Iqiyi Inc ( (IQ) ) has released its Q4 earnings. Here is a breakdown of the information Iqiyi Inc presented to its investors.
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iQIYI, Inc. is a prominent provider of online entertainment video services in China, utilizing advanced technologies like AI and big data analytics to deliver a wide array of content and maintain a large user base. The company recently released its financial results for the fourth quarter and fiscal year 2024, revealing a decline in revenue and profitability compared to the previous year.
For the fourth quarter of 2024, iQIYI reported total revenues of RMB6.61 billion, marking a 14% decline year-over-year. The operating income for the quarter was RMB285.4 million, down from RMB773.7 million in the same period in 2023, while the company faced a net loss of RMB189.4 million compared to a net income of RMB466.2 million a year prior. This downturn was attributed to reduced membership and advertising revenues, alongside foreign exchange losses.
For the fiscal year 2024, the company generated total revenues of RMB29.23 billion, an 8% decrease from 2023. Operating income dropped 39% to RMB1.81 billion, while net income decreased 60% to RMB764.1 million. The overall decline in revenues and earnings was primarily due to a lighter content slate, affecting membership services and advertising revenues.
Looking ahead, iQIYI is optimistic about its strategic initiatives, including investments in mini-dramas and enhancements in user experience, which it believes will drive ad revenue growth. The company remains focused on operational efficiency and is encouraged by strong operational momentum as it enters 2025.
