caused Xunlei (XNET) to report a net loss in Q4 2024?
How many subscribers does XNET have as of Q4 2024?
What is the status of XNET's share repurchase program?
How did XNET's cloud computing segment perform in Q4 2024?
What is XNET's current cash position?
