Shares of Xunlei Limited (NASDAQ:XNET), a Chinese cloud computing company, slumped on Thursday following a disappointing fourth-quarter report. Revenue plunged and losses grew, sending the stock down about 9.8% as of 12:30 p.m. EST.
Xunlei reported fourth-quarter revenue of $42.3 million, down a whopping 49% year over year. Revenue rose 15% for the full year to $232.1 million. "We continued to deliver value-added services on our traditional business, and reversed the trend in declining subscription numbers in the fourth quarter. Despite some headwinds in the macroeconomic environment, we remain optimistic," said CEO Lei Chen.
Net income per American depositary share was a loss of $0.48 in the fourth quarter, compared to a profit of $0.06 in the prior-year period. Lower revenue and higher operating costs drove down the bottom line.
Earnings were also hurt by a $6.3 million asset impairment charge.
Xunlei "became a well-known blockchain player, providing blockchain services with high performance" in 2018, according to Chen. The stock has been hurt by cryptocurrency prices collapsing after they exploded higher toward the end of 2017. Shares are now down about 83% from their all-time high.
While the company blamed macroeconomic conditions for its terrible fourth-quarter results, a near-50% revenue decline is something that investors should be seriously concerned about.