Iqiyi turned losses into profits for the first time since 12. According to the financial report, iQiyi's revenue in the first quarter was 7.3 billion yuan, of which membership service revenue was 4.5 billion yuan, a year-on-year increase of 4%. The daily average number of subscribed members is1.01.40 billion, and iqiyi 12 turned losses into profits for the first time.
Iqiyi turned losses into profits for the first time since 12. On May 26th, iQiyi released the unaudited first quarter financial report as of March 3rd, 2022, and achieved quarterly profit for the first time. The financial report shows that the net profit attributable to iQiyi is 65.438+69 million yuan, the operating profit is 93.4 million yuan, the profit rate is 65.438+0%, the non-GAAP operating profit is 330 million yuan, and the profit rate is 4%.
In last quarter's financial report, Gong Yu, the founder and CEO of iQiyi, proposed to achieve the breakeven goal of non-GAAP operation for the whole year in 2022 and quarterly breakeven goal as soon as possible. Under the active measures of increasing revenue and reducing expenditure, the expected goal was achieved in the first quarter.
It is worth noting that profit is not the growth of income, but the result of cost control.
In terms of revenue, iQiyi's revenue in the first quarter was 7.3 billion yuan, down 8.6% year-on-year, mainly due to the decline in advertising and content distribution. Membership income increased by 4% year-on-year, from 4.3 billion yuan to 4.5 billion yuan, thanks to the growth of ARM (monthly average single member income), from 14. 14 yuan in the fourth quarter to 14. 19 yuan. The average number of subscribed members per day was1.01.40 million, which was lower than that of1202 1 54 million in the same period, with a net increase of 4.4 million compared with the fourth quarter of last year.
In terms of cost, the revenue cost of iQiyi in the first quarter dropped sharply, from11.40 billion to 5.96 billion compared with the same period of last year, down 1.6% year-on-year, hitting a new low in three years. This is mainly due to the reduction of content cost. The content cost of 4.4 billion yuan decreased by 65,438+09% compared with the same period of last year. The financial report explained that the reduction of content cost is due to the improvement of content strategy, the reduction of variety shows and the improvement of operational efficiency.
Earlier, according to Sina Technology, at the end of 20021,iQiyi cut its content investment for profit, and many projects were put on hold. At the Q4 earnings conference call on 20021,Gong Yu, the founder and CEO of iqiyi, said that the content strategy would be refined to ensure that the header content would not be reduced, and at the same time, the content with poor quality would be reduced.
In addition, there is a "financial subsidy" in the sales, general affairs and administrative expenses of iQiyi. The financial report shows that "sales, general affairs and management expenses are 740 million yuan, down 38% year-on-year, mainly due to the reduction of marketing expenses, personnel-related salary expenses, share compensation expenses and government subsidies of 90.8 million yuan as designated operating expenses." In other words, after deducting government subsidies, the operating profit of iQiyi is 2.6 million yuan.
Although the amount is not large, compared with the usual operating loss of10 billion, the profit at least released a good signal.
"The first quarter was a breakthrough for the company." Gong Yu said, "The encouraging performance in the first quarter also shows that the long video industry can continue to generate operating profits. We are full of confidence in the long-term healthy development of the industry. "
Iqiyi turned losses into profits for the first time since 12. On May 26th, iQiyi released its unaudited financial report for the first quarter as of March 3rd, 2022. According to the financial report, iQiyi's revenue in the first quarter was 7.3 billion yuan, of which membership service revenue was 4.5 billion yuan, a year-on-year increase of 4%. The daily average number of subscribed members is1.01.40 million, a net increase of 4.4 million compared with the fourth quarter of last year. The operating profit based on non-GAAP financial indicators was 330 million yuan, and the profit rate was 4%, which increased for three consecutive quarters and achieved quarterly profit for the first time.
"In the first quarter of 2022, we launched a series of high-quality content to promote the growth of member business. At the same time, by taking various effective measures to improve operational efficiency, iQiyi achieved profit growth and profit margin improvement. The new strategies and measures have enabled iQiyi to achieve healthy financial performance while consolidating its market leading position. " Gong Yu, founder and CEO of iQiyi, said, "Next, we will adhere to the same strategy to create value for our users, shareholders and all participants in the iQiyi ecosystem."
"In the past three quarters, our gross profit margin has continued to grow and reached a record high in the first quarter of 2022. At the same time, operating expenses continued to decline for three consecutive quarters. " Wang Jun, chief financial officer of iQiyi, said, "Behind these figures are our unremitting efforts to improve operational efficiency and enhance business expansion, so as to better prepare for long-term development."
The financial report shows that in the first quarter of 2022, the total revenue of iQiyi reached 7.3 billion yuan. Among them, membership service income was 4.5 billion yuan, up 4% year-on-year, mainly due to various high-quality online content, which improved the user experience and promoted the growth of monthly single member income (ARM). In the first quarter, the ARM of iQiyi was 14.69 yuan, the same period last year was 13.64 yuan, and last quarter was 14. 16 yuan. In the first quarter, online advertising, content distribution and other income were 654.38+03 billion yuan, 630 million yuan and 840 million yuan respectively.
In addition, in the first quarter, iQiyi achieved initial results in reducing costs and increasing efficiency. The revenue cost in the quarter was 6 billion yuan, down 16% year-on-year. Sales and management expenses in this quarter decreased by 38% compared with the same period of last year. In the first quarter, iQiyi achieved an operating profit of 93.4 million yuan, with a profit rate of1%; In the same period last year, the operating loss was 65.438 billion yuan, with a loss rate of 654.38+03%.
In the first quarter, iQiyi achieved a non-GAAP operating profit of 330 million yuan with a profit rate of 4%; In the same period last year, the non-GAAP operating loss was 660 million yuan, with a loss rate of 8%. Operating profit and non-GAAP operating profit are positive for the first time.
The financial report also shows that the net profit attributable to iQiyi in the first quarter was 65.438+0.7 billion RMB, which greatly exceeded market expectations, and the market expected a net loss of 670 million RMB. The non-GAAP net profit attributable to iQiyi in the first quarter was RMB 65.438+0.6 billion.
Iqiyi turned losses into profits for the first time since 12. On the evening of May 26th, iQiyi released the unaudited financial report for the first quarter as of March 3rd1. The financial report shows that iQiyi's revenue in the first quarter was 7.3 billion yuan, down 9% year-on-year; Net profit 1.69 1 billion yuan, compared with net loss1.300 million yuan in the same period last year. This is the first time that iQiyi has achieved quarterly profit since the establishment of 12.
"In the first quarter of this year, Netflix's profits and subscriptions declined for the first time, which made many investors doubt the business model of long video and the industry pessimism spread. There are even voices questioning whether the domestic long video platform can be profitable. " A brokerage analyst focusing on TMT told the Securities Daily reporter that iQiyi's financial report played a "reassuring" role, indicating that the overall profit of the domestic long video platform industry is not far off, and now the pressure has been given to Tencent Video and Youku.
"But it must be pointed out that in the first quarter, iQiyi turned losses largely by stabilizing content and reducing costs, which has an immediate effect on improving financial indicators in the short term, but in the long run, relying on high-quality content to maintain the number of members is still the top priority." The above analysts further stated.
On May 20th, iQiyi released the list of 2 13 content films in the next two years. In the field of drama, iQiyi will focus on exploring the national width of drama and the type depth of theater. In terms of theater brand, while constantly improving the quality of "Misty Theater", "Love Theater" and "Little Funny Theater", we are exploring new theater categories.
Achieve the goal of "breaking even" in the first quarter.
In March this year, when iQiyi released its fourth quarter financial report of 20021,Gong Yu, the founder and CEO of iQiyi, shouted that "the goal this year is to break even in operation".
Two months later, this goal is being achieved. The financial report shows that in the first quarter of this year, the net profit attributable to iQiyi was 1.69 1 billion yuan, while the market expected a net loss of 670 million yuan.
At the same time, during the reporting period, iQiyi achieved an operating profit of 93.4 million yuan, a profit rate of 1%, and an operating loss of 1 billion yuan in the same period last year, with a loss rate of13%; Non-GAAP operating profit was 330 million yuan, with a profit rate of 4%, while non-GAAP operating loss was 660 million yuan in the same period last year, with a loss rate of 8%. Operating profit and non-GAAP operating profit are positive for the first time.
Wang Jun, CFO of iQiyi, said, "In the past three quarters, our gross profit margin has continued to grow and reached a record high in the first quarter of 2022. At the same time, operating expenses continued to decline for three consecutive quarters. Behind these figures are our unremitting efforts to improve operational efficiency and enhance business expansion to better prepare for long-term development. "
"(turning losses) is very unexpected. The domestic long video platform has been in a state of loss, so that subconscious profit seems to be a very distant thing. " A founder of a film and television company told the Securities Daily reporter that since the beginning of this year, iQiyi has made drastic efforts to increase revenue and reduce expenditure and acted decisively to lay off employees. "I thought (iQiyi) could turn losses around by the end of 2022, but I didn't expect to show such a good report card in the first quarter."
Content cost decreased 19% year-on-year.
From the perspective of income composition, in the first quarter, iQiyi achieved membership service income of 4.5 billion yuan, a year-on-year increase of 4%; Online advertising service revenue was 65.438+0.3 billion yuan, down 30% year-on-year.
In the context of the decline in total revenue, the key for iQiyi to turn losses into profits is to increase revenue and reduce expenditure.
At the open source level, at the end of 20021,iqiyi increased its membership income for the second time. According to the financial report, in the first quarter, the daily average number of subscribed members of the platform was1.01.400 million, a net increase of 4.4 million compared with the fourth quarter of last year. Per capita monthly income (ARM) 14.69 yuan, up 8% year-on-year and 4% quarter-on-quarter.
While maintaining the steady growth of members, the expenditure of iQiyi has dropped sharply. The financial report shows that the company's revenue cost in the first quarter was 6 billion yuan, down 65,438+06% year-on-year, of which the content cost as a part of revenue cost was 4.4 billion yuan, down 65,438+09% year-on-year. This is mainly because the company has improved its content strategy, reduced the variety shows and improved its operational efficiency.
In addition, the sales, general affairs and management expenses of iQiyi in the first quarter were 744.8 million yuan, down 38% year-on-year; R&D expenditure was 475 million yuan, a year-on-year decrease of 29%. This is mainly to reduce marketing expenses, personnel-related salary expenses and equity incentive expenses.
By March 3, 2022, the company had cash, cash equivalents, restricted cash and short-term investment of 5.2 billion yuan.
In the conference call after the release of the financial report, Gong Yu said that the performance of iQiyi in the first quarter can be replicated, and the current operation strategy will continue to be implemented in the next few quarters.