Xunlei (XNET) Stock: Over 6% Increase Explanation

By Amit Chowdhry ● May 20, 2021
  • The stock price of Xunlei Limited (NASDAQ: XNET) increased by over 6% during intraday trading. This is why it happened.

The stock price of Xunlei Limited (NASDAQ: XNET) increased by over 6% during intraday trading. Investors are responding positively to the company announcing its unaudited financial results for the first quarter ended March 31, 2021.

These are the highlights:

— Total revenues were US$53.3 million, representing an increase of 5.9% from the previous quarter.

— Cloud computing and other internet value-added services revenues were US$27.3 million, representing an increase of 5.7% from the previous quarter.

— Subscription revenues were US$22.1 million, representing an increase of 6.9% from the previous quarter.

— Online advertising revenues (consisting primarily of revenues from mobile ads) were US$3.9 million, representing an increase of 2.4% from the previous quarter.

— Gross profit was US$28.6 million, representing an increase of 6.7% from the previous quarter, and gross margin was 53.7% in the first quarter, compared with 53.3% in the previous quarter.

— Net income was US$6.8 million in the first quarter, compared with a net income of US$4.6 million in the previous quarter, representing an increase of 45.4% from the previous quarter.

— Non-GAAP net income was US$7.4 million in the first quarter of 2021, compared with US$4.8 million in the previous quarter, representing an increase of 52.4% from the previous quarter.

— Diluted earnings per ADS was approximately US$0.10 as compared with US$0.07 in the previous quarter.

“We are delighted with our solid financial and operating results for the first quarter of 2021, following a turnaround performance for the fourth quarter of 2020. We are especially encouraged that all the major performance measures showed sequential improvement. Revenue growth for all our major product lines combined with controlled expenses led to a 45.4% increase in net income in the first quarter of 2021 as compared with the previous quarter,” said Jinbo Li, Chairman and Chief Executive Officer of Xunlei.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.