Xunlei's Stock Propels 29% on Newest Financials

Xunlei reported improved revenue and narrowed losses from the first quarter, sending its shares soaring Wednesday.

Author: Anthony Russo   

Xunlei Ltd.'s (Nasdaq: XNET) stock propelled to 29 percent Wednesday to $2.65 per share after the company reported improved second-quarter earnings.

The cloud computing and blockchain company based in Shenzhen said in a statement today that its revenue increased 16 percent from the preceding quarter to $47.8 million. The company's net loss declined to $2 million in the second quarter from $8.6 million in the first quarter. 

Lei Chen, the chief executive officer of Xunlei, said he was pleased with his company's revenue growth in the second quarter.

"For the second quarter, we exceeded the top end of our earnings guidance as a result of revenue growth from our cloud computing and other internet value-added services," Chen said in a statement on Wednesday.

He added, "We believe the increased demand for our shared cloud computing products and services, and expanded IaaS customer base, validated the potential of our shared cloud computing business."

Chen also said the company has applied for blockchain patents in an effort to continue growing its network.