iQIYI, Inc. (NASDAQ:IQ) Q4 2023 Earnings Conference Call February 28, 2024 6:30 AM ET Company Participants Chang Yu - IR Director Tim Gong - Founder, CEO & Director Jun Wang - CFO Xiaohui Wang - Chief Content Officer Wenfeng Liu - CTO Conference Call Participants Xueqing Zhang - CICC Lincoln Kong - Goldman Sachs Group Lei Zhang - Bank of America Merrill Lynch Operator Good day and welcome to the iQIYI Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. [Operator Instructions]. I would now like to ...

Core Viewpoint - iQIYI, Inc. reported its best financial performance in corporate history for the fiscal year 2023, with significant increases in total revenues, operating income, and net income, reflecting a successful turnaround from previous years [4][3]. Financial Highlights for Fourth Quarter 2023 - Total revenues reached RMB7.7 billion (US$1.1 billion), a 1% increase year over year [2][9]. - Operating income was RMB773.7 million (US$109.0 million), with an operating income margin of 10%, consistent with the same period in 2022 [2][11]. - Net income attributable to iQIYI was RMB466.2 million (US$65.7 million), up 53% from RMB304.3 million in the same period in 2022 [2][12]. - Non-GAAP net income attributable to iQIYI was RMB682.0 million (US$96.1 million), a decrease of 20% year over year [2][12]. Financial Highlights for Fiscal Year 2023 - Total revenues were RMB31.9 billion (US$4.5 billion), representing a 10% increase from 2022 [3][14]. - Operating income increased to RMB3.0 billion (US$421.1 million), with an operating income margin of 9%, compared to 5% in 2022 [3][16]. - Net income attributable to iQIYI was RMB1.9 billion (US$271.2 million), a significant recovery from a net loss of RMB136.2 million in 2022 [3][17]. - Non-GAAP net income attributable to iQIYI was RMB2.8 billion (US$399.8 million), compared to RMB1.3 billion in 2022 [3][17]. Membership and Revenue Streams - Membership services revenue for Q4 2023 was RMB4.8 billion (US$677.3 million), a 1% increase year over year, with an average daily number of total subscribing members at 100.3 million [9][10]. - Online advertising services revenue was RMB1.7 billion (US$232.5 million), increasing 6% year over year, driven by brand advertising growth [9][10]. - Content distribution revenue decreased by 21% year over year to RMB506.1 million (US$71.3 million), primarily due to a reduction in barter transactions [10][15]. Cost Management and Financial Health - Cost of revenues was RMB5.5 billion (US$779.3 million), a 2% increase year over year, with content costs decreasing by 5% to RMB3.7 billion (US$524.5 million) [10][11]. - Selling, general and administrative expenses increased by 1% to RMB947.8 million (US$133.5 million) [11]. - The company reported operating and free cash flows exceeding RMB3.3 billion in 2023, indicating improved financial health [4][3]. Cash Position and Debt Management - As of December 31, 2023, the company had cash, cash equivalents, and restricted cash totaling RMB6.2 billion (US$876.4 million) [13]. - The company repurchased US$31.0 million of its convertible senior notes due 2026 during Q4 2023 [13].

公司研究 | 动态跟踪 爱奇艺 IQ.O 买入（维持） 内容质量持续提升，ARM 保持增长 股价（2024年02月22日） 3.61美元 目标价格 6.57美元 52周最高价/最低价 7.86/3.06美元 ——爱奇艺（IQ.O）23Q4前瞻点评 总股本/流通股（亿股） 9.57/5.22 美股市值（亿美元） 34.54 核心观点 国家/地区 中国 行业 传媒 ⚫ 我们预期公司23Q4营收或达77亿(yoy+1%, qoq-4%)，同比增长主要系会员、广 报告发布日期 2024年02月23日 告收入增长双驱动。 GAAP营业利润或达7.5亿（yoy-4%，qoq+1%）；Non- GAAP营业利润或达9亿（yoy-8%，qoq+1%）。GAAP归母净利润或达4亿 1周 1月 3月 12月 （yoy+32%，qoq-15%）；Non-GAAP归母净利润6.5亿（yoy-24%，qoq+5%）。 绝对表现% 1.55 -0.82 -24 -50.68 我们预期23年全年GAAP营业利润或达30亿（yoy+126%），Non-GAAP营业利 相对表现% 0.7 -5.26 -36.45 -90.09 润或达36亿（ ...

Investment Rating - The report maintains a "Buy" rating for iQiyi (IQ) with a target price of $7.52 per ADS [4] Core Views - iQiyi's Q4 2023 revenue is expected to reach RMB 7.672 billion, up 1% YoY but down 4% QoQ [2] - Q4 2023 gross margin is projected at 28%, down 1pct YoY but up 1pct QoQ [2] - Operating profit for Q4 2023 is estimated at RMB 754 million, with an operating margin of 10% [2] - Adjusted operating profit is forecasted at RMB 903 million, representing a 12% margin [2] - Net profit for Q4 2023 is expected to be RMB 445 million, with adjusted net profit at RMB 657 million, down 23% YoY but up 6% QoQ [2] Membership Business - Q4 2023 membership revenue is projected at RMB 4.798 billion, flat YoY and down 4% QoQ [2] - Average Revenue per Membership (ARM) is expected to reach RMB 15.9, up 12% YoY and 2% QoQ [2] - Membership revenue is forecasted to grow 15% in 2023 and 5% in 2024 [10] Advertising Business - Q4 2023 advertising revenue is estimated at RMB 1.641 billion, up 6% YoY [2] - Advertising revenue is expected to grow 17% in 2023 and 4% in 2024 [10] Content Strategy - iQiyi continues to focus on self-produced content, with a structural shift towards top-tier content [2] - Content cost is projected to account for 51% of revenue in 2023 and 50% in 2024 [10] Financial Projections - 2023 revenue is forecasted at RMB 31.838 billion, up 10% YoY, with 2024 revenue expected to reach RMB 33.305 billion, up 5% YoY [10] - Non-GAAP net profit is projected at RMB 2.813 billion in 2023 and RMB 3.448 billion in 2024 [10] - The company is valued at 15x 2024 PE, implying a fair value of $7.52 per ADS [10] Industry Comparison - Compared to Netflix and Disney, iQiyi's valuation is relatively lower, with a 2024 PE of 15x versus Netflix's 33.1x and Disney's 23.5x [13]

Core Viewpoint - The article discusses the advancements in audio-visual technology, particularly the introduction of the MAX4KHDR ultra-high-definition streaming by iQIYI for the CCTV Spring Festival Gala, aiming to enhance viewer experience and address the challenges of delivering high-quality content across various devices [1][3][11]. Group 1: Technological Advancements - iQIYI is introducing MAX4KHDR ultra-high-definition streaming for the Spring Festival Gala, allowing viewers to experience a near-original quality of the event [1][3]. - The MAX technology aims to address issues related to color display differences and network stability, ensuring a consistent viewing experience across different devices [3][5]. - The MAX certification process helps reduce quality loss throughout the production and broadcasting chain, enhancing the overall audio-visual experience [3][9]. Group 2: Industry Trends - The demand for high-quality audio-visual experiences is increasing, prompting platforms like iQIYI, Youku, and Douyin to invest in ultra-high-definition technologies [1][5]. - The Chinese ultra-high-definition industry is projected to exceed 4 trillion yuan by 2022, indicating a growing market for high-quality content [7]. - iQIYI's efforts in enhancing audio-visual quality are seen as a significant move towards industry-wide upgrades, with a focus on high-quality growth rather than rapid expansion [11]. Group 3: User Experience - Users may not be familiar with technical terms but can perceive significant improvements in viewing experiences with MAX technology compared to standard 1080P [4][5]. - iQIYI has accumulated over 20,000 pieces of 4K HDR content, collaborating with major TV brands to ensure compatibility and enhance user experience [5][9]. - The MAX certification allows users to enjoy a simplified setup process, automatically adjusting settings based on their TV's hardware for optimal viewing [5][9]. Group 4: Market Position - iQIYI's Q3 2023 financial report shows a daily average of 107.5 million subscribers, with a record average revenue per member of 15.54 yuan, indicating strong market performance [11]. - The company is positioning itself as a leader in the audio-visual quality upgrade movement within the long-video industry, potentially influencing competitors to follow suit [11].

BEIJING, Feb. 06, 2024 (GLOBE NEWSWIRE) -- iQIYI, Inc. (NASDAQ: IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced that it will report its financial results for the fourth quarter and fiscal year ended December 31, 2023 before the U.S. market opens on February 28, 2024. iQIYI’s management will hold an earnings conference call at 6:30 AM on February 28, 2024, U.S. Eastern Time (7:30 PM on February 28, 2024, Beijing Time). Please register in adv ...

Earnings Announcement and Conference Call - iQIYI Inc will report its financial results for the fourth quarter and fiscal year ended December 31 2023 before the US market opens on February 28 2024 [1] - The earnings conference call will be held at 6:30 AM US Eastern Time on February 28 2024 (7:30 PM Beijing Time) [1] - Participants can register in advance for the conference call using the provided link and will receive dial-in numbers passcode and unique access PIN [1] - A telephone replay of the call will be available until March 6 2024 with international dial-in number +1 855 883 1031 and passcode 10036705 [2] - A live and archived webcast of the conference call will be available at http://ir iqiyi com [2] Company Overview - iQIYI Inc is a leading provider of online entertainment video services in China combining creative talent with technology for continuous innovation and blockbuster content production [3] - The company produces aggregates and distributes a wide variety of professionally produced content and other video content in various formats [3] - iQIYI distinguishes itself in the online entertainment industry through its leading technology platform powered by advanced AI big data analytics and other core proprietary technologies [3] - The company has a daily subscriber base of more than 100 million and a diversified monetization model including membership services online advertising content distribution online games IP licensing talent agency and online literature [3]

Exhibit 99.1 iQIYI Announces Third Quarter 2023 Financial Results BEIJING, CHINA, November 21, 2023 – iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the third quarter ended September 30, 2023. Third Quarter 2023 Highlights "We recorded strong results in both revenues and profits. ARM increased by 12% year over year, driven by our compelling content offering and growing perceived valu ...

iQIYI, Inc. (NASDAQ:IQ) Q3 2023 Earnings Call Transcript November 21, 2023 6:30 AM ET Company Participants Chang You - Director of Investor Relations Yu Gong - Founder, Director & Chief Executive Officer Jun Wang - Chief Financial Officer Youqiao Duan - Senior Vice President, Membership Business Xiaohui Wang - Chief Content Officer Wenfeng Liu - Chief Technology Officer Conference Call Participants Xueqing Zhang - CICC Lincoln Kong - Goldman Sachs Daniel Chen - JPMorgan Thomas Chong - Jefferies Maggie Ye - ...

iQIYI, Inc. (NASDAQ:IQ) Q2 2023 Earnings Conference Call August 22, 2023 8:00 AM ET Company Participants Chang You - Director of Investor Relations Yu Gong - Founder, Director & Chief Executive Officer Jun Wang - Chief Financial Officer Xiaohui Wang - Chief Content Officer Wenfeng Liu - Chief Technology Officer Youqiao Duan - Senior Vice President, Membership Business Gang Wu - Senior Vice President of Brand Advertising Business Conference Call Participants Xueqing Zhang - CICC Lei Zhang - Bank of America S ...