Xunlei Clocks 1% Sequential Revenue Decline In Q2 Due To Currency Headwinds

Xunlei Limited XNET reported second-quarter FY22 revenue decline of 1% quarter-on-quarter to $78.3 million.
The decrease in total revenues was mainly attributable to the devaluation of the RMB against the U.S. Dollar, partially offset by revenue growth from live streaming and other IVAS.
Segments: Cloud computing revenues decreased 6.2% Q/Q to $28.3 million; Subscription revenues rose 0.2% Q/Q to $25.4 million; Live streaming and other internet value-added services grew 4.5% Q/Q to $24.5 million.
The gross margin contracted 100 bps Q/Q to 43.1%.
Earnings per ADS were $0.09 versus $0.08 in the previous quarter.
Xunlei held $259.9 million in cash and equivalents.
Outlook: Xunlei sees Q3 revenue of $82 million - $87 million, with the midpoint representing a Q/Q increase of 7.9%.
Price Action: XNET shares closed higher by 8.64% at $1.76 on Monday.