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 second quarter
ended June 30, 2024.
Second Quarter 2024 Highlights
- Total revenues were RMB7.4 billion
(US$1.0 billion1), decreasing 5% year over year.
- Operating income was RMB342.1
million (US$47.1 million) and operating income margin was 5%,
compared to operating income of RMB610.4 million and operating
income margin of 8% in the same period in 2023.
- Non-GAAP operating income2 was
RMB501.4 million (US$69.0 million) and non-GAAP operating income
margin was 7%, compared to non-GAAP operating income of RMB786.4
million and non-GAAP operating income margin of 10% in the same
period in 2023.
- Net income attributable to iQIYI
was RMB68.7 million (US$9.5 million), compared to net income
attributable to iQIYI of RMB365.2 million in the same period in
2023.
- Non-GAAP net income attributable to
iQIYI2 was RMB246.9 million (US$34.0 million), compared to non-GAAP
net income attributable to iQIYI of RMB594.7 million in the same
period in 2023.
“We believe the vibrant competition within the
long-form video sector in the second quarter is constructive for
the industry, enhancing its appeal over other entertainment
formats,” commented Mr. Yu Gong, Founder, Director, and Chief
Executive Officer of iQIYI. “The key to long-term success hinges on
consistently delivering premium content that balances artistic
merits and commercial benefits, to which we remain committed.”
“We have prudently managed our financial
resources to optimize the financial leverage of the balance sheet,
enhance the sustainability of our business, and ultimately deliver
value to all stakeholders.” commented Mr. Jun Wang, Chief Financial
Officer of iQIYI.
Second Quarter 2024 Financial
Highlights
|
|
Three Months Ended |
(Amounts in thousands of Renminbi (“RMB”), except for per ADS data,
unaudited) |
|
|
June 30, |
|
|
|
March 31, |
|
|
June 30, |
|
|
|
|
2023 |
|
|
|
2024 |
|
|
2024 |
|
|
|
|
RMB |
|
|
|
RMB |
|
|
RMB |
|
Total
revenues |
|
|
7,802,297 |
|
|
|
7,927,355 |
|
|
7,438,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
610,392 |
|
|
|
944,753 |
|
|
342,093 |
|
Operating income
(non-GAAP) |
|
|
786,391 |
|
|
|
1,085,762 |
|
|
501,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to iQIYI, Inc. |
|
|
365,207 |
|
|
|
655,317 |
|
|
68,685 |
|
Net income
attributable to iQIYI, Inc. (non-GAAP) |
|
|
594,663 |
|
|
|
844,325 |
|
|
246,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
ADS |
|
|
0.37 |
|
|
|
0.68 |
|
|
0.07 |
|
Diluted net income per
ADS (non-GAAP)2 |
|
|
0.61 |
|
|
|
0.87 |
|
|
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes: [1] Unless otherwise noted, RMB to USD was converted
at an exchange rate of RMB7.2672 as of June 28, 2024, 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).
Second Quarter 2024 Financial
Results
Total revenues reached RMB7.4 billion (US$1.0
billion), decreasing 5% year over year.
Membership services revenue was RMB4.5 billion
(US$618.6 million), decreasing 9% year over year, primarily due to
fluctuation in the content slate performance.
Online advertising services revenue was RMB1.5
billion (US$201.1 million), decreasing 2% year over year, primarily
due to the decrease in brand advertising business, partially offset
by the growth of performance-based advertising business.
Content distribution revenue was RMB698.2
million (US$96.1 million), increasing 2% year over year.
Other revenues were RMB783.9 million (US$107.9
million), increasing 16% year over year, primarily driven by the
increase of revenue derived from talent agency services and
third-party cooperation.
Cost of revenues was RMB5.7 billion (US$781.4
million), decreasing 2% year over year. Content costs as a
component of cost of revenues were RMB4.1 billion (US$559.4
million), decreasing 2% year over year.
Selling, general and administrative expenses
were RMB969.7 million (US$133.4 million), decreasing 1% year over
year.
Research and development expenses were RMB448.7
million (US$61.7 million), increasing 2% year over year.
Operating income was RMB342.1 million (US$47.1
million), decreasing 44% year over year. Operating income margin
was 5%, compared to operating income margin of 8% in the same
period in 2023. Non-GAAP operating income was RMB501.4 million
(US$69.0 million), decreasing 36% year over year. Non-GAAP
operating income margin was 7%, compared to non-GAAP operating
income margin of 10% in the same period in 2023.
Total other expense was RMB240.4 million
(US$33.1 million), increasing 2% year over year.
Income before income taxes was RMB101.7 million
(US$14.0 million), compared to income before income taxes of
RMB375.8 million in the same period in 2023.
Income tax expense was RMB25.7
million (US$3.5 million), compared to income tax expense of
RMB7.9 million in the same period in 2023.
Net income attributable to iQIYI was RMB68.7
million (US$9.5 million), decreasing 81% year over year. Diluted
net income attributable to iQIYI per ADS was RMB0.07 (US$0.01) for
the second quarter of 2024, compared to diluted net income
attributable to iQIYI per ADS of RMB0.37 in the same period of
2023. Non-GAAP net income attributable to iQIYI was RMB246.9
million (US$34.0 million), decreasing 58% year over year. Non-GAAP
diluted net income attributable to iQIYI per ADS was RMB0.25
(US$0.03), compared to non-GAAP diluted net income attributable to
iQIYI per ADS of RMB0.61 in the same period of 2023.
Operating cash flow was RMB410.8 million
(US$56.5 million), compared to operating cash flow of RMB885.6
million in the same period of 2023. Free cash flow was RMB382.5
million (US$52.6 million), compared to free cash flow of RMB872.3
million in the same period of 2023.
As of June 30, 2024, the Company had cash, cash
equivalents, short-term investments and long-term restricted cash
included in prepayments and other assets of RMB8.6 billion (US$1.2
billion).
Repurchase of 4% Convertible Senior
Notes due 2026
In August 2024, the Company completed the
repurchase right offer for its 4% convertible senior notes due 2026
(the “Notes”). An aggregate principal amount of US$395.5 million of
the Notes were validly surrendered and repurchased with an
aggregate repurchase price (including the aggregate principal
amount of the Notes plus accrued and unpaid interest) of US$397.5
million. Following settlement of the repurchase, less than US$0.2
million aggregate principal amount of the Notes remains outstanding
and continues to be subject to the existing terms of the Indenture
and the Notes.
PAG Facility Agreements
In August 2024, the Company entered into a
facility agreement with PAG, adding to the previous facility
agreement from September 2023. Together, these facility agreements
provide PAG with loan facilities with an aggregate amount of up to
US$522.5 million, with an interest rate of 6% per annum. At each
draw down, PAG shall release the equivalent amount of restricted
cash collateralized by the Company under the PAG Notes. As a
result, the foregoing facility arrangement does not impact the
Company’s cash available for daily operations.
Upon PAG’s total draw down of US$400 million
under the facility agreements, the corresponding restricted cash
collateral will be released, and the repurchase right for the
US$522.5 million principal of the PAG Notes will be waived. Such
repurchase right would have allowed PAG to require the Company to
repurchase the PAG Notes during the three-month period starting on
December 30, 2025.
Conference Call Information
iQIYI's management will hold an earnings
conference call at 7:00 AM on August 22, 2024, U.S. Eastern Time
(7:00 PM on August 22, 2024, 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/10040374-iu4p0d.html
It will automatically direct you to the
registration page of "iQIYI Second Quarter 2024 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 August 29,
2024.
Dial-in numbers for the replay are as follows:
International Dial-in
+1
855 883 1031Passcode:
10040374
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. iQIYI distinguishes itself in the online entertainment
industry by its leading technology platform powered by advanced AI,
big data analytics and other core proprietary technologies. Over
time, iQIYI has built a massive user base and developed a
diversified monetization model including 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 income, non-GAAP
operating income margin, non-GAAP net income attributable to iQIYI,
non-GAAP diluted net 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 income represents
operating income excluding share-based compensation expenses,
amortization of intangible assets resulting from business
combinations.
Non-GAAP net income attributable to iQIYI, Inc.
represents net income attributable to iQIYI, Inc. excluding
share-based compensation expenses, amortization of intangible
assets resulting from business combinations, 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,
primarily 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 share, adjusted for related income tax effects,
are also excluded.
Non-GAAP diluted net income per ADS represents
diluted net income per ADS calculated by dividing non-GAAP net
income attributable to iQIYI, Inc, 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 RelationsiQIYI, Inc.ir@qiyi.com
|
iQIYI, INC.Condensed Consolidated
Statements of Income (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, |
|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Revenues: |
|
|
|
|
|
|
|
|
|
Membership services |
|
4,946,567 |
|
|
|
4,798,861 |
|
|
|
4,495,310 |
|
|
|
10,493,872 |
|
|
|
9,294,171 |
|
Online advertising services |
|
1,495,378 |
|
|
|
1,482,052 |
|
|
|
1,461,367 |
|
|
|
2,899,130 |
|
|
|
2,943,419 |
|
Content distribution |
|
683,586 |
|
|
|
928,009 |
|
|
|
698,175 |
|
|
|
1,415,493 |
|
|
|
1,626,184 |
|
Others |
|
676,766 |
|
|
|
718,433 |
|
|
|
783,933 |
|
|
|
1,342,609 |
|
|
|
1,502,366 |
|
Total
revenues |
|
7,802,297 |
|
|
|
7,927,355 |
|
|
|
7,438,785 |
|
|
|
16,151,104 |
|
|
|
15,366,140 |
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
(5,773,867 |
) |
|
|
(5,631,239 |
) |
|
|
(5,678,342 |
) |
|
|
(11,729,870 |
) |
|
|
(11,309,581 |
) |
Selling, general and administrative |
|
(979,000 |
) |
|
|
(922,035 |
) |
|
|
(969,673 |
) |
|
|
(2,084,855 |
) |
|
|
(1,891,708 |
) |
Research and development |
|
(439,038 |
) |
|
|
(429,328 |
) |
|
|
(448,677 |
) |
|
|
(867,356 |
) |
|
|
(878,005 |
) |
Total operating costs
and expenses |
|
(7,191,905 |
) |
|
|
(6,982,602 |
) |
|
|
(7,096,692 |
) |
|
|
(14,682,081 |
) |
|
|
(14,079,294 |
) |
Operating
income |
|
610,392 |
|
|
|
944,753 |
|
|
|
342,093 |
|
|
|
1,469,023 |
|
|
|
1,286,846 |
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expenses): |
|
|
|
|
|
|
|
|
|
Interest income |
|
52,196 |
|
|
|
58,740 |
|
|
|
68,688 |
|
|
|
157,182 |
|
|
|
127,428 |
|
Interest expenses |
|
(278,521 |
) |
|
|
(282,135 |
) |
|
|
(288,162 |
) |
|
|
(564,485 |
) |
|
|
(570,297 |
) |
Foreign exchange loss, net |
|
(114,992 |
) |
|
|
(31,551 |
) |
|
|
(51,338 |
) |
|
|
(78,010 |
) |
|
|
(82,889 |
) |
Gain/(loss) from equity method investments |
|
33,789 |
|
|
|
13,514 |
|
|
|
(2,100 |
) |
|
|
(51,320 |
) |
|
|
11,414 |
|
Others, net |
|
72,928 |
|
|
|
(19,859 |
) |
|
|
32,476 |
|
|
|
93,790 |
|
|
|
12,617 |
|
Total other expense,
net |
|
(234,600 |
) |
|
|
(261,291 |
) |
|
|
(240,436 |
) |
|
|
(442,843 |
) |
|
|
(501,727 |
) |
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
375,792 |
|
|
|
683,462 |
|
|
|
101,657 |
|
|
|
1,026,180 |
|
|
|
785,119 |
|
Income tax expense |
|
(7,930 |
) |
|
|
(17,633 |
) |
|
|
(25,741 |
) |
|
|
(32,562 |
) |
|
|
(43,374 |
) |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
367,862 |
|
|
|
665,829 |
|
|
|
75,916 |
|
|
|
993,618 |
|
|
|
741,745 |
|
Less: Net income attributable to noncontrolling interests |
|
2,655 |
|
|
|
10,512 |
|
|
|
7,231 |
|
|
|
10,302 |
|
|
|
17,743 |
|
Net income
attributable to iQIYI, Inc. |
|
365,207 |
|
|
|
655,317 |
|
|
|
68,685 |
|
|
|
983,316 |
|
|
|
724,002 |
|
Net income
attributable to ordinary shareholders |
|
365,207 |
|
|
|
655,317 |
|
|
|
68,685 |
|
|
|
983,316 |
|
|
|
724,002 |
|
|
|
|
|
|
|
|
|
|
|
Net income per share
for Class A and Class B ordinary shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
0.05 |
|
|
|
0.10 |
|
|
|
0.01 |
|
|
|
0.15 |
|
|
|
0.11 |
|
Diluted |
|
0.05 |
|
|
|
0.10 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
Net income per ADS (1
ADS equals 7 Class A ordinary shares): |
|
|
|
|
|
|
|
|
|
Basic |
|
0.38 |
|
|
|
0.68 |
|
|
|
0.07 |
|
|
|
1.04 |
|
|
|
0.75 |
|
Diluted |
|
0.37 |
|
|
|
0.68 |
|
|
|
0.07 |
|
|
|
1.01 |
|
|
|
0.74 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares used in net income
per share computation: |
|
|
|
|
|
|
|
|
|
Basic |
|
6,704,546,096 |
|
|
|
6,717,652,924 |
|
|
|
6,725,978,497 |
|
|
|
6,637,475,009 |
|
|
|
6,721,815,708 |
|
Diluted |
|
6,851,986,558 |
|
|
|
6,788,073,126 |
|
|
|
6,857,915,450 |
|
|
|
6,803,848,441 |
|
|
|
6,822,994,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
iQIYI, INC.Condensed Consolidated Balance
Sheets (In RMB thousands, except for number of
shares and per share data) |
|
|
|
|
|
|
|
|
December 31, |
|
|
June 30, |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
RMB |
|
RMB |
|
|
|
|
(Unaudited) |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
|
4,434,525 |
|
|
|
6,301,808 |
|
Restricted cash |
|
|
6,120 |
|
|
|
- |
|
Short-term investments |
|
|
941,738 |
|
|
|
735,916 |
|
Accounts receivable, net |
|
|
2,169,042 |
|
|
|
2,339,010 |
|
Prepayments and other assets |
|
|
2,794,259 |
|
|
|
2,415,157 |
|
Amounts due from related parties |
|
|
1,707,024 |
|
|
|
320,504 |
|
Licensed copyrights, net |
|
|
582,521 |
|
|
|
641,490 |
|
Total current assets |
|
|
12,635,229 |
|
|
|
12,753,885 |
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
Fixed assets, net |
|
|
863,813 |
|
|
|
849,994 |
|
Long-term investments |
|
|
2,260,785 |
|
|
|
2,172,309 |
|
Licensed copyrights, net |
|
|
6,966,508 |
|
|
|
6,913,875 |
|
Intangible assets, net |
|
|
309,534 |
|
|
|
321,200 |
|
Produced content, net |
|
|
13,376,985 |
|
|
|
14,328,294 |
|
Prepayments and other assets |
|
|
3,518,210 |
|
|
|
4,244,114 |
|
Operating lease assets |
|
|
683,897 |
|
|
|
642,047 |
|
Goodwill |
|
|
3,820,823 |
|
|
|
3,820,823 |
|
Amounts due from related parties |
|
|
158,590 |
|
|
|
1,601,745 |
|
Total non-current assets |
|
|
31,959,145 |
|
|
|
34,894,401 |
|
|
|
|
|
|
Total
assets |
|
|
44,594,374 |
|
|
|
47,648,286 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts and notes payable |
|
|
5,671,074 |
|
|
|
5,969,657 |
|
Amounts due to related parties |
|
|
2,953,658 |
|
|
|
3,168,323 |
|
Customer advances and deferred revenue |
|
|
4,373,208 |
|
|
|
4,541,220 |
|
Convertible senior notes, current portion |
|
|
2,802,442 |
|
|
|
2,892,033 |
|
Short-term loans |
|
|
3,571,637 |
|
|
|
4,262,684 |
|
Long-term loans, current portion |
|
|
2,000 |
|
|
|
29,000 |
|
Operating lease liabilities, current portion |
|
|
100,883 |
|
|
|
97,326 |
|
Accrued expenses and other liabilities |
|
|
2,866,632 |
|
|
|
3,057,163 |
|
Total current liabilities |
|
|
22,341,534 |
|
|
|
24,017,406 |
|
Non-current liabilities: |
|
|
|
|
Long-term loans |
|
|
97,990 |
|
|
|
379,830 |
|
Convertible senior notes |
|
|
8,143,994 |
|
|
|
8,407,516 |
|
Deferred tax liabilities |
|
|
824 |
|
|
|
297 |
|
Amounts due to related parties |
|
|
80,566 |
|
|
|
69,976 |
|
Operating lease liabilities |
|
|
523,747 |
|
|
|
489,232 |
|
Other non-current liabilities |
|
|
1,220,804 |
|
|
|
1,257,374 |
|
Total non-current liabilities |
|
|
10,067,925 |
|
|
|
10,604,225 |
|
|
|
|
|
|
Total
liabilities |
|
|
32,409,459 |
|
|
|
34,621,631 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity: |
|
|
|
|
|
|
|
|
|
Class A ordinary shares |
|
|
237 |
|
|
|
238 |
|
Class B ordinary shares |
|
|
193 |
|
|
|
193 |
|
Additional paid-in
capital |
|
|
54,971,469 |
|
|
|
55,311,753 |
|
Accumulated deficit |
|
|
(44,573,428 |
) |
|
|
(43,849,426 |
) |
Accumulated other
comprehensive income |
|
|
1,688,047 |
|
|
|
1,500,355 |
|
Non-controlling interests |
|
|
98,397 |
|
|
|
63,542 |
|
Total shareholders’
equity |
|
|
12,184,915 |
|
|
|
13,026,655 |
|
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
|
44,594,374 |
|
|
|
47,648,286 |
|
|
|
|
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, |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
885,560 |
|
|
|
937,773 |
|
|
|
410,752 |
|
|
Net cash (used for)/provided
by investing activities (1,2) |
|
(420,481 |
) |
|
|
(222,755 |
) |
|
|
336,256 |
|
|
Net cash (used for)/provided
by financing activities |
|
(1,175,147 |
) |
|
|
261,136 |
|
|
|
865,894 |
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
127,759 |
|
|
|
14,606 |
|
|
|
23,113 |
|
|
Net
(decrease)/increase in cash, cash equivalents and restricted
cash |
|
(582,309 |
) |
|
|
990,760 |
|
|
|
1,636,015 |
|
|
Cash, cash equivalents and
restricted cash at the beginning of the period |
|
5,664,674 |
|
|
|
5,280,608 |
|
|
|
6,271,368 |
|
|
Cash, cash equivalents and
restricted cash at the end of the period |
|
5,082,365 |
|
|
|
6,271,368 |
|
|
|
7,907,383 |
|
|
Reconciliation of cash
and cash equivalents and restricted cash: |
|
|
|
|
|
|
Cash and cash equivalents |
|
3,565,285 |
|
|
|
5,045,322 |
|
|
|
6,301,808 |
|
|
Restricted cash |
|
6,120 |
|
|
|
- |
|
|
|
- |
|
|
Long-term restricted cash |
|
1,510,960 |
|
|
|
1,226,046 |
|
|
|
1,605,575 |
|
|
Total cash and cash
equivalents and restricted cash shown in the statements of cash
flows |
|
5,082,365 |
|
|
|
6,271,368 |
|
|
|
7,907,383 |
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
885,560 |
|
|
|
937,773 |
|
|
|
410,752 |
|
|
Less: Capital expenditures (2) |
|
(13,307 |
) |
|
|
(22,429 |
) |
|
|
(28,299 |
) |
|
Free cash flow |
|
872,253 |
|
|
|
915,344 |
|
|
|
382,453 |
|
|
(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 construction in process, 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 |
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2023 |
|
|
|
2024 |
|
|
|
2024 |
|
|
RMB |
|
RMB |
|
RMB |
|
|
|
|
|
|
Operating
income |
|
610,392 |
|
|
|
944,753 |
|
|
|
342,093 |
|
Add: Share-based compensation
expenses |
|
169,380 |
|
|
|
139,476 |
|
|
|
157,791 |
|
Add: Amortization of
intangible assets(1) |
|
6,619 |
|
|
|
1,533 |
|
|
|
1,533 |
|
Operating income
(non-GAAP) |
|
786,391 |
|
|
|
1,085,762 |
|
|
|
501,417 |
|
|
|
|
|
|
|
Net income
attributable to iQIYI, Inc. |
|
365,207 |
|
|
|
655,317 |
|
|
|
68,685 |
|
Add: Share-based compensation
expenses |
|
169,380 |
|
|
|
139,476 |
|
|
|
157,791 |
|
Add: Amortization of
intangible assets(1) |
|
6,619 |
|
|
|
1,533 |
|
|
|
1,533 |
|
Add: Disposal gain |
|
(89,571 |
) |
|
|
- |
|
|
|
- |
|
Add: Impairment of long-term
investments |
|
155,011 |
|
|
|
70,745 |
|
|
|
16,591 |
|
Add: Fair value (gain)/loss of
long-term investments |
|
(3,550 |
) |
|
|
(22,482 |
) |
|
|
2,577 |
|
Add: Reconciling items on
equity method investments(2) |
|
(8,895 |
) |
|
|
- |
|
|
|
- |
|
Add: Tax effects on non-GAAP
adjustments(3) |
|
462 |
|
|
|
(264 |
) |
|
|
(263 |
) |
Net income
attributable to iQIYI, Inc. (non-GAAP) |
|
594,663 |
|
|
|
844,325 |
|
|
|
246,914 |
|
|
|
|
|
|
|
Diluted net income per
ADS |
|
0.37 |
|
|
|
0.68 |
|
|
|
0.07 |
|
Add: Non-GAAP adjustments to
earnings per ADS |
|
0.24 |
|
|
|
0.19 |
|
|
|
0.18 |
|
Diluted net income per
ADS (non-GAAP) |
|
0.61 |
|
|
|
0.87 |
|
|
|
0.25 |
|
(1) This represents amortization of
intangible assets resulting from business
combinations.(2) This represents iQIYI’s
share of equity method investments for other non-GAAP reconciling
items, primarily amortization and impairment of intangible assets
not on the investee’s books, accretion of their redeemable
noncontrolling 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 share.(3) This
represents tax impact of all relevant non-GAAP adjustments.
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