• Xunlei Announces Unaudited Financial Results for the First Quarter Ended March 31, 2022

    المصدر: Nasdaq GlobeNewswire / 17 مايو 2022 06:00:00   America/New_York

    SHENZHEN, China, May 17, 2022 (GLOBE NEWSWIRE) -- Xunlei Limited (“Xunlei” or the “Company”) (NASDAQ: XNET), a leading innovator in shared cloud computing and blockchain technology in China, today announced its unaudited financial results for the first quarter ended March 31, 2022.

    First Quarter 2022 Financial Highlights:

    • Total revenues were US$79.0 million, representing an increase of 11.1% from the previous quarter.
    • Cloud computing revenues (previously included in cloud computing and other internet value added services revenue) were US$30.2 million, representing an increase of 7.0% from the previous quarter.

    • Subscription revenues were US$25.3 million, representing an increase of 7.0% from the previous quarter.
    • Live streaming and other internet value added services (“Live streaming and other IVAS”) revenues (including online advertising revenues) were US$23.5 million, representing an increase of 22.1% from the previous quarter.

    • Gross profit was US$34.9 million, representing an increase of 4.9% from the previous quarter, and gross profit margin was 44.1% in the first quarter, compared with 46.7% in the previous quarter.
    • Net income was US$5.4 million in the first quarter, compared with a net loss of US$0.5 million in the previous quarter.

    • Non-GAAP net income was US$7.2 million in the first quarter, compared with a non-GAAP net income of US$1.7 million in the previous quarter.
    • Diluted earnings per ADS was approximately US$0.08 as compared with a diluted loss of US$0.01 per ADS in the previous quarter.

    Mr. Jinbo Li, Chairman and Chief Executive Officer of Xunlei, stated that, “We are off to a good start with total revenues reaching $79.0 million in the first quarter of 2022, which represents an increase of 11.1% from the previous quarter. This is also the sixth quarter in which we reached consecutive quarterly revenue growth. I’m very pleased that our major revenue streams achieved impressive growth driven by product enhancement and increased customer demand. I think it is a testament of our consistent strategic execution and clearly demonstrates our ability to deliver competitive products and services to meet our customers’ needs. In the first quarter of 2022, we realized a net profit of $5.4 million, representing a significant improvement from a net loss of $0.5 million in the previous quarter.”

    "At Xunlei, we are constantly exploring innovative products and services. Our strong performance in the first quarter of 2022 further supports our confidence about the sustainability and encouraging outlook of our business. With a strong balance sheet, stable cash flows and an improving business performance, we believe our revenue growth and near-term trajectory remains optimistic.”

    First Quarter 2022 Financial Results

    Total Revenues

    Total revenues were US$79.0 million, representing an increase of 11.1% from the previous quarter. The increase in total revenues was mainly attributable to increased revenues from live streaming, cloud computing and subscription business.

    Revenues from cloud computing were US$30.2 million, representing an increase of 7.0% as compared with the amount of US$28.2 million in the previous quarter. The increase of cloud computing revenues was mainly driven by increased customer demand.

    Revenues from subscription were US$25.3 million, representing an increase of 7.0% from the previous quarter. The number of subscribers was 4.61 million as of March 31, 2022, compared with 4.39 million as of December 31, 2021. The average revenue per subscriber for the first quarter was RMB34.9, compared with RMB34.3 for the previous quarter.

    Revenues from live streaming and other IVAS were US$23.5 million, representing an increase of 22.1% as compared with the amount of US$19.2 million in the previous quarter. The increase of live streaming and other IVAS revenues was mainly due to the increased demand for our live streaming services.

    Costs of Revenues

    Costs of revenues were US$43.9 million, representing 55.5% of our total revenues, compared with US$37.6 million or 52.8% of the total revenues in the previous quarter. The increased costs of revenues were mainly attributable to increased sales of our cloud computing and other IVAS services.

    Bandwidth costs as included in costs of revenues were US$26.9 million, representing 34.0% of our total revenues, compared with US$22.8 million or 32.1% of the total revenues in the previous quarter. The increased bandwidth costs were mainly due to increased demand for our cloud computing products as well as additional bandwidth usage for the Cloud Drive feature which has been added to our subscription product since 2020.

    The remaining costs of revenues mainly consisted of costs related to the revenue-sharing costs for our live streaming business and depreciation of servers and other equipment.

    Gross Profit and Gross Profit Margin

    Gross profit for the first quarter was US$34.9 million, representing an increase of 4.9% from the previous quarter. Gross profit margin was 44.1% in the first quarter, compared with 46.7% in the previous quarter. The increase in gross profit was mainly due to increased revenues in live streaming, cloud computing and subscription business. The decrease in gross profit margin was mainly due to change in the revenue structure, i.e., increased portion of live streaming revenues to total revenues, which has a relatively lower gross profit margin.

    Research and Development Expenses

    Research and development expenses for the first quarter were US$16.3 million, representing 20.6% of our total revenues, compared with US$16.6 million or 23.3% of our total revenues in the previous quarter.

    Sales and Marketing Expenses

    Sales and marketing expenses for the first quarter were US$5.3 million, representing 6.8% of our total revenues, compared with US$6.6 million or 9.3% of our total revenues in the previous quarter. The decrease was primarily due to decreased marketing activities carried out for our major products during the quarter.

    General and Administrative Expenses

    General and administrative expenses for the first quarter were US$9.6 million, representing 12.2% of our total revenues, compared with US$11.1 million or 15.6% of our total revenues in the previous quarter. The decrease was primarily due to the decreased legal and consulting expenses.

    Operating Income/(Loss)

    Operating income was US$3.9 million, compared with an operating loss of US$1.7 million in the previous quarter. The increase in operating income was primarily due to increased gross profit and decreased operating expenses as discussed above.

    Other Income, Net

    Other income was US$1.2 million, compared with other income of US$1.0 million in the previous quarter.

    Net Income/(Loss) and Loss Per ADS

    Net income was US$5.4 million, compared with a net loss of US$0.5 million in the previous quarter. Non-GAAP net income was US$7.2 million in the first quarter of 2022, compared with a net income of US$1.7 million in the previous quarter. The increased net income and non-GAAP net income were primarily due to the improved gross profit and decreased operating expenses as discussed above.

    Diluted earnings per ADS in the first quarter of 2022 was approximately US$0.08 as compared with a diluted loss per ADS of US$0.01 in the fourth quarter of 2021.

    Cash Balance

    As of March 31, 2022, the Company had cash, cash equivalents and short-term investments of US$269.9 million, compared with US$239.0 million as of December 31, 2021. The increase of cash and cash equivalents was mainly due to increased bank borrowings to support the construction of the new headquarters and research and development building and net cash generated from operations.

    Guidance for Second Quarter of 2022

    For the second quarter of 2022, Xunlei estimates total revenues to be between US$77 million and US$82 million, and the midpoint of the range represents a quarter-over-quarter increase of approximately 0.6%. 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.

    Conference Call Information

    Xunlei's management will host a conference call at 8:00 a.m. U.S. Eastern Time on May 17, 2022 (8:00 p.m. Beijing/Hong Kong Time), to discuss its first quarter results.

    Due to the outbreak of COVID-19, operator assisted conference calls are not available at the moment. All participants wishing to attend the call must preregister online before they can receive the dial-in numbers. Preregistration may require a few minutes to complete. The Company would like to apologize for any inconvenience caused by not having an operator as a result of COVID-19.

    Please register in advance to join the conference using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference access information will be provided upon registration.

    Participant Online Registration: http://apac.directeventreg.com/registration/event/2607899

    Once preregistration has been completed, participants will receive dial-in numbers, an event passcode, and a unique registrant ID.

    To join the conference, please dial the number you receive, enter the event passcode (2607899) followed by your unique registrant ID, and you will be joined to the conference instantly.

    The Company will also broadcast a live audio webcast of the conference call. The webcast will be available at http://ir.xunlei.com.

    Following the earnings conference call, an archive of the call will be available by dialing:

    China (Mandarin):4008209703
    Hong Kong:800963117
    United States:18554525696
    International:+61 2 8199 0299
    Replay Passcode:2607899
    Replay End Date:May 25, 2022

    About Xunlei

    Founded in 2003, Xunlei Limited (NASDAQ: XNET) is a leading innovator in shared cloud computing and blockchain technology in China. Xunlei provides a wide range of products and services across cloud acceleration, blockchain, shared cloud computing and digital entertainment to deliver an efficient, smart and safe internet experience.

    Safe Harbor Statement

    This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the management's quotations, the "Outlook" and "Guidance" sections in this press release, as well as the Company's strategic, operational and acquisition plans, contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Forward-looking statements involve inherent risks and uncertainties, including but not limited to: the Company's ability to continue to innovate and provide attractive products and services to retain and grow its user base; the Company's ability to keep up with technological developments and users' changing demands in the internet industry; the Company's ability to convert its users into subscribers of its premium services; the Company's ability to deal with existing and potential copyright infringement claims and other related claims; the risk that Covid-19 or other health risks in China or globally could adversely affect the Company's operations or financial results; the Company’s ability to react to the governmental actions for its scrutiny of internet content in China and the Company's ability to compete effectively. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

    About Non-GAAP Financial Measures

    To supplement Xunlei's consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Xunlei uses the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: (1) non-GAAP operating income/(loss), (2) non-GAAP net income/(loss) from continuing operations, (3) non-GAAP basic and diluted earnings per share for common shares attributable to continuing operations, and (4) non-GAAP basic and diluted earnings per ADS attributable to continuing operations. The presentation of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

    Xunlei believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding the Company’s operating performance by excluding share-based compensation expenses, which is not expected to result in future cash payments. These non-GAAP financial measures also facilitate management's internal comparisons to Xunlei's historical performance and assist the Company’s financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in Xunlei’s results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying reconciliation tables at the end of this release include details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.

     
    XUNLEI LIMITED
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (Amounts expressed in thousands of USD, except for share, per share (or ADS) data)
     March 31, December 31, 
     2022 2021 
     US$ US$ 
    Assets    
         
    Current assets:    
    Cash and cash equivalents133,543 123,358 
    Short-term investments136,393 115,652 
    Accounts receivable, net32,362 26,135 
    Inventories1,030 1,363 
    Due from related parties12,810 15,578 
    Prepayments and other current assets6,760 11,842 
    Total current assets322,898 293,928 
         
    Non-current assets:    
    Restricted cash4,096 4,078 
    Long-term investments31,331 31,495 
    Property and equipment, net58,477 57,657 
    Intangible assets, net8,051 8,299 
    Goodwill23,236 23,136 
    Due from a related party, non-current portion19,311 19,311 
    Long-term prepayments and other assets3,489 2,787 
    Right-of-use assets21 27 
    Total assets470,910 440,718 
         
    Liabilities    
    Current liabilities:    
    Accounts payable29,141 26,407 
    Due to related parties1,632 1,597 
    Contract liabilities and deferred income, current portion38,808 36,892 
    Lease liabilities13 18 
    Income tax payable2,554 2,531 
    Accrued liabilities and other payables48,711 49,557 
    Bank borrowings, non-current portion3,757 2,876 
    Total current liabilities124,616 119,878 
         
    Non-current liabilities:    
    Contract liabilities and deferred income, non-current portion837 845 
    Lease liabilities, non-current portion4 7 
    Deferred tax liabilities889 930 
    Bank borrowings, non-current portion34,770 17,291 
    Total liabilities161,116 138,951 
         
    Equity    
    Common shares (US$0.00025 par value, 1,000,000,000 shares authorized, 368,877,205 shares issued and 337,257,946 shares outstanding as at December 31, 2021; 368,877,205 issued and 337,427,946 shares outstanding as at March 31, 2022)84 84 
    Additional paid-in-capital477,842 476,057 
    Accumulated other comprehensive income2,810 1,988 
    Statutory reserves6,155 6,155 
    Treasury shares (31,619,259 shares and 31,449,259 shares as at December 31, 2021 and March 31, 2022, respectively)8 8 
    Accumulated deficits(175,179)(180,645)
    Total Xunlei Limited's shareholders' equity311,720 303,647 
    Non-controlling interests(1,926)(1,880)
    Total liabilities and shareholders' equity470,910 440,718 
         



    XUNLEI LIMITED
    Unaudited Condensed Consolidated Statements of Income
    (Amounts expressed in thousands of USD, except for share, per share (or ADS) data)


     Three months ended
      
     Mar 31,Dec 31,Mar 31,
     2022 2021 2021 
     US$US$US$
    Revenues, net of rebates and discounts79,047 71,145 53,275 
    Business taxes and surcharges(280)(307)(256)
    Net revenues78,767 70,838 53,019 
    Costs of revenues(43,900)(37,586)(24,401)
    Gross profit34,867 33,252 28,618 
        
    Operating expenses   
    Research and development expenses(16,307)(16,559)(13,275)
    Sales and marketing expenses(5,349)(6,607)(4,456)
    General and administrative expenses(9,646)(11,106)(6,642)
    Credit loss expenses, net of recoveries300 (703)(21)
    Total operating expenses(31,002)(34,975)(24,394)
        
    Operating income/(loss)3,865 (1,723)4,224 
    Interest income410 270 124 
    Interest expense(23)(23)(25)
    Other income, net1,194 995 2,261 
    Income/(loss) before income taxes5,446 (481)6,584 
    Income tax (expenses)/benefits(16)(28)154 
    Net income/(loss) 5,430 (509)6,738 
    Less: net loss attributable to non-controlling interest(36)(30)(16)
    Net income/(loss) attributable to common shareholders5,466 (479)6,754 
    Earnings /(loss) per share for common shares   
    Basic0.0162 (0.0014)0.0202 
    Diluted0.0162 (0.0014)0.0202 
        
    Earnings /(loss) per ADS   
    Basic0.0810 (0.0070)0.1010 
    Diluted0.0810 (0.0070)0.1010 
        
    Weighted average number of common shares used in calculating continuing operations:   
    Basic337,259,835 334,982,981 334,404,699 
    Diluted337,259,835 334,982,981 334,879,910 
        
    Weighted average number of ADSs used in calculating continuing operations :   
    Basic67,451,967 66,996,596 66,880,940 
    Diluted67,451,967 66,996,596 66,975,982 
        
        
     
    XUNLEI LIMITED
    Reconciliation of GAAP and Non-GAAP Results
    (Amounts expressed in thousands of USD, except for share, per share (or ADS) data)
      Three months ended
      
      Mar 31, Dec 31,Mar 31,
      2022 20212021
     US$US$US$
        
    GAAP operating income/(loss)3,865 (1,723)4,224
    Share-based compensation expenses1,785 2,229 625
    Non-GAAP operating income5,650 506 4,849
        
    GAAP net income/(loss)5,430 (509)6,738
    Share-based compensation expenses1,785 2,229 625
    Non-GAAP net income7,215 1,720 7,363
        
    GAAP earnings/(loss) per share for common shares:   
    Basic0.0162 (0.0014)0.0202
    Diluted0.0162 (0.0014)0.0202
        
    GAAP earnings/(loss) per ADS:   
    Basic0.0810 (0.0070)0.1010
    Diluted0.0810 (0.0070)0.1010
        
    Non-GAAP earnings per share for common shares:   
    Basic0.0215 0.0052 0.0221
    Diluted0.0215 0.0052 0.0220
        
    Non-GAAP earnings per ADS:   
    Basic0.1075 0.0260 0.1105
    Diluted0.1075 0.0260 0.1100
        
    Weighted average number of common shares used in calculating:   
    Basic337,259,835 334,982,981 334,404,699
    Diluted337,259,835 334,982,981 334,879,910
        
    Weighted average number of ADSs used in calculating:   
    Basic67,451,967 66,996,596 66,880,940
    Diluted67,451,967 66,996,596 66,975,982
          

    CONTACT:
    Investor Relations
    Xunlei Limited
    Email: ir@xunlei.com
    Tel: +86 755 8633 8443
    Website: http://ir.xunlei.com


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