Xunlei Announces Second Quarter Financial Results

Xunlei (NASDAQ:XNET), cloud and blockchain technology company based in China announced a 15.7 percent uptick in revenues since the first quarter. Revenues were driven by cloud subscriptions, generating US$22.5 million primarily from its StellarCloud software services.

As quoted in the press release:

Second Quarter 2019 Financial Highlights:

• Total revenues were US$47.8 million, representing an increase of 15.7% from the previous quarter.

• Cloud computing and other internet value-added services revenues (“Cloud computing and other IVAS”) were US$22.5 million, representing an increase of 40.6% from the previous quarter. The revenues from cloud computing and other IVAS mainly consist of StellarCloud’s IaaS revenues, cloud product revenues and live streaming revenues. The increase was mainly due to increased demand for our shared cloud computing products and services, and enhanced seasonal marketing activities for our live streaming platform during the quarter.

• Subscription revenues were US$21.4 million, representing an increase of 0.9% from the previous quarter.

• Online advertising revenues (consisting primarily of revenues from mobile advertising) were US$3.9 million, representing a decrease of 5.4% from the previous quarter.

• Gross profit was US$22.3 million, representing an increase of 5.5% from the previous quarter. Gross margin was 46.7% in the second quarter of 2019, compared with 51.2% in the previous quarter.

• Net loss was US$2.0 million in the second quarter of 2019, compared with a net loss of US$8.6 million in the previous quarter.

Click here to read the full press release.