iQIYI(IQ) - 2023 Q3 - Quarterly Report

Financial Performance - Total revenues for Q2 2023 reached RMB7.8 billion (US$1.1 billion), representing a 17$84.2 million), with an operating income margin of 8%, compared to 2% in Q2 2022[5] - Non-GAAP operating income was RMB786.4 million (US$108.4 million), with a non-GAAP operating income margin of 10$50.4 million), a significant recovery from a net loss of RMB214.0 million in Q2 2022[5] - Total revenues for the three months ended June 30, 2023, were RMB 7,802,297, representing a 17.2% increase from RMB 6,656,549 in the same period of 2022[33] - Operating income for the three months ended June 30, 2023, was RMB 610,392, compared to RMB 125,787 for the same period in 2022, marking a significant increase of 385.5%[33] - Net income attributable to iQIYI, Inc. for the three months ended June 30, 2023, was RMB 365,207, a turnaround from a net loss of RMB 213,995 in the same period of 2022[33] - Diluted net income per ADS for the three months ended June 30, 2023, was RMB 0.37, compared to a loss of RMB 0.28 in the same period of 2022[41] - Non-GAAP net income attributable to iQIYI, Inc. for the three months ended June 30, 2023, was RMB 594,663, compared to RMB 78,253 in the same period of 2022[41] Revenue Streams - Membership services revenue increased to RMB4.9 billion (US$682.2 million), a 15$206.2 million), primarily due to performance-based advertising[10] - Membership services revenue for the six months ended June 30, 2023, reached RMB 10,493,872, up 19.8% from RMB 8,756,546 in the same period of 2022[33] Costs and Cash Flow - Cost of revenues was RMB5.8 billion (US$796.3 million), a 10$840.8 million)[19] - Total assets decreased to RMB 43,088,918 as of June 30, 2023, from RMB 46,048,349 as of December 31, 2022[35] - Total liabilities decreased to RMB 32,347,631 as of June 30, 2023, from RMB 39,704,910 as of December 31, 2022[35] Future Investments - The company is investing in transformative technologies, including generative AI, to support future growth[4]