Q2 2024 Xunlei Ltd Earnings and Business Update Call
Operator: Welcome, ladies and gentlemen, and thank you for your patience. You are joining Xunlei's 2nd quarter 2024 earnings conference call. At this time, all participants are in a listen only mode, and we advise you that today's conference is being recorded.
Yeah.
Speaker Change: Welcome Ladies and gentlemen, thank you for your patients you see in a.
Speaker Change: Second quarter 2020 earnings.
Speaker Change: Earnings Conference call.
Speaker Change: This time all participants are in a listen only mode. Please be advised that today's conference is being recorded.
Speaker Change: I turn the call back to the host Investor Relations manager Mr. Lu.
Good morning, everyone and thank you for joining <unk> Q2, 2024 earnings Conference call with me today are Eric Zhou CFO and lately.
Speaker Change: Our IR website.
Speaker Change: This press release.
Speaker Change: The arbitrator remarks during the call.
Luhan Tang: Today's agenda includes a prepared opening remark from Chairman and CEO Mr. Jinbo Li on Q2 Operations Highlights, followed by CFO Mr. Eric Zhou presenting financial results details and revenue guidance for Q3 2024, before we open up the floor to your questions in the Q&A session. Please note that this call is recorded and can be replayed on our Investor Relations website at ir.xunlei.com. Before we get started, I would like to take this opportunity to remind you that this discussion today will contain certain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Speaker Change: Today's agenda.
Speaker Change: Opening remarks, I'm, chairman and CEO, Mr. Tim Boddy.
Speaker Change: Two operations highlights followed by CFO, Mr. Eric Zhou presenting financial results detailed in our revenue guidance for the Q3 2024.
Speaker Change: And up the floor to your questions in the Q&A session. Please.
Please note that this cost recorded and can be replayed or our investor relations website at IR.
Luhan Tang: Such statements are based on management's current expectations under current market conditions that are subject to risks and uncertainties that are difficult to predict, which may cause actual results to differ materially from those made in a forward. Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results. We assume no obligations to update any forwarded statements except as required under Uplink below. On this call, we will be using both GAAP and non-GAAP financial measures.
Speaker Change: Hum.
Speaker Change: Before we get started I would like to take this opportunity to remind you that.
Speaker Change: This discussion today will contain certain forward looking statements made under the safe.
Speaker Change: The U S Private Securities Litigation Reform Act of.
Speaker Change: 1995.
Speaker Change: Such statements are based on management's current expectations.
Speaker Change: Current market conditions.
Speaker Change: Object to risks and uncertainties.
Speaker Change: I want to predict.
Speaker Change: Cause actual results to differ materially from those made in the forward.
Speaker Change: David.
Speaker Change: Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results.
Speaker Change: Shall I assume no obligations to update any forward looking statements, except as required under applicable law.
Luhan Tang: A reconciliation of non-GAAP to comparable GAAP measures can be found in our earnings portfolio. Please note that all numbers are in U.S. dollars unless otherwise stated. Now, the following is prepared to be amended by Mr. Jinbo Li, Chairman and CEO of Xunlei. Good morning and good evening, everyone.
Speaker Change: On this call, we will be using both GAAP and non-GAAP financial measures.
Speaker Change: non-GAAP to comparable GAAP measures can be found in our earnings press release.
Speaker Change: Please note that all numbers are in U S dollars.
Speaker Change: Unless otherwise stated.
Jim <unk>: Following his prepared statement, Mr. Jim <unk>, Chairman and CEO of <unk> limited.
Jinbo Li: Thank you all for joining us today. Our second quarter results are in line with our expectations, and we're pleased to maintain the momentum of profitability. In particular, our subscription business has demonstrated robust performance with a year-over-year increase of 10.8% in revenue, and the growth can be attributed to our continuous improvement of product features and effective marketing aimed at enhancing user engagement. Furthermore, during the second quarter, we successfully launched Xunlei browser on major platforms, which has been widely acclaimed for its exceptional performance in video streaming. Wang, and Jinbo Li, Xunlei Tang, Jinbo Li, Xunlei Tang, Jinbo Li, Xunlei Tang, Jinbo Li, Xunlei Tang, Wang, I'd like to share with you some highlights of our operation.
Speaker Change: Okay.
Speaker Change: Good morning, and good evening, everyone. Thank you all for joining US today, our second quarter results are in line with our expectations and we're pleased to maintain the momentum of profitability in.
In particular, our subscription business has demonstrated robust performance with a year over year increase of 10, 8% in revenue and the growth can be attributed to our continuous improvement of product features and effective marketing aimed at enhancing user.
Engagement.
Speaker Change: Furthermore, during the second quarter were successfully launched browser major.
Speaker Change: Major platforms, which has been widely acclaimed for its exceptional performance in video streaming web browsing and novel novel ratings.
Speaker Change: The positive feedback received from the users has been overwhelming and it speaks to the dedication and hard work put forth by our team.
Speaker Change: I'd like to share some with you some highlights of our operations.
Jinbo Li: As mentioned earlier, our subscription business has achieved impressive revenue growth. We are thrilled to have witnessed a remarkable increase of about 1 million users in our subscriber base over the past year. We are grateful for the continuous support and trust shown by our user community.
Speaker Change: As mentioned earlier, our subscription subscription business has achieved impressive revenue growth. We're thrilled to have witnessed a remarkable increase of about one <unk>.
Speaker Change: They are subscription.
Subscriber base over the passenger.
Speaker Change: We're grateful for the continuous support and trust shown by our user community there.
Jinbo Li: Their engagement and active participation plays an important role in shaping the success of our product. As we move forward, we will continue to prioritize innovation, users' center, and collaboration and learn how to achieve innovation and learn how to achieve innovation. By leveraging cutting-edge technologies and fostering an inclusive environment that boosts user acquisition, we aim to further enhance not only our subscription business but also all aspects of Xunlei's products and services. In the second quarter, our cloud computing business faced challenges as we experienced a decline in revenue of $26.4 million, representing a decrease of 13.8% year over year.
Speaker Change: Their engagement in active participation plays an important role in shaping the success of our product.
Speaker Change: As we move forward, we will continue to prioritize innovation user at the center.
Speaker Change: Your city and collaboration among our teams.
Speaker Change: The leverage in cutting edge technologies, and fostering and courses.
Speaker Change: And that boosted user acquisition, we aim to further enhance not only our subscription business, but also all aspects of product and services.
Speaker Change: In the second quarter, our cloud computing business faced challenges as we experienced a decline in revenue of $26 $4 million.
Speaker Change: 19, a decrease of 13, 8% year over year.
Jinbo Li: This decline was attributed to intense pricing competition among competitors and a reduced sales volume of our hardware devices. To address these challenges, we have been actively adapting our strategies to align with the, Our focus remains on leveraging our competitive edge and market position to improve financial performance by providing technology-leading and cost-effective products as well as superb services. This revenue from our live streaming business and IVAS business reached $20.3 million, representing a quarter-over-quarter increase of 18.7% and a year-over-year decrease of 53.9%.
Speaker Change: This decline was attributed to intense pricing competition amongst competitors and the reduced sales volume of our hardware devices to address these challenges we have been actively adapting our strategies to align with the lobby industrial landscape.
Speaker Change: Our focus remains on leveraging our competitive edge and market position to improve financial performance by providing technology, leading and cost effective products as well as support services.
Speaker Change: This revenue from our <unk> business and I V. A S business reached $20 $3 million, representing a quarter over quarter increase of 18, 7% year over year decrease of 53, 9%.
Jinbo Li: The significant year-over-year decline is due to the impact of our strategic downsizing of our domestic audio live streaming since the second quarter last year. However, we are pleased to see that our efforts to mitigate the negative impact by expanding our overseas markets yielded positive results in the second quarter of this year.
Speaker Change: Never count year over year decline is due to the impact from our strategic downsizing of our domestic audio live streaming businesses since the second quarter last year. However, we're pleased to see that our efforts to mitigate the negative impact by expanding our overseas market yielded positive results in the second quarter.
Jinbo Li: Our expansion initiatives have allowed us to tap into new customer bases and diversify our revenue streams. Moving forward, to grow our business, we will continue exploring international markets while improving existing products and services based on users' feedback and the latest market trends. Looking ahead, we will continue to explore all options. Wang, and Jinbo Li, Xunlei Tang, Jinbo Li, Xunlei Tang, Jinbo Li, Xunlei Tang, Jinbo, Zhang, Zhou Naijiang, Luhan Tang. We believe we are well-positioned to create long-term and sustainable value for all shareholders. With that, I will now pass the call over to Eric.
Speaker Change: This year.
Speaker Change: Our expansion initiatives have allowed us to tap into new customer bases and diversify our revenue streams.
Speaker Change: Moving forward to grow our business, we will continue exploring international markets, while improving existing products and services based on user feedback and the latest market trends.
Looking ahead, we will continue to explore all options to maintain our position as a leading distributed cloud service provider to meet the evolving needs of our users and clients with.
Speaker Change: With a strong operational track record and balance sheet and continued investments in innovation and growth initiatives. We believe we are well positioned to create long term and sustainable value for all shareholders.
Speaker Change: With that I'll now pass the call over to Eric Eric will give a detailed review of our Q2 financial results and provided revenue guidance for the third quarter of 2024.
Eric Zhou: Eric will give a detailed review of our Q2 financial results and provide revenue guidance for the third quarter of 2021. Thank you, Luhan. Thank you all again for participating in Xunlei's conference call to discuss the financial results of the second quarter of 2024. In the second quarter, our total revenues were $79.6 million, representing a decrease of 23.7% year-over-year. The decrease in total revenues was mainly attributable to decreased revenues from our live streaming business as a result of the downsizing of our domestic audio live streaming operations since June 2023. Revenue from Subscription was $32.9 million, representing an increase of 10.8% year-over-year. The increase in subscription revenues was mainly driven by an increase in the number of subscribers.
Speaker Change: Okay.
Eric: Thank you. Thank you again for participating in <unk> conference call to discuss <unk>.
Eric Zhou: The number of subscribers was 5.71 million as of June 30, 2024, compared with 4.72 million as of June 30, 2023. The average revenue per subscriber for the second quarter of 2024 was RMB39.5, compared with RMB42.9 in the same period of 2023. The lower average revenue per subscriber was due to more promotional activities during the second quarter of this year. However, revenues from cloud computing were $26.4 million, representing a decrease of 13.8% year-over-year. The decrease in crowd-computing revenues was mainly due to decreased revenues generated from certain of the major customers of the crowd-computing services and declined sales of crowd-computing hardware devices.
Eric: Financial results for the second quarter of 2020.
Eric Zhou: Revenue from live streaming and other IVS was $20.3 million, representing a decrease of 53.9% year-over-year. The decrease in live streaming and other IVAS revenues was mainly due to the downside of what the mask of audio live streaming operations to June 2023, which was partially offset by the increase in revenues from our OCS audio live streaming. [inaudible] Costs of revenues were $38.6 million, representing 48.5% of auto revenues, compelled with $58.1 million, or 55.7% of the total revenues in the same period of 2023.
Eric: In the second quarter, our total revenues were $79 6 million dose. So it was.
Speaker Change: 19, a decrease of 23, 7% year over year.
Speaker Change: The decrease in total revenues was mainly attributable to the decreased revenue from our live streaming business.
Speaker Change: It was also to Tom Hardy.
Speaker Change: First audio streaming operations since the June 2023.
Speaker Change: Revenues from subscription what $30 million to $49 million, representing a decrease of 10, 8% year over year.
Speaker Change: The increase in subscription revenues was mainly driven by the increase in a number of <unk> subscribers.
Speaker Change: <unk> subscribers was 571 beauty.
Speaker Change: The June 30 is 2024.
Speaker Change: With $4 7 million Silver June 23.
Speaker Change: The average revenue per subscriber for the second quarter of 2020, Therefore was RMB 39 five.
Speaker Change: <unk> 42 per month in the same period of time.
Speaker Change: And the street.
Speaker Change: The lower average revenue per subscriber was still too low promotional activities during the second quarter book This year.
Speaker Change: Revenues from cloud computing was $26 $4 million, representing a decrease of 13, 8% year over year.
Speaker Change: The decrease in cloud computing revenues was mainly due to the decreased revenues generated from certain of our major customers of the cloud computing services and a decline in the sales of cloud computing hardware devices.
Speaker Change: Revenue from live streaming and other <unk> were $23 million, representing a decrease of 53, 9% year over year.
Speaker Change: <unk> of live streaming and other idea its revenues was mainly due to the bank's Hardy for domestic audio live streaming operations.
Speaker Change: June 2023 which was partially offset by the increase in the revenues from our overseas audio live streaming business.
Speaker Change: Cost cost of revenues were $38 $6 million.
Speaker Change: <unk> 1948, 5% total revenues compared with 58 one.
Speaker Change: $1 million or 55, 7% of the total revenues in the same period of 2023.
Eric Zhou: The decrease in cost of revenues was mainly attributable to the decreased revenue sharing costs for our live streaming business, as well as the decreased bandwidth costs incurred during the quarter. Fanlu's costs, as included in cost of revenues, were $25.8 million, representing 32.4% of our total revenues, compared with $28.9 million, or 27.7% of the total revenues in the same period of 2023. The decrease was primarily due to enhanced utilization efficiency and a decrease in revenues of cloud computing services during the quarter.
Speaker Change: The decrease in cost of revenues was mainly attributable to the decreased revenue sharing costs for our live streaming business.
Speaker Change: The decreased bandwidth costs incurred during the quarter.
Speaker Change: Sure.
Speaker Change: <unk> costs are included in cost of revenues were $25 8 million.
Speaker Change: Representing 32, 4% of our total revenues compared with $28 9 million or 27, 7% of the total revenues in the same period of 2023.
Speaker Change: Decrease was primarily due to the enhanced.
Speaker Change: Efficiency and a decrease in revenues of the cloud computing services during the quarter.
Eric Zhou: The remaining costs of revenues mainly consisted of costs related to revenue sharing costs for a live streaming business, payment handling charges, cost of inventory sold, and depreciation of servers and other equipment. Gross profit for the second quarter of 2024 was $14.7 million, representing a decrease of 11.3% year-over-year. Gross profit margin was 51.1% in the second quarter, compared with 44% in the same period of 2023. The decreasing growth profit was mainly driven by the decreased growth profit from our live streaming business, partially offset by the increased growth profit from our subscription business.
There are many cost of revenues mainly consisted of costs related to the revenue sharing costs for live streaming business payment handling charges cost of inventories sold and depreciation of servers and other equipment.
Gross profit for second quarter of 2024 was $14 $7 million, representing a decrease of 11, 3% year over year.
Speaker Change: Gross profit margin was 51, 1% in the second quarter compared with 44%.
Speaker Change: In the same period of 2023.
The decrease in gross profit was mainly driven by the decrease in gross profit from our lab streaming business, partially offset by the increased gross profit from our subscription business.
Eric Zhou: The increase in gross profit margin was mainly due to the high portion of the subscription revenues, which have a high gross profit margin, and the lower portion of the live streaming revenues, which have a relatively lower gross profit margin.
Speaker Change: The increase in gross profit margin was mainly due to the high portion of the subscription revenues, which have a higher gross margin and then the lower portion of lost fee revenues, which have relatively lower gross profit margin.
Eric Zhou: Research and Development Expenses for the second quarter were $17.5 million, representing 21.9% of our total revenues, compared with $17.2 million, or 16.5% of our total revenues in the same period of 2023. Sales and marketing expenses for the second quarter were 10.9 million dollars, representing 13.7 percent of our total revenues, compared with 15.4 million dollars, or 14.7 percent of our total revenues in the same period of 2023. The decrease was primarily due to a reduction in marketing expenses incurred for a live streaming business as a result of the downsizing of our domestic audio live streaming operations since June 2023.
Speaker Change: Research and development expenses for the second quarter was $75 million, representing 21, 9%, but total revenues compared with $17 2 million or 16, 5% total revenues in the same periods after 2023.
Speaker Change: Sales and marketing expenses for the second quarter were $10 $9 million, representing 13% of our total revenues compared with $15 $4 million or 14, 7%, but total revenues in the same period of 2023.
Speaker Change: The decrease was primarily due to a reduction in marketing expenses incurred for a large streaming business.
Speaker Change: As a result of the uncertainty, but domestic audio live streaming operations since the June 2023.
Eric Zhou: General and administrative expenses for the second quarter of 2024 were 11.2 million dollars, representing 14.1% of our total revenues compared to 12.4 million dollars, or 11.9% of our total revenues in the same period of 2023. The decrease was primarily due to decreased share-based compensation expenses, partially offset by the increase in labor costs during the quarter. Corporate income was 1 million dollars, compared with an operating income of 0.9 million dollars in the same period of 2023.
Speaker Change: General and administrative expenses for the second quarter of 2024 was $11 $2 million, representing 14, 1% of our total revenues.
Speaker Change: Paired with 12.
Speaker Change: Meeting dollars or 11, 9%.
Speaker Change: Total revenues in the same period opportunities like the suite.
Speaker Change: The decrease was primarily due to the decreased share based compensation expenses, partially offset by the increase in labor costs during the quarter.
Speaker Change: Operating income was $1 million.
Speaker Change: Paired with an operating income of <unk> <unk>.
$9 million in the same period of 2023 the increase in operating income was primarily attributable to the decreased marketing expenses and share based compensation expenses, partially offset by the decrease in gross bookings from large Jimmy business during the quarter.
Other income net was $2 $5 million compared with other income net of $4 70 in the same period of Chinese industry.
The decrease was primarily due to the reduction in exchange of views and subsidy income received during the quarter.
Eric Zhou: Net income attributable to common shareholders was $2.8 million, compared with $5 million in the same period of 2023. Non-GAAP net income was $3.2 million in the same period of 2024, compared with $8.4 million in the same period of 2023. The decrease in net income and non-GAAP net income was primarily attributable to the decrease in gross profit and other income, partially offset by the decrease in operating expenses, as discussed above.
Speaker Change: Net income.
Speaker Change: <unk> attributable to common shareholders was $2 8 million compared with probably not to the same period, Oxford Street.
Speaker Change: non-GAAP net income was $3 2 million in the same period.
Speaker Change: For 2024, compared with $8 $4 million in the same period of 2003.
Speaker Change: The decrease of net income and our non-GAAP net income was primarily attributable to the decrease in gross profit and other income partially offset by the decrease in operating expenses as discussed above.
Eric Zhou: Da Ruchit Owning's per share price in the second quarter of 2024 was approximately four cents as compared to eight cents in the same period of 2023. As of June 30, 2024, the country had cash, cash equivalents, and short-term investments of 263.4 million dollars, compared to its 272.5 million dollars as of March 31, 2024. The decrease was mainly due to net cash outflows from operating activities, spending on share buybacks, and settlements for the construction of Xunlei Building's headquarters.
Speaker Change: Diluted earnings per share. It is in the second quarter of 2020 before was approximately eight four times as compared to eight strengths in the same period of 2023.
Speaker Change: As of June 32010, before the company had cash cash equivalents and short term investments of $263 $4 million.
Speaker Change: I'm proud with $272 $5 million as Gulf of Mexico, The 194.
Speaker Change: Kris was mainly due to the net cash outflows from operating activities spending on share buybacks and settlements of construction of two new buildings headquarters.
Eric Zhou: Now turning to a share repurchase program, in June 2023, Xunlei announced that its board of directors had authorized to repurchase up to 20 million dollars of shares over the next 12 months. As of June 30, 2024, the company had spent approximately $4.7 million on share buybacks under the aforementioned share repurchase program. In June 2024, the board of directors of the company authorized a new plan for the purchase of up to $20 million of shares over the next 12 months. As of June 30, 2024, the company had spent approximately half a million dollars on the sale of products.
Speaker Change: Now turning to our share purchase repurchase program in June 2023, surely announced that its board of directors had authorized to repurchase of up to $20 million.
Speaker Change: Over the next 12 months.
Speaker Change: As of June 32024, the company spent approximately $4 $70 million on the share buybacks under the aforementioned share repurchase program.
Speaker Change: In June 2024.
Speaker Change: The board of directors of the company had authorized a new plan for the repurchase of up to $20 million of shares over the next 12 months is.
Speaker Change: As of June 32024.
Companies have to spend approximately half a million dollars on share buybacks under the new share repurchase program.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Finally for the third quarter of 2010, the fourth chimney eschar.
Speaker Change: Estimated total revenues to be between $81 million and $86 million and remit the political can range from a.
Speaker Change: Quarter over quarter increase.
Speaker Change: Perfect.
Speaker Change: Proximate to 84, 9%.
Speaker Change: These estimates represent management's preliminary view.
Speaker Change: The date of this press release, which is subject to change.
Speaker Change: Any change could be material.
Speaker Change: Now we conclude the prepared remarks for the conference call.
Speaker Change: We are ready to take questions.
Speaker Change: Thank you management.
Operator: We will now begin the question and answer session. If you would like to ask a question, please press star 11 and wait for your name to be announced. If you would like to cancel your request, please press star 11 again.
Speaker Change: We will now begin the question and answer session. If you like to ask a question. Please press star one one and a great friend name to be announced.
Speaker Change: You'd like to cancel your request please press star one again.
Speaker Change: Yeah.
Operator: One moment for the first question. We have questions from the line of Kiki Lee. Please go ahead. Hello, Guanlichen.
Speaker Change: One moment for the first question.
We have a question from the line of Kelly. Please go ahead.
Jinbo Li: First of all, congratulations on achieving good results in the second quarter. I would like to know if your membership business has tried any new measures in its development strategy, such as integrating new technologies or developing co-operative products to enhance the impact of its membership business. And the coolest question is, you know, Congress for a good quarter, and she would like to know if our subscription business has any new incentives or initiatives regarding its existing product, or has it integrated any new technology or developed synergistic products to empower the presence of the subscription business?
Kelly: Hello, Glenn.
Jim <unk>: Sure Jim.
Speaker Change: Due to the product which are all day.
Speaker Change: Nemo Cornelia wheel mills that patent generation, Charles Fisher <unk> <unk> tool.
Speaker Change: Sure Joe call. It seems as usual could you talk about your content.
Speaker Change: Hum.
Speaker Change: Thank you.
Speaker Change: And as the quarters quite he as you know Congress for a good quarter and achieved with the afternoon.
Speaker Change: If all subscription business has any new incentives initiatives regarding its existing.
Or has it integrated with any new technology for the apparel.
Speaker Change: Stick products prove empower the presence of subsea.
Speaker Change: Subscription business.
Jinbo Li: Thanks for the question. Xunlei has been in the subscription business for about 20 years, starting from its earliest downloader and continuously incorporating new features to meet our users' needs. The current subscription product has evolved into a highly comprehensive tool that encompasses downloading, acceleration, storage, consumption of digital content, content sharing, etc.
Speaker Change: Thanks for the question.
Speaker Change: Surely it has to be in the subscription the subscription business for about 20 years.
Speaker Change: Starting from its early earliest downloader.
Speaker Change: Continuously.
Speaker Change: Cooperating new features to meet users' needs.
Speaker Change: The current subscription product has evolved into a highly comprehensive tool that complex Ccs downloading acceleration storage at <unk>.
Speaker Change: Consumption of digital content.
Content sharing et cetera.
Jinbo Li: Moreover, we have also developed value-added functions and a product within our existing ecosystem, such as recently we launched a browser which demonstrates a high level of synergy with our core business; users can easily access desired resources faster Mo Aikun today and more directly while consuming this content. So far, we have received a lot of positive user feedback and successfully acquired a substantial number of users without engaging in significant promotion activities.
Speaker Change: Moreover, we have also developed value added functions and a product within our existing ecosystem.
Speaker Change: Such as recently, we launched the browser, which attempts to treat high level synergy with our core business.
Speaker Change: User com users come easily.
Speaker Change: Design.
Speaker Change: The sources for Pascua.
Well I could today.
Speaker Change: More directly.
Speaker Change: Now consuming these contents.
Speaker Change: And so far we have received a lot of positive user feedback.
Speaker Change: And that.
<unk> acquired.
A substantial number of users without engaging in.
Speaker Change: Significant promotional activities.
Jinbo Li: We are actively pursuing strategic partnerships to expand the recognition and exposure of our products and try to drive further growth in our broader business through collaboration with our partners, and I look forward to sharing with you any progress in the coming days. Thanks for your question. Do you have a record of the work facility? 20 years later, and from the earliest, our next generation.
Speaker Change: We are actively pursuing strategic partnerships to expand the recognition and exposure of our products.
Speaker Change: And I tried to drive further growth in our broader business through collaboration with our partners.
Speaker Change: And I look forward to sharing with you any progress in the coming days.
Speaker Change: Thanks for your question.
Speaker Change: Shall I say.
Speaker Change: And that's what you're asking me a lot of wholesale and thank all of them without that key Julia Portland for Galaxy colonoscopy that you're sitting in the tissue.
Jinbo Li: Luhan Tang, Jinbo Li, Xunlei, Thank you to all of our sponsors and partners for cooperating with us in creating these interesting presentations for our team. Zhou Naijiang, Luhan Tang, Jinbo Li, Members can find resources more quickly, more accurately, and more directly; you can easily go to survey these women. We have received a lot of positive feedback from our users. We have not done any promotion yet, but we have a certain number of members. We are also looking for strategic cooperation. We hope to expand our product influence through joint cooperation with our partners.
Speaker Change: And here with me she does sound like you're in chemicals, you alcohol and Michelle.
Speaker Change: Thanks.
Speaker Change: So Sean Nielsen Giovanna I'm halfway to element.
Speaker Change: I'll touch on day, one after the call and I was like hunting.
Speaker Change: Beautiful woman taking.
Speaker Change: Taking place with us.
Hello, Michelle.
Speaker Change: In terms of your at home selling them quite a bit it looks like I'm quite couldn't do it just yet.
Speaker Change: Telecom Italia.
Speaker Change: Yeah.
So I'll, let yourself I, just see a needle or Tam will me of Portola and dwell.
Speaker Change: Quick.
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Speaker Change: On the diesel.
Speaker Change: Thank you and Joe Gatto corridor.
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Speaker Change: Cool.
Michelle: Michelle can you tell me what I think you only go to Ikea with the project.
Jinbo Li: Liu Dain Qi Yeh, [inaudible] Liu Dain Qi Yeh, Liu Dain, I look forward to sharing more updates with you in the future. Thank you for the questions. Once again, to ask a question, please press star 11. There are no questions at this time. I would like to... We have follow-up questions from KK Lee. One moment, please. Basically, your line is open again. Please ask your question. Okay, I have one more question.
Speaker Change: Qdoba that funny month.
Speaker Change: Thanks, John and daughter Gucci.
Speaker Change: Sure.
Speaker Change: Thank you for the questions.
Speaker Change: Once again to ask a question please press star one.
Speaker Change: Yeah.
Speaker Change: Yes, no question at this time I would like to.
Pardon.
Kelly: Follow up question from Kelly one moment please.
Kelly: Okay.
Speaker Change: Mr. <unk>. Your line is open again, please ask your question.
Speaker Change: Okay.
Jinbo Li: I saw that in July, another Chinese stock, Douyu's Ximeigu, was priced at $9.76. The stock price has also increased significantly. I would like to know if Xunlei's stock price has been in a relatively low position for a long time. Will the company consider using Douyu's approach to give the market some confidence? Thank you, and her follow-up question is, you know, she noticed that Douyu, another Chinese Yesterday's Counties company, Honostok recently announced a dividend in July, and as a result, its shield prices increased significantly.
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Speaker Change: Okay.
Speaker Change: A follow up question is.
Speaker Change: She looks there.
Speaker Change: Another.
Speaker Change: Chinese producers of countries.
Speaker Change: Our NASDAQ recently announced.
Speaker Change: Dividends.
Speaker Change: July.
Speaker Change: As a result of its shelf prices.
Speaker Change: Kris significantly.
Jinbo Li: And considering Xunlei's stock price has been undervalued for some time, she is curious if the company would follow Zhou Yu's example of boosting investors' confidence. Thanks for the question. Our Board of Directors has not yet discussed any released methods so far. However, we will keep you updated. So far, we have allocated our capital to exploring new initiatives and growth opportunities. Thanks again for your questions. We haven't discussed the relevant issues at the board meeting yet.
Speaker Change: And considering <unk> stock price has been.
And debated with for some time and she is she is curious if with the company.
Speaker Change: <unk>.
Speaker Change: With their followers.
Speaker Change: Sure.
Speaker Change: Of course boosted investors.
Confidence.
Speaker Change: Thanks for the question.
Speaker Change: A lot of dresses has not yet discussed and its related metrics to fall.
Speaker Change: However, we will keep you updated.
Speaker Change: So far we have educated our pep coast to exploring new initiatives and growth opportunities.
Speaker Change: Thanks again for your questions.
Speaker Change: <unk> sure if I have no problem with them one of them.
Operator: If there are any new developments, we will keep you updated. We have been using the opportunity to create new projects and Thank you for the questions. At this time, there are no further questions from the line. I would like to hand the call back to management for closing. Thank you again for your time and participation. If you have any further questions, please visit our website at ihashunlei.com or send emails to our investors' addresses.
Speaker Change: Good question I think John no problem.
Speaker Change: It would have been better or more.
Speaker Change: Each of our major shabak to deal with that.
Speaker Change: No question gentlemen comes from Celgene doesn't that was your question.
Susan: Susan in Cuba.
Susan: Thank you for the questions.
Speaker Change: At this time there are no further questions from the line I would like to hand, the call back to management for closing.
Susan: Yeah.
Speaker Change: Thanks again for your time and participation. If you have any further questions. Please visit our website at IR <unk> com.
Speaker Change: Emails to our Investor relations have a good day.
Operator: Have a good day. Okay, we conclude today's conference call. Thank you. Thank you. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect your lines.
Speaker Change: Operator, we conclude today's conference call. Thank you and thank you ladies and gentlemen that concludes today's conference call. Thank you for your participation you may now disconnect your lines.
Speaker Change: Okay.
[music].
Luhan Tang: I'll now like to turn the call over to the host Investor Relations Manager, Miss Luhan Tang. Good morning everyone and thank you for joining Xunlei's Q2 2024 earnings conference call. With me today are Eric Zhou, CFO, and Li Li, VP of Finance. Our IR website has our earnest press release to supplement our prepared remarks during the call.
Eric Zhou: The increasing corporate income was primarily attributable to the decreased market expenses and share-based compensation expenses, partially offset by the decrease in growth from large streaming business during the quarter. Other income net was $2.5 million compared with other income net of $4.7 million in the same period of 2023. The decrease was primarily due to the reduction in exchange gains and subsidy income received during the quarter.
Eric Zhou: Finally, for the third quarter of 2024, Xunlei estimates total revenues to be between $81 million and $86 million, and the midpoint of the range represents a quote-unquote increase of approximately 4.9 percent. This estimate represents management's preliminary view as of the date of this press release, which is subject to change, and any change could be material. Now we can prepare remarks for the conference call. Operator, we are ready to take questions. Thank you, management.