IQIYI Q1 Revenues Were $1.1 Billion, Decreasing 9% YoY

Tiger Newspress2022-05-26

iQIYI, Inc. (Nasdaq: IQ), an innovative market-leading online entertainment service inChina, today announced its unaudited financial results for the first quarter endedMarch 31, 2022.

iQIYI shares jumped 9% after reporting quarterly results.

First Quarter 2022 Highlights

  • Total revenues were RMB7.3 billion(US$1.1 billion), decreasing 9% year over year.
  • Membership services revenue was RMB4.5 billion(US$705.4 million), increasing 4% year over year.
  • Operating income was RMB93.4 million(US$14.7 million) and operating income margin was 1%, compared to operating loss ofRMB1.0 billionand operating loss margin of 13% in the same period in 2021.
  • Non-GAAP operating income was RMB326.6 million(US$51.5 million) and non-GAAP operating income margin was 4%, compared to non-GAAP operating loss of RMB658.2 millionand non-GAAP operating loss margin of 8% in the same period in 2021.
  • Net income attributable to iQIYI was RMB169.1 million(US$26.7 million), compared to net loss attributable to iQIYI ofRMB1.3 billionin the same period in 2021.
  • Non-GAAP net income attributable to iQIYI was RMB162.2 million(US$25.6 million), compared to non-GAAP net loss attributable to iQIYI ofRMB1.0 billionin the same period in 2021.

"During the first quarter of 2022, we delivered a select portfolio of premium shows, bringing membership services growth; we improved our operating efficiency, leading to margin expansion and profits. Our new strategy cemented our market leadership while yielding healthy financial performance." commented Mr.Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. "Going forward, we will adhere to the same strategy, which will create value for all stakeholders within our ecosystem, including our users and our shareholders."

"Our gross margin consistently expanded in the last three quarters, and reached a historical high in the first quarter of 2022. Our operating expenses on the other hand decreased consistently in the last three quarters as well." commented Mr.Jun Wang, Chief Financial Officer of iQIYI. "Behind these numbers are our unyielding efforts in improving operational efficiency and scalability to better position ourselves for the growth opportunities in long run."

First Quarter 2022 Other Operating Highlights

  • The average daily number of total subscribing members for the quarter was 101.4 million, compared to 105.4 million for the same period in 2021 and 97.0 million for the fourth quarter in 2021. The average daily number of subscribing members excluding individuals with trial memberships for the quarter was 100.8 million, compared to 104.3 million for the same period in 2021 and 96.4 million for the fourth quarter in 2021.
  • The monthly average revenue per membership (ARM5) for the first quarter was RMB14.69, compared to RMB13.64 for the same period in 2021 and RMB14.16 for the fourth quarter in 2021, increasing 8% year over year and 4% quarter over quarter.
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