Xunlei Limited (NASDAQ:XNET) Q2 2020 Earnings Conference Call - Final Transcript

Aug 25, 2020 • 08:00 am ET

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Xunlei Limited (NASDAQ:XNET) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's Second Quarter of 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. We'll have a question-and-answer session after a few management remarks.

I would like to turn the call over to your host, Investor Relations Manager, Ms. Mengnan Gao. Thank you. Please go ahead, ma'am.

Executive
Mengnan Gao

Thank you. Good morning and good evening, and thank you all for joining us today. We welcome you to this conference call to discuss Xunlei's second quarter of 2020 earnings. Our agenda today, Mr. Jinbo Li, our CEO, will provide brief overview of our strategies and financial performance. After that, Mr. Eric Zhou, our CFO, will provide additional details on the financial results, wrapping up with our revenue guidance for the third quarter of 2020. We will be happy to take your questions after our management remarks. Please limit it 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 note the discussion today will contain certain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations under current market conditions and are subject to risks 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 description of the risk factors that may affect our results. We do not undertake any duty 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 comparable GAAP measures can be found in our earnings press release. Please note that all numbers are in U.S. dollars, unless otherwise stated.

And with that, let me pass to our CEO, Mr. Jinbo Li, for prepared remarks.

Executive
Jinbo Li

[Foreign Speech] Good morning and good evening, everyone. Thank you for joining us for our second quarter of 2020 earnings call. The second quarter was a quarter of transition and progress. As a first quarter for the new management to lead the Company, we have taken several initiatives and streamlined our organizational structure to prepare the Company for new milestones. Our primary focus will be to fully uncover Xunlei's value and achieve improved performance as soon as possible.

Now I'd like to give you a recap of the financial highlights of the second quarter of 2020 and share with you some of the recent developments of the Company.

[Foreign Speech] We met our revenue guidance for the second quarter. Total revenues were $44.3 million, an 8.3% decrease sequentially. The reduction in total revenues was primarily