SHENZHEN, China - Xunlei Limited (NASDAQ:XNET), a prominent provider of distributed cloud services in China, announced today the appointment of Mr. Hui Duan and Mr. Xiaosong Li to its board of directors. Mr. Duan returns to Xunlei's board after a one-year absence, bringing with him a wealth of experience from his tenure as the company's vice president and CEO of a major subsidiary. He is also the Chief Technology Officer at Beijing Itui Technology Co., Ltd.
Mr. Li, the new Vice President of AGI Business at Xunlei since December 2023, has a background in technology partnership and R&D leadership at Beijing Itui Technology Co., Ltd., with a focus on artificial intelligence. His prior experience includes a decade at Baidu (NASDAQ:BIDU) Search Ads (Phoenix Nest), culminating in the role of Chief Architect.
Xunlei's Chairman and CEO, Mr. Jinbo Li, welcomed the new board members, expressing confidence in their industry expertise and management experience to add value for shareholders.
Founded in 2003, Xunlei offers a suite of products and services that encompass cloud acceleration, shared cloud computing, and digital entertainment, aiming to enhance the efficiency, intelligence, and security of internet experiences.
The company's forward-looking statements in the press release come with the usual caveats of potential risks and uncertainties inherent in the technology industry, including the need to innovate, retain users, and navigate regulatory challenges. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.
This news is based on a press release statement. Xunlei has not provided any additional comment on the appointments or their potential impact on the company's operations or market position.
In other recent news, Xunlei Limited, a global cloud-based acceleration technology company, has reported mixed financial results for the second quarter of 2024. The company saw a 10.8% revenue increase in its subscription business and gained about 1 million users, while its cloud computing segment experienced a 13.8% revenue decline due to competitive pricing and lower hardware sales. Total Q2 revenues were down 23.7% year-over-year, totaling $79.6 million, and earnings per share fell to $0.04 from $0.08 in the same period last year.
Despite these results, Xunlei announced a new share repurchase plan and provided a positive revenue outlook for Q3, expecting a quarter-over-quarter increase of approximately 4.9%. The company's cash and short-term investments stood at $263.4 million as of June 30, 2024.
The company is also exploring international markets and improving products and services, with no current plans for dividends as it explores new growth opportunities. These are the recent developments in the company's performance and future plans.
InvestingPro Insights
In light of the recent board appointments at Xunlei Limited (NASDAQ:XNET), investors may be interested in a snapshot of the company's financial health and market performance. According to InvestingPro data, Xunlei holds a market capitalization of approximately $98.38 million. This relatively modest valuation is accompanied by an attractive price-to-earnings (P/E) ratio of 7.2, which further adjusts to 6.45 when looking at the last twelve months as of Q2 2024. Additionally, Xunlei's price/book ratio during the same period stands at a low 0.3, suggesting the stock could be undervalued relative to the company's net assets.
From an operational perspective, Xunlei's gross profit margin impressively reaches 50.34%, indicating a strong ability to convert revenue into gross profit. However, it's noteworthy that the company has experienced a decline in revenue growth, with a -17.42% change over the last twelve months as of Q2 2024. This could reflect market challenges or increased competition affecting the company's top-line growth.
InvestingPro Tips highlight that Xunlei has several strengths, including holding more cash than debt, which is a positive sign for financial stability. Furthermore, the company is profitable over the last twelve months, a reassuring factor for potential investors. For those interested in a deeper dive into the company's financials and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/XNET, which can provide a more comprehensive understanding of Xunlei's market position and performance.
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