iQIYI Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-22
iQIYI Reports Second Quarter 2024 Financial Results
BEIJING, Aug. 22, 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 second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | RMB7.4B (US$1.0B) | RMB7.8B (US$1.07B) | -5% | US$1.04B |
| Operating Income | RMB342.1M (US$47.1M) | RMB610.4M (US$83.9M) | -44% | N/A |
| Operating Income Margin | 5% | 8% | -3pp | N/A |
| Non-GAAP Operating Income | RMB501.4M (US$69.0M) | RMB786.4M (US$108.2M) | -36% | N/A |
| Non-GAAP Operating Income Margin | 7% | 10% | -3pp | N/A |
| Net Income Attributable to iQIYI | RMB68.7M (US$9.5M) | RMB365.2M (US$50.3M) | -81% | N/A |
| Non-GAAP Net Income Attributable to iQIYI | RMB246.9M (US$34.0M) | RMB594.7M (US$81.8M) | -58% | N/A |
| Diluted Net Income Per ADS | RMB0.07 (US$0.01) | RMB0.37 (US$0.05) | -81% | N/A |
| Non-GAAP Diluted Net Income Per ADS | RMB0.25 (US$0.03) | RMB0.61 (US$0.08) | -59% | N/A |
iQIYI’s financial performance for the second quarter of 2024 showed a decline across key financial metrics compared to the same period in 2023. Total revenue decreased by 5% year-over-year (YoY) to RMB7.4 billion (US$1.0 billion), falling short of the consensus estimate of US$1.04 billion. Operating income also saw a significant reduction, decreasing by 44% YoY to RMB342.1 million (US$47.1 million), reflecting a contraction in operating margin from 8% to 5%. Net income attributable to iQIYI dropped by 81% YoY, emphasizing the challenging economic environment and competitive industry dynamics.
Revenue Performance by Segment
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Membership Services Revenue | RMB4.5B (US$618.6M) | RMB4.95B (US$682.0M) | -9% |
| Online Advertising Services Revenue | RMB1.5B (US$201.1M) | RMB1.53B (US$211.5M) | -2% |
| Content Distribution Revenue | RMB698.2M (US$96.1M) | RMB684.1M (US$94.9M) | +2% |
| Other Revenues | RMB783.9M (US$107.9M) | RMB676.6M (US$93.1M) | +16% |
Membership services, the company's largest revenue segment, decreased by 9% YoY to RMB4.5 billion (US$618.6 million), largely due to fluctuations in content performance. Online advertising services fell slightly by 2% YoY, while content distribution revenue rose by 2% YoY. Other revenues witnessed a significant increase of 16% YoY, driven by higher income from talent agency services and third-party cooperation.
Key Operational Data
| Operational Data | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Operating Cash Flow | RMB410.8M (US$56.5M) | RMB885.6M (US$121.8M) | -54% |
| Free Cash Flow | RMB382.5M (US$52.6M) | RMB872.3M (US$118.6M) | -56% |
Operating cash flow and free cash flow both saw significant declines, falling by 54% and 56% YoY, respectively. This reduction reflects tighter cash management and fiscal prudence amidst a challenging economic landscape.
Comments from Company Officers
Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI, stated, "We believe the vibrant competition within the long-form video sector in the second quarter is constructive for the industry, enhancing its appeal over other entertainment formats. The key to long-term success hinges on consistently delivering premium content that balances artistic merits and commercial benefits, to which we remain committed."
Mr. Jun Wang, Chief Financial Officer of iQIYI, added, "We have prudently managed our financial resources to optimize the financial leverage of the balance sheet, enhance the sustainability of our business, and ultimately deliver value to all stakeholders."
Share Repurchase Program
In August 2024, iQIYI completed the repurchase right offer for its 4% convertible senior notes due 2026, repurchasing an aggregate principal amount of US$395.5 million with an aggregate repurchase price of US$397.5 million. Less than US$0.2 million aggregate principal amount of the Notes remains outstanding.
Forward Guidance
iQIYI did not provide specific forward guidance for the upcoming quarter or fiscal year.
Stock Price Movement
Following the earnings release, iQIYI's stock experienced a decline of 2.60%.
For more details, please visit the official iQIYI investor relations page .
By presenting the financial data in a structured format and providing a professional overview, this summary article aims to offer clear insights into iQIYI's financial performance and strategic direction.
