Q3 2024 Xunlei Ltd Earnings Call
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Operator: Welcome ladies and gentlemen and thank you for your patience. You've joined Xunlei's 3rd quarter 2024 earnings conference call. At this time all participants are in listen-only mode. Please be advised that today's conference has been recorded.
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Welcome, ladies and gentlemen, and thank you for your patience you would you like to late third quarter 'twenty 'twenty four earnings conference call. At this time all participants are in listen.
Only moat. Please be advised that today's conference is being recorded.
Operator: I would now like to turn the call over to the host, Investor Relations Manager, Ms. Luhan Tang. Please go ahead.
Speaker Change: I would now like to turn the call over to the host Investor Relations manager.
Please go ahead.
Luhan Tang: Good morning everyone and thank you for joining Xunlei's Q3 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.
Speaker Change: Good morning, everyone and thank you for joining <unk> Q3, 'twenty 'twenty four earnings conference call with me today are Eric Zhou CFO, and Lee Vice President of Finance.
Speaker Change: Our our website has our earnings press release to supplement our prepared remarks during the call.
Luhan Tang: Today's agenda includes a prepared opening remarks from Chairman and CEO Mr. Jinbo Li on Q3 operational highlights, followed by CFO Eric Zhou's presentation of financial results details and the revenue guidance of Q4 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 iod.xunlei.com.
Speaker Change: Today's agenda includes a prepared opening remarks from chairman and CEO, Mr. Tim Boddy on Q3 operational highlights.
Speaker Change: With my CFO, Eric Joe presentation of financial results detailed in our revenue guidance of Q4 2024 before we open up the floor to your questions in a Q&A session.
Speaker Change: Note that this call is recorded and can be replayed on our Investor Relations website at IR <unk> com.
Luhan Tang: Before we get started, I would like to take this opportunity to remind you that the discussion today will contain certain forelooking statements made under the safe harbor provisions of the US Private Security Litigation Reform Act of 1995. Such statements are based on our management's current expectations under existing market conditions and are subject to risks and uncertainties that are difficult to predict, which may cause actual results to differ materially from those made in a verbal statement. Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results. assumed no obligations to update any forward-looking statements, except as required under applicable laws.
Speaker Change: It's I'll get started I'd like to take this opportunity to remind you that the discussion today will contain certain forward looking statements made under the safe Harbor provisions of the U S. Private Security Litigation Reform Act.
Speaker Change: 1995.
Speaker Change: Such statements are based on our management's current expectations under existing market conditions and are subject to risks and uncertainties that are difficult to predict which may cause actual results to differ materially from those in the forward looking statements.
Speaker Change: Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results.
Speaker Change: <unk> assumes no obligations to update any forward looking statements, except as required under applicable law.
Luhan Tang: On this call, we will be using both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to comparable GAAP measures can be found in our earnings press release. Please note that all numbers are in U.S. dollars unless otherwise stated.
Speaker Change: On this call, we'll be using both GAAP and non-GAAP financial measures a reconciliation.
Speaker Change: <unk> of 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 unless otherwise stated.
Jinbo Li: Now, the following is a prepared statement by Mr. Jinbo Li, Chairman and CEO of Xunlei Limited. Good morning and good evening, everyone. Thank you all for joining us today.
Speaker Change: Now the following his prepared a statement by Mr. Jim Vierling, Chairman and CEO of Sheila limited.
Good morning, and good evening, everyone. Thank you all for joining us today in the third quarter of 2024, we achieved continue to profitability. While total revenues declined 9% due to the lingering impact from last year's downsizing of our domestic audio live streaming business.
Jinbo Li: In the third quarter 2024, we achieved continued profitability, while total revenues declined 4.9% due to the lingering impact from last year's downsizing of our domestic audio live streaming business and reduced cloud computing sales due to the changing market landscape for our cloud computing business. We're able to partially mitigate the impact by expanding our overseas operations.
Speaker Change: The reduced cloud computing still due to the changing market landscape for our cloud computing business.
Speaker Change: Were able to partially mitigate the impact by expanding our overseas operations.
Jinbo Li: Moving forward, we intend to continue to invest in overseas projects, including live streaming business, exploring new opportunities and restructure our overall product mix to develop a more stable and growth oriented business.
Speaker Change: Moving forward, we intend to continue to invest in overseas projects, including last German business.
Speaker Change: New opportunities and restructure our overall product mix to develop a more stable and a growth oriented business.
Jinbo Li: Now I'd like to review the performance of our major business segments for the third quarter of 2025. Let me start with our subscription business. Our subscription business enjoyed continuous growth and generated $33.2 million in revenue, up 15.6% year over year. We're very pleased with the progress achieved by our talented product team, their efforts on product refinement and marketing strategies led to improved user engagement, loyalty, and more premium memberships to purchases. During the third quarter premium subscribers accounted for 78% of total paying users compared to about 60% in the same period last year.
Speaker Change: Now I'd like to review the performance of our major business segments for the third quarter of 2024.
Let me start with our subscription business, our subscription business enjoyed continuous growth and generated $33 $2 million in revenue up 15, 6% year over year.
Speaker Change: We're very pleased with the progress achieved by our talented team and their efforts on product refinements in our marketing strategies led to improved user engagement loyalty and more premium memberships to purchases.
Speaker Change: During the third quarter premium subscribers accounted for 78% of total paying users compared to about 60% in the same period last year.
Jinbo Li: Going forward, we will proactively explore synergy within our product ecosystem to pursue sustainable growth. For example, we will seek further collaboration with leading cell phone makers for partnerships to use pre-installed Xunlei products to support their mobile phone browsers to drive meaningful growth and expand our user base.
Going forward, we will proactively explore synergy within our product ecosystem to Christy a sustainable growth.
Speaker Change: For example, we will seek further collaboration with leading cell phone maker for partnerships to use pre install extremely products to support their mobile phone browsers to drive meaningful growth and expand our user base.
Jinbo Li: In the third quarter, our cloud computing business faced significant challenges and our revenue declined to $25.3 million, representing a 14.4% year-on-year decrease. We expect the cloud business to continue to face headwinds due to intense market competition and evolving regulatory environment. We will evaluate options to stabilize this business and minimize impact of the revenue reduction on our total revenues as well as the bottom line.
Speaker Change: In the third quarter are our computing business faced significant challenges and our revenue declined to $25 3 million, representing a 14, 4% year on year decrease.
Speaker Change: We expect that business to continue to face headwinds due to intense market competition and evolving regulatory environment, well evaluate options to stabilize this business and minimize the impact of the revenue reduction on our total revenues as well as the bottom line.
Jinbo Li: Revenue from our live streaming and IVAS business reached $21.6 million dollars, representing a quarter over quarter increase of 6.7% and a year over year decrease of 16.7%. a consistent quarter over quarter increase over the last three quarters was due to the growth of our overseas live streaming operations, which partially neutralized the impact of downsizing of our domestic audio live stream methods. Our new product Mace is well positioned to tap into both existing markets and new targeted regions. We are incubating a number of products to search a star product with controlled operational risk. This approach allows us to explore different avenues while minimizing potential setbacks.
Speaker Change: Revenue from our lives to me and I V. A S business reached $21 $6 million, representing a quarter over quarter increase.
Speaker Change: Six 7% and our year over year decrease of 16, 7%.
Speaker Change: Assistant quarter over quarter increase over the last three quarters was due to the growth of our overseas last year in the operations.
Which partially neutralized the impact of downsizing of our domestic audio left in that business.
Our new product <unk> is well positioned to tap into both existing markets and new targeted regions.
Speaker Change: We are incubating a number of products to search a star product with control operational risks.
Speaker Change: This approach allows us to explore different avenues, while minimizing potential setbacks.
Jinbo Li: Before I conclude, I want to emphasize our high confidence in Xunlei. Throughout the past decades, our dedication to innovation and market adoption has been a driving force behind our success in an ever-evolving environment. In this fast-paced digital era, where technology advances at an unprecedented rate, we understand the importance of staying ahead of the curve. And for this reason, we will continue investing in research and development of initiatives that bring about groundbreaking solutions and products and services. Looking ahead, we are committed to pushing boundaries even further and exploring untapped potential with a relentless determination and ultimately creating value for our shareholders.
Speaker Change: Before I conclude I want to emphasize our high confidence in Chile.
Throughout the past decade, our dedication to innovation and market adoption has been a driving force behind our success in the ever evolving environment.
In this case digital era.
Speaker Change: We're a technology advances at an unprecedented rate we understand the importance of staying ahead of the curve.
Speaker Change: And for this reason, we will continue investing in research and development.
Speaker Change: Initiatives not bring about groundbreaking solution and a profit type products and services.
Speaker Change: Looking ahead, we are committed to pushing boundaries, even further and exploring untapped potential with the relentless determination and ultimately creating value for our shareholders.
Luhan Tang: With that, I will now pass the call over to Eric. Eric will give a detailed review of our Q3 financial results and provide revenue guidance for the fourth quarter of 2025.
Eric Eric: With that I'll now pass the call over to Eric Eric.
Eric Eric: Eric will give a detailed review of our Q3 financial results and provide revenue guidance for the fourth quarter of 2024.
Eric Eric: Okay.
Eric Zhou: Thank you Luhan and thank you all again for participating in Xunlei's conference call to discuss the financial results of the third quarter of 2024. In the third quarter, our total revenues were $88.1 million, representing a decrease of 4.9% year-over-year. The decrease in total revenues was mainly attributable to the decrease in our revenues from live streaming and cloud computing business. Revenues from cloud computing were $25.3 million, representing a decrease of 14.4% year-over-year. The decrease in cloud computing revenues was mainly due to the reduced sales of cloud computing services and a decline in sales of cloud computing hardware devices as a result of heightened competition and evolving regulatory environment.
Eric Eric: Thank you. Thank you all again for participating to this conference call, we will discuss our mix with results of the third quarter of 2024.
Eric Eric: In the third quarter, our total revenues were eight equals war meeting boats.
Eric Eric: A decrease of four 1%.
Eric Eric: Yes.
Eric Eric: Decrease in revenues was mainly attributable to the decrease in our revenues from that to me.
Our computing business.
Eric Eric: Revenues from cloud computing or can be $3 million.
Eric Eric: A decrease of four people in the books year over year.
Eric Eric: The decrease in car computing revenues was mainly due to the reduced sales of our cloud computing services.
Eric Eric: So while our computing hardware devices as a result of heightened competition.
Speaker Change: Bobby or environment.
Eric Zhou: Revenues from subscription were $33.2 million, representing an increase of 15.6% year-over-year. The increase in subscription revenues was mainly driven by the increase in the number of subscribers. The number of subscribers was 5.51 million as of September 30, 2024, compared with 5.02 million as of September 30, 2023. The average revenue per subscriber for the third quarter was RMB40.9 compared with RMB39.9 in the same period of 2023. The higher average revenue per subscriber was mainly attributable to an increase in the proportion of users who signed up for our premium membership service. Revenues from live streaming and other RDAs were $21.6 million, representing a decrease of 16.7% year-over-year.
Speaker Change: Revenue from subscriptions was $33 $4 million, representing an increase of 15, 6% year over year.
Speaker Change: The increase in subscription revenues was mainly driven by the increase in number.
Speaker Change: Number of subscribers.
Speaker Change: The number of subscribers was five 1 million.
Speaker Change: As of September 30 was 2074.
Speaker Change: Paired with <unk>.
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The average revenue per subscriber for the third quarter.
Speaker Change: <unk> 49.
Speaker Change: Start with M D.
Speaker Change: In the.
Speaker Change: Same period of 2023.
Speaker Change: The higher average revenue per subscriber.
Speaker Change: Attributable to an increase in the proportion of users.
Speaker Change: For our premium membership services.
Revenues from <unk> and other idea is what.
Speaker Change: $21 $6 million, representing a decrease of 16, 7% year over year.
Eric Zhou: The decrease of live streaming and other IVS revenues was mainly due to the downsizing of our domestic audio live streaming operations since June 2023, which was partially offset by the increase in the revenues from our overseas audio live streaming business. Cost of revenues were $39.4 million, representing 49.1% of our total revenues, compared with $46.4 million, or 55.1% of our total revenues in the same period of 2023. The decrease in cost of revenues was mainly attributable to the decrease in bandwidth costs, as well as revenue sharing costs for our live streaming business incurred this quarter. Bandwidth costs, as included in cost of revenues, were $24.8 million, representing 31% of our total revenues, compared with $28.1 million, or 33.4% of our total revenues in the same period last year.
Speaker Change: The decrease of <unk> <unk> and other revenues was mainly due to the IV.
Speaker Change: All of our domestic audio live streaming operations.
Speaker Change: The June 2023, which was partially offset by the increase in revenues from our overseas audio live streaming.
Yes.
Speaker Change: Cost of revenues were $39 4 million.
Speaker Change: <unk> 1949, 1% or by total revenues compared with $46 $4 million or 55, 1% of our total revenues.
Speaker Change: In periods of 2023.
Speaker Change: The decrease in cost of revenues was mainly attributable to the decrease in bandwidth costs as well as revenue sharing costs for our large scale gives you incurred this quarter.
Speaker Change: Bandwidth cost is included in cost of revenues was $24 8 million subs.
Speaker Change: <unk> could be 1% of our total revenues compared with $28 $1 million or 33, 4% or barcode revenues in the same period of last year.
Eric Zhou: The decrease was primarily due to the decrease in revenues from cloud computing services during the quarter. The remaining cost of revenues mainly consisted of costs related to the revenue sharing from our live streaming business, payment handling charges, and cost of inventory sold. Guo's profit for the third quarter of 2024 was $14.5 million, representing an increase of 7.8% year-over-year. Gross profit margin was 15.5% in the third quarter, compared to its 44.6% in the same period of 2023. The increase in gross profits was mainly driven by the increased gross profits from our subscription business. The increase in gross profit margin was primarily due to the higher weighting of subscription revenues in our total revenue mix, which has a high gross profit margin.
Speaker Change: The decrease was primarily due to the decrease in revenues from cloud computing services during the quarter.
Speaker Change: The remaining cost of revenues mainly consisted of costs related to the revenue sharing from our live streaming business payment handling charges and cost of inventories too.
Speaker Change: Gross profit for the third quarter of 2010 before was $45 million.
Speaker Change: An increase of seven 8% year over year.
Speaker Change: Gross profit margin was 18, 5% in the third quarter compared with 44, 6% in the same.
Speaker Change: In periods of 2033.
Speaker Change: The increase in gross profit was mainly driven by the increased cost for.
Speaker Change: For a more subscription business.
Speaker Change: The increase in gross profit margin was primarily due to the higher weighting of subscription revenues in our total revenue mix, which has the highest gross profit margin.
Eric Zhou: Research and Development Expenses for the third quarter were $17.7 million, representing 22.1% of our total revenues, compared with $19.5 million, or 23.1% of our total revenues in the same period of 2023. The decrease was primarily due to the decrease in labor costs. Sales and marketing expenses for the third quarter were $11.5 million, representing 14.3% of our total revenues, compared with $9.5 million or 11.3% of our total revenues in the same period of 2023. The increase was primarily due to more marketing expansions incurred for our subscription and overseas audio live streaming business. General and administrative expenses for the third quarter were $11.4 million, representing 14.2% of our total revenues, compared with $11.1 million or 13.2% of our total revenues in the same period of last year.
Speaker Change: Research and development expenses for the third quarter was $17 million, representing 22, 1%.
Speaker Change: Our total revenues.
Speaker Change: $19 million or 23, 1% of our total revenues in the same period of 2023.
Speaker Change: The decrease was primarily due to the decrease in labor costs.
Sales and marketing expenses for the third quarter or $11 million, representing 14, 3% of our total revenues compared with nine 5 million.
Or 11, 3% automotive revenues either.
Speaker Change: In periods of 2023.
Speaker Change: The increase was primarily due to more marketing expenses incurred for subscription and overseas audio live streaming businesses.
Speaker Change: General and administrative expenses for the third quarter or $11 4 million, representing 14, 2% of our total revenues.
Speaker Change: Third were $11 1 million or 13, 4% of total revenues in the same period of last year.
Eric Zhou: The increase was primarily due to the increase in labor costs, partially offset by the decreasing one-off empowerment of servers and network equipment. Operating loss was $0.2 million compared with an operating loss of $2.5 million in the same period as last year. The decrease in operating loss was primarily attributable to the increase in gross profit of subscription business, partially offset by the increase in marketing expenses during the quarter. Other income net was $4.8 million compared with other income net of $7.3 million in the same period of 2023. The decrease was primarily due to less reversal of payables with low payment probability as compared with the same period of 2023.
The increase was primarily due to the increase in labor costs, partially offset by the decreasing one off impairment of sewers and net.
Speaker Change: Thanks.
Speaker Change: Operating loss was $2 million.
Speaker Change: Paired with an operating loss of $2 $5 million in the same period last year.
Speaker Change: The decrease in operating loss was primarily attributable to the increase in gross pocket of subscription business, partially offset by the increase in marketing expenses during the quarter.
Speaker Change: Other income net was $4 8 million compared with other income net of $7 3 million in.
Speaker Change: In the same period of 2023.
Speaker Change: Decrease was primarily due to less debacle of payables with low payment of EBIT as compared with the same period of 2023.
Eric Zhou: Net income was $4.4 million, same as in the third quarter of last year. Non-GAAP net income was $4.9 million in the third quarter of 2024, compared with $5.5 million in the same period of 2023. Dai Rujie's earnings per 8 years in the 3rd quarter of 2024 was approximately 7 cents, same as in the 3rd quarter of 2023. As of September 30, 2024, the company had cash cash equipment and short term investments of $272 million compared with $263.4 million as of June 30, 2024. The increase was mainly due to the net cash inflows from operating activities partially offset by the requirement of bank loans and spending on share buybacks.
Speaker Change: Net income was $4 4 million Sims.
Speaker Change: In the third quarter of last year.
Speaker Change: non-GAAP net income was.
Speaker Change: $19 million in the third quarter of 2024.
Speaker Change: With $5 $5 million in it.
Speaker Change: In periods of 2023.
Speaker Change: Diluted earnings per eight years in the third quarter of 2010 before was a proxy.
Speaker Change: 37%.
Speaker Change: Tim.
Speaker Change: Third quarter of 2023.
Speaker Change: As of September 30 is finished and therefore, the company had cash cash equivalents and short term investments of 472 million cards.
Speaker Change: Paired with 263 $4 million as of June 32024.
Speaker Change: The increase was mainly due to the net cash inflows from operating activities partially.
Speaker Change: The repayment of bank loans and the spending.
Speaker Change: Pipex.
Eric Zhou: Now turning to our share repurchase program, on June 4, 2024, Xunlei announced that its board of directors had authorized a new plan for the repurchase of up to 20 millions of August ADAs over the next 12 months. As of September 30, 2024, the company had spent approximately $1.5 million on share buybacks under the new share repurchase program. During the quarter ended September 30, 2024, the company had purchased a total of 588,025 ADS for a total of about $1 million. and the SHIELD Research Program is ongoing.
Speaker Change: Now turning to our share repurchase program on June four 2010, before shumate announced that its both of directors had authorized a new plan for the repurchase of up to meetings.
Speaker Change: August eight.
Speaker Change: Over the next 12 months.
Speaker Change: As of September 32024, the company has spent approximately $1 million on share buybacks under the new share repurchase program.
Speaker Change: During the quarter ended September <unk> as president.
Speaker Change: And therefore, the concrete tie to the purchased a total of 588025 eight years for a total of about $1 billion.
Speaker Change: Under the share repurchase program is ongoing.
Eric Zhou: Finally, for the fourth quarter of 2024, Xunlei estimates total revenues to be between $77 million and $82 million. Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei This estimate represents management's preliminary view of today, which is successful change, and any change could be material.
Speaker Change: Finally for the fourth quarter of 2020 for Chile estimates total revenues to be between $77 million and $82 million.
Speaker Change: And at the mid point of the range of 10, a quarter over quarter decrease of approximately.
Speaker Change: Uh huh.
Speaker Change: This estimate represents management's preliminary view as of today, which is subject to change and any change could be material.
Operator: Now we conclude prepared remarks for the conference call.
Speaker Change: Now we conclude the prepared remarks for the conference call operator, we are ready to take questions.
Operator: Operator, we are ready to take questions. Thank you so much, dear participants. As a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star 11 again. Please stand by while we compile the Q&A roster. This will take a few moments.
Speaker Change: Thank you so much Dr participants as a reminder, if you wish to ask a question. Please press star one one on your telephone keypad and wait for a name to be announced to withdraw. Your question. Please press star one again at least and Bob will compile the Q&A roster. This will take a few moments.
Operator: Once again, if you wish to ask a question, please press star 119.
Speaker Change: Once again, if you wish to ask a question. Please press star one one.
Yuki Chen: And now we're going to take the first question. and it comes to line of Yuki Chen from Retail Investor. Your line is open, please ask your question. Hello, everyone. Can you hear me? Yes.
Speaker Change: And now we'll go and take our first question.
And this comes from the line of UK Chen from retail Investor. Your line is open. Please ask your question.
Speaker Change: And now I'll go with one time charge in the dollar.
Yuki Chen: First of all, my first question is, I would like to ask, congratulations to the company, you have been doing well in terms of membership. But there is a problem, in terms of membership income, the increase of the money is good, but the reduction is basically a state of poverty. So I would like to ask, the management staff, can the membership business maintain a growth trend in the future? For example, if you want to break through 6 million members in the future, will there be some new catch-ups or some new strategies? This is my first question.
Speaker Change: Yes.
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Sundar: Sundar you hear Joshua English.
Sundar: You can hold it.
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Yuki Chen: and the the coolest question is in the congress on maintaining a double-digit growth rate in our subscription business. Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei The question is, can the company sustain its growth trend in the subscription business for future quarters? As you know, for the last several quarters, the sequential growth was basically flat.
Sundar: The coolest question, using our Congress, maintaining a double digit year over year.
Sundar: Growth rate subscription business.
Sundar: And this.
Sundar: The question is in a kind of a company's sustained its growth trend in our subscription business for future quarters.
Sundar: For the last.
Sundar: Several quarters.
Sequential growth was basically flat.
Yuki Chen: And how can we overcome the bottleneck of reaching 6 million subscribers?
Sundar: How can we overcome the.
Sundar: Bottleneck of Ritchie and six meeting.
Sundar: Subscribers.
Jinbo Li: Thank you for your question. All subscription business has generally kept its growth momentum, maintaining a user base between 5 million and 6 million. since the beginning of this year. We are encouraged that we observe a continuous year-over-year growth in our active paying users over the past few quarters. The portion of premium premium subscribers among users increased from about 6% in the third quarter of last year to about 78%. in the third quarter of this year. and as a result, There was an increase in average revenue per subscriber from approximately 39.9 yuan in the third quarter of last year to about 40.9 yuan this quarter.
Sundar: Thank you for your question.
Sundar: Our subscription business has generally.
Sundar: Gross momentum maintaining a user base.
Speaker Change: Meeting and a $6 million.
Speaker Change: Since the beginning of this year.
Speaker Change: We are encouraged that we absorbed the confused year over year growth in our active paying users over the past few quarters.
Speaker Change: The portion of premium premium subscribers among users.
Speaker Change: Increased from about 6% in the third quarter of last year to about 78%.
Speaker Change: In the third quarter of this year.
Speaker Change: And as a result.
Speaker Change: That was an increase in average revenue per subscriber.
Speaker Change: Approximately $39 99.
Speaker Change: In the third quarter of last year to about 44 9 million this quarter.
Jinbo Li: which indicates a healthy trend for our subscription business.
Speaker Change: And in either case I believe is a healthy trend for all subscription business.
Jinbo Li: And in the coming days, we intend to further expand our marketing channels. continue to improve user benefits and experience. and conduct more promotional campaigns to acquire new users. And by taking these measures, we hope to achieve breakthroughs in our user base in the future.
Speaker Change: And in the coming days, we intend to further expand our marketing.
Speaker Change: Panels.
Speaker Change: Continue to improve user benefits and experience.
Speaker Change: And conduct more promotional campaigns to acquire new users.
Speaker Change: And by taking these measures.
Speaker Change: Hope to achieve breakthroughs in our user base in the future.
Jinbo Li: Thank you. Thank you for your question.
Speaker Change: You just <unk>.
Jinbo Li: Our membership business has been growing. Since we reached 6 million members at the beginning of this year, we have maintained the number of members between 5 million and 6 million. In the past few quarters, the number of effective paid members has been increasing. The proportion of paid members increased from 60% last year to 78% this year. The income of each member has increased from 39.9% last year to 40.9% this year.
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Jinbo Li: The data shows that our business model is very healthy and efficient. We will continue to expand our diversified cooperation channels to optimize and enhance the rights of our users and improve their experience. At the same time, we will launch more market marketing activities to attract new users. We believe that our efforts will continue to increase the number of members.
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Jinbo Li: Thank you for your question.
Yuki Chen: Okay, I have a second question. I have been paying attention to the stock market in China. I have noticed that in the third quarter of 2024, China has also introduced a series of policies to stimulate the stock market. I can observe that the stock price of many Chinese stocks has also increased significantly.
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Yuki Chen: I would like to know if Xunlei will take measures to improve its stock price in the future and in the near future to solve the problem of the stock price of Xunlei being underestimated in the long term. This is my second question.
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Yuki Chen: And the questions, you know, the, I noticed that, you know, In the third quarter of this year, the Chinese government implemented a series of policies to stimulate the stock market, which resulted in improved performance for many Chinese stocks. and she would like to know if Xunlei has any strategies in place to enhance its share price and address the the undervaluation of its stock situation.
Speaker Change: The question is sooner.
Speaker Change: I noticed that.
Speaker Change: No.
Speaker Change: In the third quarter of this year and the Chinese government.
Speaker Change: Implemented a series of policies.
Speaker Change: Assuming that the stock market, which results in.
Speaker Change: Improved performance for many Chinese stocks.
Speaker Change: And shoot block know, if Julie has and the <unk>.
Speaker Change: Strategies in place to enhance its share price.
Speaker Change: Hey, Jess.
Speaker Change: The undervaluation of our stock.
Speaker Change: Stock situation.
Jinbo Li: Yes, we have also noticed the Chinese government recently introduced a number of market-favorable policies aimed at resolving certain domestic economic issues and boosting investors' confidence.
Speaker Change:
Yes, we have also noted the Chinese government recently introduced a number of <unk>.
Speaker Change: Market favorable policies aimed at resolving certain domestic issues.
Speaker Change: And in the posted investors' confidence.
Confidence.
Jinbo Li: We will continue to prioritize business development. Fugu ofел Barbacks enhance communications with the capital market.
Speaker Change: We will continue to.
Speaker Change: <unk> business development.
Speaker Change: For the share.
Share buybacks.
Enhance communications with the aftermarket.
Jinbo Li: Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei Tang, Jinbo Li, Xunlei Tang, to hopefully automatically generate value for our shareholders. Thank you. Thank you for your questions.
Speaker Change: And the mortgage market and regulatory environment and adopt corresponding strategists is necessary.
Speaker Change: Two hopefully ultimately generate value for all shareholders. Thank.
Speaker Change: Thank you.
Speaker Change: Shifting to EMEA $10 model three is a seasonally low total New Orleans Chicago.
Speaker Change: That's looking for situations, where ammonia in Bolton acquisition trying to sell.
Speaker Change: Sure, Rick which is really the key thing for the company.
Speaker Change: Thank you <unk>.
If you go at home only with GT, that's sure Jim.
I'm cautious on the financing notes issue telecom once the agenda.
Speaker Change: Hello.
Speaker Change: So look we don't come back over time.
Sure.
Speaker Change: Okay.
Operator: Excuse me, UK, any further questions? Thank you.
Excuse me U K any further questions.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Thank you.
Operator: Dear participants, as a reminder, if you wish to ask a question, please press star 11 on your telephone keypad. Dear participants, as a reminder, if you wish to ask a question, please press star 1 1.
Speaker Change: Yeah participants as a reminder, if you wish to ask a question. Please press star one on your telephone keypad.
Speaker Change: Thank you.
Speaker Change: Dear participants as a reminder, if you wish to ask a question. Please press star one one.
Operator: Dear speakers, there are no further questions for today.
Dear speakers there are no further questions for today I would now like to hand, the conference over to the management team for any closing remarks.
Luhan Tang: I would now like to hand the conference over to the management team for any closing remarks. Thank you, Lin, for your time and participation, and if you have any questions, please visit our website at irxunlei.com or send us emails to our investor relations.
Speaker Change: Thank you again for your time and participation.
Participation and if you have any questions. Please visit our website at IR, <unk> com or Thunder emails to our Investor Relations everybody operate we conclude todays conference.
Operator: Have a good day.
Operator: Okay, we conclude today's conference. Thank you. That does conclude our conference for today. Thank you for participating.
Thanks Kim.
That does conclude our conference for today. Thank you for participating you may now all disconnect have a nice day.
Operator: We're now all disconnect. Have a nice day. Thank you for watching!
Speaker Change: Okay.
Speaker Change: [music].