iQIYI Announces First Quarter 2022 Financial Results
BEIJING,
First Quarter 2022 Highlights
- Total revenues were
RMB7.3 billion (US$1.1 billion 1), 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 billion and operating loss margin of 13% in the same period in 2021. - Non-GAAP operating income2 was
RMB326.6 million (US$51.5 million ) and non-GAAP operating income margin was 4%, compared to non-GAAP operating loss ofRMB658.2 million and 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 billion in the same period in 2021. - Non-GAAP net income attributable to iQIYI2 was
RMB162.2 million (US$25.6 million ), compared to non-GAAP net loss attributable to iQIYI ofRMB1.0 billion in 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.
"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.
First Quarter 2022 Financial Highlights
Three Months Ended |
||||||
(Amounts in thousands of Renminbi ("RMB"), except for number |
|
|
|
|||
2021 |
2021 |
2022 |
||||
RMB |
RMB |
RMB |
||||
Total revenues |
7,968,423 |
7,388,558 |
7,277,059 |
|||
Operating (loss)/income |
(1,014,211) |
(975,227) |
93,413 |
|||
Operating (loss)/income (non-GAAP) |
(658,178) |
(515,539) |
326,555 |
|||
Net (loss)/income attributable to |
(1,267,010) |
(1,775,787) |
169,093 |
|||
Net (loss)/income attributable to |
(1,020,459) |
(1,001,851) |
162,189 |
|||
Diluted net (loss)/income per ADS |
(1.61) |
(2.24) |
0.21 |
|||
Diluted net (loss)/income per ADS (non-GAAP)2 |
(1.30) |
(1.26) |
0.20 |
First Quarter 2022 Other Operating Highlights
- The average daily number of total subscribing members3 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 memberships4 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 toRMB13.64 for the same period in 2021 andRMB14.16 for the fourth quarter in 2021, increasing 8% year over year and 4% quarter over quarter.
Footnotes: |
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of |
[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). |
[3] The average daily number of total subscribing members for a quarter is calculated by averaging the number of total subscribing members in each day of such quarter. |
[4] The average daily number of subscribing members excluding individuals with trial memberships for the quarter is calculated by averaging the number of subscribing members excluding individuals with trial memberships in each day of such quarter. |
[5] The monthly ARM for the quarter is calculated by dividing our total revenues from membership services during a given quarter by the average daily number of total subscribing members for that quarter and the number of months in the quarter. |
First Quarter 2022 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 income was
Total other income was
Income before income taxes was
Income tax expense was
Net income attributable to iQIYI was
As of
Conference Call Information
iQIYI's management will hold an earnings conference call at
Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/5885486
It will automatically direct you to the registration page of "iQIYI First Quarter 2022 Earnings Conference Call", where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter "5885486".
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), Direct Event passcode and unique registrant ID) provided in the confirmation email 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
Dial-in numbers for the replay are as follows:
International Dial-in |
+61 2 8199 0299 |
Passcode: |
5885486 |
A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.
About
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Non-GAAP Financial Measures
To supplement iQIYI's consolidated financial results presented in accordance with GAAP, iQIYI uses the following non-GAAP financial measures: non-GAAP operating (loss)/income, non-GAAP operating (loss)/income margin, non-GAAP net (loss)/income attributable to iQIYI, non-GAAP diluted net (loss)/income attributable to iQIYI per ADS and free cash flow. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
iQIYI believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding certain items that may not be indicative of its business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to iQIYI's historical operating performance. The Company believes the non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that the non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.
Non-GAAP operating (loss)/income represents operating (loss)/income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations and non-recurring employee severance costs.
Non-GAAP net (loss)/income attributable to
Non-GAAP diluted net (loss)/income per ADS represents diluted net (loss)/income per ADS calculated by dividing non-GAAP net (loss)/income attributable to
Free cash flow represents net cash provided by operating activities less capital expenditures.
For more information, please contact:
Investor Relations
+ 86 10 8264 6585
ir@qiyi.com
Condensed Consolidated Statements of (Loss)/Income (In RMB thousands, except for number of shares and per share data) |
|||||||
Three Months Ended |
|||||||
|
|
|
|||||
2021 |
2021 |
2022 |
|||||
RMB |
RMB |
RMB |
|||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||
Revenues: |
|||||||
Membership services |
4,311,804 |
4,120,689 |
4,471,475 |
||||
Online advertising services |
1,916,584 |
1,664,502 |
1,337,299 |
||||
Content distribution |
779,058 |
761,519 |
626,116 |
||||
Others |
960,977 |
841,848 |
842,169 |
||||
Total revenues |
7,968,423 |
7,388,558 |
7,277,059 |
||||
Operating costs and expenses: |
|||||||
Cost of revenues |
(7,109,394) |
(6,507,554) |
(5,963,853) |
||||
Selling, general and administrative |
(1,200,984) |
(1,093,088) |
(744,781) |
||||
Research and development |
(672,256) |
(763,143) |
(475,012) |
||||
Total operating costs and expenses |
(8,982,634) |
(8,363,785) |
(7,183,646) |
||||
Operating (loss)/income |
(1,014,211) |
(975,227) |
93,413 |
||||
Other income/(expense): |
|||||||
Interest income |
28,569 |
24,836 |
8,947 |
||||
Interest expenses |
(330,585) |
(324,542) |
(175,515) |
||||
Foreign exchange (loss)/gain, net |
(13,193) |
27,882 |
(9,017) |
||||
Share of losses from equity method investments |
(3,076) |
(361,672) |
(3,158) |
||||
Others, net |
95,846 |
(119,918) |
276,076 |
||||
Total other (expense)/income, net |
(222,439) |
(753,414) |
97,333 |
||||
(Loss)/income before income taxes |
(1,236,650) |
(1,728,641) |
190,746 |
||||
Income tax expense |
(20,613) |
(36,536) |
(16,882) |
||||
Net (loss)/income |
(1,257,263) |
(1,765,177) |
173,864 |
||||
Less: Net income attributable to noncontrolling interests |
9,747 |
10,610 |
4,771 |
||||
Net (loss)/income attributable to |
(1,267,010) |
(1,775,787) |
169,093 |
||||
Accretion of redeemable noncontrolling interests |
(3,194) |
(8,030) |
- |
||||
Net (loss)/income attributable to ordinary shareholders |
(1,270,204) |
(1,783,817) |
169,093 |
||||
Net (loss)/income per share for Class A and Class B ordinary shares: |
|||||||
Basic |
(0.23) |
(0.32) |
0.03 |
||||
Diluted |
(0.23) |
(0.32) |
0.03 |
||||
Net (loss)/income per ADS (1 ADS equals 7 Class A ordinary shares): |
|||||||
Basic |
(1.61) |
(2.24) |
0.21 |
||||
Diluted |
(1.61) |
(2.24) |
0.21 |
||||
Weighted average number of Class A and Class B ordinary shares used in net loss per |
|||||||
Basic |
5,526,721,856 |
5,595,304,683 |
5,706,290,530 |
||||
Diluted |
5,526,721,856 |
5,595,304,683 |
5,742,801,024 |
Condensed Consolidated Balance Sheets (In RMB thousands, except for number of shares and per share data) |
|||||
|
|
||||
2021 |
2022 |
||||
RMB |
RMB |
||||
(Unaudited) |
|||||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
2,997,212 |
3,811,350 |
|||
Restricted cash |
77,652 |
71,426 |
|||
Short-term investments |
1,348,255 |
1,282,522 |
|||
Accounts receivable, net |
2,747,774 |
2,672,284 |
|||
Prepayments and other assets |
3,266,523 |
2,689,541 |
|||
Amounts due from related parties |
155,512 |
139,450 |
|||
Licensed copyrights, net |
931,189 |
910,096 |
|||
Total current assets |
11,524,117 |
11,576,669 |
|||
Non-current assets: |
|||||
Fixed assets, net |
1,344,784 |
1,335,804 |
|||
Long-term investments |
3,035,155 |
3,213,112 |
|||
Deferred tax assets, net |
31,351 |
31,344 |
|||
Licensed copyrights, net |
7,258,042 |
7,096,355 |
|||
Intangible assets, net |
545,305 |
479,785 |
|||
Produced content, net |
10,951,078 |
12,032,315 |
|||
Prepayments and other assets |
2,905,690 |
3,011,168 |
|||
Operating lease assets |
907,297 |
857,893 |
|||
|
3,888,346 |
3,888,346 |
|||
Amounts due from related parties |
81,000 |
64,000 |
|||
Total non-current assets |
30,948,048 |
32,010,122 |
|||
Total assets |
42,472,165 |
43,586,791 |
|||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' |
|||||
Current liabilities: |
|||||
Accounts and notes payable |
8,896,460 |
7,022,179 |
|||
Amounts due to related parties |
2,634,089 |
3,167,108 |
|||
Customer advances and deferred revenue |
3,484,509 |
3,836,864 |
|||
Short-term loans |
4,117,774 |
4,391,464 |
|||
Operating lease liabilities, current portion |
171,541 |
199,963 |
|||
Accrued expenses and other liabilities |
3,172,097 |
2,862,298 |
|||
Total current liabilities |
22,476,470 |
21,479,876 |
|||
Non-current liabilities: |
|||||
Convertible senior notes |
12,652,172 |
13,239,128 |
|||
Deferred tax liabilities |
3,127 |
598 |
|||
Amounts due to related parties |
780,615 |
120,732 |
|||
Operating lease liabilities |
625,737 |
564,702 |
|||
Other non-current liabilities |
260,931 |
1,280,639 |
|||
Total non-current liabilities |
14,322,582 |
15,205,799 |
|||
Total liabilities |
36,799,052 |
36,685,675 |
|||
Redeemable noncontrolling interests |
397,385 |
- |
|||
Shareholders' equity: |
|||||
Class A ordinary shares |
173 |
193 |
|||
Class B ordinary shares |
183 |
193 |
|||
Additional paid-in capital |
49,642,014 |
50,243,684 |
|||
Accumulated deficit |
(47,163,773) |
(46,193,592) |
|||
Accumulated other comprehensive income |
2,709,002 |
2,782,550 |
|||
Non-controlling interests |
88,129 |
68,088 |
|||
Total shareholders' equity |
5,275,728 |
6,901,116 |
|||
Total liabilities, redeemable noncontrolling interests and shareholders' equity |
42,472,165 |
43,586,791 |
Condensed Consolidated Statements of Cash Flows (In RMB thousands, except for number of shares and per share data) |
|||||
Three Months Ended |
|||||
|
|
|
|||
2021 |
2021 |
2022 |
|||
RMB |
RMB |
RMB |
|||
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
Net cash used for operating activities |
(1,350,028) |
(1,095,365) |
(1,167,049) |
||
Net cash (used for)/provided by investing activities (1,2) |
(2,777,975) |
2,097,104 |
(67,305) |
||
Net cash provided by/(used for) financing activities |
610,991 |
(5,238,940) |
2,046,550 |
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(28,225) |
(73,767) |
(4,284) |
||
Net (decrease)/increase in cash, cash equivalents and restricted cash |
(3,545,237) |
(4,310,968) |
807,912 |
||
Net cash used for operating activities |
(1,350,028) |
(1,095,365) |
(1,167,049) |
||
Less: Capital expenditures (2) |
(60,550) |
(23,938) |
(51,315) |
||
Free cash flow |
(1,410,578) |
(1,119,303) |
(1,218,364) |
(1) Net cash provided by or used for investing activities primarily consists of net cash flows from investing in debt securities, purchase of |
(2) Capital expenditures are incurred primarily in connection with leasehold improvements, computers and servers. |
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures (Amounts in thousands of Renminbi ("RMB"), except for per ADS information, unaudited) |
|||||
Three Months Ended |
|||||
|
|
|
|||
2021 |
2021 |
2022 |
|||
RMB |
RMB |
RMB |
|||
Operating (loss)/income |
(1,014,211) |
(975,227) |
93,413 |
||
Add: Share-based compensation expenses |
343,567 |
264,458 |
216,644 |
||
Add: Amortization and impairment of intangible assets(1) |
12,466 |
16,498 |
16,498 |
||
Add: Non-recurring employee severance costs(2) |
- |
178,732 |
- |
||
Operating (loss)/income (non-GAAP) |
(658,178) |
(515,539) |
326,555 |
||
Net (loss)/income attributable to |
(1,267,010) |
(1,775,787) |
169,093 |
||
Add: Share-based compensation expenses |
343,567 |
264,458 |
216,644 |
||
Add: Amortization and impairment of intangible assets(1) |
12,466 |
16,498 |
16,498 |
||
Add: Non-recurring employee severance costs(2) |
- |
178,732 |
- |
||
Add: Disposal (gain)/loss |
- |
- |
(429,916) |
||
Add: Impairment of long-term investments |
- |
138,979 |
182,277 |
||
Add: Fair value (gain)/loss of long-term investments |
(88,236) |
1,396 |
(792) |
||
Add: Reconciling items on equity method investments |
(19,580) |
177,191 |
10,914 |
||
Add: Tax effects on non-GAAP adjustments(3) |
(1,666) |
(3,318) |
(2,529) |
||
Net (loss)/income attributable to |
(1,020,459) |
(1,001,851) |
162,189 |
||
Diluted net (loss)/income per ADS |
(1.61) |
(2.24) |
0.21 |
||
Add: Non-GAAP adjustments to earnings per ADS |
0.31 |
0.98 |
(0.01) |
||
Diluted net (loss)/income per ADS (non-GAAP) |
(1.30) |
(1.26) |
0.20 |
(1) This represents amortization and impairment of intangible assets resulting from business combinations. |
(2) This represents non-recurring employee severance costs in relation to the employee optimization program incurred in 2021. |
(3) This represents tax impact of all relevant non-GAAP adjustments. |
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