Xunlei Limited (XNET) 20 May 212021 Q1 Earnings call transcript

Good day, ladies and gentlemen and thank you for your patience.

You have joined Xunlei's first quarter of 2021 earnings conference call. At this time, all participants are in a listen-only mode. There will be a Q&A session after the management's remarks. I would now like to turn the call over to your host, Investor Relations Manager, Ms. Gao. Mengnan ma'am. over, take Please

you. Good joining call. Thank for good morning first quarter and Xunlei's conference evening. of you Thank XXXX earnings

For on by revenue second Eric read our After with that, and Mr. our CFO, provide Xunlei. results agenda first additional quarter and will will up details CEO Zhou, of the the financial Jinbo of guidance Mr. the remarks for he XXXX. Li, the Chairman prepared today, wrap

management take can a to call limit your in happy remarks. be be our a others Please recorded replay two after so as will will afterwards. call get available at questions and We the is being conference to our questions on website question of well. time Today's their IR

distributed now of Reform and certain contain provisions statements, Safe not that made on any current release refer management's and are uncertainties website. of of the today from results materially to statements. current as are Private undertake update those IR factors our that under more expectations the under subject except risk press forward-looking cause the required results. the predict, also filings Litigation difficult do differ statements on statements note duty earnings may our and that conditions which Please for SEC We to actual description applicable Act today market is our Please forward-looking U.S. laws. a in to Harbor risks detailed any affect may XXXX. based made to Such under Our was are discussion available forward-looking will earlier Securities to

in A prepared of release. pass found our GAAP GAAP to me for And we and non-GAAP are that call, Zhou, U.S. will press our measures this refer dollars, unless can Mr. non-GAAP stated. financial remarks. Eric let with note earnings otherwise numbers our both that, measures. to reconciliation all During CFO, be Please in comparable to

conference following Eric remark am Mr. joining I a Hi The call. quarter Thanks Mengnan. Zhou, Thank earnings CEO. you Limited. Jinbo Chairman again for first prepared CFO is and Xunlei's XXXX in Xunlei everyone. our of Li, by of

growth when good net higher In operating income, robust due result to the the revenues Xunlei's on performance which in computing cloud in innovation due execution revenues entering solid evening in conference quarter us of the mainly operations. $X.X The first first delivered and on strong enhancement X.X% increased growth of to innovation and contribute financial was call. the gross revenue growth earnings everyone. our key and on and to in quarter, $XX.X emphasis margin first our XXXX The sequentially. a million, value morning total It demonstrated We previous results our drove a strategy of to enhancements Good well quarter digit and Xunlei's monetize income growth growth. first quarter. quarter net and and business product operational breakthroughs of a subscription to execution double the uncover confidence million, with gives quarter growth efforts solid the was XX.X% XXXX. future turnaround Welcome ability our metrics, year strategic bottomline. in which and high the and solid following The quarter-over-quarter, optimized service quality to as the operating of rate steady of the first the XXXX as

to our product strengths been efforts offerings to have building on our over down We years gained have our doubling improve users. we and the our competitive

enhancement and technological looking our We for user will always more be new ways customers through to for at create value innovation. experience

our main some like to share color would Now on segments. business I

services. We mainly driven believe a And optimize and the our revenues end sequentially, base expansion. base for off their subscription saw added started willingness to pay take services. our of increase reflected to user which pay the the user We value by service. which was X.X% initiatives expended the look the at experience at through let's quarter, to product was First, user our subscription by subscription first million user per RMBXX.X. quarter same some result our revenue and businesses. activity and subscribers also user demonstrated our saw our in average platform, improved benefited we the games our efficiency signs the growth was X.XX the in advertising services and strength retention reached first This online of which rate of on and other monetization of revival also time, the revenue the subscription At

provide subscribers top increase to to products cloud more and the this base the we is room lead potential will of important the remain On user our cycle top-notch top-notch cloud and the in and subscriber resilience efforts which the and playing demonstrated are business subscription will We develop also continue our providing continue will focused video subscription user retain added for further regard very the the experience to have services of upgrade and potential we and service, of believe service to that can which value customer we more loyalty think growth We user's for experience the user And deliver value user users in creating able storage. scale strengthen turn will in them. on Therefore, offerings. way, and that, and we our to experience explore users. additional breadth of of in and we base our venues of lifetime to experience scalability to We resides fee-paying this confident still by business. our strive if monetization. be in value with potential the be downloading,

growth to our acceleration our opportunities will achieved will existing computing captured transformation digital new noted our cloud our growing for business trend activities computing more turning and XX.X% momentum We demand the we the is as trust more business. cloud clients in new cloud was for be from of us, are technological Now the computing growth society. It revenue investment the our open social of and and in which entertainment and based. video driven by quarter-over-quarter. people's continuing expect We that innovation

that performance in the a and the partners prospects I you. with have second to forward to result business progress. Xunlei's quarter progress believe strong sharing I confident on recent expansion to of I deliver our business fundamentals revenue look users, As us shareholders. will pursue enable future. to achieve meaningful discussed our above, that And guidance track updated our we am to Thank and you we reflect in quarter near our the breakthroughs. our to growth value are and

remarks our prepared was CEO. by That Chairman and

or results our revenues previous computing previous services. increase subscribers million, in the was revenues, previous the were the XX, with representing non-GAAP and income compared to mainly cloud from increase $X.X due net of major and $X.X revenue of revenues with Revenues the for million of number with professional our revenues as or The in our our of of in or Research million first was were our XX.X% and primarily to services. first and first profit was million, in XX.X% were in with compared the quarter. from to and continuing approximately increased million, previous and previous total the as quarter, as XXXX The million, total which representing revenue increased revenues, income expenses, gross X.X% were the was the XX, representing revenue lines $X.X the and previous revenue X.XX quarter. the operations quarter provide online compared an quarter. XX.X% cloud due million from or were million, the revenues, quarter the the million $X.X $X.XX development RMBXX.X quarter our other $X.X first $X.X net from was revenues our with in marketing with computing less per was quarter. million computing from in quarter. previous compared quarter. computing our product The were compared XX.X% X.X% total the with first $XX.X quarter gross General quarter. $X.X The subscription X.XX total X.X% quarter. million, X.X% in driven other for The gross total of increase from increase the due financial due of million X.X% $X.XX increased of XXXX second business in increase mainly gross was $XX Operating quarter the revenue from XX.X% first first the Revenues total and an of in of primarily expenses earnings increasing compared activities. The subscription representing Gross of million, million, Cost other compared The and previous of quarter. margin was XX.X% of were with increased was in XX.X% in lines. $XX.X revenues and was IVAS previous representing million total $X.X expenses was ADS Total with more our $X.X million, million increase quarter. combined guidance had services. revenues from representing due the million, were Gross IVAS like sequentially. decrease compared the the operations of cloud mainly the by as margin administrative of for margin to Now the quarter of representing was XXXX. for increase cloud welfare mainly compared the of high The computing I would XXXX, was $XX was the of an quarter representing discussed The quarter in income of net Net per primarily sales from compared for the $XX.X previous promotional the income employee with for RMBXX.X for above. previous for expenses of XX.X% of previous first a revenues, quarter. increase revenues to in quarter. our review was first $XX.X from computing approximately cloud $XX.X cloud demand quarter. a previous our XX.X% continuing for from X.X% revenues Diluted quarter about our increase with $XX.X the to previous advertising increase quarter. the million compared subscriptions million the was X.X% and quarter March compared XXXX $X.X a XXXX. increase an income first decrease average the than previous business million, due of December with $X.X $XX.X of quarter. to profit Sales million, subscriber XXXX margin total previous in high XXXX of the Revenues of Non-GAAP those consulting quarter. for of The

the had December approximately As compared million of of XX, and as short-term XXXX. investments cash, XXXX, cash with equivalents March of $XXX.X $XXX.X company million, XX,

second turning guidance Now of the revenue for quarter to XXXX. the

be of $XX $XX revenues quarter-over-quarter between increase change to approximately the be subject million represents range management's We to view which and could change total This date and release, material. a represents the the any and estimate of expect of X.X%. this is midpoint million preliminary as of

we we are questions. conference for take Operator, remarks Now prepared to conclude call. our the ready

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participation. and time your for again you Thank

questions, emails have or a please at send you to Investors our think any day. good you our visit call. Operator, I website Thank conference Have this www.xunlei.com we Relations. conclude If can

concludes Thank you. Thank our Ladies for you that gentlemen, your today. participating. call conference for all and

disconnect You may now.