Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [9]. Core Views - The company reported a revenue of 6.61 billion yuan for Q4 2024, a year-on-year decline of 14.2%, which aligns with Bloomberg consensus expectations. The Non-GAAP operating profit was 406 million yuan, down 56% year-on-year, with a Non-GAAP operating margin of 6% [3]. - Membership service revenue for Q4 2024 was 4.1 billion yuan, a decrease of 15% year-on-year, primarily due to fluctuations in content scheduling. However, the management indicated a significant rebound in business performance starting late November 2024, driven by the return of popular content [4]. - Advertising revenue for Q4 2024 was 1.4 billion yuan, down 13% year-on-year, mainly due to a reduction in brand advertising, partially offset by growth in performance advertising. The company plans to explore advertising opportunities to attract new clients and expects micro-dramas to contribute to revenue growth [5]. - The company has a rich reserve of quality content and is steadily improving its original content production capabilities, with several high-quality shows set to launch in 2025 [6]. - The gross margin for Q4 2024 was 24.5%, down 3.7 percentage points year-on-year, while content costs were 3.4 billion yuan, a decrease of 9% year-on-year. The company is maintaining a cautious approach to cost and expense management [7]. Summary by Sections Financial Performance - Q4 2024 revenue: 6.61 billion yuan, down 14.2% YoY [3] - Non-GAAP operating profit: 406 million yuan, down 56% YoY [3] - Membership service revenue: 4.1 billion yuan, down 15% YoY [4] - Advertising revenue: 1.4 billion yuan, down 13% YoY [5] - Gross margin: 24.5%, down 3.7 percentage points YoY [7] Content Strategy - The company is focusing on original content production with several new shows planned for 2025 [6] - Popular shows have seen significant viewer engagement, indicating a strong content pipeline [4] Cost Management - Content costs decreased to 3.4 billion yuan, down 9% YoY [7] - The company is adopting a cautious approach to marketing and management expenses, with a Non-GAAP expense rate of 8.8 billion yuan, down 7% YoY [7]
爱奇艺：24Q4业绩点评：内容矩阵可期，关注微剧商业化-20250227