Q4 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 fourth quarter and fiscal year 2024 earnings conference call. At this time, all participants are in listen-only mode. Please be advised that today's conference is being recorded.
Speaker Change: Ladies and gentlemen, and thank you for your patience, you've joined late fourth quarter and fiscal year 'twenty 'twenty four earnings conference call.
Speaker Change: At this time all participants are in listen only mode. 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. Lu Han Tung. Please go ahead.
Luhan Tang: I would now like to turn the call over to the host, investor relations manager, Ms. Luhan Tang. Please go ahead.
Luhan Tang: 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.
Speaker Change: Good morning, everyone and thank you for joining us in late Q4 and fiscal year 'twenty 'twenty four earnings conference call with me today are Eric Zhou CFO and Lee Vice President.
Speaker Change: Oh, I always start with our earnings press release to supplement Architected remarks during the call.
Luhan Tang: 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 of Q4 and fiscal year 2024, and revenue guidance for Q1 2025. Please note that this call is recorded and can be replayed on our IR website at ir.xunlei.com.
Today's agenda includes the prepared opening remarks from chairman and CEO, Mr. Jim Doherty on Q4 operational highlights.
Look by CFO, Eric Joes presentation of financial results details of Q4, and the fiscal year at 104 and revenue guidance for Q1, 'twenty five before we open up the floor to your questions in the Q&A.
Speaker Change: Sure.
Speaker Change: Please note that this call is recorded and can be replayed on our IR website.
Speaker Change: I I thought she'd like.
Luhan Tang: Before we get started, I would 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 Securities 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 the following statements.
Speaker Change: Before we 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 Securities Litigation Reform Act of 1995.
Speaker Change: Such statements are based on management's current expectations under existing market conditions and are subject to risks and uncertainties that are difficult to predict.
Speaker Change: Which may cause actual results to differ materially from those made in the forward looking statements.
Luhan Tang: Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results. assumed no obligation to update any forward-look statements except as required on the update for launch.
Speaker Change: Please refer to our SEC filings for a more detailed description of the risk factors.
Speaker Change: Our results.
Speaker Change: <unk> assumes no obligation to update any forward looking statements, except as required under applicable law.
Luhan Tang: This call 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 US dollars, otherwise stated.
Speaker Change: On this call, we'll be using both GAAP and non-GAAP financial measures.
Speaker Change: The affiliation 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.
Speaker Change: 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.
Tim Boddy: Now the following is the Qatar statement by Mr. Tim Boddy, Chairman and CEO of extremely limited.
Tim Boddy: Good morning, and good evening, everyone. Thank you all for joining US today, we're pleased to close 2024 with overall solid fourth quarter operating results and our revenue exceeded exceeded the upper end of our guidance range.
Jinbo Li: We're pleased to close 2024 with overall solid fourth quarter operating results, and our revenue exceeded exceeded the upper end of our guidance 2024 was a year of resilience and a strategic transformation and a cornerstone of our success was the record-breaking 6.38 million subscribers for our subscription business in Q4. I believe it is a testament of our ecosystem treatment strategy and partnerships with the industry leading channel players in the mobile industry.
Tim Boddy: 2024 was the Europe resilience in our strategic transformation and a cornerstone of our success was the record breaking $6 38 million subscribers for our subscription business in Q4.
And believe it is a testament of our ecosystem treatment strategy and partnerships with the industry, leading China players in the mobile industry.
Jinbo Li: These initiatives have not only expanded our user base, but also enhanced the value we deliver across platforms. However, the Q4 of last year was not without challenges. In particular, we encountered intensified competition and pricing pressure in an evolving industry environment for our cloud computing business, especially in the latter part of the year.
Tim Boddy: These initiatives have not only expanded our user base, but also enhance the value we deliver across the platform.
However, the Q4 of last year was not without challenges in.
In particular, we've encountered intensified competition and pricing pressure in our evolving industry environment for our cloud computing business, especially in the latter part of the year.
Jinbo Li: After a prudent assessment, the company booked a non-cash goodwill impairment expense for the full amount of the goodwill on a balance sheet. I'd like to mention that the goodwill impairment does not impact our cash position, operating cash flows, or future operations of the company.
Tim Boddy: After prudent assessment the company booked a noncash goodwill impairment expense for the full amount of the goodwill on our balance sheet.
Tim Boddy: I mentioned that the goodwill impairment does not impact our cash position operating cash flows or future operations of the company.
Jinbo Li: Now I'd like to share with you some insights about our operations in Q4 2020. Our subscription business continues to demonstrate its pivotal role as a core asset and a growth driver of our company. In the fourth quarter, we generated $34.4 million in revenue representing a 9% year over year increase, and a 12% annual growth rate from 2023 to 2025. This sustained momentum, now spanning two consecutive years of double-digit annual growth, is underpinned by two fundamental strengths. First, our tightly integrated business ecosystem has achieved remarkable success with 77 of total paying subscribers opting for our premium subscription service, the highest level of membership we offer, which fosters user engagement across content consumption, accelerating tools, and the community features.
Tim Boddy: Now I'd like to share with you some insights about our operations in Q4 2024.
Tim Boddy: Our subscription business continues to demonstrate its pivotal role as a core asset and the growth driver of our company in the fourth quarter, we generated $34 $4 million in revenue, representing a 9% year over year increase and a 12% annual growth rate from 'twenty to 'twenty three 'twenty 'twenty four.
Tim Boddy: The sustained momentum now spending two consecutive years of double digit annual growth is underpinned by two fundamental strength.
Tim Boddy: First our tightly integrated business ecosystem has achieved remarkable success with 77 of total paying subscribers opting for our premium subscription service the highest level of membership, we offer which fosters user engagement across concert.
Tim Boddy: Sumption accelerating tool and a community feature.
Jinbo Li: Second, strategic alliance with leading mobile maker partners has enabled us to reach over 1 million new users who were previously beyond our cover. In essence, we are not only acquiring users, but also collaborating with our partner to share community dynamics and technology, fostering mutual success.
Second strategic alignment with leading mobile maker partners has enabled us to reach over 1 million new users who were previously beyond our coverage.
Tim Boddy: We are not only acquiring users, but also collaborating with our partner to shared community dynamics and the technology offering mutual success.
Jinbo Li: Looking forward, we will continue to integrate advanced smart features to better meet users needs and expand our market presence in pursuit for further growth.
Looking forward, we will continue to integrate smart features to better meet users' needs and expand our market presence in pursuit book further growth.
Jinbo Li: As I mentioned earlier, our performance was impacted by the notable decline in our cloud computing revenue. In the fourth quarter of 2024, cloud computing revenue fell 25.6% year over year and a 10.1% quarter over quarter due to unfavorable industry conditions.
Tim Boddy: As I mentioned earlier, our performance was impacted by the notable decline in our computing cloud computing revenue in the fourth quarter of 2020 for cloud computing revenue fell 25, 6% year over year, and a 10, 1% quarter over quarter due to unfavorable industry conditions.
Jinbo Li: After careful assessment, we decide to write off the full amount of the goodwill asset on the budget. The cloud computing sector has been encountering challenges such as heightened competition and pricing pressures, among other things. Moreover, macroeconomic factors, including industry development and challenge changes in regulatory environment has exacerbated this difficulty. These external pressures have made it challenging for the business to sustain previous growth rates. And we're exploring various options to mitigate its impact on our overall operation.
Tim Boddy: After careful assessment, we just got to write off the full amount of the goodwill asset on the balance sheet.
Tim Boddy: Computing sector has been encountering challenges such as heightened competition and pricing pressures among other things.
Speaker Change: Olga macroeconomic factors, including industry development and talent changes in regulatory environment.
Tim Boddy: These difficulties.
Tim Boddy: These external pressures have made it challenging for the business to sustain previous growth rate and we're exploring various options to mitigate its impact on our overall operations.
Jinbo Li: Now, let's move to our live streaming and IVAS business. In Q4, we generated $27.2 million in revenue, representing an 80.7% year-over-year increase.
Tim Boddy: Now, let's move to our left to me and I V. A S business in Q4, we generated $27 $2 million in revenue, representing an eight 7% year over year increase this.
Jinbo Li: This growth reflects our strategic position on exit low margin and volatile domestic market towards the end of 2023 and pivot to emerging regions such as Southeast Asia and Amina. The year-over-year rebound in the business validated our efforts to cope with these challenges. By leveraging our capabilities in product refinement, user engagement and monetization, we have achieved organic growth in our overseas audio live streaming business.
Tim Boddy: This growth reflects our strategic decision on exiting low margin and the volatile markets towards the end of 2023 and pivot to emerging regions, such as southeast Asia, and India that year over year rebound in the business validated our efforts to cope with these challenges.
Tim Boddy: That leveraging our capabilities in product refinement user engagement and monetization we have achieved organic growth in our overseas audio live streaming business.
Jinbo Li: We expect this positive trend to continue and gain further traction among users.
Tim Boddy: We expect this positive trend to continue and gain further traction among users.
Jinbo Li: To conclude, I'd like to say that 2025 will be a pivotal year for Xunlei. We will continue to implement growth initiatives as well as explore corporate restructuring moves to make the company more focused and dynamic. In January, we announced the acquisition of HuPu. HuPu brings with it a vibrant community and diverse content offerings that align seamlessly with our existing portfolio. This strategic acquisition is expected to unlock significant cross-platform synergies, enabling us to deliver more comprehensive and engaging experiences to our users. Furthermore, I believe we will well positioned to continue to make targeted R&D investment in emerging technologies to strengthen our core competencies and explore new growth opportunities.
To conclude I'd like to say that 2025 will be pivotal year for <unk>, we will continue to implement growth initiatives as well as explore corporate restructuring moves to make the company more focused and dynamic.
Tim Boddy: In January we announced the acquisition of <unk> brings with it a vibrant community and diverse content offerings that aligns and fleet with our existing portfolio.
Tim Boddy: This strategic acquisition is expected to unlock significant across platform synergies, enabling us to deliver more comprehensive and engaging experiences to our users.
Tim Boddy: Furthermore, I believe we were well positioned to continue to make targeted R&D investments in emerging technologies to strengthen our core competencies and explore new growth opportunities.
Jinbo Li: will harness our deep-rooted technical expertise to strategically integrate emerging technologies across our operations, product development, and user engagement efforts, thereby creating sustainable value for our shareholders.
Tim Boddy: Harness our deep rooted technical expertise to strategically integrate emerging technologies across our operations product development and the user engagement efforts, thereby creating sustainable value for our shareholders.
Eric Zhou: With that, I'll now pass the call over to Eric. Eric will give a detailed review of our Q4 and fiscal year financial results and provide revenue guidance for the first quarter of 2025. Thank you Luhan and thank you all again for participating in Xunlei's conference quarterly to discuss the financial results of the fourth quarter and fiscal year of 2024. In the fourth quarter, our total revenues were $84.3 million, representing an increase of 9.3% year-over-year. The increase in total revenues was mainly attributable to the increase in our revenues from subscription and live streaming business. Revenues from subscriptions were $34.4 million, representing an increase of 9% year-over-year.
Tim Boddy: With that I'll now pass the call over to Eric Eric well keep a detailed review of our Q4 and fiscal year financial results and provide revenue guidance for the first quarter of 2025.
Tim Boddy: Thank you. Thank you all again for participating in todays conference call today to discuss the financial results of the fourth quarter and fiscal year of 2024.
Tim Boddy: In the fourth quarter, our total revenues were $84 3 million, representing an increase of nine 2% year over year.
Tim Boddy: The increase in revenues was mainly attributable to the increase in our revenues from subscription and <unk> given your seats.
Tim Boddy: Revenues from subscriptions were $34 $4 million.
Tim Boddy: <unk>, an increase of 9% year over year.
Eric Zhou: The increase in subscription values was mainly driven by the increase in the number of subscribers. The number of subscribers was 6.38 million as of December 31st, 2024, compared with 5.99 million as of December 31st, 2023. The average revenue subscriber for the fourth quarter was RMB 36.6 compared with RMB 36.5 in the same period of 2023. Revenues from cloud computing were $22.7 million, representing a decrease of 25.6% year-over-year. The decrease in cloud computing revenues was mainly due to the reduced sales of cloud computing services and hardware devices as a result of heightened competition, pricing pressure and evolving regulatory environment.
Tim Boddy: The increase in subscription revenues was mainly driven by the increased number of subscribers.
Tim Boddy: The number of subscribers was six 8 million as of December 31, 2024, compared with $5 9 million is.
Tim Boddy: As of December 31st centers industry.
Tim Boddy: The average revenue per subscriber for the fourth quarter was RMB $36 six compared with RMB 36 wind farm in the same period of 2023.
Tim Boddy: Revenues from top computing were 22 $7 million, representing a decrease of 25, 6% year over year.
Tim Boddy: The decrease in cloud computing revenues was mainly due to the reduced sales of our cloud computing services and hardware devices as a result of higher than the competition pricing pressure and evolving regulatory environment.
Eric Zhou: Revenues from live streaming and other RVAS were $27.2 million. representing an increase of 80.7% year over year. The increase of live streaming and other IVAS revenues was mainly due to the increase the increase in the revenues from our overseas audio live streaming business. Cost of revenues were $40.4 million, representing 47.9% of our total revenues, compared with $36.8 million, or 47.7% of the total revenues in the same period of 2023. The increase in cost of revenues was mainly attributable to the increase in revenue sharing costs for a live streaming business incurred during the quarter. Gross profit for the fourth quarter of 2024 was $43.6 million dollars, representing an increase of 8.7% year-over-year.
Tim Boddy: Revenues from large streaming and other RV ers were $27 $2 million.
Tim Boddy: Presenting an increase of 87% year over year.
Tim Boddy: The increase of live streaming and other RV is revenues was mainly due to the increase the increase in the revenues from our overseas audio live streaming business.
Tim Boddy: Cost of revenues were $44 million.
Tim Boddy: Representing 47 or 9% of our total revenues.
Tim Boddy: Paired with $36 $8 million or 47, 7% of the total revenues in the same period of 2023.
Tim Boddy: The increase in cost of revenues was mainly attributable to the increase in revenue sharing costs for large streaming business incurred during the quarter.
Tim Boddy: Gross profit for the fourth quarter of 2024 was $43 $6 million.
Tim Boddy: Representing an increase of eight 7% year over year.
Eric Zhou: Gross profit margin was 51.7% in the fourth quarter, compared with 51.9% in the same period of 2023. The increase in gross profit was mainly driven by the increased gross profit from our subscription and overseas audio live streaming business. Research and development expenses for the fourth quarter were $18.7 million, representing 22.2% of our total revenue. compared with $19.5 million or 25.3% of our total revenues in the same period of 2023. Sales and marketing expenses for the fourth quarter were $12.5 million, representing 14.8% of our total revenues, compared with $9.3 million, or 12.1% of our total revenues in the same period of 2023.
Tim Boddy: Gross profit margin was 51, 7% in the fourth quarter compared with 50, 149% in the same period of 2023.
Tim Boddy: The increase in gross pocket was mainly driven by the increased gross profit from subscription and overseas audio live streaming businesses.
Tim Boddy: Research and development expenses for the fourth quarter or $18 $70 million.
Tim Boddy: Representing 22, 4% of our total revenues.
Tim Boddy: Paired with $19 $5 million or 25, 3% of our total revenues in the same period of 2023.
Tim Boddy: Sales and marketing expenses for the fourth quarter were $12 $5 million, representing 14, 8% of our total revenues.
Tim Boddy: Paired with nine city meeting those or 12, 1% of total revenues.
Tim Boddy: Same period of 2023.
Eric Zhou: The increase was the increase was primarily due to the expansion of marketing campaign and related expenses incurred for subscription and overseas audio live streaming business. GNA expenses for the fourth quarter were $12.1 million dollars, representing 14.4% of our total revenues, compared with $11.6 million dollars or 15.1% of our total revenues in the same period of 2023.
Tim Boddy: The increase was the increase was primarily due to the expansion of our marketing campaign and it related expenses incurred for subscription and Ocs audio live streaming business.
Tim Boddy: G&A expenses for the fourth quarter were $12 1 billion.
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Tim Boddy: <unk> portion of our total revenues compared with 11 6 million or.
Or 51% of our total revenues in the same period of 2023.
Eric Zhou: An impairment of goodwill of $20.7 million was identified and recorded in the fourth quarter of 2024, primarily due to a significant decline in the revenue of a cloud computing business in later 2024. And such trend was determined to have sustained impacts and therefore reflected in the quantitative impairment tests on goodwill performed at the end.
Tim Boddy: The impairment of goodwill of $27 million was identified and recorded in the fourth quarter of 2020 before primarily due to a significant decline in our revenue of our cloud computing business in later 2000 before.
Tim Boddy: Such trend was determined to have sustained impacts and therefore the effect in the quantitative impairment on goodwill performed at.
Operator: Ladies and gentlemen, please continue to stand by your conference will resume shortly. Thank you.
Tim Boddy: Ladies and gentlemen, please continue to stand by your conference will resume shortly thank you.
Tim Boddy: Okay.
Tim Boddy: Okay.
Unknown Attendee: Hello, can you hear me? Yes, we can hear you. Please continue. OK.
Tim Boddy: Hello can you hear me.
Tim Boddy: Yes, we can hear you. Please continue.
Tim Boddy: Okay.
Eric Zhou: Operating loss was $20.5 million compared with operating loss of $0.7 million in the same period of 2023. An increase in operating loss was primarily attributable to the non-cash impairment of goodwill. Net loss was $9.9 million, compared with net income of $3.7 million in the same period of 2023. The increase in net loss was primarily due to the increase in operating loss, as discussed above, partially offset by the decrease in income expenses, income tax expenses. Non-Gap Net Income was $11.3 million in the fourth quarter of 2024, compared with $4.5 million in the same period of 2023.
Tim Boddy: Operating loss was $25 million compared with hopefully lots of $47 million in the.
Tim Boddy: Same period of 2023.
Tim Boddy: The increase in operating loss was primarily attributable to the noncash.
Tim Boddy: Non cash impairment of goodwill.
Tim Boddy: Net loss was $9 $9 million compared with net income of $3 7 million in the same.
Tim Boddy: In periods of <unk> history.
Tim Boddy: The increase in net loss was primarily due to the increase in operating loss as discussed above partially offset by the decrease in income expenses.
Tim Boddy: <unk> expenses.
non-GAAP net income was $11 3 million in the fourth quarter of 2024, compared with $4 $5 million in the same period of 2023.
Eric Zhou: Daluche's loss per ADS in the 4th quarter of 2024 was $0.16 compared with Daluche's earnings per ADS of $0.06 in the 4th quarter of 2023. Non-gap diluted earnings per ADS was 18 cents in the fourth quadrant compared with non-gap diluted earnings of 7 cents in the same period of 2023.
Tim Boddy: Diluted loss per ads in the fourth quarter of 2024.
Tim Boddy: 16.
Tim Boddy: Compared with diluted earnings per eight years old six cents in the fourth quarter.
On the street.
Tim Boddy: non-GAAP diluted earnings per ads was <unk> 80 cents in the fourth quarter compared with non-GAAP diluted earnings of seven months in the same period of 2023.
Eric Zhou: As of December 31st, 2024, the company had cash cash equivalents and short-term investments of $287.5 million, compared to its $272 million as of September 30th, 2024. The increase was mainly due to the proceeds from bank borrowings and the net cash inflow from operating activities.
As of December 31, 2024, the company had cash cash equivalents and short term investments of 487 $5 million compared with 270 to $80 as of September 30th can be 74.
The increase was mainly due to the proceeds from bank borrowings and net cash inflow from operating activities.
Eric Zhou: Xunlei, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei, Xunlei, Xunlei, Xunlei, Xunlei, Xunlei, Now let's talk about the four year 2024 financial Total revenues were $324.4 million, representing a decrease of 11.1% on the year-over-year The decrease in total revenues was mainly attributable to the decreased revenues from our cloud computing and the live streaming and other IBS business. Revenues from subscription were $133.7 million dollars, representing an increase of $12.8 The increase was mainly due to the increased number of third subscribers, which was increased from 5.99 million as of December 31st, 2023 to 6.38 million as of December 31st, 2024.
Tim Boddy: Oxide power spending.
Tim Boddy: Buybacks and payments for long term investments.
Now, let's talk about the full year 2020 financial results total revenues were $324 $4 million.
Tim Boddy: A decrease of 11 point Watson on the year, albeit basis.
Tim Boddy: The decrease in total revenues was mainly attributable to the decreased revenue from our cloud computing and the large streaming and other <unk> businesses.
Tim Boddy: Revenues from subscriptions were up $137 million, representing an increase of 12 point.
Tim Boddy: Zero.
Tim Boddy: On a year over year basis.
Tim Boddy: The increase was mainly due to the increased number of total subscribers, which was increased from five nanometer as of December 31, compared to industry to $6 three at many of the ambulatory post anything Paul.
Eric Zhou: values from cloud computing were $104.6 million.
Tim Boddy: Revenues from cloud computing, where 104 $6 million.
Tim Boddy: The decrease of 50 Colstrip soon.
Eric Zhou: Tang Yeh, OBF, The decrease was mainly attributable to the reduced sales of cloud computing services and hardware devices as a result of heightened competition, pricing pressure and evolving regulatory environment. from Live Streaming and other IBS were $86.1 million. representing a decrease of 29.5% on the year-over-year basis. The decrease in live streaming and other RBS was mainly due to the downsizing of our domestic audio live streaming operations since June 2023.
Tim Boddy: Year over year basis.
Tim Boddy: The decrease was mainly attributable to the reduced sales of our cloud computing services and hardware devices as a result of heightened competition pricing pressure and evolving regulatory environment.
Tim Boddy: Revenues from live streaming and other Rds were $86 1 billion loss.
Tim Boddy: Thank you with decrease ultra deep nine 5% on a year over year basis.
Tim Boddy: The decrease in lab streaming and other Ibs was limited due to the target of our domestic <unk> operations since the June 2023.
Eric Zhou: Cost of revenues were $155.6 million, representing 48% of our total revenues, compared with $200.6 million, or 55% of the total revenues in 2020. The decrease in cost of revenues was mainly due to the decreased demand for cloud computing services and reduced revenue sharing. Resulting from the downsizing of a domestic audio lab streaming.
Cost of revenues were $155 $6 million.
Tim Boddy: Representing 48% of our total revenues compared with $2 six.
Tim Boddy: $6 million or 55% of the total revenues in 2023.
Tim Boddy: The decrease in cost of revenues was mainly due to the decreased demand for our cloud computing services and reduced revenue sharing cost.
Tim Boddy: Resulting from the uncertainty of Autodesk audio live streaming business.
Eric Zhou: The gross profit for the year was $167.6 million. Xinting, an increase of 2.8% year-over-year. Gross Profit Margin was 51.7%. compared with 44.7% in the previous year. The increase in gross profit was mainly driven by the increase in gross profit from a subscription benefit. The increase in gross profit margin was mainly attributable to the impact from the downsizing of domestic live streaming. which had a lower gross profit margin and the increased portion of subscription revenues in the company's total revenues which had a higher gross profit margin.
Tim Boddy: Gross profit for the year was 167 $6 million.
Tim Boddy: The increase of two 8% on a year over year basis.
Tim Boddy: Gross profit margin was 51, 7% compared with 44% in the period.
Tim Boddy: Let's see.
Tim Boddy: The increase in gross profit was mainly driven by the increase in gross gross pocket foremost subscription periods.
Tim Boddy: The increase in gross profit margin was mainly attributable to the impact from the tree felling offer to next collapsed Twilio business, which had lower gross profit margin.
Tim Boddy: The increased caution of subscription revenues in the country's total values, which has a higher gross profit margin.
Eric Zhou: research and development expenses for the year were 71.6 million dollars. of Zhengting 22.1% of our total revenue. compared with $74.2 million or 20.3% of a total revenue. in the previous.
Tim Boddy: Research and development expenses for the year was 71 $6 million.
Tim Boddy: Representing 22, 1% of our total revenues compared with $74 2 million or 20 sweeps.
Tim Boddy: Revenues in the previous year.
Eric Zhou: The decrease was primarily due to the decreased labor costs and share-based competition as compared with the previous Sales and marketing expenses for the year were $44.8 million. of Zhangjing, 13.8% of total governance compared with $43.5 million or 11.9% of our total governance in the previous. The increase was primarily driven by the expansion of marketing campaign and the related expenses in good for subscription, live streaming business, and increase the labor GNI expenses for the year were $45.8 million, representing 14.1% of our total revenues, compared with $46.9 million, or 12.8% of our total revenues in the previous year.
Tim Boddy: The decrease was primarily due to the decrease in labor costs and share based compensation as compared with the previous year.
Tim Boddy: Sales and marketing expenses for the year were $44 $8 million.
Tim Boddy: <unk>, 38% of total revenues compared with $43 $5 million or 11, 9% of our total revenues in the previous year.
Tim Boddy: The decrease was primarily driven by the expansion of marketing campaign and the related expenses incurred for subscription live streaming business and increase their labor costs.
Tim Boddy: G&A expenses for the year were $45 $8 million, representing 14, 1% of our total.
Tim Boddy: Revenues compared with $46 $9 million or 12, 8% of total revenues in the previous year.
Tim Boddy: The decrease was primarily due to the decrease in share based compensation expenses during the year, partially offset by the increase in labor costs as compared with the privacy.
Eric Zhou: Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei and impairment of goodwill of $20.7 million was identified and recorded in the first quarter of 2024, primarily due to a significant decline in the revenue of cloud computing. in late 2024 and such trend was determined to have sustained impacts and therefore reflect in the quantitative impairment tests on goodwill performed at the end of 2024. Operating loss was 18.7 million in 2024 compared with operating loss of 1.6 million in the previous The increase in option loss was primarily attributed to the impairment of goodwill, partially offset by the increase in gross profit from our subscription business and the decrease in operating expenses during the year, as discussed above.
Tim Boddy: Any impairment of goodwill.
Tim Boddy: $27 million was identified and recorded in the fourth quarter.
Tim Boddy: 'twenty 'twenty four.
Tim Boddy: Primarily due to a significant decline in the revenue of a cloud to cloud computing business in late 2024.
Tim Boddy: And as such trend will continue to have sustained effects and therefore protect.
Tim Boddy: Quantitative impairment tests on goodwill performed at the end of 2010 before.
Tim Boddy: Operating loss was $15 7 billion in 2024.
Tim Boddy: Paired with operating loss of $1 6 million in the previous year.
Tim Boddy: Increasing oxy loss was primarily attributable to the impairment of goodwill posture.
Partially offset by the increase in gross profit from our subscription business.
Tim Boddy: The decrease in operating expenses during the year.
Eric Zhou: net income was $0.5 million in 2024 compared with net income of $14.3 million in the previous The decrease in net income was primarily driven by the impairment of goodwill, partially offset by the decrease in income tax expenses during the year. Non-cash net income was $23.9 million in 2024. The same as the previous Diluted earnings per 8 years was $0.02 compared with diluted earnings per 8 years of 2020. in the previous.
Tim Boddy: Discussed above.
Tim Boddy: Net income was $70 million in 2024, compared with net income of $14 $3 million in the previous year.
Tim Boddy: The decrease in net income was primarily driven by the impairment of goodwill partially offset by the decrease in income tax expenses due to the yen.
Tim Boddy: non-GAAP net income was 23 $9 million.
Tim Boddy: <unk> thousand 74.
Tim Boddy: As with previous year.
Tim Boddy: Diluted earnings per ads was <unk>.
Compared with diluted earnings per ads of <unk> 22 cents.
Tim Boddy: In the previous year.
Tim Boddy: non-GAAP diluted earnings per ads.
Tim Boddy: 38 cents compared with non-GAAP diluted earnings per ads of 37.
Eric Zhou: Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei As of December 31, 2024, the company had cash cash equivalents and short-term investments of $287.5 million. compared with $271.9 million as of December 31, 2023.
Tim Boddy: Previous year.
Tim Boddy: As of December 31, 2010, before the company had cash cash equivalents and.
Tim Boddy: Short term investments of $287 $5 million compared with 271 $9 million.
Tim Boddy: At December 31, 2023.
Unknown Attendee: Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei Joe時間到了,記者板,來記者帳號記者, Zheng Guoxiang, Zhu These are part of the progress we have seen and payments for the construction of Xunlei Headquarters. on Shell Biobank during the year ended December 30, 2024. Wu, and the company spent approximately $7.7 million and purchased about $4.17 million ADP.
Tim Boddy: The increase in cash cash equivalents and was mainly attributable to the net cash inflow from operating activities, partially offset by the spending on share buybacks.
Tim Boddy: Expenditure on long term investments and payments for the construction of <unk> headquarters.
Tim Boddy: On share buybacks during the year ended December 31st 2024.
Tim Boddy: <unk> spent approximately 7%.
Tim Boddy: <unk> million dollars tended to purchase about 4.1 sided meetings avs.
Eric Zhou: that tend to the guidance for the first quarter of 2025. For the first quarter of 2025, Xunlei estimates total revenues to be between $85 million and $89 million. and the midpoint of range represents a quarter of a quarter increase of approximately 3.2%.
Tim Boddy: Let's turn to the guidance for the first quarter of 2025.
Tim Boddy: For the first quarter of 2010, the pub surely estimates total revenues to be between $85 million and 18 $9 million.
Tim Boddy: The midpoint of range represents a quarter over quarter increase.
Tim Boddy: Today three 2%.
Eric Zhou: This ethnic represents management's preliminary view as of the date of this press release, which is subject to change, and any changes could be material.
Tim Boddy: These estimates represent management's preliminary bill as of the date openness its press release, which is subject to change and any changes could be material.
Unknown Executive: Now we conclude prepared remarks for the conference call.
Tim Boddy: Now we conclude propelled remarks for the conference call operator, we are ready to take questions.
Operator: Operator, we are ready to take questions. Thank you.
Tim Boddy: Thank you.
Operator: as a reminder, to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced to withdraw your question, please press star 1 and 1 again once again, please press star 1 and 1 on your telephone and wait for your name to be announced to withdraw your question, please press star 1 and 1 again Please stand by while we compile the Q&A roster. This will take a few moments. Thank you.
Speaker Change: As a reminder to ask a question. Please press star one and one on your telephone and wait for your name to be announced until we've got your question. Please press star one and one again once again, please press star one and one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one and one again.
Speaker Change: Please stand by while we compile the Q&A roster. This will take a few moments.
Operator: Once again, ladies and gentlemen, please press star one and one for any questions or comments.
Speaker Change: Once again, ladies and gentlemen, please press star one and one for any questions I'll comment.
Unknown Attendee: We are now going to proceed with our first question. The questions come from the land of channel go from retail investors. Please ask your question. Your line is open.
Speaker Change: We are now going to proceed with our first question.
Speaker Change: The question comes from the line of Shannon go from retail investors. Please ask your question. Your line is opened.
Unknown Attendee: Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei Tang, Jinbo Li, Xunlei Tang, She would like to know what is the country's plan. following in this IPO and she wants to know if the company wants to sell the shares. And it's a good question. But I'm afraid it might be too early to address the question now, because the company has not completed its IPO yet. In any case, we have high confidence in the company. and expect Yinshi Company will achieve great success in the future. Thank you for your question. But we may be a little early to discuss this issue now.
Speaker Change: Oh got it.
James: This is James.
Speaker Change: So that's just.
Speaker Change: What's that lame duck also that usage should you hold them if that sounds a mouthful.
Speaker Change: She doesn't like del Mar.
Speaker Change: The quick question is Congress <unk> recent capital market performance.
Speaker Change: Stock was doing well.
Speaker Change: Sure with rack know what is the Companys plan.
Speaker Change: <unk> insists IPO and she wants to know if the company wants to sell the shares.
And it's a good question.
Speaker Change: But I'm afraid it might be too early to address the question no because the company has not.
Speaker Change: Increase its appeal kit.
Speaker Change: In any case, we have high confidence in the company.
Speaker Change: And expect is complete we have achieved great success in the future. Thank you for your question.
Speaker Change: Sure.
Speaker Change: Woman Christian Dial 901 has you know again, we've shown.
Unknown Attendee: But we are still very confident about Yinshi Technology. We also hope that they can achieve greater results after their successful launch.
Speaker Change: Fashion novel Mahesh It things you purchasing alcohol implementation on the Horizon is Japan Hermann go promotional shall hold to Silicon Valley.
Unknown Attendee: Thank you for your question.
Speaker Change: Thank you.
Speaker Change: No.
Unknown Attendee: Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei Unknown Attendee, Zhou Naijiang, Luhan Tang, Jinbo Li, Xunlei The question is, recently the company acquired HuPu, and she'd like to know, you know, what is the business model of HuPu, and what are its revenue and profit conditions? Thanks for the question. Hupu is a sports blog established in 2004. It provides comprehensive coverage of sports related reports. including the Premier League and other top European leagues, the UEFA Champions League, the Chinese Super League, NBA, CBA, F1, NFL, etc. The platform offers detailed event information, expert commentary, and in-depth analysis, making it at the largest sports community in China.
Speaker Change: Yes.
Speaker Change: Although she's highly lumpy.
Speaker Change: Yes, Shawn Colo.
Speaker Change: Ladies and gentlemen.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Do you have an industrial <unk> ching policies yet.
Speaker Change: Now the question you said the reason to the country acquired fruitful and she'd like to know.
Speaker Change: What is the business model of Grupo <unk>.
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Speaker Change: And.
Speaker Change: Perfect conditions.
Speaker Change: Thanks for the question.
Speaker Change: Oh poor Esa sports broke.
Speaker Change: <unk> 2004, it provides comprehensive coverage of sports related.
Speaker Change: Ports.
Speaker Change: Including the premium Premier legal and other European vehicles.
Speaker Change: The Euro Champs.
Speaker Change: <unk> legal maturities Superliga NBA CPA.
Speaker Change: In exchange.
Speaker Change: Exchange rate.
Speaker Change: The prep from of course detailed event information expert commentary.
Speaker Change: And in depth analysis, making it.
Speaker Change: The largest sports community in China.
Unknown Attendee: Currently, Hupo operates through its official website, hupo.com and the Hupo mobile application. Its main source of revenue comes from advertising. We expect the deal to be immediately earnings accretive after closing, expected in the first half of this year. because the deal has not been closed yet.
Speaker Change: Currently.
Speaker Change: Paul operates.
Speaker Change: Official website <unk> dot com.
Speaker Change: And then the <unk> mobile application.
Speaker Change: It's moved source of revenue comes from advertising.
Speaker Change: We expect the deal to be immediately earnings accretive after closing.
Speaker Change: Expect in the first half of this year.
Speaker Change: Of course, the deal has not been closed yet.
Unknown Attendee: We are unable to discuss Hupu's financial numbers for the time being. Thank you for your question. Hupu.com is currently the largest sports community in China. Currently, Hupu.com and Hupu.com's app are operating. Their main source of revenue comes from advertising. We expect to complete the entire transaction in the first half of this year. We expect that after the transaction is completed, it will also have a positive impact on the company's profits.
We are unable to discuss.
Speaker Change: Our original numbers for the currently thank.
Thank you for your question.
Speaker Change: Susan <unk>.
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Speaker Change: Insomnia.
<unk> will Cook, who put you in a few charts give you somewhat above the usual chart on money that opens with Williams.
Speaker Change: So financial NBA C D E F E and F. <unk> specializes in 18 months what's.
Speaker Change: <unk> issue, what do you take that.
Speaker Change: Television show chip.
Speaker Change: All four cohorts with ADP <unk>.
Speaker Change: In July and share that view.
Speaker Change: <unk> hundred 90000 booths.
Speaker Change: The imaging capability today.
Unknown Attendee: However, due to the fact that the transaction has not yet been completed, we are unable to disclose any financial data to you. Thank you.
Neil Ho: And our margin Joe your hand, Neil N Ho CFO.
Shape.
Neil Ho: Also cute.
Neil Ho: Okay.
Operator: As a reminder to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Once again, please press star 1 and 1 on your telephone.
Neil Ho: As a reminder to ask a question. Please press star one and one on your telephone and wait for your name to be announced until we go. Your question. Please press star one and one again once again, please press star one and one on your telephone.
Neil Ho: Okay.
Neil Ho: Sure.
Neil Ho: Okay.
Operator: We have no further questions at this time.
Neil Ho: Yes.
Speaker Change: We have no further questions at this time I would now like to hand back the call to you. Thank you.
Unknown Executive: I would now like to hand back the call to you. Thank you. Thank you again for your time and participation.
Neil Ho: Thank you again for your attendance and participation.
Unknown Executive: If you have any questions, please visit our website at irxinlei.com or send emails to our investors relations. Have a good day.
Neil Ho: Participation. If you have any questions. Please visit our website at IR <unk> com.
Neil Ho: Email to our Investor relations have a good day operate we conclude today's conference. Thank you.
Operator: Operator, we conclude this conference. Thank you.
Operator: This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you and have a great day.
Neil Ho: Thank you. This concludes today's conference call. Thank you all for participating you may now disconnect. Your lines. Thank you and have a great day.
And so the issue is.
Neil Ho: Okay.
Neil Ho: [music].
Neil Ho: Okay.
Neil Ho: Yes.
Neil Ho: Okay.
Neil Ho: [music].
Neil Ho: Okay.
Neil Ho: [music].