Xunlei Ltd ( (XNET) ) has released its Q4 earnings. Here is a breakdown of the information Xunlei Ltd presented to its investors.
Xunlei Limited, a prominent technology company in China, specializes in distributed cloud services and digital entertainment, offering a range of products that enhance internet experiences. In its latest earnings report, Xunlei announced a mixed financial performance for the fourth quarter and full year of 2024. The company reported a 9.3% year-over-year increase in total revenues for the fourth quarter, driven by strong growth in subscription and live-streaming services, despite a significant decline in cloud computing revenues.
Key financial metrics revealed that Xunlei’s subscription revenues rose by 9.0% year-over-year, while live-streaming and other internet value-added services saw an impressive 80.7% increase. However, cloud computing revenues fell by 25.6% due to competitive pressures and regulatory challenges. The company also reported a net loss of $9.9 million for the fourth quarter, compared to a net income of $3.7 million in the same period of 2023, largely impacted by a $20.7 million impairment charge to goodwill.
For the full year 2024, Xunlei’s total revenues decreased by 11.1% compared to 2023, primarily due to declines in cloud computing and live-streaming revenues. Despite this, the company maintained a stable non-GAAP net income of $23.9 million, consistent with the previous year. The gross profit margin improved to 51.7%, up from 44.7% in 2023, reflecting a strategic shift towards higher-margin subscription services.
Looking ahead, Xunlei’s management remains optimistic about future growth, with plans to enhance its content ecosystem through strategic acquisitions and to integrate emerging technologies across its operations. The company anticipates revenue growth in the first quarter of 2025, projecting total revenues between $85 million and $89 million.