On the evening of May 16th, Xunlei released its unaudited financial report for the first quarter ended March 31, 2024. The financial report shows that in the first quarter, the company's total revenue was 80.4 million US dollars, a year-on-year decrease of 19%, and the total revenue met the revenue guidance of the previous quarter. Although the total revenue decreased, the profitability increased this quarter.
In the first quarter, Xunlei's gross profit was 42.8 million US dollars, an increase of 8.2% year-on-year; The gross profit margin was 53.3%, compared to 39.9% in the same period last year. Based on US GAAP, the net profit for this quarter was $3.6 million, compared to a net profit of $1.2 million for the same period last year. Based on Non GAAP (Non GAAP), the net profit for this quarter was $4.5 million, compared to a net profit of $5.5 million for the same period last year. The company stated that the increase in net profit was mainly due to the growth of membership business, while the decrease in non GAAP net profit was due to an increase in labor costs.
In the first quarter, the membership business performed well, with a revenue of 33.1 million US dollars, a year-on-year increase of 12.9%. The growth of membership business revenue is mainly due to the increase in the number of members. As of March 31, 2024, the number of member users was approximately 5.76 million; The number of member users during the same period last year was approximately 4.84 million.
Cloud computing revenue was $30.2 million, a year-on-year decrease of 7.8%. The decrease in cloud computing revenue is mainly due to a decrease in revenue generated by some major customers and a decrease in cloud computing hardware sales. In addition, since June 2023, Xunlei has reduced its domestic voice live broadcasting business, resulting in a year-on-year decrease in revenue in the first quarter. The revenue of live broadcasting and other Internet value-added services was $17.1 million, a year-on-year decrease of 54.1%.
In the first quarter, Xunlei increased its membership and live streaming overseas business operations, carried out more marketing activities, resulting in an increase in sales and marketing expenses. In this quarter, sales and marketing expenses were $10.1 million, accounting for 12.5% of total revenue, compared to $9.3 million in the same period last year, accounting for 9.4% of total revenue.
In June 2023, Xunlei announced that its board of directors authorized the repurchase of up to $20 million in stocks over the next 12 months. As of March 31, 2024, the company has spent approximately $4.7 million on stock repurchases. As of March 31, 2024, the company held cash, cash equivalents, and short-term investments of $272.5 million.
Looking ahead to the future, Li Jinbo, Chairman and CEO of Xunlei Group, said, "In 2024, we will accelerate the pace of business transformation, embrace decentralization and artificial intelligence technology. As a transformative technology, big models will deeply change our lives. We hope to use their capabilities to strengthen business operations, enrich user experiences, and enhance competitiveness."
Xunlei expects a total revenue range of $79 million to $84 million in the second quarter of 2024. On average, revenue in the second quarter increased by approximately 1.4% month on month.