iQIYI shares dip as Q4 earnings miss estimates

Published 18/02/2025, 10:14
iQIYI shares dip as Q4 earnings miss estimates

Investing.com - Chinese streaming platform iQIYI, Inc. (NASDAQ:IQ) reported fourth-quarter earnings on Tuesday that fell short of analyst expectations, sending shares down 1.18% in after-hours trading.

The company posted an adjusted loss per share of RMB0.06 ($0.01) for the quarter, missing the analyst estimate of a RMB0.04 loss. Revenue came in at RMB6.61 billion ($906.0 million), slightly below the consensus forecast of RMB6.62 billion and down 14% YoY.

iQIYI's fourth-quarter performance was impacted by a lighter content slate, which led to a 15% YoY decline in membership services revenue to RMB4.10 billion ($562.1 million). Online advertising services revenue also fell 13% YoY to RMB1.43 billion ($196.4 million).

Despite the earnings miss, CEO Yu Gong highlighted positive momentum heading into 2025, stating, "Since late November 2024, we have launched a series of blockbusters, driving a strong rebound of business performances and reinforcing our No.1 position in total drama market share in Q4 2024."

The company's operating income for the quarter was RMB285.4 million ($39.1 million), representing an operating margin of 4%, down from 10% in the same period last year. Non-GAAP operating income stood at RMB405.9 million ($55.6 million) with a 6% margin.

iQIYI reported a net loss attributable to the company of RMB189.4 million ($25.9 million) for the quarter, compared to a net income of RMB466.2 million in Q4 2023. The loss was primarily attributed to foreign exchange losses due to the depreciation of the Renminbi against the U.S. dollar.

Looking ahead, iQIYI is focusing on expanding its mini-drama portfolio and enhancing its ad-placement system to boost advertising revenue in 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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