IQIYI Inc (NASDAQ:IQ) just announced its unaudited financial results for the third quarter ended September 30, 2018, which included total revenues of RMB6.9 billion (US$1.0 billion), representing a 48% increase from the same period in 2017, and an operating loss of RMB2.6 billion (US$377.3 million) with an operating loss margin of 37%, compared to operating loss of RMB1.1 billion and operating loss margin of 23% in the same period in 2017.
“We continued to deliver solid results during the third quarter backed by a set of strong user reach and engagement metrics that further validates our leading position in the industry,” commented Dr. Yu Gong, Founder and Chief Executive Officer of iQIYI. “Our library of premium content continued to excel, driving robust growth in subscriber number and membership revenue. Our record-breaking drama series Story of Yanxi Palace turned out to be a mega-hit for the entire summer, demonstrating our strong capabilities and potentials in producing high-quality premium content. Leveraging our extensive content offerings and expanding distribution network, we are also continuously improving and diversifying our business monetization. We remain dedicated to applying advanced technology to further enhance our platform and refine our ecosystem to generate long-term growth for shareholders.”
IQIYI Inc (NASDAQ:IQ) bills itself as an innovative market-leading online entertainment service in China.
According to company materials, “Its corporate DNA combines creative talent with technology, fostering an environment for continuous innovation and the production of blockbuster content. iQIYI’s platform features highly popular original content, as well as a comprehensive library of other professionally-produced content, partner-generated content and user-generated content. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a massive user base with tremendous user engagement, and has developed a diversified monetization model including membership services, online advertising services, content distribution, live broadcasting, online games, IP licensing, online literature and e-commerce etc.”
Moreover, iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand name in China. It operates a platform that provides a collection of Internet video content, including professionally-produced content licensed from professional content providers and self-produced content.
The company also operates movie theaters in China. In addition, it provides membership, content distribution, live broadcasting, and online gaming services. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017.
iQIYI, Inc. was incorporated in 2009 and is based in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu Holdings Limited.
As we discussed earlier, IQ just announced its unaudited financial results for the third quarter ended September 30, 2018, which included total revenues of RMB6.9 billion (US$1.0 billion), representing a 48% increase from the same period in 2017, and an operating loss of RMB2.6 billion (US$377.3 million) with an operating loss margin of 37%, compared to operating loss of RMB1.1 billion and operating loss margin of 23% in the same period in 2017.
IQ has been through some pressure over the past week. But the news has helped to repair that damage and reset the action in terms of the past week’s performance.
“We had a good quarter with total revenues increasing 48% year-over-year to RMB6.9 billion,” commented Mr. Xiaodong Wang, Chief Financial Officer of iQIYI. “Membership services performed particularly well and became the biggest revenue contributor for the Company. While we faced some margin pressure during the quarter due to higher investment in content, we saw this as necessary and within our expectations as we are going through a transition period toward building an optimized and healthier content ecosystem which will position us well for the future.”
IQIYI Inc (NASDAQ:IQ) generated sales of $967.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 26.1% on the top line.
In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($2B against $2.2B, respectively).