The following is a summary of the Xunlei Limited (XNET) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Xunlei Limited concluded the fiscal year 2023 with Q4 revenues of $77.1 million, a decline of 20.4% primarily due to reduced revenues from cloud computing and live streaming services.

• Cloud computing generated $30.5 million, declining 4.4% year-over-year whereas Live streaming services faced a more substantial decline of 62.5% due to strategic downsizing since June 2023.

• However, subscription-based revenues rose by 26.8% due to an increase in the number of subscribers and higher average revenue per subscriber.

• Q4 saw an increase in gross profit to $14.1 million, up by 6.5% from the same quarter of the previous fiscal year mainly driven by the surge in subscription business.

• The net income for Q4 was $3.7 million, an impressive increase from $1.6 million in the same quarter of 2022.

• The fiscal year 2023 ended with total revenues of $364.9 million, marking an increase of 6.5% year-over-year.

• As of December 31, 2023, the company reported cash, cash equivalents, and short-term investments of $271.9 million.

Business Progress:

• Despite the intense competition, Xunlei's Cloud computing managed to maintain its competitive positioning.

• Xunlei also experienced a revenue rebound in its gaming business due to refined operational strategies. The advertising business similarly benefited from the growth in subscription services.

• The company ended 2023 with nearly 6 million subscribers to its flagship subscription business, with more than 73% opting for premium subscriptions.

• Xunlei plans to efficiently capitalize its strong cash reserves and robust balance sheet by investing in key business areas.

• The company achieved a record-breaking membership for subscriptions attributing it to strategic partnerships with online social networking platforms.

• The company projects revenues for Q1 2024 to range between $79 million and $84 million.

More details: Xunlei IR

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