iQIYI Announces Third Quarter 2024 Financial Results
BEIJING, Nov. 21, 2024 (GLOBE NEWSWIRE) -- iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights
-- Total revenues were RMB7.2 billion (US$1.0 billion1), decreasing 10% year
over year.
-- Operating income was RMB238.9 million (US$34.0 million) and operating
income margin was 3%, compared to operating income of RMB746.7 million
and operating income margin of 9% in the same period in 2023.
-- Non-GAAP operating income2 was RMB368.6 million (US$52.5 million) and
non-GAAP operating income margin was 5%, compared to non-GAAP operating
income of RMB894.9 million and non-GAAP operating income margin of 11% in
the same period in 2023.
-- Net income attributable to iQIYI was RMB229.4 million (US$32.7 million),
compared to net income attributable to iQIYI of RMB475.9 million in the
same period in 2023.
-- Non-GAAP net income attributable to iQIYI2 was RMB479.8 million (US$68.4
million), compared to non-GAAP net income attributable to iQIYI of
RMB622.1 million in the same period in 2023.
"In the third quarter of 2024, we topped the industry in the drama series market share, according to Enlightent data," commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. "We have recently elevated our entertainment offerings and services with strategic enhancements, integrating sought-after mini and short dramas to complement our extensive long-form content portfolio. We have also introduced a family account option within our membership programs. We believe these improvements will better serve users' evolving entertainment needs."
"Our goal is to enhance content appeal by optimizing long-form video offerings and incorporating mini and short dramas into our content portfolio. With disciplined execution, we believe that such initiatives will lead to long-term value creation for our businesses," commented Mr. Jun Wang, Chief Financial Officer of iQIYI.
Third Quarter 2024 Financial Highlights
Three Months Ended
(Amounts in thousands of
Renminbi ("RMB"), except for
per ADS data, unaudited) September 30, June 30, September 30,
2023 2024 2024
------------- --------- -------------
RMB RMB RMB
Total revenues 8,015,079 7,438,785 7,245,681
Operating income 746,747 342,093 238,921
Operating income (non-GAAP) 894,879 501,417 368,644
Net income attributable to
iQIYI, Inc. 475,920 68,685 229,412
Net income attributable to
iQIYI, Inc. (non-GAAP) 622,071 246,914 479,787
Diluted net income per ADS 0.49 0.07 0.24
Diluted net income per ADS
(non-GAAP)(2) 0.64 0.25 0.50
------------------------------- ------------- --------- -------------
Footnotes:
([1]) Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.0176 as of September 30, 2024, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.
([2]) Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details).
Third Quarter 2024 Financial Results
Total revenues reached RMB7.2 billion (US$1.0 billion), decreasing 10% year over year.
Membership services revenue was RMB4.4 billion (US$622.1 million), decreasing 13% year over year, primarily due to a lighter content slate.
Online advertising services revenue was RMB1.3 billion (US$190.5 million), decreasing 20% year over year, primarily due to the decrease in brand advertising business, partially offset by the growth of performance-based advertising business.
Content distribution revenue was RMB814.0 million (US$116.0 million), increasing 52% year over year, primarily driven by the increase in the barter transactions.
Other revenues were RMB728.8 million (US$103.8 million), decreasing 8% year over year.
Cost of revenues was RMB5.6 billion (US$805.1 million), decreasing 3% year over year. Content costs as a component of cost of revenues were RMB4.0 billion (US$569.0 million), decreasing 5% year over year. The decrease in content cost was primarily due to lighter movie offerings in the quarter.
Selling, general and administrative expenses were RMB907.9 million (US$129.4 million), decreasing 7% year over year. The decrease was primarily due to the decrease in the marketing spending.
Research and development expenses were RMB449.0 million (US$64.0 million), flat year over year.
Operating income was RMB238.9 million (US$34.0 million), decreasing 68% year over year. Operating income margin was 3%, compared to operating income margin of 9% in the same period in 2023. Non-GAAP operating income was RMB368.6 million (US$52.5 million), decreasing 59% year over year. Non-GAAP operating income margin was 5%, compared to non-GAAP operating income margin of 11% in the same period in 2023.
Total other income was RMB8.4 million (US$1.2 million), compared to total other expense of RMB254.2 million in the same period in 2023. The year over year variance was primarily driven by gain from foreign exchange, partially offset by the increase in impairment provision.
Income before income taxes was RMB247.3 million (US$35.2 million), compared to income before income taxes of RMB492.5 million in the same period in 2023.
Income tax expense was RMB11.5 million (US$1.6 million), compared to income tax expense of RMB9.0 million in the same period in 2023.
Net income attributable to iQIYI was RMB229.4 million (US$32.7 million), decreasing 52% year over year. Diluted net income attributable to iQIYI per ADS was RMB0.24 (US$0.03) for the third quarter of 2024, compared to diluted net income attributable to iQIYI per ADS of RMB0.49 in the same period of 2023. Non-GAAP net income attributable to iQIYI was RMB479.8 million (US$68.4 million), decreasing 23% year over year. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB0.50 (US$0.07), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.64 in the same period of 2023.
Operating cash flow was RMB242.5 million (US$34.6 million), compared to operating cash flow of RMB830.7 million in the same period of 2023. Free cash flow was RMB234.8 million (US$33.5 million), compared to free cash flow of RMB826.5 million in the same period of 2023.
As of September 30, 2024, the Company had cash, cash equivalents, short-term investments and long-term restricted cash included in prepayments and other assets of RMB4.7 billion (US$673.8 million). In August 2024, PAG drew down US$200.0 million under the loan facility, bringing the total draw down under the facility agreements to US$400.0 million as of September 30, 2024. As such, PAG's repurchase right for the US$522.5 million principal of the convertible senior notes due January 2028 has been waived.
Conference Call Information
iQIYI's management will hold an earnings conference call at 6:30 AM on November 21, 2024, U.S. Eastern Time (7:30 PM on November 21, 2024, Beijing Time).
Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite.
Participant Online Registration: https://s1.c-conf.com/diamondpass/10042987-f1zkbm.html
It will automatically direct you to the registration page of "iQIYI Third Quarter 2024 Earnings Conference Call", where you may fill in your details for RSVP.
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.
A telephone replay of the call will be available after the conclusion of the conference call through November 28, 2024.
Dial-in numbers for the replay are as follows: International Dial-in +1 855 883 1031 Passcode: 10042987
A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.
About iQIYI, Inc.
iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. iQIYI distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. Over time, iQIYI has built a massive user base and developed a diversified monetization model including membership services, online advertising services, content distribution, online games, IP licensing, talent agency, online literature, etc.
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