BEIJING, May 18, 2021 /PRNewswire/ -- iQIYI, Inc.
(Nasdaq: IQ) ("iQIYI" or the "Company"), an innovative
market-leading online entertainment service in China, today announced its unaudited financial
results for the first quarter ended March
31, 2021.
First Quarter 2021 Highlights
- Total revenues were RMB8.0
billion (US$1.2
billion[1]), representing a 4% increase from the
same period in 2020.
- Operating loss was RMB1.0 billion
(US$154.8 million) and operating loss
margin was 13%, compared to operating loss of RMB2.2 billion and operating loss margin of 29%
in the same period in 2020.
- Net loss attributable to iQIYI was RMB1.3 billion (US$193.4
million), compared to net loss attributable to iQIYI of
RMB2.9 billion in the same period in
2020. Diluted net loss attributable to iQIYI per ADS was
RMB1.61 (US$0.25), compared to diluted net loss
attributable to iQIYI per ADS of RMB3.92 in the same period of 2020.
- The number of total subscribing members was 105.3 million as of
March 31, 2021 and 104.3 million
excluding individuals with trial memberships.
"We kicked off the year with a solid quarter across the board"
commented Dr. Yu Gong, Founder,
Director, and Chief Executive Officer of iQIYI. "We had 3.6 million
more subscribing members in the first quarter and our membership
services revenue grew by 12% quarter-over-quarter, recording the
peak level in terms of absolute dollar amount over the past year.
The notable growth was largely a result of our strong content
launch across various of categories including dramas, variety shows
and films during the quarter. Specifically, the drama titled My
heroic Husband set up another milestone in terms of both
viewership and monetization efficiency, validating our exclusive
content strategy. On April 22, we
celebrated our 11-year anniversary. We are confident that we will
further strengthen our leadership through the know-hows we learned
from years of fierce competition. We strongly believe the
irreplaceability of long-form video as an entertainment format and
we are well prepared for future opportunities and challenges."
"Our total revenue in the first quarter has exceeded our
previous guidance, recording healthy growth on both
quarter-over-quarter and year-over-year basis." commented Mr.
Xiaodong Wang, Chief Financial
Officer of iQIYI. "In the first quarter, we delivered multiple
well-received content titles. Meanwhile, driven by the improved
investment efficiency, our content cost continued to decline on a
year-over-year basis for the third consecutive quarter. As always,
we are committed to pursuing ROI-driven approach across different
aspects of business, including content, technology and marketing
and more. This positions us on the right track for the eventual
self-sustained status."
Footnotes:
[1] Unless otherwise noted, all translations from RMB to
U.S. dollars are made at a rate of RMB6.5518 to US$1.00, the exchange rate in effect as of
March 31, 2021 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.
First Quarter 2021 Financial Results
Total revenues reached RMB8.0
billion (US$1.2 billion),
representing a 4% increase from the same period in 2020.
Membership services revenue was RMB4.3
billion (US$658.1 million),
representing a 7% decrease from the same period in 2020. The
decrease was primarily due to the decline of our subscribing
members from 118.9 million as of March 31,
2020, which was a high base due to the impact of Covid-19,
to 105.3 million as of March 31,
2021. Our subscribing members grew 3.6 million
quarter-on-quarter due to the strong content launch coupled with
the holidays in the first quarter, during which people spent more
time viewing content.
Online advertising services revenue was RMB1.9 billion (US$292.5
million), representing a 25% increase from the same period
in 2020. The increase was primarily driven by the rebound of both
brand-advertising budgets and the number of brand advertisers amid
the macroeconomy recovery.
Content distribution revenue was RMB779.1
million (US$118.9 million),
representing a 29% increase from the same period in 2020. The
increase was primarily driven by more content titles we distributed
to other platforms during the quarter.
Other revenues were RMB961.0
million (US$146.7 million),
representing a 10% increase from the same period in 2020, primarily
due to the growth of certain business lines.
Cost of revenues was RMB7.1
billion (US$1.1 billion),
representing a 10% decrease from the same period in 2020. The
decrease in cost of revenues was primarily due to less content
costs and bandwidth cost during the quarter. Content costs as a
component of cost of revenues were RMB5.4
billion (US$829.6 million),
representing an 8% decrease from the same period in 2020. The
decrease was primarily attributable to decline of licensed content
cost.
Selling, general and administrative expenses were RMB1.2 billion (US$183.3
million), representing an 8% decrease from the same period
in 2020. This was primarily attribute to less provision for credit
losses, which was a result of improved macroeconomic environment
versus the same period last year.
Research and development expenses were RMB672.3 million (US$102.6
million), representing a 1% decrease from the same period in
2020.
Operating loss was RMB1.0 billion
(US$154.8 million), compared to
operating loss of RMB2.2 billion in
the same period in 2020. Operating loss margin was 13%, compared to
operating loss margin of 29% in the same period in 2020.
Total other expense was RMB222.4
million (US$34.0 million),
compared to total other expense of RMB628.5
million during the same period of 2020. The year-over-year
variance was mainly due to less foreign exchange loss.
Loss before income taxes was RMB1.2
billion (US$188.7 million),
compared to loss before income taxes of RMB2.9 billion in the same period in 2020.
Income tax expense was RMB20.6
million (US$3.1 million),
compared to income tax expense of RMB4.8
million in the same period in 2020.
Net loss attributable to iQIYI was RMB1.3
billion (US$193.4 million),
compared to net loss attributable to iQIYI of RMB2.9 billion in the same period in 2020.
Diluted net loss attributable to iQIYI per ADS was RMB1.61 (US$0.25)
for the first quarter of 2021, compared to diluted net loss
attributable to iQIYI per ADS of RMB3.92 in the same period of 2020.
As of March 31, 2021, the Company
had cash, cash equivalents, restricted cash and short-term
investments of RMB13.3 billion
(US$2.0 billion).
Financial Guidance
For the second quarter of 2021, iQIYI expects total net revenues
to be between RMB7.21 billion
(US$1.10 billion) and RMB7.65 billion (US$1.17
billion), representing a 3% decrease to a 3% increase year
over year. This forecast reflects iQIYI's current and preliminary
view, which may be subject to change.
Conference Call Information
iQIYI's management will hold an earnings conference call at
7:00 AM on May
18, 2021, U.S. Eastern Time (7:00
PM on May 18, 2021, 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, Direct Event passcode and unique
registrant ID by email.
Participant Online Registration:
http://apac.directeventreg.com/registration/event/3375215
It will automatically direct you to the registration page of "
iQIYI First Quarter 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 "3375215".
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 May 26, 2021.
Dial-in numbers for the replay are as follows:
International Dial-in: +61 2 8199 0299
Passcode: 3375215
A live and archived webcast of the conference call will be
available at http://ir.iqiyi.com/.
About iQIYI, Inc.
iQIYI, Inc. is an innovative market-leading online entertainment
service in China. Its corporate
DNA combines creative talent with technology, fostering an
environment for continuous innovation and the production of
blockbuster content. iQIYI's platform features highly popular
original content, as well as a comprehensive library of other
professionally-produced content, professional user generated
content and user-generated content. 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 massive user
base with tremendous user engagement, and has developed a
diversified monetization model including membership services,
online advertising services, content distribution, online games,
live broadcasting, IP licensing, talent agency, online literature
and e-commerce 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 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 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 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.
For more information, please contact:
Investor Relations
iQIYI, Inc.
+ 86 10 8264 6585
ir@qiyi.com
iQIYI,
INC.
|
Condensed
Consolidated Statements of Loss
|
(In RMB thousands,
except for number of shares and per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
2020
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Revenues:
|
|
|
|
|
|
|
|
Membership
services
|
|
4,634,347
|
|
3,835,201
|
|
4,311,804
|
|
Online advertising
services
|
|
1,536,770
|
|
1,859,031
|
|
1,916,584
|
|
Content
distribution
|
|
602,772
|
|
804,335
|
|
779,058
|
|
Others
|
|
875,877
|
|
959,613
|
|
960,977
|
|
Total
revenues
|
|
7,649,766
|
|
7,458,180
|
|
7,968,423
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
(7,902,864)
|
|
(6,784,507)
|
|
(7,109,394)
|
|
Selling, general and
administrative
|
|
(1,310,603)
|
|
(1,317,665)
|
|
(1,200,984)
|
|
Research and
development
|
|
(678,135)
|
|
(663,381)
|
|
(672,256)
|
|
Total
operating costs and expenses
|
|
(9,891,602)
|
|
(8,765,553)
|
|
(8,982,634)
|
|
Operating
loss
|
|
(2,241,836)
|
|
(1,307,373)
|
|
(1,014,211)
|
|
|
|
|
|
|
|
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
Interest
income
|
|
56,594
|
|
22,409
|
|
28,569
|
|
Interest
expenses
|
|
(262,030)
|
|
(269,323)
|
|
(330,585)
|
|
Foreign exchange
(loss)/gain, net
|
|
(312,422)
|
|
28,925
|
|
(13,193)
|
|
Loss from equity
method investments
|
|
(96,838)
|
|
(40,697)
|
|
(3,076)
|
|
Others, net
|
|
(13,811)
|
|
17,651
|
|
95,846
|
|
Total other
expenses, net
|
|
(628,507)
|
|
(241,035)
|
|
(222,439)
|
|
|
|
|
|
|
|
|
|
Loss before
income taxes
|
|
(2,870,343)
|
|
(1,548,408)
|
|
(1,236,650)
|
|
Income tax
(expense)/benefit
|
|
(4,841)
|
|
16,337
|
|
(20,613)
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(2,875,184)
|
|
(1,532,071)
|
|
(1,257,263)
|
|
Less: Net
(loss)/income attributable to noncontrolling
interests
|
|
(542)
|
|
15,543
|
|
9,747
|
|
Net loss
attributable to iQIYI, Inc.
|
|
(2,874,642)
|
|
(1,547,614)
|
|
(1,267,010)
|
|
Accretion of
redeemable noncontrolling interests
|
|
(1,717)
|
|
(1,827)
|
|
(3,194)
|
|
Net loss
attributable to ordinary shareholders
|
|
(2,876,359)
|
|
(1,549,441)
|
|
(1,270,204)
|
|
|
|
|
|
|
|
|
|
Net loss per share
for Class A and Class B ordinary
shares:
|
|
|
|
|
|
|
|
Basic
|
|
(0.56)
|
|
(0.30)
|
|
(0.23)
|
|
Diluted
|
|
(0.56)
|
|
(0.30)
|
|
(0.23)
|
|
|
|
|
|
|
|
|
|
Net loss per
ADS (1 ADS equals 7 Class A ordinary
shares):
|
|
|
|
|
|
|
|
Basic
|
|
(3.92)
|
|
(2.10)
|
|
(1.61)
|
|
Diluted
|
|
(3.92)
|
|
(2.10)
|
|
(1.61)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B
ordinary shares used in net loss per share
computation:
|
|
|
|
|
|
|
|
Basic
|
|
5,137,428,818
|
|
5,232,415,954
|
|
5,526,721,856
|
|
Diluted
|
|
5,137,428,818
|
|
5,232,415,954
|
|
5,526,721,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iQIYI,
INC.
|
Condensed
Consolidated Balance Sheets
|
(In RMB thousands,
except for number of shares and per share data)
|
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
10,915,282
|
|
7,352,678
|
|
Restricted
cash
|
|
25,230
|
|
42,597
|
|
Short-term
investments
|
|
3,358,174
|
|
5,914,741
|
|
Accounts receivable,
net
|
|
3,344,433
|
|
3,381,852
|
|
Prepayments and other
assets
|
|
3,515,855
|
|
4,251,803
|
|
Amounts due from
related parties
|
|
96,111
|
|
172,963
|
|
Licensed copyrights,
net
|
|
1,035,339
|
|
1,031,896
|
|
Total current assets
|
|
22,290,424
|
|
22,148,530
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
Fixed assets,
net
|
|
1,393,467
|
|
1,360,539
|
|
Long-term
investments
|
|
3,202,828
|
|
3,451,349
|
|
Deferred tax assets,
net
|
|
51,347
|
|
51,347
|
|
Licensed copyrights,
net
|
|
6,435,055
|
|
6,515,859
|
|
Intangible assets,
net
|
|
627,198
|
|
607,059
|
|
Produced content,
net
|
|
6,556,084
|
|
7,280,667
|
|
Prepayments and other
assets
|
|
2,699,423
|
|
2,681,384
|
|
Operating lease
assets
|
|
1,001,857
|
|
963,192
|
|
Goodwill
|
|
3,888,346
|
|
3,888,346
|
|
Amounts due from
related parties
|
|
39,400
|
|
39,400
|
|
Total non-current assets
|
|
25,895,005
|
|
26,839,142
|
|
|
|
|
|
|
|
Total
assets
|
|
48,185,429
|
|
48,987,672
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts and notes
payable
|
|
7,561,532
|
|
7,508,778
|
|
Amounts due to related
parties
|
|
1,778,783
|
|
1,897,476
|
|
Customer advances and
deferred revenue
|
|
3,444,917
|
|
3,395,569
|
|
Convertible senior
notes, current portion
|
|
4,752,061
|
|
4,807,909
|
|
Short-term
loans
|
|
2,965,957
|
|
2,201,033
|
|
Long-term loans,
current portion
|
|
909,034
|
|
908,414
|
|
Operating lease
liabilities, current portion
|
|
201,307
|
|
207,517
|
|
Accrued expenses and
other liabilities
|
|
3,240,987
|
|
4,239,695
|
|
Total current liabilities
|
|
24,854,578
|
|
25,166,391
|
|
Non-current
liabilities:
|
|
|
|
|
|
Convertible senior
notes
|
|
11,926,715
|
|
12,670,189
|
|
Deferred tax
liabilities
|
|
4,588
|
|
2,922
|
|
Amounts due to related
parties
|
|
977,407
|
|
946,293
|
|
Operating lease
liabilities
|
|
767,676
|
|
709,086
|
|
Other non-current
liabilities
|
|
210,167
|
|
199,621
|
|
Total non-current liabilities
|
|
13,886,553
|
|
14,528,111
|
|
|
|
|
|
|
|
Total
liabilities
|
|
38,741,131
|
|
39,694,502
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
108,629
|
|
225,743
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary
shares
|
|
165
|
|
171
|
|
Class B ordinary
shares
|
|
183
|
|
183
|
|
Additional paid-in
capital
|
|
47,687,483
|
|
48,739,428
|
|
Accumulated
deficit
|
|
(40,973,853)
|
|
(42,244,057)
|
|
Accumulated other
comprehensive income
|
|
2,542,680
|
|
2,501,406
|
|
Non-controlling
interests
|
|
79,011
|
|
70,296
|
|
Total
shareholders' equity
|
|
9,335,669
|
|
9,067,427
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests and shareholders'
equity
|
|
48,185,429
|
|
48,987,672
|
|
iQIYI,
INC.
|
Condensed
Consolidated Statements of
Cash Flows
|
(In RMB thousands,
except for number of shares and per share
data)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2020
|
|
2020
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Net cash used for
operating activities
|
(604,269)
|
|
(1,519,447)
|
|
(1,350,028)
|
|
Net cash (used
for)/provided by investing activities (1)
|
(1,609,423)
|
|
281,471
|
|
(2,777,975)
|
|
Net cash (used
for)/provided by financing activities
|
(79,473)
|
|
8,392,477
|
|
610,991
|
|
Effect of exchange
rate changes on cash, cash equivalents
and restricted
cash
|
64,567
|
|
(32,770)
|
|
(28,225)
|
|
Net
(decrease)/increase in cash, cash equivalents and restricted
cash
|
(2,228,598)
|
|
7,121,731
|
|
(3,545,237)
|
|
|
|
|
|
|
|
|
Net cash used for
operating activities
|
(604,269)
|
|
(1,519,447)
|
|
(1,350,028)
|
|
Less: Capital
expenditures (2)
|
(66,824)
|
|
(26,523)
|
|
(60,550)
|
|
Free cash
flow
|
(671,093)
|
|
(1,545,970)
|
|
(1,410,578)
|
|
(1) Net cash used for or 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.
View original
content:http://www.prnewswire.com/news-releases/iqiyi-announces-first-quarter-2021-financial-results-301293322.html
SOURCE iQIYI, Inc.