Benzinga | Nov 11, 2021 10:57AM EST

Xunlei Shares Gain On Exceeding Q3 Revenue Outlook

* Xunlei Ltd (NASDAQ:XNET) reported third-quarter FY21 revenue growth of 8.8% quarter-on-quarter to $59.8 million.

* The increase in total revenues was mainly attributable to increased revenues from cloud computing and other IVAS businesses.

* Segments: Cloud computing and other internet value-added services revenues increased 21.8% Q/Q to $35.2 million; Subscription revenues were flattish Q/Q at $22.7 million; Online advertising revenues decreased 40.5% Q/Q to $2.1 million.

* The gross margin contracted 360 bps Q/Q to 48.9% due to decreased revenue portion of subscription and online advertising business, which had higher gross margins than other business lines.

* Non-GAAP EPS loss was $(0.05).

* Xunlei held $228.3 million in cash and equivalents.

* We significantly exceeded our previously issued revenue guidance and delivered total revenues of $60 million for the third quarter of 2021, with significant growth in our cloud computing and other internet value-added services, Chair and CEO Jinbo Li said.

* Outlook: Xunlei sees Q4 revenue of $67 million - $71 million.

* Price Action: XNET shares traded higher by 8.21% at $3.03 in the market session on the last check Thursday.