Xunlei Limited (NASDAQ:XNET) Q3 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 08:00 am ET

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Xunlei Limited (NASDAQ:XNET) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Xunlei's Third Quarter of 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will have a Q&A session after management remarks.

I will now turn the conference over to your host today, our IR manager, Ms. Charlene Lu. Please go ahead, Ma'am.

Executive
Charlene Lu

Thank you. Good morning and good evening and thank you all for joining us today. Welcome to Xunlei third quarter of 2019 earnings conference call. I'm Charlene Lu, Investor Relations Manager at Xunlei.

With me today are Mr. Lei Chen, our CEO, and Mr. Eric Zhou, our CFO. We will be happy to take your questions after our presentations. Please be limited to two questions at a time, so others can get their questions in as well. Today's conference call is being recorded and a replay of the call will be available on our IR website afterwards. Our earnings press release was distributed earlier today and is now also available on our IR website.

Before we get started, please know that the discussions today will contain certain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations under current market conditions and are subject to the risk and uncertainties that are difficult to predict, which may cause actual results to differ materially from those made in the forward-looking statements. Please refer to our SEC filings for more detailed descriptions of the risk factors that may affect our results. We do not assume any obligations to update any forward-looking statements, except as required under applicable laws.

During this call, we will refer to both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to the comparable GAAP measures can be found in our earnings press release. Please note that all numbers are in US dollars unless otherwise stated. With that, let me hand over to our CEO, Mr. Lei Chen, for prepared remarks.

Executive
Lei Chen

Good morning and good evening, everyone. Thank you all for joining us today. Let me start with our recent corporate developments and the financial highlights of the third quarter of 2019. Then Eric will provide more details on the financial results and take you through the guidance for the fourth quarter of 2019.

Our total revenue was approximately $43.8 million in this quarter, which is below our quarterly earnings guidance range. This was mainly due to lower than expected subscriptions revenues and the live streaming revenue due to seasonal factors and the lack of promotional activities. However, we are delighted to see that cloud computing revenues remain strong and continue to increase, driven by a growing demand for our shared cloud computing resources.

Going forward, we will focus our resources on further building our presence in the cloud computing market where we see high growth opportunities and great potential in accompanying our enterprise clients and their course of development. Xunlei is deeply committed