Xunlei Q4 GAAP EPS of $0.07,Revenue of $50.3M (+4.1% Y/Y)

(March 16)Xunlei reports Q4 results.

Xunlei Q4 GAAP EPS of $0.07.

Revenue of $50.3M (+4.1% Y/Y)

Fourth Quarter 2020 Financial Highlights:

• Total revenues were US$50.3 million, representing an increase of 15.0% from the previous quarter.

• Cloud computing and other internet value-added services (“Cloud computing and other IVAS”) revenues were US$25.9 million, representing an increase of 22.0% from the previous quarter.

• Subscription revenues were US$20.7 million, representing an increase of 5.5% from the previous quarter.

• Online advertising revenues consisting primarily of revenues from mobile advertising were US$3.8 million, representing an increase of 27.6% from the previous quarter.

• Gross profit was US$26.8 million, representing an increase of 18.3% from the previous quarter, and gross margin was 53.3% in the fourth quarter, compared with 51.9% in the previous quarter.

• Net income was US$4.6 million in the fourth quarter, compared with a net loss of US$1.5 million in the previous quarter.

• Diluted earnings per ADS was approximately US$0.07 as compared with a loss of US$0.02 in the previous quarter.

Fiscal Year Ended December 31, 2020 Financial Highlights:

• Total revenues were US$186.7 million, representing an increase of 3.0% from 2019.
• Cloud computing and other IVAS revenues were US$89.2 million, representing an increase of 6.0% from 2019.

• Subscription revenues were US$84.3 million, representing an increase of 3.4% from 2019.

• Online advertising revenues were US$13.2 million, representing a decrease of 15.6% from 2019.

• Gross profit was US$93.7 million, representing an increase of 16.1% from 2019, and gross margin was 50.2%, compared with 44.5% in the previous year.

• Net loss was US$14.1 million for fiscal year 2020, compared with a net loss of US$53.4 million for 2019.

• Diluted loss per ADS in 2020 was US$0.21, compared with a loss of US$0.79 in the previous year.

Mr.Jinbo Li, Chairman and Chief Executive Officer of Xunlei, stated that, “We closed 2020 with a strong fourth quarter, completing a year of transition and progresses by outperforming our revenue guidance and achieving profitability in the quarter. The successful execution of our strategic focus on our core competitiveness and operational optimization is paying off with excellent results in all key operating and financial metrics. We are pleased to report a 15.0% quarter-over-quarter growth in our total revenues and a net income of $4.6 million in the fourth quarter.”

“In 2020, we focused on optimizing our product features to improve user experiences and enhance our long-term competitiveness. Especially, we continued expansion of our cloud computing service capabilities with a growing and diversified enterprise client base. We also furthered our endeavor to improve blockchain technology and explored its applications by cooperating with higher learning institutions and other entities.”

“Looking forward, we have high expectations for 2021 and anticipate it will be a year of continued progresses and accomplishments. We are thrilled that the construction of our long-waited Xunlei headquarters building will soon be completed and we’ll immediately start to prepare for operations. The completion of Xunlei building will release us from a significant capital commitment and allow us to allocate additional resources for business development. Our goal is to continue product innovation and seek breakthroughs in our business development. In particular, we will continue to develop our decentralized digital database technology and computing paradigm and explore game-changing applications. We will also develop differentiated short-video products and set sights on selected international markets. With approximately $255.1 million cash, cash equivalents and short-term investments on hand, we believe our solid balance sheet will put us in a strong position to finance growth and capture new opportunities,” concluded Mr.Jinbo Li.