Xunlei Q2 Revenue Jumps 39% on Subscription Demand, But Swings to Loss
XNET is trading near its 52-week low of $4.38 (13% above the low).
Summary
Xunlei reported Q2 revenue of $102.7 million, up 39% year-over-year, driven by subscription services and overseas live-streaming. However, the company swung to a non-GAAP net loss of $2.1 million from a profit a year ago, with gross margin pressured by a higher mix of lower-margin live-streaming revenue. This follows a $192.4 million GAAP net loss in Q1 and a $20 million buyback announced in June. The revenue growth is strong, but the shift to loss and margin compression are key concerns. Watch for management commentary on international expansion and capital management on the earnings call.
At the time of this announcement, XNET was trading at $4.97 on NASDAQ in the Technology sector, with a market capitalization of approximately $312.4M. The 52-week trading range was $4.38 to $11.03. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.