BEIJING, Aug. 12, 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 second quarter ended June
30, 2021.
Second Quarter 2021 Highlights
- Total revenues were RMB7.6
billion (US$1.2
billion1), representing a 3% increase from the
same period in 2020.
- Operating loss was RMB1.1 billion
(US$173.7 million) and operating loss
margin was 15%, compared to operating loss of RMB1.3 billion and operating loss margin of 17%
in the same period in 2020.
- Net loss attributable to iQIYI was RMB1.4 billion (US$216.4
million), compared to net loss attributable to iQIYI of
RMB1.4 billion in the same period in
2020. Diluted net loss attributable to iQIYI per ADS was
RMB1.75 (US$0.27), compared to diluted net loss
attributable to iQIYI per ADS of RMB1.96 in the same period of 2020.
- The number of total subscribing members was 106.2 million as of
June 30, 2021, or 105.2 million
excluding individuals with trial memberships.
"Our second quarter results were largely in line with our
expectation," commented Mr. Yu Gong,
Founder, Director, and Chief Executive Officer of iQIYI. "Despite
the fact that the second quarter is traditionally an off-season,
the number of our subscribers grew to 106.2 million, driven by the
hit original dramas we launched during the quarter. We continued to
lead the market across multiple operating metrics. We also saw
encouraging momentum from our iQIYI Lite app targeting lower-tier
cities in China and from our
overseas expansion. We are still in the early stage of
industrialization in video production, and we are continuing to
drive industry evolution to achieve long-term growth. Leveraging
our deep understanding of users, our highly innovative in-house
production teams, as well as our advanced technologies, we believe
we are well positioned to address current challenges and capture
future market opportunities."
"Our total revenue in the second quarter approached the high end
of our guidance," commented Mr. Xiaodong
Wang, Chief Financial Officer of iQIYI. "We continue to grow
our subscribers and diversify our monetization channels through our
premium content and massive user base. Our net loss narrowed for
five consecutive quarters on a year-over-year basis as we continue
to execute our disciplined investment strategy. Looking ahead, we
strive to offer increasingly diversified content portfolio in the
second half of the year, which is a key pillar to regain the
revenue momentum."
Footnotes:
|
[1] Unless
otherwise noted, all translations from RMB to U.S. dollars are made
at a rate of RMB6.4566 to US$1.00, the exchange rate in effect as
of June 30, 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.
|
Second Quarter 2021 Financial Results
Total revenues reached RMB7.6
billion (US$1.2 billion),
representing a 3% increase from the same period in 2020.
Membership services revenue was RMB4.0
billion (US$618.4 million),
flat compared with the same period in 2020.
Online advertising services revenue was RMB1.8 billion (US$282.7
million), representing a 15% increase from the same period
in 2020. The increase was primarily driven by the sustained rebound
of brand-advertising budgets amid the macroeconomic recovery in
China.
Content distribution revenue was RMB687.9
million (US$106.5 million),
representing a 20% decrease from the same period in 2020. The
decrease was primarily due to less barter transaction, partially
offset by the increase of cash transaction.
Other revenues were RMB1.1 billion
(US$170.7 million), representing a
20% increase from the same period in 2020, primarily driven by the
strong growth of certain business lines.
Cost of revenues was RMB6.9
billion (US$1.1 billion), flat
compared with the same period in 2020. Content costs as a component
of cost of revenues were RMB5.1
billion (US$794.8 million),
flat compared with the same period in 2020.
Selling, general and administrative expenses were RMB1.2 billion (US$183.5
million), representing a 1% decrease from the same period in
2020.
Research and development expenses were RMB676.5 million (US$104.8
million), representing a 2% increase from the same period in
2020.
Operating loss was RMB1.1 billion
(US$173.7 million), compared to
operating loss of RMB1.3 billion in
the same period in 2020. Operating loss margin was 15%, compared to
operating loss margin of 17% in the same period in 2020.
Total other expense was RMB226.4
million (US$35.1 million),
compared to total other expense of RMB140.8
million during the same period of 2020. This was mainly due
to increased interest expenses related to our financing
activities.
Loss before income taxes was RMB1.3
billion (US$208.8 million),
compared to loss before income taxes of RMB1.4 billion in the same period in 2020.
Income tax expense was RMB30.4
million (US$4.7 million),
compared to income tax expense of RMB15.9
million in the same period in 2020.
Net loss attributable to iQIYI was RMB1.4
billion (US$216.4 million),
compared to net loss attributable to iQIYI of RMB1.4 billion in the same period in 2020.
Diluted net loss attributable to iQIYI per ADS was RMB1.75 (US$0.27)
for the second quarter of 2021, compared to diluted net loss
attributable to iQIYI per ADS of RMB1.96 in the same period of 2020.
As of June 30, 2021, the Company
had cash, cash equivalents, restricted cash and short-term
investments of RMB12.3 billion
(US$1.9 billion).
Financial Guidance
For the third quarter of 2021, iQIYI expects total net revenues
to be between RMB7.62 billion
(US$1.18 billion) and RMB8.05 billion (US$1.25
billion), representing a 6% to 12% 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 August 12, 2021, U.S. Eastern Time (7:00 PM on August 12,
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/7088859
It will automatically direct you to the registration page of
" iQIYI Second 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 "7088859".
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 August 19, 2021.
Dial-in numbers for the replay are as follows:
International
Dial-in
|
+61 2 8199
0299
|
Passcode:
|
7088859
|
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,
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
|
|
Six Months
Ended
|
|
June 30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
2020
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Membership
services
|
4,045,968
|
|
4,311,804
|
|
3,992,956
|
|
8,680,315
|
|
8,304,760
|
Online advertising
services
|
1,586,083
|
|
1,916,584
|
|
1,825,333
|
|
3,122,853
|
|
3,741,917
|
Content
distribution
|
860,629
|
|
779,058
|
|
687,891
|
|
1,463,401
|
|
1,466,949
|
Others
|
918,897
|
|
960,977
|
|
1,102,094
|
|
1,794,774
|
|
2,063,071
|
Total
revenues
|
7,411,577
|
|
7,968,423
|
|
7,608,274
|
|
15,061,343
|
|
15,576,697
|
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(6,833,586)
|
|
(7,109,394)
|
|
(6,868,868)
|
|
(14,736,450)
|
|
(13,978,262)
|
Selling, general and
administrative
|
(1,195,632)
|
|
(1,200,984)
|
|
(1,184,736)
|
|
(2,506,235)
|
|
(2,385,720)
|
Research and
development
|
(664,045)
|
|
(672,256)
|
|
(676,481)
|
|
(1,342,180)
|
|
(1,348,737)
|
Total
operating costs and expenses
|
(8,693,263)
|
|
(8,982,634)
|
|
(8,730,085)
|
|
(18,584,865)
|
|
(17,712,719)
|
Operating
loss
|
(1,281,686)
|
|
(1,014,211)
|
|
(1,121,811)
|
|
(3,523,522)
|
|
(2,136,022)
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expenses):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
44,425
|
|
28,569
|
|
29,231
|
|
101,019
|
|
57,800
|
Interest
expenses
|
(265,656)
|
|
(330,585)
|
|
(343,124)
|
|
(527,686)
|
|
(673,709)
|
Foreign exchange
gain/(loss), net
|
61,199
|
|
(13,193)
|
|
35,404
|
|
(251,223)
|
|
22,211
|
Loss from equity
method investments
|
(62,205)
|
|
(3,076)
|
|
(64,230)
|
|
(159,043)
|
|
(67,306)
|
Others, net
|
81,389
|
|
95,846
|
|
116,280
|
|
67,578
|
|
212,126
|
Total other
expense, net
|
(140,848)
|
|
(222,439)
|
|
(226,439)
|
|
(769,355)
|
|
(448,878)
|
|
|
|
|
|
|
|
|
|
|
Loss before
income taxes
|
(1,422,534)
|
|
(1,236,650)
|
|
(1,348,250)
|
|
(4,292,877)
|
|
(2,584,900)
|
Income tax
expense
|
(15,926)
|
|
(20,613)
|
|
(30,418)
|
|
(20,767)
|
|
(51,031)
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(1,438,460)
|
|
(1,257,263)
|
|
(1,378,668)
|
|
(4,313,644)
|
|
(2,635,931)
|
Less: Net income
attributable to
noncontrolling interests
|
3,357
|
|
9,747
|
|
18,559
|
|
2,815
|
|
28,306
|
Net loss
attributable to iQIYI, Inc.
|
(1,441,817)
|
|
(1,267,010)
|
|
(1,397,227)
|
|
(4,316,459)
|
|
(2,664,237)
|
Accretion of
redeemable noncontrolling
interests
|
(1,747)
|
|
(3,194)
|
|
(4,343)
|
|
(3,464)
|
|
(7,537)
|
Net loss
attributable to ordinary
shareholders
|
(1,443,564)
|
|
(1,270,204)
|
|
(1,401,570)
|
|
(4,319,923)
|
|
(2,671,774)
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share for Class A and Class
B ordinary shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.28)
|
|
(0.23)
|
|
(0.25)
|
|
(0.84)
|
|
(0.48)
|
Diluted
|
(0.28)
|
|
(0.23)
|
|
(0.25)
|
|
(0.84)
|
|
(0.48)
|
|
|
|
|
|
|
|
|
|
|
Net loss per
ADS (1 ADS equals 7 Class A
ordinary shares):
|
|
|
|
|
|
|
|
|
|
Basic
|
(1.96)
|
|
(1.61)
|
|
(1.75)
|
|
(5.88)
|
|
(3.36)
|
Diluted
|
(1.96)
|
|
(1.61)
|
|
(1.75)
|
|
(5.88)
|
|
(3.36)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and
Class B ordinary shares used in net loss
per share computation:
|
|
|
|
|
|
|
|
|
|
Basic
|
5,151,499,718
|
|
5,526,721,856
|
|
5,569,531,698
|
|
5,144,464,250
|
|
5,548,245,034
|
Diluted
|
5,151,499,718
|
|
5,526,721,856
|
|
5,569,531,698
|
|
5,144,464,250
|
|
5,548,245,034
|
iQIYI,
INC.
Condensed
Consolidated Balance Sheets
(In RMB thousands,
except for number of shares and per share data)
|
|
|
|
|
|
December
31,
|
|
June
30,
|
|
|
|
2020
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
|
|
|
|
(Unaudited)
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
10,915,282
|
|
6,684,907
|
|
Restricted
cash
|
|
25,230
|
|
51,174
|
|
Short-term
investments
|
|
3,358,174
|
|
5,526,397
|
|
Accounts receivable,
net
|
|
3,344,433
|
|
3,144,074
|
|
Prepayments and other
assets
|
|
3,515,855
|
|
4,049,567
|
|
Amounts due from
related parties
|
|
96,111
|
|
190,183
|
|
Licensed copyrights,
net
|
|
1,035,339
|
|
890,326
|
|
Total current assets
|
|
22,290,424
|
|
20,536,628
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
Fixed assets,
net
|
|
1,393,467
|
|
1,353,765
|
|
Long-term
investments
|
|
3,202,828
|
|
3,422,487
|
|
Deferred tax assets,
net
|
|
51,347
|
|
80,368
|
|
Licensed copyrights,
net
|
|
6,435,055
|
|
6,714,313
|
|
Intangible assets,
net
|
|
627,198
|
|
594,900
|
|
Produced content,
net
|
|
6,556,084
|
|
8,675,781
|
|
Prepayments and other
assets
|
|
2,699,423
|
|
2,518,445
|
|
Operating lease
assets
|
|
1,001,857
|
|
1,049,711
|
|
Goodwill
|
|
3,888,346
|
|
3,888,346
|
|
Amounts due from
related parties
|
|
39,400
|
|
81,400
|
|
Total non-current assets
|
|
25,895,005
|
|
28,379,516
|
|
|
|
|
|
|
|
Total
assets
|
|
48,185,429
|
|
48,916,144
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts and notes
payable
|
|
7,561,532
|
|
8,227,836
|
|
Amounts due to related
parties
|
|
1,778,783
|
|
2,308,768
|
|
Customer advances and
deferred revenue
|
|
3,444,917
|
|
3,248,965
|
|
Convertible senior
notes, current portion
|
|
4,752,061
|
|
4,777,143
|
|
Short-term
loans
|
|
2,965,957
|
|
3,008,224
|
|
Long-term loans,
current portion
|
|
909,034
|
|
915,501
|
|
Operating lease
liabilities, current portion
|
|
201,307
|
|
209,015
|
|
Accrued expenses and
other liabilities
|
|
3,240,987
|
|
3,531,999
|
|
Total current liabilities
|
|
24,854,578
|
|
26,227,451
|
|
Non-current
liabilities:
|
|
|
|
|
|
Convertible senior
notes
|
|
11,926,715
|
|
12,591,930
|
|
Deferred tax
liabilities
|
|
4,588
|
|
12,531
|
|
Amounts due to related
parties
|
|
977,407
|
|
852,788
|
|
Operating lease
liabilities
|
|
767,676
|
|
700,555
|
|
Other non-current
liabilities
|
|
210,167
|
|
196,525
|
|
Total non-current liabilities
|
|
13,886,553
|
|
14,354,329
|
|
|
|
|
|
|
|
Total
liabilities
|
|
38,741,131
|
|
40,581,780
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
108,629
|
|
230,086
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
Class A ordinary
shares
|
|
165
|
|
172
|
|
Class B ordinary
shares
|
|
183
|
|
183
|
|
Additional paid-in
capital
|
|
47,687,483
|
|
49,077,376
|
|
Accumulated
deficit
|
|
(40,973,853)
|
|
(43,645,627)
|
|
Accumulated other
comprehensive income
|
|
2,542,680
|
|
2,590,176
|
|
Non-controlling
interests
|
|
79,011
|
|
81,998
|
|
Total
shareholders' equity
|
|
9,335,669
|
|
8,104,278
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests and shareholders'
equity
|
|
48,185,429
|
|
48,916,144
|
|
iQIYI,
INC.
Condensed
Consolidated Statements of
Cash Flows
(In RMB
thousands, except for number of shares and per share
data)
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Net cash used for
operating activities
|
(1,358,278)
|
|
(1,350,028)
|
|
(1,425,910)
|
|
Net cash provided
by/(used for) investing activities (1)
|
1,144,401
|
|
(2,777,975)
|
|
58,140
|
|
Net cash provided by
financing activities
|
822,793
|
|
610,991
|
|
801,074
|
|
Effect of exchange
rate changes on cash, cash equivalents
and restricted cash
|
(10,016)
|
|
(28,225)
|
|
(92,498)
|
|
Net
increase/(decrease) in cash, cash equivalents and
restricted cash
|
598,900
|
|
(3,545,237)
|
|
(659,194)
|
|
|
|
|
|
|
|
|
Net cash used for
operating activities
|
(1,358,278)
|
|
(1,350,028)
|
|
(1,425,910)
|
|
Less: Capital
expenditures (2)
|
(57,465)
|
|
(60,550)
|
|
(60,728)
|
|
Free cash
flow
|
(1,415,743)
|
|
(1,410,578)
|
|
(1,486,638)
|
|
|
|
(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 capital
expenditures.
|
|
(2) Capital expenditures are
incurred primarily in connection with leasehold improvements,
computers and servers.
|
|
View original
content:https://www.prnewswire.com/news-releases/iqiyi-announces-second-quarter-2021-financial-results-301354203.html
SOURCE iQIYI, Inc.