Shulou(Shulou.com)11/24 Report--

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On August 15, 2023, XNET released its results for the second quarter of 2023, showing growth in all business sectors and revenue of more than $100 million.

Thunder's total revenue in the second quarter was $104 million, up 33.3% from a year earlier, mainly due to an increase in revenue from members, cloud computing, live streaming and other Internet value-added services. The company's gross profit was $45.9 million, up 35.9% from a year earlier, and its gross profit margin was 44.0%, compared with 43.1% in the same period last year. Based on general accounting standards (GAAP), net profit for the quarter was $5 million, compared with $6 million in the same period last year. Based on non-Non-GAAP, net profit for the quarter was $8.4 million, compared with $9.8 million in the same period last year. The decrease in net profit and Non-GAAP net profit was mainly due to a decrease in other non-operating income.

Mr. Li Jinbo, Chairman and CEO of Xunlei, said: "We achieved excellent results this quarter, with total revenue up 33.3% year-on-year to US $104 million and net profit of US $5 million. The balanced growth of all business sectors proves that our business layout is resilient to cope with the challenging market environment."

Increase in revenue from cloud computing, live streaming and other Internet value-added services

This quarter, the revenue performance of member business is good, and the proportion of super members has increased. Revenue from the membership business was $29.7 million, up 17.0% from a year earlier. The increase in business revenue was mainly due to an increase in average revenue per user in the quarter and an increase in the number of members compared with the same period last year.

As of June 30, 2023, the number of member users is about 4.72 million. In the second quarter of 2023, the average revenue per member was 42.9 yuan, compared with 37.8 yuan in the same period last year. The increase in average revenue per user is due to the increase in the proportion of users of super members.

Revenue from the cloud computing business was $30.7 million in the second quarter, up 8.2 per cent from a year earlier. The growth of cloud computing revenue is mainly based on the increased demand for cloud computing services and the increase in sales of cloud computing hardware. In addition, revenue from live streaming and other Internet value-added services was $43.9 million, up 79.1% from a year earlier.

Buy back up to $20 million of shares in the next 12 months to increase marketing and R & D investment

In June 2023, Thunderbolt announced that its board of directors had authorized to buy back up to $20 million of shares over the next 12 months.

In the second quarter, Xunlei also increased its investment in R & D and marketing, and paid attention to technological R & D and market, which also made Xunlei keep moving forward in the changing market environment. According to the financial report, the company's sales and marketing expenses were $15.4 million, accounting for 14.7% of total revenue, mainly due to more marketing activities in the second quarter to continue to attract customers. At the same time, R & D expenses were $17.2 million, accounting for 16.5% of total revenue, compared with $16 million in the same period last year. As of June 30, 2023, the company held cash, cash equivalents and short-term investments of $258.3 million.

Looking to the future, Li Jinbo said: "in order to meet the challenges brought by changes in the industry environment, we reduced our domestic voice live broadcast business in the second quarter of 2023 and plan to continue to adjust other domestic live broadcast business in the second half of the year. This adjustment is expected to have an impact on the company's revenue growth in the next few quarters. We will speed up the development of other business, rely on the R & D experience and innovation capabilities accumulated over the past two decades, continue to explore new development opportunities, maintain sensitivity to the market environment, and strive to create value for shareholders.

Thunderbolt expects total revenue in the third quarter of 2023 to range from $79 million to $84 million. On average, revenue fell by about 21.9% in the third quarter from the previous quarter. The decline is due to the company's downsizing of its domestic live streaming business, leaving members and cloud computing businesses unaffected. This prospect only reflects the preliminary view of Xunlei at present and is likely to change in the future.

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