BEIJING, Feb. 22, 2023 /PRNewswire/ -- 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 fourth quarter and fiscal year ended December 31, 2022.

Fourth Quarter 2022 Highlights

  • Total revenues were RMB7.6 billion (US$1.1 billion[1]), increasing 3% year over year.
  • Operating income was RMB783.6 million (US$113.6 million) and operating income margin was 10%, compared to operating loss of RMB975.2 million and operating loss margin of 13% in the same period in 2021.
  • Non-GAAP operating income[2] was RMB978.7 million (US$141.9 million) and non-GAAP operating income margin was 13%, compared to non-GAAP operating loss of RMB515.5 million and non-GAAP operating loss margin of 7% in the same period in 2021.
  • Net income attributable to iQIYI was RMB304.3 million (US$44.1 million), compared to net loss attributable to iQIYI of RMB1.8 billion in the same period in 2021.
  • Non-GAAP net income attributable to iQIYI[2] was RMB856.4 million (US$124.2 million), compared to non-GAAP net loss attributable to iQIYI of RMB1.0 billion in the same period in 2021.

Fiscal Year 2022 Highlights

  • Total revenues were RMB29.0 billion (US$4.2 billion), representing a 5% decrease from 2021.
  • Operating income was RMB1.3 billion (US$190.3 million) and operating income margin was 5%, compared to operating loss of RMB4.5 billion and operating loss margin of 15% in 2021.
  • Non-GAAP operating income was RMB2.2 billion (US$315.1 million) and non-GAAP operating income margin was 7%, compared to non-GAAP operating loss of RMB3.0 billion and non-GAAP operating loss margin of 10% in 2021.
  • Net loss attributable to iQIYI was RMB136.2 million (US$19.7 million), compared to net loss attributable to iQIYI of RMB6.2 billion in 2021.
  • Non-GAAP net income attributable to iQIYI was RMB1.3 billion (US$186.2 million), compared to non-GAAP net loss attributable to iQIYI of RMB4.5 billion in 2021.

"We wrapped up a remarkable year of turnaround with outstanding performance in the fourth quarter. Our drama market share reached historical high, according to Enlightent, so were our membership revenues, operating profits, operating cash flow and free cash flow. We recorded over 10 million net subscriber additions in Q4." commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. "The success of the quarter was driven by our original blockbusters. Looking forward, we will continue to focus on our original content strategy to deliver high-quality growth, and to create more value for our stakeholders."

"Q4 was a record-setting quarter for us across various aspects. Our operating margin continued to expand for the fifth consecutive quarter and we have been generating positive operating cash flow for three consecutive quarters." commented Mr. Jun Wang, Chief Financial Officer of iQIYI. "In the past 12 months, we completed three rounds of capital raising to remove debt overhang. With a healthier balance sheet and a cash generating business, the management team can focus on delivering high-quality growth over the next few years."

 

Fourth Quarter and Fiscal Year 2022 Financial Highlights




Three Months Ended

Year Ended

(Amounts in thousands of Renminbi
("RMB"), except for per ADS data,
unaudited)


Dec 31,
2021


Sep 30,
2022


Dec 31,
2022


Dec 31,
2021


Dec 31,
2022



RMB


RMB


RMB


RMB


RMB

Total revenues


7,388,558


7,471,081


7,592,859


30,554,359


28,997,548












Operating (loss)/income


(975,227)


309,665


783,556


(4,479,207)


1,312,421

Operating (loss)/income (non-
GAAP)


(515,539)


524,347


978,681


(3,026,073)


2,173,389












Net (loss)/income attributable to
iQIYI, Inc.


(1,775,787)


(395,569)


304,259


(6,169,584)


(136,212)

Net (loss)/income attributable to
iQIYI, Inc. (non-GAAP)


(1,001,851)


187,207


856,374


(4,487,079)


1,284,023












Diluted net (loss)/income per ADS


(2.24)


(0.46)


0.35


(7.77)


(0.16)

Diluted net (loss)/income per ADS
(non-GAAP) [2]


(1.26)


0.21


0.98


(5.65)


1.49

 

Fourth Quarter 2022 Other Operating Highlights

  • The average daily number of total subscribing members[3] for the quarter was 111.6 million, compared to 97.0 million for the same period in 2021 and 101.0 million for the third quarter in 2022. The average daily number of subscribing members excluding individuals with trial memberships[4] for the quarter was 110.9 million, compared to 96.4 million for the same period in 2021 and 100.2 million for the third quarter in 2022.
  • The monthly average revenue per membership (ARM[5]) for the quarter was RMB14.17, compared to RMB14.16 for the same period in 2021 and RMB13.90 for the third quarter in 2022.

 

Footnotes:

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.8972 as of December 30, 2022, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

[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.

 

Fourth Quarter 2022 Financial Results

Total revenues reached RMB7.6 billion (US$1.1 billion), increasing 3% year over year.

Membership services revenue was RMB4.7 billion (US$687.8 million), increasing 15% year over year. The increase was primarily driven by a series of premium content we launched during the quarter, resulting in the number of total subscribing members to grow from 106.2 million as of September 30, 2022 to 119.7 million as of December 31, 2022.

Online advertising services revenue was RMB1.6 billion (US$225.2 million), decreasing 7% year over year, primarily due to the challenging macroeconomic environment.

Content distribution revenue was RMB634.7 million (US$92.0 million), decreasing 17% year over year, primarily due to the decrease in the number of barter transactions, partially offset by the increase of cash transactions.

Other revenues were RMB661.1 million (US$95.9 million), decreasing 21% year over year, primarily due to the adjustment in business operation model of certain business line and the soft performance of various business lines, partially offset by the revenue derived from the third-party cooperation.

Cost of revenues was RMB5.4 billion (US$783.3 million), decreasing 17% year over year, primarily due to lower content costs during the quarter. Content costs as a component of cost of revenues were RMB3.9 billion (US$569.3 million), decreasing 19% year over year. The decrease in content cost was driven by our improvement in content strategy and improvement in operating efficiency.

Selling, general and administrative expenses were RMB940.9 million (US$136.4 million), decreasing 14% year over year, primarily due to the decrease in personnel-related compensation expenses, the non-recurring employee severance costs in the fourth quarter of 2021 associated with the optimization of our organizational structure, as well as the decrease in share-based compensation.

Research and development expenses were RMB466.2 million (US$67.6 million), decreasing 39% year over year, primarily due to the decrease of personnel-related compensation expenses, the non-recurring employee severance costs in the fourth quarter of 2021 associated with the optimization of our organizational structure, as well as the decrease in share-based compensation.

Operating income was RMB783.6 million (US$113.6 million), compared to operating loss of RMB975.2 million in the same period in 2021. Operating income margin was 10%, compared to operating loss margin of 13% in the same period in 2021. Non-GAAP operating income was RMB978.7 million (US$141.9 million) and non-GAAP operating income margin was 13%, compared to non-GAAP operating loss of RMB515.5 million and non-GAAP operating loss margin of 7% in the same period in 2021.

Total other expense was RMB490.5 million (US$71.1 million), compared to total other expense of RMB753.4 million during the same period of 2021. The year over year decrease was a combined result of decreased loss derived from equity investees, and lower interest expenses mainly due to the adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity and less principal amount of convertible bond, partially offset by the increase in the impairment provision from selected investee companies.

Income before income taxes was RMB293.1 million (US$42.5 million), compared to loss before income taxes of RMB1.7 billion in the same period in 2021.

Income tax benefit was RMB11.6 million (US$1.7 million), compared to income tax expense of RMB36.5 million in the same period in 2021.

Net income attributable to iQIYI was RMB304.3 million (US$44.1 million), compared to net loss attributable to iQIYI of RMB1.8 billion in the same period in 2021. Diluted net income attributable to iQIYI per ADS was RMB0.35 (US$0.05) for the fourth quarter of 2022, compared to diluted net loss attributable to iQIYI per ADS of RMB2.24 in the same period of 2021. Non-GAAP net income attributable to iQIYI was RMB856.4 million (US$124.2 million), compared to non-GAAP net loss attributable to iQIYI of RMB1.0 billion in the same period in 2021. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB0.98 (US$0.14), compared to non-GAAP diluted net loss attributable to iQIYI per ADS of RMB1.26 in the same period of 2021.

As of December 31, 2022, the Company had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in prepayments and other assets of RMB8.7 billion (US$1.3 billion).

Fiscal Year 2022 Financial Results

Total revenues were RMB29.0 billion (US$4.2 billion), representing a 5% decrease from 2021.

Membership services revenue was RMB17.7 billion (US$2.6 billion), representing a 6% increase from 2021, driven by the growth in ARM and the number of subscribing members, as we launched a variety of premium content and continued to refine operations to improve monetization capabilities.

Online advertising services revenue was RMB5.3 billion (US$773.0 million), representing a 25% decrease from 2021. The decrease was primarily due to the challenging macroeconomic environment.

Content distribution revenue was RMB2.5 billion (US$358.1 million), representing a 14% decrease from 2021, primarily due to the decrease in barter transactions.

Other revenues were RMB3.5 billion (US$505.3 million), representing a 11% decrease from 2021. The decrease was primarily due to the soft performance of various business lines and the adjustment in business operation model of certain business line, partially offset by the revenue derived from third-party cooperation.

Cost of revenues was RMB22.3 billion (US$3.2 billion), representing a 19% decrease from 2021, primarily due to the decrease of content cost. Content costs as a component of cost of revenues were RMB16.5 billion (US$2.4 billion), representing a 20% decrease from 2021. The decrease in content cost was driven by our improvement in content strategy and operating efficiency.

Selling, general and administrative expenses were RMB3.5 billion (US$502.6 million), representing a 27% decrease from 2021. The decrease was primarily due to disciplined marketing spending, and decline in personnel-related compensation expenses and share-based compensation.

Research and development expenses were RMB1.9 billion (US$275.4 million), representing a 32% decrease from 2021. The decrease was primarily due to the decline of personnel-related compensation expenses.

Operating income was RMB1.3 billion (US$190.3 million), compared to operating loss of RMB4.5 billion in 2021. Operating income margin was 5%, compared to operating loss margin of 15% in 2021. Non-GAAP operating income was RMB2.2 billion (US$315.1 million) and non-GAAP operating income margin was 7%, compared to non-GAAP operating loss of RMB3.0 billion and non-GAAP operating loss margin of 10% in 2021.  

Total other expense was RMB1.3 billion (US$195.2 million), compared to total other expense of RMB1.5 billion in 2021. The year-over-year variance was a combined result of   decreased loss derived from equity investees, and lower interest expenses due to the adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity and less principal amount of convertible bond, partially offset by the increase in the impairment provision from selected investee companies and the foreign exchange loss driven by the appreciation of U.S. dollar against Renminbi.

Loss before income taxes was RMB33.8 million (US$4.9 million), compared to loss before income taxes of RMB6.0 billion in 2021.

Income tax expense was RMB84.0 million (US$12.2 million), compared to income tax expense of RMB96.5 million in 2021.

Net loss attributable to iQIYI was RMB136.2 million (US$19.7 million), compared to net loss attributable to iQIYI of RMB6.2 billion in 2021. Diluted net loss attributable to iQIYI per ADS was RMB0.16 (US$0.02) for 2022, compared to diluted net loss attributable to iQIYI per ADS of RMB7.77 in 2021. Non-GAAP net income attributable to iQIYI was RMB1.3 billion (US$186.2 million), compared to non-GAAP net loss attributable to iQIYI of RMB4.5 billion in 2021. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB1.49 (US$0.22), compared to non-GAAP diluted net loss attributable to iQIYI per ADS of RMB5.65 in 2021.

Conference Call Information

iQIYI's management will hold an earnings conference call at 6:30 AM on February 22, 2023, U.S. Eastern Time (7:30 PM on February 22, 2023, Beijing Time).

Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite.

Participant Online Registration:  https://s1.c-conf.com/diamondpass/10028713-qts6fe.html

It will automatically direct you to the registration page of "iQIYI Fourth Quarter and Fiscal Year 2022 Earnings Conference Call", where you may fill in your details for RSVP.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite 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 March 1, 2023.

Dial-in numbers for the replay are as follows:

International Dial-in:       

+1 855 883 1031

Passcode:                         

10028713

A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.

About iQIYI, Inc.

iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a daily subscriber base of more than 100 million, and its diversified monetization model includes membership services, online advertising services, content distribution, online games, IP licensing, talent agency, online literature, etc.

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 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 U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about iQIYI's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iQIYI's strategies; iQIYI's future business development, financial condition and results of operations; iQIYI's ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law.

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 iQIYI, Inc. represents net loss attributable to iQIYI, Inc. excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, non-recurring employee severance costs, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. iQIYI's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.

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 iQIYI, Inc, which is adjusted for accretion for the redeemable non-controlling interests, by the weighted average number of ordinary shares expressed in ADS.

Free cash flow represents net cash provided by operating activities less capital expenditures.

For more information, please contact:

Investor Relations
iQIYI, Inc.
ir@qiyi.com

 

 

 

iQIYI, INC.

Condensed Consolidated Statements of (Loss)/income

 (In RMB thousands, except for number of shares and per share data) 




Three Months Ended


Year Ended



December 31,


September 30,


December 31,


December 31,


December 31,



2021


2022


2022


2021


2022



RMB


RMB


RMB


RMB


RMB



(Unaudited)


(Unaudited)


(Unaudited)




(Unaudited)

 Revenues:











Membership services


4,120,689


4,210,722


4,743,562


16,713,664


17,710,830

Online advertising services


1,664,502


1,247,114


1,553,475


7,066,751


5,331,697

Content distribution


761,519


729,698


634,696


2,855,602


2,469,771

Others


841,848


1,283,547


661,126


3,918,342


3,485,250

 Total revenues


7,388,558


7,471,081


7,592,859


30,554,359


28,997,548












 Operating costs and expenses:











Cost of revenues


(6,507,554)


(5,705,260)


(5,402,243)


(27,513,497)


(22,319,315)

Selling, general and administrative


(1,093,088)


(980,293)


(940,903)


(4,725,142)


(3,466,579)

Research and development


(763,143)


(475,863)


(466,157)


(2,794,927)


(1,899,233)

 Total operating costs and expenses


(8,363,785)


(7,161,416)


(6,809,303)


(35,033,566)


(27,685,127)

 Operating (loss)/income


(975,227)


309,665


783,556


(4,479,207)


1,312,421












 Other income/(expense):











Interest income 


24,836


18,631


26,292


118,615


69,577

Interest expenses


(324,542)


(181,641)


(176,018)


(1,349,544)


(715,081)

Foreign exchange gain/(loss), net


27,882


(79,768)


19,029


54,555


(167,857)

Loss from equity method investments


(361,672)


(69,807)


(46,754)


(446,323)


(213,409)

Other (expense)/income, net


(119,918)


(349,455)


(313,054)


89,916


(319,427)

 Total other expense, net


(753,414)


(662,040)


(490,505)


(1,532,781)


(1,346,197)












 (Loss)/income before income taxes


(1,728,641)


(352,375)


293,051


(6,011,988)


(33,776)

Income tax (expense)/benefit


(36,536)


(42,501)


11,587


(96,545)


(84,000)












 Net (loss)/income


(1,765,177)


(394,876)


304,638


(6,108,533)


(117,776)

  Less: Net income attributable to noncontrolling interests 


10,610


693


379


61,051


18,436

 Net (loss)/income attributable to iQIYI, Inc.


(1,775,787)


(395,569)


304,259


(6,169,584)


(136,212)

Accretion of redeemable noncontrolling interests


(8,030)


-


-


(20,336)


-

 Net (loss)/income attributable to ordinary shareholders


(1,783,817)


(395,569)


304,259


(6,189,920)


(136,212)












 Net (loss)/income per share for Class A and Class B ordinary
shares:











 Basic


(0.32)


(0.07)


0.05


(1.11)


(0.02)

 Diluted


(0.32)


(0.07)


0.05


(1.11)


(0.02)












 Net (loss)/income per ADS (1 ADS equals 7 Class A ordinary
shares):











 Basic


(2.24)


(0.46)


0.35


(7.77)


(0.16)

 Diluted


(2.24)


(0.46)


0.35


(7.77)


(0.16)












Weighted average number of Class A and Class B ordinary
shares used in net loss per share computation:











 Basic


5,595,304,683


6,081,974,163


6,084,021,514


5,570,736,706


5,988,021,425

 Diluted


5,595,304,683


6,081,974,163


6,099,971,176


5,570,736,706


5,988,021,425












 

 

 

iQIYI, INC.


Condensed Consolidated Balance Sheets


(In RMB thousands, except for number of shares and per share data)






December 31,


December 31,




2021


2022




RMB


RMB






(Unaudited)


ASSETS






    Current assets:






Cash and cash equivalents


2,997,212


7,097,938


Restricted cash


77,652


13,618


Short-term investments


1,348,255


818,265


Accounts receivable, net


2,747,774


2,402,675


Prepayments and other assets


3,266,523


2,602,927


Amounts due from related parties


155,512


104,154


Licensed copyrights, net


931,189


746,058


    Total current assets


11,524,117


13,785,635








    Non-current assets:






Fixed assets, net


1,344,784


1,104,721


Long-term investments


3,035,155


2,453,644


Deferred tax assets, net


31,351


-


Licensed copyrights, net


7,258,042


6,840,629


Intangible assets, net


545,305


436,685


Produced content, net


10,951,078


13,001,904


Prepayments and other assets


2,905,690


3,865,133


Operating lease assets


907,297


673,971


Goodwill


3,888,346


3,826,147


Amounts due from related parties


81,000


59,880


    Total non-current assets


30,948,048


32,262,714








Total assets


42,472,165


46,048,349








LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND
SHAREHOLDERS' EQUITY






Current liabilities:






Accounts and notes payable


8,896,460


5,993,416


Amounts due to related parties


2,634,089


3,521,646


Customer advances and deferred revenue


3,484,509


4,232,110


Convertible senior notes, current portion


-


8,305,447


Short-term loans


4,117,774


3,347,638


Operating lease liabilities, current portion


171,541


103,517


Accrued expenses and other liabilities


3,172,097


2,626,244


    Total current liabilities


22,476,470


28,130,018


Non-current liabilities:






Convertible senior notes


12,652,172


9,568,279


Deferred tax liabilities


3,127


1,832


Amounts due to related parties


780,615


100,941


Operating lease liabilities


625,737


508,571


Other non-current liabilities


260,931


1,395,269


    Total non-current liabilities


14,322,582


11,574,892








Total liabilities


36,799,052


39,704,910








Redeemable noncontrolling interests


397,385


-







Shareholders' equity:












Class A ordinary shares


173


194


Class B ordinary shares


183


193


Additional paid-in capital


49,642,014


50,885,688


Accumulated deficit


(47,163,773)


(46,498,897)


Accumulated other comprehensive income


2,709,002


1,863,454


Noncontrolling interests


88,129


92,807


Total shareholders' equity


5,275,728


6,343,439








Total liabilities, redeemable noncontrolling interests and shareholders' equity


42,472,165


46,048,349


 

 

 

iQIYI, INC.

Condensed Consolidated Statements of Cash Flows 

 (In RMB thousands, except for number of shares and per share data) 



Three Months Ended


Year Ended


December 31,


September 30,


December 31,


December 31,


December 31,


2021


2022


2022


2021


2022


RMB


RMB


RMB


RMB


RMB


(Unaudited)


(Unaudited)


(Unaudited)




(Unaudited)











Net cash (used for)/provided by operating activities

(1,095,365)


195,724


853,397


(5,951,847)


(70,569)

Net cash provided by investing activities (1,2)

2,097,104


406,840


578,899


1,262,350


265,980

Net cash (used for)/provided by financing activities

(5,238,940)


(105,876)


2,861,582


(2,959,455)


4,468,863

Effect of exchange rate changes on cash, cash
    equivalents and restricted cash

(73,767)


60,182


(8,576)


(216,696)


122,418

Net (decrease)/increase in cash, cash equivalents and
    restricted cash

(4,310,968)


556,870


4,285,302


(7,865,648)


4,786,692

Cash, cash equivalents and restricted cash at the
    beginning of the period

7,385,832


3,019,384


3,576,254


10,940,512


3,074,864

Cash, cash equivalents and restricted cash at the end
    of the period

3,074,864


3,576,254


7,861,556


3,074,864


7,861,556

 

Reconciliation of cash and cash equivalents and
    restricted cash:










Cash and cash equivalents

2,997,212


3,559,899


7,097,938


2,997,212


7,097,938

Restricted cash

77,652


16,355


13,618


77,652


13,618

Long-term restricted cash

-


-


750,000


-


750,000

Total cash and cash equivalents and restricted cash
   shown in the statements of cash flows

3,074,864


3,576,254


7,861,556


3,074,864


7,861,556










Net cash (used for)/provided by operating activities

(1,095,365)


195,724


853,397


(5,951,847)


(70,569)

Less: Capital expenditures (2)

(23,938)


(48,143)


(8,800)


(261,536)


(174,263)

Free cash flow

(1,119,303)


147,581


844,597


(6,213,383)


(244,832)












(1)  Net cash provided by investing activities primarily consists of net cash flows from investing in debt securities,
      purchase of long-term investments and capital expenditures.

(2)  Capital expenditures are incurred primarily in connection with leasehold improvements, computers and servers.

 

 

 

iQIYI, INC.

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


Dec 31,


Sep 30,


Dec 31,


Dec 31,


Dec 31,


2021


2022


2022


2021


2022


RMB


RMB


RMB


RMB


RMB











Operating (loss)/income

(975,227)


309,665


783,556


(4,479,207)


1,312,421

Add: Share-based compensation expenses

264,458


204,770


188,506


1,219,163


811,441

Add: Amortization and impairment of intangible assets(1)

16,498


9,912


6,619


55,239


49,527

Add: Non-recurring employee severance costs(2)

178,732


-


-


178,732


-

Operating (loss)/income (non-GAAP)

(515,539)


524,347


978,681


(3,026,073)


2,173,389











Net (loss)/income attributable to iQIYI, Inc.

(1,775,787)


(395,569)


304,259


(6,169,584)


(136,212)

Add: Share-based compensation expenses

264,458


204,770


188,506


1,219,163


811,441

Add: Amortization and impairment of intangible assets(1)

16,498


9,912


6,619


55,239


49,527

Add: Non-recurring employee severance costs(2)

178,732


-


-


178,732


-

Add: Disposal loss/(gain)

-


-


62,199


(44,861)


(367,717)

Add: Impairment of long-term investments

138,979


376,339


271,873


169,828


841,489

Add: Fair value loss/(gain) of long-term investments

1,396


(26,652)


8,001


(87,381)


(17,683)

Add: Reconciling items on equity method investments

177,191


16,323


17,621


192,193


104,473

Add: Tax effects on non-GAAP adjustments(3)

(3,318)


2,084


(2,704)


(408)


(1,295)

Net (loss)/income attributable to iQIYI, Inc. (non-
GAAP)

(1,001,851)


187,207


856,374


(4,487,079)


1,284,023











Diluted net (loss)/income per ADS

(2.24)


(0.46)


0.35


(7.77)


(0.16)

Add: Non-GAAP adjustments to earnings per ADS

0.98


0.67


0.63


2.12


1.65

Diluted net (loss)/income per ADS (non-GAAP)

(1.26)


0.21


0.98


(5.65)


1.49


(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 non-GAAP adjustments.

 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/iqiyi-announces-fourth-quarter-and-fiscal-year-2022-financial-results-301752832.html

SOURCE iQIYI, Inc.

Copyright 2023 PR Newswire

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