iQIYI(US:IQ)2023-05-15 16:00Financial Performance - Total revenues for Q1 2023 reached RMB 8.3 billion (US$1.2 billion), a 15% increase year over year[2] - Operating income was RMB 858.6 million (US$125.0 million), with an operating income margin of 10%, compared to 1% in the same period last year[8] - Non-GAAP operating income was RMB 1.0 billion (US$150.6 million), with a non-GAAP operating income margin of 12%, up from 4% in Q1 2022[8] - Net income attributable to iQIYI was RMB 618.1 million (US$90.0 million), compared to RMB 169.1 million in Q1 2022[10] - Operating income for Q1 2023 was RMB 858,631 thousand, compared to RMB 783,556 thousand in Q4 2022, reflecting a 9.6% increase[20] - Net income attributable to iQIYI, Inc. for Q1 2023 was RMB 618,109 thousand, a significant increase from RMB 304,259 thousand in Q4 2022[20] - Non-GAAP operating income for Q1 2023 was RMB 1,034,296, up 5.7% from RMB 978,681 in Q4 2022[26] - Non-GAAP net income attributable to iQIYI, Inc. for Q1 2023 was RMB 939,533, reflecting a growth of 9.7% from RMB 856,374 in Q4 2022[26] - Diluted net income per ADS for Q1 2023 was RMB 0.64, up 82.9% from RMB 0.35 in Q4 2022[26] - Non-GAAP diluted net income per ADS for Q1 2023 was RMB 0.97, a slight decrease of 1.0% from RMB 0.98 in Q4 2022[26] Membership Services - Membership services revenue was RMB 5.5 billion (US$807.8 million), up 24% year over year, driven by strong growth in subscribing members[6] - The average daily number of total subscribing members increased to 128.9 million, compared to 101.4 million in Q1 2022[5] - The monthly average revenue per membership (ARM) for the quarter was RMB 14.35, slightly down from RMB 14.69 in Q1 2022[5] - Membership services revenue grew to RMB 5,547,305 thousand in Q1 2023, up 16.5% from RMB 4,743,562 thousand in Q4 2022[20] Expenses - Selling, general and administrative expenses increased by 48% year over year to RMB 1.1 billion (US$161.0 million) due to higher marketing spending[8] - Research and development expenses decreased by 10% year over year to RMB 428.3 million (US$62.4 million)[8] - Share-based compensation expenses decreased to RMB 169,046 in Q1 2023 from RMB 188,506 in Q4 2022[26] - Amortization and impairment of intangible assets remained stable at RMB 6,619 for both Q4 2022 and Q1 2023[26] Cash and Assets - As of March 31, 2023, the company had cash and cash equivalents totaling RMB 6.3 billion (US$922.3 million)[10] - Total current assets increased to RMB 20,260,101 thousand as of March 31, 2023, up from RMB 13,785,635 thousand as of December 31, 2022[22] - Total assets rose to RMB 52,032,718 thousand as of March 31, 2023, compared to RMB 46,048,349 thousand as of December 31, 2022[22] - Total liabilities increased to RMB 41,381,153 thousand as of March 31, 2023, from RMB 39,704,910 thousand as of December 31, 2022[22] - Cash and cash equivalents decreased to RMB 4,529,267 thousand as of March 31, 2023, down from RMB 7,097,938 thousand as of December 31, 2022[22] Other Financial Metrics - Free cash flow for Q1 2023 was RMB 1,001,524 thousand, a substantial improvement from RMB 844,597 thousand in Q4 2022[24] - The weighted average number of Class A and Class B ordinary shares used in net income per share computation increased to 6,569,658,687 in Q1 2023 from 6,084,021,514 in Q4 2022[20] - The company reported a disposal loss of RMB 429,916 in Q1 2022, which was not present in Q1 2023[26] - The fair value gain/loss of long-term investments showed a gain of RMB 9,445 in Q1 2023 compared to a gain of RMB 8,001 in Q4 2022[26]