Thunder Releases Q1 Report for 2017: Star Domain CDN Drives Revenue Main Engine
[Global Science and Technology reported on the evening of May 10] Today, Thunder announced the unaudited financial results for the first quarter ended March 31, 2017. The financial report shows that the total revenue of Thunder in the quarter was 39.6 million US dollars, an increase of 2.9% year-on-year, and the total revenue for the five consecutive quarters increased year-on-year. Among the three major business segments, other Internet value-added services, including cloud computing, performed well with revenues of US$15 million, of which cloud computing business continued to grow fastest, rising by 86.5% year-on-year and up 36.3% sequentially. The high-speed growth of cloud computing business has benefited from the continuous expansion of the scale of the CDN business of Starcom, and its bandwidth sales increased by 38% from the previous quarter; the total service bandwidth increased by 21% compared with the previous period and increased by 234% compared with the same period last year. It is worth noting that since the development of Xunlei cloud computing business independently by Netcore Technology, this has been a quarterly increase in revenue from the cloud computing business for seven consecutive quarters. This means that, as the core profit product of Thundercloud's cloud computing business, the Star Zone CDN has continued to achieve revenue growth since its launch in June 2015. It has become one of the main engines of Thunder’s current revenue and has helped Thunder achieve New year business started. Since 2015, Thunder has announced that it is seeking a transformative cloud computing business. According to the financial report data of the past two years, it can be seen that cloud computing, which is regarded as the new pillar business of Thunder, began to realize revenues from the time when Netcore Technology launched the Star Domain CDN and continued to grow with the rapid growth of the latter's business. Seven consecutive quarterly jumps. In particular, investors need to pay attention to the fact that the jump in cloud computing business has continued to expand with the growth of the CDN business volume of the star domain. At the same time, the excellent performance of the Star Zone CDN in the 2016 annual revenue territory of Xeon makes the income of other Internet value-added services, including cloud computing, become the second largest source of income in addition to the members' income. 1/3 income contribution. In the just-released 2017 Q1 financial report data, the revenue of other Internet value-added services accounted for the total revenue of Thunder continued to climb to 37.9%. If we say that from the second half of 2015 to the beginning of 2016, the Star Zone CDN has fully realized the commercialization of Thundercloud computing. From 2106 to the present, the total revenue of the cloud computing business or the revenue growth rate Looking at it, it can be said that the Star Domain CDN has become one of the main engines for current and future Thunder revenue. On the basis of high growth in 2016, Thundercloud’s cloud computing business has experienced high-speed growth in the first quarter of 2017, and the thrust behind it is that Starcom’s CDN is leveraging the innovative strength of the shared economy cloud computing technology to achieve customers, especially major customers. Incremental new business requirements. As we all know, as a small number of To B businesses in the Internet industry, CDN business development has a huge long-tail effect. If the product strength is convincing, existing customers can ferment a huge amount of new business. Since June of last year, Starfield’s two new live broadcast products have provided the industry’s top live broadcast technology support while significantly reducing bandwidth costs for live broadcast companies that are deeply challenged by both technology and cost, and have won mills including Xiaomi and Aiqi. Arts, panda live, unfamiliar, bilibili, tentacles and many other customers recognized. Wang Chuan, the head of Xiaomi TV, once praised the “Star Domain CDN is a revolution in live broadcasting technology.†Panda Live CTO Huang Huan said that the unique "black technology" of the Starfield has brought pressure from the panda's live TB class. In the first quarter of this year, this benign effect brought two major business increments. On the one hand, in recent months, these existing customers have added more cooperation needs to the Star Zone CDN and promoted the continued commercialization of the Starfield business. On the other hand, the new large customers have also joined the Star with word of mouth. Domain CDN cooperation. According to the disclosure, the big player in the live broadcast industry, Quickman, has become another major customer of the Star Zone CDN. It is reasonable to speculate that the business potential it brings may not be fully reflected in the first quarter earnings report. There are several relatively easy-to-see expectations: The demand for CDNs in live broadcasting will show a “hydroelectricity†trend, and CDN products with good products, high reputation, and good prices will be particularly favored on the market. Based on this, investors in the market will also pay more attention to the Star Zone CDN and look forward to Thunder's second quarter financial performance. 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