iQIYI Announces Fourth Quarter and Fiscal Year 2021 Financial Results
BEIJING,
Fourth Quarter 2021 Highlights
- Total revenues were
RMB7.4 billion (US$1.2 billion [1]), approximately flat from the same period in 2020. - Operating loss was
RMB975.2 million (US$153.0 million ) and operating loss margin was 13%, compared to operating loss ofRMB1.3 billion and operating loss margin of 18% in the same period in 2020. - Non-GAAP operating loss[2] was
RMB515.5 million (US$80.9 million ) and non-GAAP operating loss margin was 7%, compared to non-GAAP operating loss ofRMB940.7 million and non-GAAP operating loss margin of 13% in the same period in 2020. - Net loss attributable to iQIYI was
RMB1.8 billion (US$278.7 million ), compared to net loss attributable to iQIYI ofRMB1.5 billion in the same period in 2020. - Non-GAAP net loss attributable to iQIYI[2] was
RMB1.0 billion (US$157.2 million ), compared to non-GAAP net loss attributable to iQIYI ofRMB1.2 billion in the same period in 2020.
Fiscal Year 2021 Highlights
- Total revenues were
RMB30.6 billion (US$4.8 billion ), representing a 3% increase from 2020. - Operating loss was
RMB4.5 billion (US$702.9 million ) and operating loss margin was 15%, compared to operating loss ofRMB6.0 billion and operating loss margin of 20% in 2020. - Non-GAAP operating loss was
RMB3.0 billion (US$474.9 million ) and non-GAAP operating loss margin was 10%, compared to non-GAAP operating loss ofRMB4.5 billion and non-GAAP operating loss margin of 15% in 2020. - Net loss attributable to iQIYI was
RMB6.2 billion (US$968.1 million ), compared to net loss attributable to iQIYI ofRMB7.0 billion in 2020. - Non-GAAP net loss attributable to iQIYI was
RMB4.5 billion (US$704.1 million ), compared to non-GAAP net loss attributable to iQIYI ofRMB5.4 billion in 2020.
"We would like our shareholders to recognize that iQIYI is leading the opening of a new chapter in the Chinese long-form video industry. Starting from the fourth quarter of 2021, we launched a series of initiatives to optimize our cost and improve our organizational alignment. The results have been very encouraging. We significantly improved our operating and cost efficiency, while maintaining our industry-leading position in terms of various user metrics." commented Mr.
"With the initial successes of our cost optimization strategy, our operating loss for the fourth quarter decreased by 25% annually and 29% sequentially, and our non-GAAP operating loss for the fourth quarter also decreased significantly by 45% annually and 52% sequentially, exceeding our expectations," commented Mr.
Fourth Quarter and Fiscal Year 2021 Financial Highlights
Three Months Ended |
Year Ended |
|||||||||
(Amounts in thousands of Renminbi |
|
|
|
|
|
|||||
2020 |
2021 |
2021 |
2020 |
2021 |
||||||
RMB |
RMB |
RMB |
RMB |
RMB |
||||||
Total revenues |
7,458,180 |
7,589,104 |
7,388,558 |
29,707,215 |
30,554,359 |
|||||
Operating loss |
(1,307,373) |
(1,367,958) |
(975,227) |
(6,040,509) |
(4,479,207) |
|||||
Operating loss (non-GAAP) |
(940,684) |
(1,072,950) |
(515,539) |
(4,475,939) |
(3,026,073) |
|||||
Net loss attributable to |
(1,547,614) |
(1,729,560) |
(1,775,787) |
(7,038,361) |
(6,169,584) |
|||||
Net loss attributable to |
(1,177,317) |
(1,399,458) |
(1,001,851) |
(5,445,255) |
(4,487,079) |
|||||
Diluted net loss per ADS |
(2.10) |
(2.17) |
(2.24) |
(9.52) |
(7.77) |
|||||
Diluted net loss per ADS (non- |
(1.60) |
(1.76) |
(1.26) |
(7.37) |
(5.65) |
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). |
Fourth Quarter 2021 Other Operating Highlights
- The average daily number of total subscribing members for the quarter was 97.0 million, compared to 102.7 million for the same period in 2020 and 104.7 million for the third quarter in 2021. The average daily number of subscribing members excluding individuals with trial memberships for the quarter was 96.4 million, compared to 101.9 million for the same period in 2020 and 103.8 million for the third quarter in 2021. 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. 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.
- The monthly average revenue per membership (ARM) for the fourth quarter was
RMB14.16 , compared toRMB12.45 for the same period in 2020 andRMB13.65 for the third quarter in 2021. 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.
Fourth Quarter 2021 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 expense was
Loss before income taxes was
Income tax expense was
Net loss attributable to iQIYI was
As of
Fiscal Year 2021 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 expense was
Loss before income taxes was
Income tax expense was
Net loss attributable to iQIYI was
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/4352468
It will automatically direct you to the registration page of "iQIYI Fourth quarter and Fiscal Year 2021 Earnings Conference Call," where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter "4352468".
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: |
4352468 |
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, non-GAAP operating loss margin, non-GAAP net loss attributable to iQIYI, non-GAAP diluted net loss 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 represents operating loss 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 attributable to
Non-GAAP diluted net loss per ADS represents diluted net loss per ADS calculated by dividing non-GAAP net loss 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 |
||||||||||
(In RMB thousands, except for number of shares and per share data) |
||||||||||
Three Months Ended |
Year Ended |
|||||||||
|
|
|
|
|
||||||
2020 |
2021 |
2021 |
2020 |
2021 |
||||||
RMB |
RMB |
RMB |
RMB |
RMB |
||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||
Revenues: |
||||||||||
Membership services |
3,835,201 |
4,288,215 |
4,120,689 |
16,491,030 |
16,713,664 |
|||||
Online advertising services |
1,859,031 |
1,660,332 |
1,664,502 |
6,822,115 |
7,066,751 |
|||||
Content distribution |
804,335 |
627,134 |
761,519 |
2,660,074 |
2,855,602 |
|||||
Others |
959,613 |
1,013,423 |
841,848 |
3,733,996 |
3,918,342 |
|||||
Total revenues |
7,458,180 |
7,589,104 |
7,388,558 |
29,707,215 |
30,554,359 |
|||||
Operating costs and expenses: |
||||||||||
Cost of revenues |
(6,784,507) |
(7,027,681) |
(6,507,554) |
(27,884,395) |
(27,513,497) |
|||||
Selling, general and administrative |
(1,317,665) |
(1,246,334) |
(1,093,088) |
(5,187,835) |
(4,725,142) |
|||||
Research and development |
(663,381) |
(683,047) |
(763,143) |
(2,675,494) |
(2,794,927) |
|||||
Total operating costs and expenses |
(8,765,553) |
(8,957,062) |
(8,363,785) |
(35,747,724) |
(35,033,566) |
|||||
Operating loss |
(1,307,373) |
(1,367,958) |
(975,227) |
(6,040,509) |
(4,479,207) |
|||||
Other income/(expense): |
||||||||||
Interest income |
22,409 |
35,979 |
24,836 |
157,477 |
118,615 |
|||||
Interest expenses |
(269,323) |
(351,293) |
(324,542) |
(1,066,320) |
(1,349,544) |
|||||
Foreign exchange gain, net |
28,925 |
4,462 |
27,882 |
43,274 |
54,555 |
|||||
Loss from equity method investments |
(40,697) |
(17,345) |
(361,672) |
(224,489) |
(446,323) |
|||||
Other income/(expense), net |
17,651 |
(2,292) |
(119,918) |
146,690 |
89,916 |
|||||
Total other expense, net |
(241,035) |
(330,489) |
(753,414) |
(943,368) |
(1,532,781) |
|||||
Loss before income taxes |
(1,548,408) |
(1,698,447) |
(1,728,641) |
(6,983,877) |
(6,011,988) |
|||||
Income tax benefit/(expense) |
16,337 |
(8,978) |
(36,536) |
(23,276) |
(96,545) |
|||||
Net loss |
(1,532,071) |
(1,707,425) |
(1,765,177) |
(7,007,153) |
(6,108,533) |
|||||
Less: Net income attributable to noncontrolling interests |
15,543 |
22,135 |
10,610 |
31,208 |
61,051 |
|||||
Net loss attributable to |
(1,547,614) |
(1,729,560) |
(1,775,787) |
(7,038,361) |
(6,169,584) |
|||||
Accretion of redeemable noncontrolling interests |
(1,827) |
(4,769) |
(8,030) |
(7,087) |
(20,336) |
|||||
Net loss attributable to ordinary shareholders |
(1,549,441) |
(1,734,329) |
(1,783,817) |
(7,045,448) |
(6,189,920) |
|||||
Net loss per share for Class A and Class B ordinary shares: |
||||||||||
Basic |
(0.30) |
(0.31) |
(0.32) |
(1.36) |
(1.11) |
|||||
Diluted |
(0.30) |
(0.31) |
(0.32) |
(1.36) |
(1.11) |
|||||
Net loss per ADS (1 ADS equals 7 Class A ordinary shares): |
||||||||||
Basic |
(2.10) |
(2.17) |
(2.24) |
(9.52) |
(7.77) |
|||||
Diluted |
(2.10) |
(2.17) |
(2.24) |
(9.52) |
(7.77) |
|||||
Weighted average number of Class A and Class B ordinary |
||||||||||
Basic |
5,232,415,954 |
5,590,418,635 |
5,595,304,683 |
5,176,180,057 |
5,570,736,706 |
|||||
Diluted |
5,232,415,954 |
5,590,418,635 |
5,595,304,683 |
5,176,180,057 |
5,570,736,706 |
|||||
|
||||
Condensed Consolidated Balance Sheets |
||||
(In RMB thousands, except for number of shares and per share data) |
||||
|
|
|||
2020 |
2021 |
|||
RMB |
RMB |
|||
(Unaudited) |
||||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
10,915,282 |
2,997,212 |
||
Restricted cash |
25,230 |
77,652 |
||
Short-term investments |
3,358,174 |
1,348,255 |
||
Accounts receivable, net |
3,344,433 |
2,747,774 |
||
Prepayments and other assets |
3,515,855 |
3,266,523 |
||
Amounts due from related parties |
96,111 |
155,512 |
||
Licensed copyrights, net |
1,035,339 |
931,189 |
||
Total current assets |
22,290,424 |
11,524,117 |
||
Non-current assets: |
||||
Fixed assets, net |
1,393,467 |
1,344,784 |
||
Long-term investments |
3,202,828 |
3,035,155 |
||
Deferred tax assets, net |
51,347 |
31,351 |
||
Licensed copyrights, net |
6,435,055 |
7,258,042 |
||
Intangible assets, net |
627,198 |
545,305 |
||
Produced content, net |
6,556,084 |
10,951,078 |
||
Prepayments and other assets |
2,699,423 |
2,905,690 |
||
Operating lease assets |
1,001,857 |
907,297 |
||
|
3,888,346 |
3,888,346 |
||
Amounts due from related parties |
39,400 |
81,000 |
||
Total non-current assets |
25,895,005 |
30,948,048 |
||
Total assets |
48,185,429 |
42,472,165 |
||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' |
||||
Current liabilities: |
||||
Accounts and notes payable |
7,561,532 |
8,896,460 |
||
Amounts due to related parties |
1,778,783 |
2,634,089 |
||
Customer advances and deferred revenue |
3,444,917 |
3,484,509 |
||
Convertible senior notes, current portion |
4,752,061 |
- |
||
Short-term loans |
2,965,957 |
4,117,774 |
||
Long-term loans, current portion |
909,034 |
- |
||
Operating lease liabilities, current portion |
201,307 |
171,541 |
||
Accrued expenses and other liabilities |
3,240,987 |
3,172,097 |
||
Total current liabilities |
24,854,578 |
22,476,470 |
||
Non-current liabilities: |
||||
Convertible senior notes |
11,926,715 |
12,652,172 |
||
Deferred tax liabilities |
4,588 |
3,127 |
||
Amounts due to related parties |
977,407 |
780,615 |
||
Operating lease liabilities |
767,676 |
625,737 |
||
Other non-current liabilities |
210,167 |
260,931 |
||
Total non-current liabilities |
13,886,553 |
14,322,582 |
||
Total liabilities |
38,741,131 |
36,799,052 |
||
Redeemable noncontrolling interests |
108,629 |
397,385 |
||
Shareholders' equity: |
||||
Class A ordinary shares |
165 |
173 |
||
Class B ordinary shares |
183 |
183 |
||
Additional paid-in capital |
47,687,483 |
49,642,014 |
||
Accumulated deficit |
(40,973,853) |
(47,163,773) |
||
Accumulated other comprehensive income |
2,542,680 |
2,709,002 |
||
Non-controlling interests |
79,011 |
88,129 |
||
Total shareholders' equity |
9,335,669 |
5,275,728 |
||
Total liabilities, redeemable noncontrolling interests and shareholders' equity |
48,185,429 |
42,472,165 |
|
|||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||
(In RMB thousands, except for number of shares and per share data) |
|||||||||
Three Months Ended |
Year Ended |
||||||||
|
|
|
|
|
|||||
2020 |
2021 |
2021 |
2020 |
2021 |
|||||
RMB |
RMB |
RMB |
RMB |
RMB |
|||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||
Net cash used in operating activities |
(1,519,447) |
(2,080,544) |
(1,095,365) |
(5,411,071) |
(5,951,847) |
||||
Net cash provided by investing activities (1,2) |
281,471 |
1,885,081 |
2,097,104 |
159,296 |
1,262,350 |
||||
Net cash provided by/(used in) financing activities |
8,392,477 |
867,420 |
(5,238,940) |
9,373,906 |
(2,959,455) |
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(32,770) |
(22,206) |
(73,767) |
(91,293) |
(216,696) |
||||
Net increase/(decrease) in cash, cash equivalents and restricted |
7,121,731 |
649,751 |
(4,310,968) |
4,030,838 |
(7,865,648) |
||||
Net cash used for operating activities |
(1,519,447) |
(2,080,544) |
(1,095,365) |
(5,411,071) |
(5,951,847) |
||||
Less: Capital expenditures (2) |
(26,523) |
(116,320) |
(23,938) |
(240,750) |
(261,536) |
||||
Free cash flow |
(1,545,970) |
(2,196,864) |
(1,119,303) |
(5,651,821) |
(6,213,383) |
||||
(1) Net cash provided by or used for investing activities primarily consists of net cash flows from investing in debt securities, purchase of long-term investments and |
|||||||||
(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 |
Year Ended |
||||||||||
|
|
|
|
|
|||||||
2020 |
2021 |
2021 |
2020 |
2021 |
|||||||
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||
Operating loss |
(1,307,373) |
(1,367,958) |
(975,227) |
(6,040,509) |
(4,479,207) |
||||||
Add: Share-based compensation expenses |
348,979 |
281,198 |
264,458 |
1,370,095 |
1,219,163 |
||||||
Add: Amortization and impairment of intangible assets(1) |
17,710 |
13,810 |
16,498 |
194,475 |
55,239 |
||||||
Add: Non-recurring employee severance costs(2) |
- |
- |
178,732 |
- |
178,732 |
||||||
Operating loss (non-GAAP) |
(940,684) |
(1,072,950) |
(515,539) |
(4,475,939) |
(3,026,073) |
||||||
Net loss attributable to |
(1,547,614) |
(1,729,560) |
(1,775,787) |
(7,038,361) |
(6,169,584) |
||||||
Add: Share-based compensation expenses |
348,979 |
281,198 |
264,458 |
1,370,095 |
1,219,163 |
||||||
Add: Amortization and impairment of intangible assets(1) |
17,710 |
13,810 |
16,498 |
194,475 |
55,239 |
||||||
Add: Non-recurring employee severance costs(2) |
- |
- |
178,732 |
- |
178,732 |
||||||
Add: Disposal gain |
- |
- |
- |
- |
(44,861) |
||||||
Add: Impairment of long-term investments |
- |
29,000 |
138,979 |
73,199 |
169,828 |
||||||
Add: Fair value (gain)/loss of long-term investments |
(1,171) |
8,061 |
1,396 |
(39,271) |
(87,381) |
||||||
Add: Reconciling items on equity method investments |
8,636 |
3,066 |
177,191 |
31,505 |
192,193 |
||||||
Add: Tax effects on non-GAAP adjustments(3) |
(3,857) |
(5,033) |
(3,318) |
(36,897) |
(408) |
||||||
Net loss attributable to |
(1,177,317) |
(1,399,458) |
(1,001,851) |
(5,445,255) |
(4,487,079) |
||||||
Diluted net loss per ADS |
(2.10) |
(2.17) |
(2.24) |
(9.52) |
(7.77) |
||||||
Add: Non-GAAP adjustments to earnings per ADS |
0.50 |
0.41 |
0.98 |
2.15 |
2.12 |
||||||
Diluted net loss per ADS (non-GAAP) |
(1.60) |
(1.76) |
(1.26) |
(7.37) |
(5.65) |
||||||
(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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