iQIYI Announces Third Quarter 2020 Financial Results
BEIJING,
Third Quarter 2020 Highlights
- Total revenues were
RMB7.2 billion (US$1.1 billion[1]), representing a 3% decrease from the same period in 2019. - Operating loss was
RMB1.2 billion (US$178.2 million ) and operating loss margin was 17%, compared to operating loss ofRMB2.8 billion and operating loss margin of 38% in the same period in 2019. - Net loss attributable to iQIYI was
RMB1.2 billion (US$173.0 million ), compared to net loss attributable to iQIYI ofRMB3.7 billion in the same period in 2019. Diluted net loss attributable to iQIYI per ADS wasRMB1.61 (US$0.24 ), compared to diluted net loss attributable to iQIYI per ADS ofRMB5.04 in the same period of 2019. - The number of total subscribing members was 104.8 million as of
September 30, 2020 , 99.5% of whom were paying subscribing members. This compares to 105.8 million of total subscribing members as ofSeptember 30, 2019 .
"Our business performed fairly well in the third quarter and in-line with our overall expectation," commented Dr.
"Our advertising revenue increased by 16% quarter-over-quarter, while net loss margin significantly narrowed for two consecutive quarters on a year-over-year basis" commented Mr.
Footnotes: |
[1] Unless otherwise noted, all translations from RMB to |
Third Quarter 2020 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 income was
Loss before income taxes was
Income tax expense was
Net loss attributable to iQIYI was
As of
Financial Guidance
For the fourth quarter of 2020, iQIYI expects total net revenues to be between
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/2948288
It will automatically direct you to the registration page of "iQIYI Third Quarter 2020 Earnings Conference Call", where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter "2948288".
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: |
2948288 |
A live and archived webcast of the 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
Non-GAAP Financial Measures
To supplement iQIYI's consolidated financial results presented in accordance with GAAP, iQIYI uses free cash flow as non-GAAP financial measure. 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 the non-GAAP financial measure provides meaningful supplemental information regarding its liquidity by excluding certain items that may not be indicative of its recurring liquidity position, such as operating cash flows adjusted by capital expenditures. The Company believes that both management and investors benefit from referring to the non-GAAP financial measure in assessing its liquidation and when planning and forecasting future periods. The non-GAAP financial measure also facilitates management's internal comparisons to iQIYI's historical liquidity. The Company believes the non-GAAP financial measure is 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 the non-GAAP financial measure is that the non-GAAP measure 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. The non-GAAP financial measure 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.
Free cash flow represents net cash provided by operating activities less capital expenditures. Starting from
For more information, please contact:
Investor Relations
+ 86 10 8264 6585
ir@qiyi.com
|
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Condensed Consolidated Statements of Loss |
||||||
(In RMB thousands, except for number of shares and per share data) |
||||||
Three Months Ended |
||||||
|
|
|
||||
2019 |
2020 |
2020 |
||||
RMB |
RMB |
RMB |
||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||
Revenues: |
||||||
Membership services |
3,716,861 |
4,045,968 |
3,975,514 |
|||
Online advertising services |
2,067,385 |
1,586,083 |
1,840,231 |
|||
Content distribution |
680,377 |
860,629 |
392,338 |
|||
Others |
932,311 |
918,897 |
979,609 |
|||
Total revenues |
7,396,934 |
7,411,577 |
7,187,692 |
|||
Operating costs and expenses: |
||||||
Cost of revenues |
(8,175,751) |
(6,833,586) |
(6,363,438) |
|||
Selling, general and administrative |
(1,349,543) |
(1,195,632) |
(1,363,935) |
|||
Research and development |
(703,211) |
(664,045) |
(669,933) |
|||
Total operating costs and expenses |
(10,228,505) |
(8,693,263) |
(8,397,306) |
|||
Operating loss |
(2,831,571) |
(1,281,686) |
(1,209,614) |
|||
Other expense |
||||||
Interest income |
116,494 |
44,425 |
34,049 |
|||
Interest expenses |
(254,435) |
(265,656) |
(269,311) |
|||
Foreign exchange (loss)/gain, net |
(656,105) |
61,199 |
265,572 |
|||
Loss from equity method investments |
(33,213) |
(62,205) |
(24,749) |
|||
Other income, net |
478 |
81,389 |
61,461 |
|||
Total other (expense)/income, net |
(826,781) |
(140,848) |
67,022 |
|||
Loss before income taxes |
(3,658,352) |
(1,422,534) |
(1,142,592) |
|||
Income tax expense |
(16,047) |
(15,926) |
(18,846) |
|||
Net loss |
(3,674,399) |
(1,438,460) |
(1,161,438) |
|||
Less: Net income attributable to noncontrolling interests |
13,724 |
3,357 |
12,850 |
|||
Net loss attributable to |
(3,688,123) |
(1,441,817) |
(1,174,288) |
|||
Accretion of redeemable noncontrolling interests |
- |
(1,747) |
(1,796) |
|||
Net loss attributable to ordinary shareholders |
(3,688,123) |
(1,443,564) |
(1,176,084) |
|||
Net loss per share for Class A and Class B ordinary shares: |
||||||
Basic |
(0.72) |
(0.28) |
(0.23) |
|||
Diluted |
(0.72) |
(0.28) |
(0.23) |
|||
Net loss per ADS (1 ADS equals 7 Class A ordinary shares): |
||||||
Basic |
(5.04) |
(1.96) |
(1.61) |
|||
Diluted |
(5.04) |
(1.96) |
(1.61) |
|||
Weighted average number of Class A and Class B ordinary shares used in |
||||||
Basic |
5,109,395,926 |
5,151,499,718 |
5,182,686,302 |
|||
Diluted |
5,109,395,926 |
5,151,499,718 |
5,182,686,302 |
|
||||
Condensed Consolidated Balance Sheets |
||||
(In RMB thousands, except for number of shares and per share data) |
||||
|
|
|||
2019 |
2020 |
|||
RMB |
RMB |
|||
(Unaudited) |
||||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
5,934,742 |
3,163,128 |
||
Restricted cash |
974,932 |
655,653 |
||
Short-term investments |
4,579,313 |
3,603,891 |
||
Accounts receivable |
3,627,749 |
3,260,191 |
||
Prepayments and other assets |
3,719,228 |
3,463,425 |
||
Amounts due from related parties |
211,993 |
169,799 |
||
Licensed copyrights, net |
1,224,881 |
1,247,415 |
||
Total current assets |
20,272,838 |
15,563,502 |
||
Non-current assets: |
||||
Fixed assets, net |
1,754,367 |
1,463,733 |
||
Long-term investments |
2,982,154 |
3,710,782 |
||
Deferred tax assets, net |
34,916 |
66,673 |
||
Licensed copyrights, net |
6,287,330 |
6,061,511 |
||
Intangible assets, net |
813,960 |
661,683 |
||
Produced content, net |
4,355,221 |
5,517,095 |
||
Prepayments and other assets |
3,508,476 |
2,711,235 |
||
Operating lease assets |
722,742 |
1,001,648 |
||
|
3,888,346 |
3,888,346 |
||
Amounts due from related parties |
172,200 |
242,000 |
||
Total non-current assets |
24,519,712 |
25,324,706 |
||
Total assets |
44,792,550 |
40,888,208 |
||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' |
||||
Current liabilities: |
||||
Accounts and notes payable |
8,212,449 |
7,455,954 |
||
Amounts due to related parties |
1,604,258 |
1,828,085 |
||
Customer advances and deferred revenue |
3,081,407 |
3,064,785 |
||
Short-term loans |
2,618,170 |
3,804,396 |
||
Long-term loans, current portion |
736,814 |
733,365 |
||
Operating lease liabilities, current portion |
125,412 |
197,673 |
||
Accrued expenses and other liabilities |
3,794,656 |
3,419,198 |
||
Total current liabilities |
20,173,166 |
20,503,456 |
||
Non-current liabilities: |
||||
Long-term loans |
880,278 |
628,286 |
||
Convertible senior notes |
12,296,868 |
12,307,243 |
||
Deferred tax liabilities |
30,136 |
13,749 |
||
Amounts due to related parties |
1,061,883 |
993,608 |
||
Operating lease liabilities |
402,732 |
757,882 |
||
Other non-current liabilities |
232,555 |
207,071 |
||
Total non-current liabilities |
14,904,452 |
14,907,839 |
||
Total liabilities |
35,077,618 |
35,411,295 |
||
Redeemable noncontrolling interests: |
101,542 |
106,802 |
||
Shareholders' equity: |
||||
Class A ordinary shares |
142 |
146 |
||
Class B ordinary shares |
183 |
183 |
||
Additional paid-in capital |
41,298,328 |
42,464,474 |
||
Accumulated deficit |
(33,834,357) |
(39,424,412) |
||
Accumulated other comprehensive income |
2,106,718 |
2,274,276 |
||
Non-controlling interests |
42,376 |
55,444 |
||
Total shareholders' equity |
9,613,390 |
5,370,111 |
||
Total liabilities, redeemable noncontrolling interests and shareholders' equity |
44,792,550 |
40,888,208 |
|
|||||
Condensed Consolidated Statements of Cash Flows |
|||||
(In RMB thousands, except for number of shares and per share data) |
|||||
Three Months Ended |
|||||
September 30, |
|
|
|||
2019 |
2020 |
2020 |
|||
RMB |
RMB |
RMB |
|||
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||
Net cash provided by (used in) operating activities(1) |
293,485 |
(1,358,278) |
(1,929,077) |
||
Net cash (used in) provided by investing activities (1、2) |
(921,736) |
1,144,401 |
342,847 |
||
Net cash (used in) provided by financing activities |
(160,334) |
822,793 |
238,109 |
||
Effect of exchange rate changes on cash, cash equivalents |
257,690 |
(10,016) |
(113,074) |
||
Net (decrease) increase in cash, cash equivalents and |
(530,895) |
598,900 |
(1,461,195) |
||
Cash, cash equivalents and restricted cash |
|||||
At beginning of period |
7,624,018 |
4,681,076 |
5,279,976 |
||
At end of period |
7,093,123 |
5,279,976 |
3,818,781 |
||
Net cash provided by (used in) operating activities |
293,485 |
(1,358,278) |
(1,929,077) |
||
Less: Capital expenditures (3) |
(180,885) |
(57,465) |
(89,938) |
||
Less: Acquisition of licensed copyrights (1) |
(2,688,769) |
- |
- |
||
Free cash flow |
(2,576,169) |
(1,415,743) |
(2,019,015) |
||
(1) Starting from |
|||||
(2) Starting from |
|||||
(3) Capital expenditures are incurred primarily in connection with leasehold improvements, computers and servers. |
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