iQIYI Reports Q3 2024 Financial Results Amid Revenue Decline

Iqiyi Inc ( (IQ) ) has released its Q3 earnings. Here is a breakdown of the information Iqiyi Inc presented to its investors.

iQIYI, Inc. is a prominent Chinese online entertainment video service provider, recognized for its innovative content production and distribution in various formats, leveraging advanced technology such as AI and big data analytics. The company recently released its financial results for the third quarter of 2024, highlighting a challenging period with a 10% decline in total revenues year over year, amounting to RMB7.2 billion (US$1.0 billion). Despite the revenue decrease, iQIYI maintained its leadership in the drama series market, showcasing its strategic focus on enhancing content offerings, including mini and short dramas.

Key financial performance indicators reflected a decline, with operating income dropping to RMB238.9 million from RMB746.7 million in the same quarter last year. The net income attributable to iQIYI was RMB229.4 million, marking a 52% decrease year over year. Additionally, membership services revenue fell by 13%, and online advertising revenue decreased by 20%, highlighting the impact of a reduced content slate and diminished brand advertising business.

However, there was a notable increase in content distribution revenue, which rose by 52% due to an uptick in barter transactions. The company also reported a decrease in content costs and marketing expenses, reflecting efforts to optimize operational efficiency. Despite these setbacks, iQIYI remains committed to long-term value creation through strategic content enhancements.

Looking ahead, iQIYI management is optimistic about the future, focusing on expanding its entertainment offerings to better meet evolving consumer demands. The company plans to continue integrating diverse content formats and optimizing its video offerings to maintain its competitive edge in the online entertainment industry.