Xunlei Registers 19% Sequential Revenue Growth In Q4 Backed By Cloud Computing, Live Streaming

Xunlei Ltd XNET reported fourth-quarter FY21 revenue growth of 18.6% quarter-on-quarter to $71.1 million, reflecting higher revenues from cloud computing and live streaming businesses.
Segments: Cloud computing and other internet value-added services revenues increased 26.9% Q/Q to $44.7 million; Subscription revenues rose 4.3% Q/Q to $23.7 million; Online advertising revenues rose 33.1% Q/Q to $2.8 million.
The gross margin contracted 220 bps Q/Q to 46.7% due to decreased revenue portion of the subscription revenues, which had a higher gross margin.
Loss per ADS was $(0.01) versus $(0.08) previous quarter.
Xunlei held $239 million in cash and equivalents.
Chair and CEO Jinbo Li stated, "Particularly, we saw strong growth in shared cloud computing and other IVAS, which realized a year-over-year growth of 52.7%, driven by customer demand and bandwidth capacity expansion."
Outlook: Xunlei sees Q1 FY22 revenue of $77 million - $80 million.
Price Action: XNET shares traded lower by 5.66% at $1.50 on the last check Thursday.

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