Xunlei Clocks 11% Sequential Revenue Growth In Q1

Xunlei Limited XNET reported first-quarter FY22 revenue growth of 11.1% quarter-on-quarter to $79 million, reflecting higher revenues from cloud computing, live streaming, and subscription businesses.
Segments: Cloud computing revenues increased 7% Q/Q to $30.2 million; Subscription revenues rose 7% Q/Q to $25.3 million; Live streaming and other internet value-added services grew 22.1% Q/Q to $23.5 million.
The gross margin contracted 260 bps Q/Q to 44.1% due to an increased portion of live streaming revenues to total revenues, which has a relatively lower gross profit margin.
Non-GAAP earnings per ADS were $0.107.
Xunlei held $269.9 million in cash and equivalents.
Outlook: Xunlei sees Q2 revenue of $77 million - $82 million.
Price Action: XNET shares traded higher by 5.65% at $1.31 in the premarket on the last check Tuesday.