Xunlei Limited (XNET) announced its unaudited fourth-quarter financial results and fiscal year 2020 results after which XNET stock price saw a jump of 12.40% to reach $8.70 a share as of this writing. XNET per share price was $7.74 at the previous closing with a 3.20% gain.Let’s deep dive to explore more of it.
What’s happening?
Xunlei Limited is a digital media content cloud-based platform in China.Unaudited fourth quarter and fiscal year 2020 results have added more hype to the XNET stock price today.Here is the summary of the results.
Fourth-quarter 2020 Results:
- Xunlei Stock reached US$50.3 million in revenue representing a 15% increase from the previous quarter.
- US$25.9 million revenue generated from cloud computing and other internet value-added services which shows a 22% increase from the last quarter.
- Subscription and Online advertising revenues were US$20.7 million and US$3.8 million respectively with5.5% and 27.6% increase as compared to the previous quarter.
- Gross profit was US$26.8 million with an 18.3% increase as compared to the previous quarter while gross margin was 53.3% as compared to 51.9% of the previous quarter.
- US$4.6 million net income was generated in the fourth quarter of 2020 while US$1.5 million of net loss was recorded in the previous quarter.
- Diluted loss per ADS was approximately US$0.07 in the fourth quarter of 2020 while it was US$0.02 in the last quarter.
The fiscal Year 2020 Results:
- XNET stock generated US$186.7 million in revenue with a 3.0% increase over the year.
- US$25.9 million revenue generated from cloud computing andIVAS representing a 6.0% increase over the year.
- Subscription revenues were US$84.3 million with a 3.4% YoY increase while Online advertising revenues were recorded US$13.2 million with a 15.6% decrease over the year.
- Gross profit was US$93.7million with a 16.1% increase as compared to 2019 while gross margin was 50.2% as compared to 44.5% of 2019.
- Net loss totaled US$14.1 million in 2020 as compared to US$53.4 million net loss in 2019.
- Diluted loss per ADS was US$0.21 in 2020 while it was US$0.79 in 2019.
XNET stock had cash, cash equivalents, and short-term investments of US$255.1 million at the end of the fiscal year 2020 as compared to US$246.0 million at the end of the third quarter of 2020.
Conclusion:
XNET stock news about its earnings report has added more hype in the XNET stock price. For the first quarter of 2021, Xunlei stock has projected its revenue to be between US$53 million and US$56 million which represents 8% quarterly revenue growth. Estimated financial guidance for the first quarter of 2021 points to the further growth of Xunlie Stock. Hence it can be a good bet for investors in the future.