On March 15th, Xunlei unveiled its unaudited financial report for the fourth quarter ending December 31, 2023, and the full fiscal year 2023. According to the report, Xunlei's total revenue for Q4 amounted to $77.1 million, with a yearly total revenue of $364.9 million, marking a 6.5% year-over-year increase.
Under the Generally Accepted Accounting Principles (GAAP), net profit for Q4 reached $3.7 million, while the annual net profit for 2023 stood at $14.3 million. Using Non-GAAP measures, Q4 net profit was $4.5 million, with an annual net profit of $23.9 million for 2023.
Xunlei's Chairman and CEO, Mr. Lei Junbo, commented, "We concluded 2023 with a robust fourth quarter performance, surpassing our previous revenue guidance and achieving profitability for the third consecutive year. It is gratifying to note that by the end of 2023, our membership base reached nearly 6 million, marking a significant milestone. Furthermore, fourth-quarter membership revenue saw a year-over-year increase of 26.8%. These achievements are not only attributed to our consistent delivery of high-quality services to meet the growing demands of our users but also to the relentless efforts of our employees."
According to the financial report, revenue from Xunlei's membership services in Q4 amounted to $31.6 million, representing a 26.8% year-over-year increase. On an annual basis, membership business revenue reached $119.3 million, up by 18.7% year-over-year. The revenue growth was fueled by an increase in membership users and an uplift in average revenue per user. As of December 31, 2023, Xunlei's membership user base was approximately 5.99 million, reflecting an increase of 1 million compared to the same period last year. In Q4 2023, the average revenue per member was ¥36.5 RMB, compared to ¥35.4 RMB in the same period last year, benefiting from the expanded proportion of users opting for the Super VIP membership.
In the cloud computing business segment, Q4 revenue decreased by 4.4% year-over-year to $30.5 million, mainly due to reduced income from some major clients. However, annual revenue reached $123.4 million, up by 3.2% year-over-year. Revenue from live streaming and other internet value-added services declined by 62.5% in Q4, amounting to $15 million, as a result of the proactive reduction in domestic voice live broadcasting business. Annual revenue in this segment totaled $122.2 million, down by 0.2% compared to the previous year.
In Q4, Xunlei's research and development expenses were $19.5 million, accounting for 25.3% of total revenue, compared to $19.2 million, or 19.8% of total revenue, in the same period last year. Annual R&D expenses for 2023 amounted to $74.2 million, representing 20.3% of total revenue, compared to $67.7 million, or 19.8% of total revenue, in the previous year. In terms of sales and marketing expenses, Xunlei incurred $9.3 million in Q4, accounting for 12.1% of total revenue, compared to $8.7 million, or 8.9% of total revenue, in the same period last year. Annual sales and marketing expenses for 2023 were $43.5 million, representing 11.9% of total revenue, compared to $24.8 million, or 7.3% of total revenue, in the previous year.
Earlier, Xunlei announced that its board of directors authorized the repurchase of up to $20 million worth of shares within the next 12 months. During 2023, the company spent a total of $4.7 million on share repurchases, including $1.1 million from the share repurchase plan in March 2022 and $3.6 million from the share repurchase plan in June 2023.
As of December 31, 2023, Xunlei held cash, cash equivalents, and short-term investments totaling $271.9 million.
Mr. Lei Junbo remarked, "In 2024, we will set our sights on higher goals, actively explore opportunities, and seek breakthroughs in business development through our own R&D capabilities. I believe Xunlei's solid balance sheet, ample cash reserves, and synergistic products and services will provide stability and flexibility for expanding our existing business while enabling us to pursue growth and innovation, thereby creating value for shareholders. I look forward to sharing our progress with everyone in the near future."
Xunlei expects total revenue for Q1 2024 to be in the range of $79 million to $84 million. Calculated on average, Q1 revenue is expected to increase by approximately 5.7% quarter-over-quarter.
