Xunlei's Q4 2024 Earnings Call: Contradictions in IPO Plans, Advertising Strategy, and Subscription Growth

These are the key contradictions discussed in Xunlei Limited's latest 2024 Q4 earnings call, specifically including: IPO plans, Advertising Revenue Model, Hupu Acquisition Strategy, and Subscription Business Strategy:



Subscription Business Growth:
- Xunlei reported revenue of $34.4 million for its subscription business in Q4, marking a 9% year-over-year increase.
- The growth was driven by a record-breaking 6.38 million subscribers, fueled by strategic alliances with leading mobile partners and an integrated business ecosystem.

Cloud Computing Revenue Decline:
- Cloud computing revenue fell to $22.7 million in Q4, representing a 25.6% year-over-year and 10.1% quarter-over-quarter decrease.
- The decline was due to unfavorable industry conditions, heightened competition, pricing pressures, and evolving regulatory environments.

Live-Streaming and IVAS Revenue Recovery:
- Live-streaming and other IVAS revenue rose to $27.2 million in Q4, showing an 80.7% year-over-year increase.
- This rebound was attributed to the company's pivot from low-margin domestic markets to emerging regions like Southeast Asia and EMEA, as well as product refinement and user engagement efforts.

Corporate Restructuring and Acquisitions:
- Xunlei announced the acquisition of Hupu, a sports blog platform, expecting it to be immediately earnings accretive and unlock cross-platform synergies.
- The acquisition aligns with the company's strategic focus on delivering comprehensive user experiences and expanding its content offerings.