Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's 2022 second quarter earnings conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to turn the call over to the host, Investor Relations Manager, Miss Luhan Tang.
Thank you. Good morning, everyone, and thank you for joining Xunlei's 2022 second quarter earnings conference call. On the call with me today are Eric Zhou, Chief Financial Officer, and Li Li, Senior Vice President of Finance. Now you can find our earnings press release on our IR website, which is intended to supplement our prepared remarks during today's call. For today's agenda, I will first read a prepared opening remark by our chairman and CEO, Mr. Jinbo Li, on highlight of our second quarter operations. Then Mr. Eric Zhou, our CFO, will go through the details of financial results and wrap up with our revenue guidance for the third quarter of 2022. We'd like to welcome any questions from you after the management's remarks. Today's call is recorded, and you can replay the call from our investor relations website.
Before we get started, I would like to take this opportunity to remind you that the discussion today will contain certain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations under current market conditions that are subject to risks and uncertainties that are difficult to predict, which may cause actual results to differ materially from those made in the forward-looking statements. Please refer to our SEC filings for more detailed description of the risk factors that may affect our results. Xunlei assume no obligations to update any forward-looking statements except as required under applicable law. On this call, we will be using both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to comparable GAAP measures can be found in earnings press release.
Please note that all numbers are in US dollars unless otherwise stated. Now, the following is the prepared statement by Mr. Jinbo Li, Chairman and CEO of Xunlei Limited. Good morning, everyone, and thanks for joining us today. I'm very pleased to report that we achieved a good quarterly result as most of our business lines delivered expected performance in the second quarter of 2022. Before I get into the results of the quarter, I'd like to step back and share with you the highlights of our business in the second quarter. Our subscription business did a great job that our premium subscribers reached a record level of 35% of total subscribers. Our live streaming services realized top-line growth for 5 consecutive quarters.
Those exciting results are attributable to our efforts to cater to users' needs, as well as effective marketing campaign that led to increased demand for our products and services. Also, I'm very proud that our cloud computing subsidiary received several industry awards in the last quarter for innovation and a contribution to the industry. We achieved these inspiring results in spite of challenging macro environment dealing with COVID-19, a slowing down economy, evolving government regulations, et cetera. In the second quarter of 2022, our total revenues reached $78.3 million, and this is the seventh quarter in which we reached consecutive quarterly business growth. Due to the impact of devaluation on RMB against the US dollar in the second quarter, our total revenue reported in the US dollar exhibited a slight decrease of about 1% after currency conversion.
Despite so, I'm pleased that our net profit grew to $6 million, a 10.1% increase from the previous quarter, and it was the second consecutive profitable quarter. I'm encouraged that our efforts to optimize our operations begin to pay off and enhanced our ability to pursue high growth opportunities. As I mentioned earlier, our cloud computing business maintained its competitiveness in the market. Among other recognition, Shenzhen Wangxin was nominated as the top 20 edge computing company in May and received 2021-2022 Leading Brand Award at the Cloud Connect China Cloud Computing Conference in June. With these inspiring accomplishments, we're more determined to deliver reliable, scalable, and cost-effective services to our clients and become the service provider of choice for our customers.
In the second quarter, the bandwidth cost was relatively stable versus the first quarter, but cloud computing revenue was down 6.2%, primarily as the sudden change in foreign exchange rate negatively affected our cloud computing revenue when translated into U.S. dollars. That said, we're proactively researching and developing diversified applications for edge computing to cope with intense industry competition and a continuous pricing pressure on a CDN business. I'm also encouraged to witness the progress on our subscription business, which realized $25.4 million in revenue, an increase of 0.2% from the previous quarter. Even though our total number of subscribers declined to 4.46 million in the second quarter of 2022 from 4.61 million from the previous quarter, the average revenue per subscriber grew to RMB 37.8 in the second quarter from RMB 34.9 versus that the first quarter.
The increase in average revenue per subscriber was due to more members opted for our premium services. By building an engaging member community, we believe that users loyalty will improve as more user-friendly features are added and upgraded to our services in the future. In the second quarter, our live streaming and other Internet Value-Added Services continued their growth momentum, which generated $24.5 million in revenue, an increase of 4.5% from last quarter. Since launched our new live audio streaming product in 2021, we've seen our live streaming products and services grew 191.3% in revenues in the second quarter of 2022 as compared to that of second quarter of 2021. A large portion of the growth came from our overseas markets.
We're expanding the presence of our products and services in more regions and different brand recognition in existing markets. We expect that the live streaming business will continue to grow. On the other hand, however, our internet advertising delivered less than desired results and negatively affected our overall performance. Last quarter, our digital collectible service platform collaborated with art institutions, museums, and other IP owners, and produced a number of digital collectibles, which were uniquely identified using the blockchain technology of ThunderChain. Although its contribution to the total revenue has been very small so far, it is a new endeavor by our blockchain team. In the future, our digital collectible service platform will continue to expand collectible categories and create a diverse portfolio of digital collectibles. We believe this product is of both great potential and significant risks.
Meanwhile, we'll continue to strictly comply with the relevant laws and regulations. In conclusion, I'm grateful for our employees' dedication and contribution to our business development. Looking forward, we will continue to be focused on our strategy of leveraging our core competitive edge and innovative capabilities to cultivate new resources, new sources of revenue to diversify and accelerate our top-line growth. Overall, we'll also continue to optimize our operations to enhance profitability. In conclusion, I'd like to say that we're optimistic that the positive momentum we enjoy in the first half of this year will continue into the second half of 2022. With that, I'm now turning the call over to Mr. Eric Zhou, our Chief Financial Officer. Eric will cover our financial results in detail and share our outlook. Thank you.
Thank you, Luhan. Hello, everyone, and thank you again for joining Xunlei's 2022 second quarter earnings conference call. I will now go through the details of our financial results and also our revenue guidance for the third quarter of 2022. Total revenues were $78.3 million, representing a decrease of 1% from the previous quarter. The decrease in total revenues was mainly attributable to devaluation of RMB against the US dollars, partially offset by increased revenues from our live streaming and other IVAS services. Revenues from cloud computing were $28.3 million, representing a decrease of 6.2% from the previous quarter. The decrease of cloud computing revenues was mainly due to devaluation of exchange rate of RMB against the US dollar, as our cloud computing revenues were denominated in RMB.
During the second quarter, the bandwidth sold was practically stable and we are mindful of intense industry competition. Revenues from subscription were $25.4 million, representing an increase of 0.2% from the previous quarter. The number of subscribers was 4.46 million as of June thirtieth, 2022, compared with 4.61 million as of March thirty-first, 2022. Historically, the number of membership fluctuated from period to period, and sometimes significantly. The average revenue per subscriber for the second quarter was RMB 37.8, compared with RMB 34.9 for the previous quarter. The higher average revenue per subscriber was due to a larger percentage of users opted for our premium service option. Revenues from live streaming and other IVAS were $24.5 million, representing an increase of 4.5% from the previous quarter.
The increase of live streaming and other IVAS revenues was mainly due to the increased demand for our new live audio streaming products, which we launched in 2021. Gross profit for the second quarter was $33.7 million, representing a decrease of 3.2% from the previous quarter. Gross profit margin was 43.1% in the second quarter, compared with 44.1% in the previous quarter. The decrease in gross profit and gross profit margin was mainly due to the increase in payment handling fees and other operating related costs driven by the increases of our live streaming and other IVAS revenue and subscription revenue, which were partially offset by improved gross profit margin of our live audio streaming products.
Research and development expenses for the second quarter were $16 million, representing 20.4% of our total revenues, compared with $16.3 million or 20.6% of our total revenues in the previous quarter. Sales and marketing expenses for the second quarter were $5 million, representing 6.4% of our total revenues, compared with $5.3 million or 6.8% of our total revenues in the previous quarter. General and administrative expenses for the second quarter were $12 million, representing 18.4% of our total revenues, compared with $9.6 million or 12.2% of our total revenues in the previous quarter.
The increase was primarily due to the vesting of restricted share units granted to our senior management, which led to the increase in share-based compensation expenses during this quarter. Operating income was $0.7 million, compared with $3.9 million in the previous quarter. The decrease in operating income was primarily due to increased stock-based compensation expenses accrued during the second quarter, as discussed above. Other income was $7 million, compared with other income of $1.2 million in the previous quarter. The increase was primarily due to foreign exchange gains and the reversal of certain payables due more than three years with low probability of payment. Net income was $6 million, compared with $5.4 million in the previous quarter.
non-GAAP net income was $9.8 million in the second quarter of 2022, compared with $7.2 million in the previous quarter. The increase in net income and non-GAAP net income was primarily due to the increased other income as discussed above. Diluted earnings per ADS in the second quarter of 2022 was approximately $0.09 as compared to $0.08 in the first quarter of 2022. As of June 30, 2022, the company had cash equivalents and short-term investments of $259.9 million, compared with $269.9 million as of March 31, 2022. The decrease in cash and cash equivalents was mainly due to distribution of 2021 annual employee bonuses in the second quarter of 2022.
Regarding the ongoing stock repurchase program, in March 2022, Xunlei announced that its board of directors authorized the repurchase of up to $20 million of its outstanding stocks over the next 12 months. As of June 30, 2022, the aggregate value of purchased shares were approximately $1.74 million. Regarding Xunlei research and headquarters building under construction, we have been furnishing the building for the last several months, and now we expect to relocate to the new building in October this year. Turning to guidance for the third quarter of 2022, Xunlei estimates total revenues to be between $82 million and $87 million, and at the midpoint of the range represents a quarter-over-quarter increase of approximately 7.9%.
This estimate represents management's preliminary view as of the date of this press release, which is subject to change, and any change could be material. Now we conclude the prepared remarks for the conference call. Operator, we are ready to take questions.
Thank you. If you wish to ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. Once again, if you do wish to ask a question, please press star one and one on your telephone. Please stand by while we compile the Q&A roster. Thank you. We will take our first question. Please stand by. Your first question comes from Li Zhang from MSL Group. Please ask your question.
Hello. This is Li, and thank you for sharing your, you know, financial highlights of the second quarter performance.
那我想问对此公司有什么对策呢？比如说，是否会有私有化的打算？谢谢。
Thanks for asking. He asked since Xunlei is on the watch list of PCAOB under the Holding Foreign Companies Accountable Act or HFCAA. If the acceleration bill is enacted, Xunlei would be delisted from Nasdaq as early as next year. He'd like to know if the company has any countermeasures and will the company consider privatization. Well, it's a good question. Xunlei is aware that the company has been identified by the PCAOB under the HFCAA in May this year. We believe, you know, such identification may be the result of its filing of its annual report on Form 20-F for the fiscal year ended December 31, 2021.
Under the HFCAA, a company will be delisted from the U.S. stock exchange if the company has been identified by the SEC for three consecutive years as a result of PCAOB's inability to inspect the working paper of the company's auditor. If the accelerated version of HFCAA is enacted, the delisting could be happening in 2023. We are monitoring the talks between China and the U.S., and we are proactively studying alternative solutions to remain as a public company. Regarding privatization, so far, the board of directors has not discussed this issue. Thanks for asking.
迅雷已经知道了，我们被SEC放在了拟摘牌的名单当中。我们认为SEC是根据外国公司问责法及其颁布的一些实施的规则做出了这个决定。这也表明SEC认定公司使用的审计师在审计公司截止2021年12月31日财年财务报表时的审计工作底稿，是不能被PCAOB完全的检查或者是调查的。根据这个外国公司问责法，PCAOB必须连续三年，如果连续三年无法检查审计师的工作底稿的话，那这家上市公司就会被美国证监会给摘牌。而且如果今年年底加速法案通过了的话，那么整个过程会提前一年。目前我们也时刻关注着中美双方的沟通，同时也在学习和研究解决方案，来保持我们公司的上市地位。关于您提到的这个私有化的打算，目前董事会还没有讨论过私有化的这个问题。谢谢您的提问。
Okay, thank you. Also thank you for addressing the question. Yeah. Thank you.
Thank you. We will take our next question. Your next question comes from the line of Sarah Hua, who is a Private Investor. Please ask your question.
你好，首先非常恭喜迅雷在这个季度取得了很好的财务表现。我个人的话，这边有两个问题，第一个是刚刚有提到说迅雷的云计算和直播业务增速有缓，放缓。那想请问一下管理层觉得这个趋势会持续吗？
Her question is that the growth rate of cloud computing and live streaming business was slowing down. Will the trend continue? First of all, we don't provide any guidance for our future revenue beyond a quarter. The rapid devaluation of Chinese currency over the last quarter impacted our financial numbers. Cloud computing revenue in Chinese currency decreased by 1.6% compared to the first quarter, while it decreased by 6.2% when converted into US dollars. Revenue growth of our live streaming business in RMB was 10.2%, but it was 5% in US dollars. We estimate the impact of exchange rate is around 5%. Since the cloud computing and live streaming business have been growing rapidly for many quarters, we think it's normal for the growth rate to slow down to a certain extent.
We don't expect this to be a long term situation or a negative sign at this time. Again, we can't guarantee anything due to the evolving macro factors like the impact of COVID-19, the development of national economy or the impact of geopolitics, et cetera. We will be focused on our strategy of leveraging our competitive edge and commercial capability to improve our top-line growth and profitability. Thank you.
首先，我们不对超过一季度的未来收入做任何的预测。上个季度，我们的业务受到了人民币快速贬值的影响，我们主要的主营业务的收入增长也都受到了影响。比如说云计算的人民币收入降低了1.6%，但是换算成美元之后，是降低了6.2%。直播业务的人民币收入增长率是10.2%，但是换算成美元之后，增长率变成了5%。我们估计汇率的影响大约是在5%左右。由于云计算和直播业务已经——
Mm-hmm.
持续地快速增长了多个季度。在增长到一定程度的时候，增速放缓也是属于正常的。所以我们认为，我们不认为这是一个长期的状态，或是负面的一个信号。同时我们在当下不断变化的宏观因素下面，比如说现在的疫情的影响、国家经济发展和地缘政治的影响，我们不能保证任何的事情，但我们将专注在坚持使用我们的竞争优势和业务变现的能力的战略，来尽力地提高我们的收入增长和利润。谢谢您的提问。
We will take our next question. Please stand by. Your next question comes from the line of Yusi Zhang, who is a retail investor. Please ask your question.
管理层，我有一个问题关于迅雷的数字藏品的。因为我注意到这个腾讯的数字藏品平台已经停止业务了，我想管理层可以讨论一下这个数字藏品这个市场的业务前景，尤其是对迅雷的这个公司的发展前景来看。
His question is he said, you know, Tencent's digital collectibles, you know, the product has been off the shelf or they stopped doing so. He wants to know what's our outlook of Xunlei's the digital collectible business. Of course we don't really, you know, comment on other companies' product or the outlook. For us, you know, the digital collectible market, you know, the business is one of our many endeavors, Xunlei is trying to, you know, exploring. As I mentioned earlier, you know, the market or the business is evolving quickly, both in terms of technology and regulatory, you know, environment. For the time being, we are working with several institutions in China, and we are developing, we are continuing developing different products.
We think, you know, for the foreseeable future, you know, it has great potential. Of course, it also has great risks. Again, I said it's just one of our many explorations to seek, you know, the, some business which may have great potential in the future. Of course we realize, you know, it also has great risks. At last, you know, emphasize we are doing strictly according to the relevant laws and regulations. Thanks for asking.
针对我们迅雷的话，它只是我们众多努力尝试的产品之一。那最近一个季度，我们是有跟多家的机构和IP的拥有者，还有一些博物馆合作，有推出一些数字藏品的产品。那么未来我们认为这个产品是同时具有潜力和风险的。那么我们未来也会实时地去监控我们的产品是否合规，和我们中国国内的一些监管。最后这也是我再次声明，这是我们众多产品中的一个尝试。谢谢您的提问。
我还有一个问题是关于小视频的。我记得去年开财报会议的时候，管理层曾经提出过会考虑发展小视频的业务，请问现在这个计划是进行的程度如何？还是已经放弃了？
你是说短视频，对不对？
对，小，short video。就像那种
短视频。
抖音那种。
Short video.
We have a variety of, you know, live streaming products and right now we still have it, but it's not a large effort by us. As we, you know, discussed in our press release, you know, one of our focuses is to develop, you know, live audio streaming product. So far, live audio streaming has been doing quite well for the last several quarters. That will be our future focus. Thank you for asking.
谢谢。
其实我们有多种的直播产品，现在没有在小视频这个方面做出特别多的努力，但是我们把重点放在了现在的直播、语音直播业务上面，未来也是我们发展的一个方向。谢谢。
谢谢。
Thank you. Once again, if you wish to ask a question, please press star one and one on your telephone. There seems to be no further questions from the audience at this time. Please continue. Well, thank you again for your time and participation. If you have any questions, please visit our website at ir.xunlei.com or send emails to our investor relations. Have a great day. Okay, we conclude today's conference call. Thank you.
This concludes today's conference call. Thank you for the call. Thank you for participating.