iQIYI Announces Second Quarter 2018 Financial Results
Second Quarter 2018 Highlights
- Total revenues were
RMB6.2 billion (US$932.5 million 1), representing a 51%2 increase from the same period in 2017. - Operating loss was
RMB1.3 billion (US$200.7 million ) and operating loss margin was 22%, compared to operating loss ofRMB990.7 million and operating loss margin of 24% in the same period in 2017. - Net loss attributable to iQIYI was
RMB2.1 billion (US$316.9 million ), compared toRMB953.2 million in the same period in 2017. Diluted net loss attributable to iQIYI per ADS wasRMB3.01 (US$0.45) . - The number of total subscribing members were 67.1 million as of
June 30, 2018 , representing a 75% increase from 38.3 million as ofJune 30, 2017 . The number of paying subscribing members were 66.2 million as ofJune 30, 2018 .
“We are pleased to deliver another strong quarter of financial and operational results,” commented Dr.
“Our second quarter top-line growth came in above our expectations with total revenues increasing 51% year-over-year,” commented
______________________________________________
Footnotes:
[1] This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of
[2] Starting from
Second Quarter 2018 Financial Results
Total revenues reached
Membership services revenue was
Online advertising services revenue was
Content distribution revenue was
Other revenues were
Cost of revenues was
Selling, general and administrative expenses were
Research and development expenses were
Operating loss was
Total other expenses was
Loss before income taxes was
Income tax expenses were
Net loss attributable to iQIYI was
As of
Financial Guidance
For the third quarter of 2018, iQIYI expects total net revenues to be between
____________________________________________________
Footnote:
[3] The translations from RMB to U.S. dollars for the expected revenues in the third quarter of 2018 are made at a rate of
Conference Call Information
iQIYI's management will hold an earnings conference call at
International | +65 67135090 | ||
China | 4006 208038 | ||
US | +1 845 675 0437 | ||
UK | +44 2036 214779 | ||
Hong Kong | +852 3018 6771 | ||
Passcode: 3476315 |
A telephone replay of the call will be available two hours after the conclusion of the conference call through
Dial-in numbers for the replay are as follows: | |||
International Dial-in | +61 2 8199 0299 | ||
Passcode: | 3476315 |
A live and archived webcast of this conference call will be available at http://ir.iqiyi.com.
About iQIYI, Inc.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as iQIYI's strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the
For more information, please contact:
Investor Relations
+ 86 10 8264 6585
ir@qiyi.com
iQIYI, INC. | |||||||||||
Condensed Consolidated Statements of Income | |||||||||||
(In RMB thousands, except for number of shares and per share data) | |||||||||||
Three Months Ended | |||||||||||
June 30, | March 31, | June 30, | |||||||||
2017 | 2018 | 2018 | |||||||||
RMB | RMB | RMB | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Revenues: | |||||||||||
Membership services | 1,579,530 | 2,094,985 | 2,474,474 | ||||||||
Online advertising services | 1,908,453 | 2,110,670 | 2,617,507 | ||||||||
Content distribution | 486,263 | 266,670 | 539,359 | ||||||||
Others | 352,073 | 404,980 | 538,891 | ||||||||
Total revenues | 4,326,319 | 4,877,305 | 6,170,231 | ||||||||
Operating costs and expenses: | |||||||||||
Cost of revenues | (4,394,981 | ) | (4,848,219 | ) | (6,106,729 | ) | |||||
Selling, general and administrative | (627,623 | ) | (704,237 | ) | (949,934 | ) | |||||
Research and development | (294,371 | ) | (387,329 | ) | (441,482 | ) | |||||
Total operating costs and expenses | (5,316,975 | ) | (5,939,785 | ) | (7,498,145 | ) | |||||
Operating loss | ( 990,656 | ) | (1,062,480 | ) | (1,327,914 | ) | |||||
Other expense | |||||||||||
Interest income | 16,390 | 4,726 | 25,615 | ||||||||
Interest expenses | (82,386 | ) | (8,325 | ) | (9,562 | ) | |||||
Foreign exchange gain/(loss), net | 84,828 | 474,155 | (777,968 | ) | |||||||
Gain/(loss) from equity method investments | 5 | (99 | ) | (896 | ) | ||||||
Other income/(expense), net | 19,354 | 195,780 | (5,468 | ) | |||||||
Total other income /(expense), net | 38,191 | 666,237 | (768,279 | ) | |||||||
Loss before income taxes | (952,465 | ) | (396,243 | ) | (2,096,193 | ) | |||||
Income tax expense | (705 | ) | (509 | ) | (4,858 | ) | |||||
Net loss | (953,170 | ) | (396,752 | ) | (2,101,051 | ) | |||||
Net loss attributable to noncontrolling interests | - | (1,059 | ) | (4,120 | ) | ||||||
Net loss attributable to iQIYI, Inc. | (953,170 | ) | (395,693 | ) | (2,096,931 | ) | |||||
Accretion of redeemable convertible preferred shares | (720,980 | ) | (289,363 | ) | (9,627 | ) | |||||
Net loss attributable to ordinary shareholders | (1,674,150 | ) | (685,056 | ) | (2,106,558 | ) | |||||
Net loss per share for Class A and Class B ordinary shares: | |||||||||||
Basic | (4.89 | ) | (1.97 | ) | (0.43 | ) | |||||
Diluted | (4.89 | ) | (1.97 | ) | (0.43 | ) | |||||
Net loss per ADS (1 ADS equals 7 Class A ordinary shares): | |||||||||||
Basic | - | - | (3.01 | ) | |||||||
Diluted | - | - | (3.01 | ) | |||||||
Weighted average number of Class A and Class B ordinary shares used in net loss per share computation: | |||||||||||
Basic | 342,548,237 | 347,381,732 | 4,931,100,562 | ||||||||
Diluted | 342,548,237 | 347,381,732 | 4,931,100,562 | ||||||||
iQIYI, INC. | |||||
Condensed Consolidated Balance Sheets | |||||
(In RMB thousands, except for number of shares and per share data) |
|||||
December 31, | June 30, | ||||
2017 | 2018 | ||||
RMB | RMB | ||||
(Audited) | (Unaudited) | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | 733,010 | 8,281,338 | |||
Short-term investments | 779,916 | 4,752,114 | |||
Accounts receivable | 2,235,384 | 2,423,492 | |||
Prepayments and other assets | 1,123,372 | 2,699,214 | |||
Amounts due from related parties | 9,979 | 78,645 | |||
Licensed copyrights, net | 818,867 | 1,163,963 | |||
Total current assets | 5,700,528 | 19,398,766 | |||
Non-current assets: | |||||
Fixed assets, net | 1,248,968 | 1,404,619 | |||
Long-term investments | 567,887 | 1,242,548 | |||
Deferred tax assets, net | 11,380 | 11,380 | |||
Licensed copyrights, net | 4,558,083 | 5,776,928 | |||
Intangible assets, net | 428,005 | 1,000,951 | |||
Produced content, net | 1,564,279 | 3,222,020 | |||
Prepayments and other assets | 2,845,662 | 3,778,867 | |||
Goodwill | 3,276,107 | 3,276,107 | |||
Total non-current assets | 14,500,371 | 19,713,420 | |||
Total assets | 20,200,899 | 39,112,186 | |||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT)/EQUITY | |||||
Current liabilities: | |||||
Accounts payable | 7,041,304 | 9,067,544 | |||
Amounts due to related parties | 130,099 | 238,715 | |||
Customer advances and deferred revenue | 1,633,649 | 1,853,312 | |||
Short-term loans | 299,374 | 632,619 | |||
Long-term loans, current portion | 10,000 | 10,000 | |||
Accrued expenses and other liabilities | 2,511,186 | 2,982,311 | |||
Total current liabilities | 11,625,612 | 14,784,501 | |||
Non-current liabilities: | |||||
Long-term loans | 284,000 | 279,000 | |||
Deferred tax liabilities | 2,255 | 2,229 | |||
Amounts due to related parties | - | 650,000 | |||
Other non-current liabilities | 6,432 | 40,982 | |||
Total non-current liabilities | 292,687 | 972,211 | |||
Total liabilities | 11,918,299 | 15,756,712 | |||
Mezzanine equity: | 22,601,664 | - | |||
Shareholders’ (deficit)/equity: | |||||
Ordinary shares | 23 | - | |||
Class A Ordinary shares | - | 137 | |||
Class B Ordinary shares | - | 183 | |||
Additional paid-in capital | 600,834 | 39,204,839 | |||
Accumulated deficit | (15,016,867 | ) | (16,841,429) | ||
Accumulated other comprehensive income | 93,126 | 989,592 | |||
Non-controlling interests | 3,820 | 2,152 | |||
Total iQIYI, Inc. shareholders’ (deficit)/equity | (14,319,064 | ) | 23,355,474 | ||
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity | 20,200,899 | 39,112,186 |