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| Statement |
|---|
| We believe that each improvement we made to our subscription business validates our exceptional product and service capabilities, enhanced user engagement efforts and refined user acquisition strategy |
| And hopefully, we can see a positive quarter-over-quarter comparison in the near future |
| We have optimized the certain existing features of our products and carried out a series of measures to improve user experience so as to improve user satisfaction rate and loyalty as we will continue to enhance our own acquisition strategy and try to take advantage of the season of 11.11 and 12.12 short in promotion, we expect to sustain the current growth momentum in Q4 |
| Meanwhile, we're pleased to report another profitable quarter, marking 8 consecutive quarters of profitability |
| Furthermore, our gross profit margin also improved to 44.6% this quarter from 39.9% in the third quarter last year due to the change in the product mix |
| Our cloud computing business has consistently maintained its competitive advantage in the industry, leveraging our intensive network of edge computing nodes to not only offer higher rewards for household users, but also provide cost-effective solutions for enterprise clients |
| In the third quarter, the subscription business yielded solid results with a total revenue of $28.7 million, representing an increase of 15.2% compared to the same quarter last year |
| I expect that both our user base and our operations will continue to improve as a result of our ongoing product enhancements and user acquisition activities |
| We're pleased with the continuous growth in our average revenue per subscriber, driven by a higher proportion of premium subscribers in the third quarter than in the previous quarter |
| This demonstrates our unwavering commitment to providing secure and cutting-edge products and services to our customers |
| Moreover, users also showed increasing willingness to pay for our products, and the number of total subscribers reached a record high level of approximately $5 million in the third quarter |
| Despite intensive industry competition, our cloud computing services and hardware devices continue to experience sustained demand among enterprises and customers and generated $29.5 million in revenue with a 1.4% year-over-year increase |
| In the second and third quarter, we successfully complete the downsizing both our domestic audio live streaming business, which has relatively low gross margin |
| These results reflected our relentless efforts to mitigate the impact of business adjustments and are on referring commitments to further enhance our existing operations as other major business lines continue to desist year-over-year growth momentum |
| Our teams are working diligently towards meeting the impact of the downsizing of our domestic audio live streaming business on our overall revenue through exploration of new opportunities and the continued optimization of our existing businesses |
| The increase in subscription revenues was mainly due to higher average revenue per subscriber and an increased number of subscribers as a result of our ongoing efforts on user acquisition and product improvement |
| Meanwhile, other IVAS revenues increased in the third quarter of 2023 as compared with the same period of 2022 |
| Our objective is to identify growth opportunities that align with our core competencies and create sustainable value for our shareholders |
| Despite the impact of our downside domestic audio live streaming business on our revenue scale, our total revenues reached $84.2 million and exceeded the upper end of our quarterly guidance, representing a moderate decline of 4.6% compared to the previous year's figure |
| Revenues from subscriptions were $28.7 million representing an increase of 15.4% year-over-year |
| Gross profit for the third quarter of 2023 was $37.5 million representing a 6.6% increase from the same period of 2022 |
| Going forward, we will capitalize on our expertise and competitive edge in shared cloud computing while also allocating resources to R&D in order to explore new applications for growth potential and business development |
| Revenues from cloud computing were $29.5 million, representing an increase of 1.4% year-over-year |
| The increase in gross profit and gross profit margin was mainly driven by an increased proportion of subscription revenues which has high gross profit margin as well as decreased proportion of downsized domestic audio live streaming revenues, which has lower gross profit margin |
| And furthermore, we anticipate a further increase in the conversion rate for premium subscribers in the near future |
| Despite that, we remain committed to fostering innovation in products and services to explore new opportunities |
| The high average revenue per subscriber was mainly due to the continued increase in the proportion of the users opting for premium membership |
| Let's have a good day |
| To conclude my remarks today, as a pioneering Internet company of 20-year history, Xunlei has consistently adhered to our core values in every action taken and decision made |
| The increase in cloud computing revenues was mainly due to the increased sales of new generation cloud computing hardware devices |
| Statement |
|---|
| In the third quarter, live streaming and other Internet value-added services generated $26 million in revenue, representing a 24.1% decline compared to the same period of last year due to down standing of our domestic audio live streaming operations |
| As mentioned in our revenue guidance for the next quarter, there will be a limited adverse impact on the revenue in Q4 |
| Unidentified Analyst [Foreign Language] The question is, we have absorbed the impact of downsizing domestic audio live streaming business during the first 2 quarters resulting in a 24.1% decrease in live streaming and other IVAS revenues in the last quarter |
| Revenues from last from live streaming and other IVAS were $26 million, representing a decrease of 24.1% year-over-year |
| The decrease in live streaming revenues were primarily attributable to the downsizing of our domestic audio live streaming operations |
| The decrease in total revenues was mainly attributable to the decreased revenues generated from our live streaming services as we have downsized our domestic audio live streaming operations since June this year |
| For the third quarter of 2023, total revenues were $34.2 million, representing a decrease of 4.6% year-over-year |
| The decline is due to the impact of the downsizing of a domestic live streaming business, where the operations of our subscription and the cloud computing business are not affected |
| For the fourth quarter of 2023, Xunlei estimates total revenues to be between $70 million and $75 million, and the midpoint of the range represents a quarter-over-quarter decrease of approximately 8.6% |
| Operating loss was $2.5 million compared with an operating income of $5.1 million in the same period of 2022 |
| The decrease in net income and non-GAAP net income was primarily attributable to the increased marketing expenses, labor costs and depreciation expenses partially offset by the reversal of certain payables with low payment affordability as discussed above |
| The decreased cost of revenues were mainly attributable to the decrease in revenue sharing costs of live streaming, which was consistent with the decline in live streaming revenues |
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