iQIYI, Inc. (NASDAQ:IQ) Q1 2022 Earnings Conference Call May 26, 2022 7:00 AM ET Company Participants Chang You - Investor Relations, Director of Company Yu Gong - Founder, Chief Executive Officer and Director Jun Wang - Chief Financial Officer Xiaohui Wang - Chief Content Officer Wenfeng Liu - Chief Technology Officer Xiangjun Wang - Chief Marketing Officer Youqiao Duan - Senior Vice President, Membership Business Xianghua Yang - Senior Vice President, Movies and Overseas Business Conference Call Participa ...

Financial Data and Key Metrics Changes - In Q4 2021, total revenues reached RMB7.4 billion, with membership services revenue increasing by 7% year-over-year, primarily driven by the growth of Average Revenue per Membership (ARM) [32][33] - The non-GAAP operating loss decreased significantly by 45% year-over-year and 52% sequentially, from RMB941 million to RMB516 million [33][34] - As of December 31, 2021, the company had cash, cash equivalents, restricted cash, and short-term investments totaling RMB4.4 billion [34] Business Segment Performance - Membership revenue grew by 7% annually, with monthly ARM increasing to RMB14.16, up 14% year-over-year and 4% sequentially [10][32] - The overseas business saw significant growth, with average daily active users (DAU) tripling year-over-year and membership revenue growing over 40% sequentially in Q4 [14][15] - Advertising revenue decreased by 10% year-over-year in Q4, primarily due to a decline in brand ads, while performance ads achieved steady growth [17][18] Market Data and Key Metrics Changes - The average daily number of subscribing members in Q4 was 97 million, down from 102.7 million in Q4 2020 and 104.7 million in Q3 2021 [12] - The user base in overseas markets, particularly in Thailand, grew nearly 700%, with many regions exceeding 100% growth [14][15] Company Strategy and Industry Competition - The company is focusing on improving operational efficiency and profitability, shifting from quantity to quality in content production [7][9] - The competitive landscape is evolving towards a focus on operational efficiency rather than market share, which is seen as a healthier approach for the industry [42] - The company aims to reach non-GAAP operating breakeven for the full year of 2022 and quarterly breakeven as soon as possible [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving further improvements in both GAAP and non-GAAP operating losses in 2022, driven by cost optimization initiatives [34] - The regulatory environment is perceived as relatively stable, allowing for better comprehension of content production boundaries [43] - Management highlighted the importance of long-form video content as a core need for users, indicating a positive outlook for future revenue growth [48] Other Important Information - The company has optimized its organizational structure to enhance focus on core business and improve operational efficiency [30] - The content-related cost ratio improved by over 20 percentage points annually, reflecting better operating efficiency [19] Q&A Session Summary Question: How has the company managed to lower operating losses? - Management elaborated on proactive adjustments in operating strategy, focusing on cost optimization and improving operational efficiency, which led to a significant reduction in operating losses [36][37] Question: What changes are anticipated in the competitive landscape for 2022? - Management noted a shift towards efficiency in the online video industry, moving away from a focus on quantity, which is expected to create a healthier competitive environment [41][42] Question: What is the outlook for membership growth? - Management acknowledged pressures on membership growth due to COVID-19, regulatory uncertainties, and production capabilities, but emphasized the long-term importance of long-form video content [46][48]

iQIYI, Inc. (NASDAQ:IQ) Q3 2021 Earnings Conference Call November 17, 2021 6:30 AM ET Company Participants Tim Gong Yu - CEO Chang You - IR Xiaodong Wang - CFO Xiaohui Wang - COO Wenfeng Liu - CTO Xianghua Yang - SVP Conference Call Participants Ella Ji - China Renassaince Alicia Yap - Citigroup Thomas Chong - Jefferies (Transcript provided to Seeking Alpha by the company.) Operator Good day and thank you for standing by. Welcome to the iQIYI Third Quarter 2021 Earnings Conference Call. At this time, all pa ...

iQIYI, Inc. (NASDAQ:IQ) Q2 2021 Earnings Conference Call August 12, 2021 7:00 AM ET Company Participants Fan Liu – Head of Capital Market of iQIYI Tim Gong Yu – Founder and Chief Executive Officer Xiaodong Wang – Chief Financial Officer Conference Call Participants Ella Ji – China Renassaince Merrill Lynch – Bank of America Alicia Yap – Citigroup Piyush Mubayi – Goldman Sachs Operator Good day and thank you for standing by. Welcome to iQIYI Second Quarter 2021 Earnings Conference Call. At this time, all par ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2021 reached RMB 8.0 billion, with membership business accounting for 54% of total revenues [14] - Membership services revenue increased by 12% sequentially to RMB 4.3 billion, with 105.3 million subscribers and 3.6 million net additions during the quarter [9][10] - Advertising services revenue increased by 25% year-over-year, indicating a recovery in the overall advertising market [11] - Cost of revenues decreased by 10% year-over-year, primarily due to a 9% decline in content costs [14] - Operating loss margin narrowed by 16% year-over-year to 13% for the fourth consecutive quarter [14] Business Line Data and Key Metrics Changes - Membership business remains the largest pillar, with significant growth driven by premium content and innovative marketing initiatives [9][10] - Advertising business showed notable growth, particularly in content marketing revenue, which accounted for around 64% of brand ad revenue in Q1 [11] - The company continues to lead in total number of top titles and viewership across various content categories [11] Market Data and Key Metrics Changes - Monthly active users (MAU), daily active users (DAU), and monthly time spent on the platform ranked first in the industry [8] - The company is expanding its total addressable market with a new VIP plan for iQIYI Lite and increasing its overseas footprint [10] Company Strategy and Development Direction - iQIYI focuses on enhancing in-house production capacity and diversifying content genres to improve content quality [6][7] - The company aims to industrialize video production through technology advancements, enhancing production schedules, content quality, and reducing costs [7][28] - The strategy includes a disciplined approach to international expansion, focusing on increasing in-house original content production [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in the membership business due to a lack of high-quality content, emphasizing the need for improved content quality [5][31] - The company expects short-term volatility in subscriber numbers but remains confident in mid and long-term growth based on premium content and production capabilities [10] - Management highlighted the importance of addressing regulatory challenges and the impact on content pipeline and advertising revenue [17][38] Other Important Information - The company has established over 50 in-house studios within two years, focusing on original dramas and variety shows [6] - The original content budget is around 30% of total content costs, with plans to improve quality and expand into movies and animations [36] Q&A Session Summary Question: Regulatory environment and short-form video strategy - Management noted stable regulatory intensity but acknowledged potential short-term impacts on content pipeline [17] Question: Content cost expectations for the year - Management expects continued optimization of content costs, with a focus on expanding original content across different categories [20] Question: ARPU outlook and international market scale - ARPU growth is around 10%, with expectations for continued growth; international business is in early stages with rapid growth potential, particularly in the ASEAN region [22][23] Question: Subscriber growth volatility and content quality improvement - Management identified content quality as the primary reason for subscriber volatility and emphasized plans to enhance content quality in the second half [31] Question: Original content budget and large screen strategy - Original content spending is around 30%, with a focus on improving quality; user metrics for smart TVs show increasing time spent compared to mobile [34][35] Question: Impact of new regulations on reality shows - Management is evaluating the impact of new regulations on advertising revenues from reality shows [38]

iQIYI, Inc. (NASDAQ:IQ) Q4 2020 Earnings Conference Call February 17, 2021 7:00 PM ET Company Participants Fan Liu - Investor Relations Yu Gong - Founder and Chief Executive Officer Xiaodong Wang - Chief Financial Officer Xianghua Yang - Senior Vice President of our Membership Business Conference Call Participants Thomas Chong - Jefferies Eddie Leung - Bank of America Merrill Lynch Yiwen Zhang - Citi Alex Xie - Crédit Suisse Zhijing Liu - UBS Updated Transcript Provided by The Company Operator Ladies and ge ...