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Xunlei Announces Unaudited Financial Results for the Third Quarter Ended September 30, 2024
XNETXunlei(XNET) GlobeNewswire News Room·2024-11-14 10:00

Core Viewpoint - Xunlei Limited reported mixed financial results for Q3 2024, with total revenues decreasing year-over-year, but achieving continued profitability driven by growth in subscription services [5][7][20]. Financial Highlights - Total revenues for Q3 2024 were US80.1million,adecreaseof4.980.1 million, a decrease of 4.9% year-over-year [2][7]. - Cloud computing revenues were US25.3 million, down 14.4% year-over-year [2][8]. - Subscription revenues increased to US33.2million,up15.633.2 million, up 15.6% year-over-year, driven by a rise in the number of subscribers to 5.51 million [2][9]. - Revenues from live streaming and other IVAS were US21.6 million, a decrease of 16.7% year-over-year [2][10]. Profitability Metrics - Gross profit was US40.5million,anincreaseof7.840.5 million, an increase of 7.8% year-over-year, with a gross profit margin of 50.8% compared to 44.6% in Q3 2023 [3][14]. - Net income remained stable at US4.4 million, the same as in Q3 2023, while non-GAAP net income was US4.9million,downfromUS4.9 million, down from US5.5 million [3][20]. Cost Structure - Costs of revenues were US39.4million,representing49.139.4 million, representing 49.1% of total revenues, down from 55.1% in the same period of 2023 [11]. - Research and development expenses were US17.7 million, accounting for 22.1% of total revenues, a decrease from 23.1% year-over-year [15]. - Sales and marketing expenses increased to US11.5million,representing14.311.5 million, representing 14.3% of total revenues, up from 11.3% in Q3 2023 [16]. Cash Position and Share Repurchase - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments totaling US272.0 million, an increase from US263.4millionasofJune30,2024[22].−ThecompanyinitiatedasharerepurchaseprograminJune2024,withapproximatelyUS263.4 million as of June 30, 2024 [22]. - The company initiated a share repurchase program in June 2024, with approximately US1.5 million spent on buybacks by the end of Q3 2024 [23]. Guidance - For Q4 2024, Xunlei estimates total revenues to be between US77millionandUS77 million and US82 million, indicating a potential quarter-over-quarter decrease of approximately 0.7% [24].