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Xunlei (XNET)
NASDAQ:XNET
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Xunlei
(NASDAQ:XNET)
63Neutral
Xunlei (XNET) vs. S&P 500 (SPY)
Market Cap
$227.44M
Dividend YieldN/A
Average Volume (3M)809.23K
Price to Earnings (P/E)240.3
Beta (1Y)1.26
Revenue Growth-11.16%
EPS Growth-92.61%
CountryUS
Employees1,215
SectorCommunication Services
Sector Strength75
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.01
Shares Outstanding61,470,238
10 Day Avg. Volume699,576
30 Day Avg. Volume809,225
Financial Highlights & Ratios
PEG Ratio0.91
Price to Book (P/B)N/A
Price to Sales (P/S)0.90
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Xunlei Business Overview & Revenue Model
Company DescriptionXunlei Limited (XNET) is a Chinese technology company renowned for its cloud-based acceleration technology. The company operates primarily in the internet sector, offering a suite of services that include cloud computing, blockchain technology, and digital media content delivery. Xunlei's flagship product is its cloud acceleration subscription service, which enhances internet speed and efficiency for users. Additionally, the company is involved in developing blockchain applications and providing shared cloud computing resources.
How the Company Makes MoneyXunlei generates revenue through several key channels. The primary source of income is its subscription-based cloud acceleration services, where users pay for enhanced download speeds and internet performance. Another significant revenue stream is its cloud computing services, where Xunlei offers shared computing power and storage solutions, catering to both individual and enterprise clients. Furthermore, the company capitalizes on its blockchain technology by developing and deploying blockchain-based applications. Xunlei also earns from digital advertising and online game operations, leveraging its substantial user base and internet traffic. Strategic partnerships with technology firms and content providers further contribute to its earnings by expanding its service offerings and market reach.
Xunlei Financial Statement Overview
Summary
Xunlei shows a stable balance sheet with low leverage and strong equity, scoring 75. However, the income statement and cash flow reveal operational challenges, with declining revenue and inadequate cash generation, scoring 65 and 40, respectively. Overall, the financial performance is hindered by the lack of profitability and cash flow efficiency.Income Statement
Xunlei's income statement reveals a fluctuating revenue trend with moderate growth. The Gross Profit Margin is approximately 51.8% for 2024, which indicates a strong ability to cover the cost of goods sold. However, the company struggles with profitability, as evidenced by negative EBIT and low Net Profit Margin of 0.4% for 2024. Revenue decreased by 11.1% from 2023 to 2024, highlighting potential challenges in sustaining growth.65
Positive
Balance Sheet
The balance sheet shows a strong equity position, with an Equity Ratio of 67.1% in 2024, indicating financial stability. The Debt-to-Equity Ratio is low at 0.09, suggesting minimal leverage and low financial risk. Additionally, the company maintains a healthy cash reserve, with cash and equivalents exceeding total debt. However, Return on Equity is only 0.4%, reflecting limited returns for shareholders.75
Positive
Cash Flow
Xunlei's cash flow statement highlights concerns. Operating Cash Flow to Net Income Ratio is 0 for 2024, indicating inefficiencies in converting revenue into cash. Free Cash Flow has been zero in 2024, signaling potential liquidity issues. The absence of cash flow growth and reliance on past cash reserves may pose risks to future operations if profitability does not improve.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 323.14M | 363.72M | 341.50M | 238.78M | 186.37M | Gross Profit |
| 167.57M | 163.07M | 141.44M | 120.18M | 93.73M | EBIT |
| -15.70M | -1.61M | 10.06M | -7.10M | -13.70M | EBITDA |
| 10.57M | 25.99M | 29.32M | 10.46M | 1.59M | Net Income Common Stockholders |
| 1.22M | 14.22M | 21.46M | 1.19M | -14.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 287.54M | 271.88M | 262.32M | 239.01M | 255.07M | Total Assets |
| 473.90M | 468.69M | 463.32M | 440.72M | 415.61M | Total Debt |
| 29.63M | 22.95M | 32.36M | 20.19M | 21.91M | Net Debt |
| -147.70M | -147.85M | -146.34M | -103.17M | -115.34M | Total Liabilities |
| 156.12M | 145.21M | 154.90M | 138.95M | 125.23M | Stockholders Equity |
| 318.06M | 324.86M | 309.89M | 303.65M | 292.15M |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 21.23M | 36.13M | 6.19M | -27.52M | Operating Cash Flow |
| 0.00 | 25.72M | 51.11M | 19.48M | -13.91M | Investing Cash Flow |
| 0.00 | -23.90M | 11.76M | -32.62M | -20.76M | Financing Cash Flow |
| 0.00 | -13.52M | 6.64M | -223.00K | 2.68M |
Xunlei Technical Analysis
Positive
3.70
Price Trends
3.91
Negative
3.02
Positive
2.41
Positive
Market Momentum
-0.19
Positive
46.99
Neutral
69.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XNET, the sentiment is Positive. The current price of 3.7 is below the 20-day moving average (MA) of 4.02, below the 50-day MA of 3.91, and above the 200-day MA of 2.41, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 69.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XNET.
Xunlei Risk Analysis
Xunlei disclosed 78 risk factors in its most recent earnings report. Xunlei reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Xunlei Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $227.44M | 240.26 | 0.38% | ― | -11.16% | -92.61% | |
59 Neutral | $135.05M | 11.41 | 494.69% | ― | -0.68% | 34.16% | |
59 Neutral | $13.83B | 7.37 | -0.59% | 3.89% | 2.56% | -39.63% | |
56 Neutral | $121.51M | ― | -45.22% | ― | 14.77% | -23.52% | |
46 Neutral | $64.26M | ― | -14.44% | ― | -3.58% | 50.73% | |
44 Neutral | $392.12M | ― | -40.41% | ― | -15.17% | -567.89% | |
40 Underperform | $7.82M | ― | -157.27% | ― | ― | ― |
* Communication Services Sector Average
Performance Comparison
XNET
Xunlei
3.70
2.22
150.00%
MCHX
Marchex
1.47
0.24
19.51%
TZOO
Travelzoo
12.01
2.74
29.56%
WIMI
WiMi Hologram Cloud
4.20
-2.68
-38.95%
ADV
Advantage Solutions
1.22
-3.27
-72.83%
VSME
VS Media Holdings Limited Class A
0.80
-2.18
-73.15%
Xunlei Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -24.64% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong subscription growth and live-streaming performance offset by significant challenges in the cloud computing segment, resulting in goodwill impairment and an increased operating loss. Despite the challenges, strategic initiatives such as the acquisition of Hupu and a solid cash position provide a foundation for future growth.Highlights
Record-Breaking Subscription Growth
Achieved a record-breaking 6.38 million subscribers for the subscription business in Q4 2024, marking a 9% year-over-year increase and a 12% annual growth rate from 2023 to 2024.
Live-Streaming Revenue Surge
Generated $27.2 million in live-streaming revenue in Q4 2024, representing an 80.7% year-over-year increase, driven by strategic pivot to emerging regions and product refinement.
Solid Cash Position
The company had cash, cash equivalents, and short-term investments of $287.5 million as of December 31, 2024, up from $272 million as of September 30, 2024.
Strategic Acquisition of Hupu
Announced the acquisition of Hupu, expected to unlock significant cross-platform synergies and enhance user engagement.
Lowlights
Cloud Computing Revenue Decline
Cloud computing revenue fell 25.6% year-over-year and 10.1% quarter-over-quarter in Q4 2024 due to heightened competition, pricing pressures, and regulatory challenges.
Goodwill Impairment
Recorded a $20.7 million goodwill impairment in Q4 2024 due to the significant decline in cloud computing revenue.
Decreased Total Annual Revenue
Total revenues for 2024 were $324.4 million, representing a decrease of 11.1% year-over-year, mainly due to decreased revenues from cloud computing and live-streaming businesses.
Increased Operating Loss
Operating loss for Q4 2024 was $20.5 million, compared with an operating loss of $0.7 million in Q4 2023, primarily due to the goodwill impairment.
Company Guidance
In the Xunlei Fourth Quarter and Fiscal Year 2024 Earnings Conference Call, the company outlined several key financial metrics and guidance. For Q4 2024, Xunlei reported total revenues of $84.3 million, marking a 9.3% year-over-year increase, with $34.4 million stemming from subscriptions and $27.2 million from live-streaming and IVAS, showcasing substantial growth in these areas. However, cloud computing revenue saw a decline of 25.6% year-over-year. The company ended the year with 6.38 million subscribers, a record-breaking number, and cash reserves of $287.5 million. Despite these gains, Xunlei faced a $20.7 million goodwill impairment due to challenges in the cloud computing sector, leading to a net loss of $9.9 million for the quarter. Looking ahead, the company provided revenue guidance for Q1 2025, estimating total revenues between $85 million and $89 million, indicating a potential quarter-over-quarter increase of about 3.2%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.