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