Q4 2024 Xunlei Ltd Earnings Call Transcript
Key Points
- Xunlei Ltd (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 (XNET) announced the acquisition of Hupu, expected to unlock significant cross-platform synergies and enhance user experiences.
- 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.
(interpreted) Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's fourth-quarter and fiscal year 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to turn the call over to the host, Investor Relations Manager, Ms. Luhan Tang. Please go ahead.
Good morning, everyone, and thank you for joining Xunlei's Q4 and fiscal year 2024 earnings conference call. With me today are Eric Zhou, CFO; and Li Li, Vice President of Finance. Our IR website has our earnings press release to supplement our prepared remarks during the call.
Today's agenda includes a prepared opening remark from Chairman and CEO, Mr. Jinbo Li, on Q4 operational highlights, followed by CFO Eric Zhou's presentation of financial results details of Q4 and fiscal year 2024 and revenue guidance for Q1 2025 before we open up the floor to your questions in the Q&A session. Please note that this call is recorded and can be
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