In last trading session, the stock price of Xunlei Ltd (NASDAQ:XNET) surged more than 1% to close the day at $5.36. The gains came at a share volume of 139,338 compared to average share volume of 114,778.
The management speaks
Expressing his views on 1Q2016 financial performance, Lei Chen, the Co-CEO of Xunlei stated that the total revenues for 1Q came at US$38.5 million. It represents 27.4% jump on a YoY basis and 1.6% increase on a sequential basis. The growth in revenues surpassed the high end of projected guidance range. The Co-CEO added that this quarter was remarkable in terms of revenue growth. Nearly all major revenue divisions reported strong growth rate.
Sales from cloud computing division surged more than 40% on a sequential basis, while mobile internet also sustained the growth momentum, accounting for 23% of total revenues. It recorded a jump of 17% over the previous quarter.
Discussing about the cloud computing business, the Co-CEO of Xunlei reported that the segment is backed by Cloud Sourcing, using current idle capacity and focusing mainly on streaming, on-demand and live. As stated earlier, the cloud computing business commenced to record revenue since 3Q2015. It is a significant milestone verifying markets initial queries of its value propositions.
In 1Q2016, the revenue from cloud computing segment surged 40.4% sequentially. Also, the count of clients have increased this past quarter. There is a trend of growing count of live streaming sites, which comes in the list of the fastest expanding industries in the Chinese internet market.
Additionally, the existing client, Xiaomi had extended its bandwidth deployment further to live streaming, explicitly for its Lantern Festival and Spring Festival live television telecasts. Live streaming in 1Q2016 constituted nearly 30% of revenues coming from bandwidth selling. Moreover, the pipeline of new clients, which are in different phase of product testing customization discussions look robust.