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Dec 31, 2024
Xunlei Q4 2024 Earnings Report
Xunlei reported increased subscription and live-streaming revenues but recorded an operating loss in Q4 2024.
Key Takeaways
Xunlei's Q4 2024 revenue increased 9.3% year-over-year, driven by strong growth in subscription and live-streaming services. However, a decline in cloud computing revenue and an impairment charge to goodwill led to a net loss of $9.9 million. Non-GAAP net income was positive at $11.3 million, highlighting the strength of the core business. The company remains focused on subscription growth and expanding its digital content ecosystem.
Total revenue increased by 9.3% YoY to $84.3 million.
Cloud computing revenue declined 25.6% YoY to $22.7 million.
Net loss was $9.9 million due to a $20.7 million goodwill impairment.
Non-GAAP net income rose to $11.3 million from $4.5 million in Q4 2023.
Revenue by Segment
Forward Guidance
Xunlei expects modest revenue growth in Q1 2025, driven by an expanding subscription base and live-streaming revenues, while continuing to face challenges in cloud computing.
Positive Outlook
- Expected Q1 2025 revenue between $85 million and $89 million.
- Continued growth in subscription services with 6.38 million subscribers.
- Acquisition of Hupu expected to enhance the content ecosystem.
- Expansion of overseas live-streaming business.
- Strategic focus on leveraging emerging technologies for user engagement.
Challenges Ahead
- Continued decline in cloud computing revenue due to competition.
- High goodwill impairment charges impacting net income.
- Regulatory uncertainties in China's digital content sector.
- Increased sales and marketing expenses for user acquisition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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