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Dec 31, 2024

iQIYI Q4 2024 Earnings Report

iQIYI reported a decline in revenue and profitability in Q4 2024, primarily due to a lighter content slate and foreign exchange losses.

Key Takeaways

iQIYI's total revenue fell 14% YoY to $906.0M, with operating income declining 63% to $39.1M. The company posted a net loss of $25.9M, primarily due to foreign exchange losses. Membership services revenue dropped 15%, while advertising revenue fell 13%. Despite these declines, iQIYI saw strong subscriber growth at the start of 2025, driven by blockbuster releases.

Total revenue declined 14% YoY to $906.0M.

Operating income dropped 63% YoY to $39.1M.

Net loss of $25.9M due to foreign exchange losses.

Strong subscriber growth at the start of 2025 driven by blockbuster releases.

Total Revenue
$906M
Previous year: $1.07B
-15.0%
EPS
-$0.01
Previous year: $0.1
-110.0%
Operating Margin
4%
Previous year: 10%
-60.0%
Net Margin
-2.86%
Free Cash Flow Margin
7.53%
Cash and Equivalents
$621M
Previous year: $759M
-18.2%
Free Cash Flow
$68.2M

iQIYI

iQIYI

iQIYI Revenue by Segment

Forward Guidance

iQIYI expects strong subscriber growth in early 2025, driven by blockbuster releases and increased investment in mini-dramas, which should help bolster ad revenue. However, challenges remain in content strategy and foreign exchange impacts.

Positive Outlook

  • Strong subscriber growth at the start of 2025.
  • Blockbuster releases driving engagement.
  • Increased investment in mini-dramas.
  • Improvements in ad-placement efficiency.
  • Operational discipline leading to cost efficiencies.

Challenges Ahead

  • Declining membership revenue due to a lighter content slate.
  • Foreign exchange losses impacting profitability.
  • Weak advertising revenue growth.
  • Content distribution revenue under pressure.
  • Operating margin decline from previous year.