iQIYI achieves quarterly profit for the first time, with double growth in membership size and membership revenue

IT House reported on May 26 that today iQiyi released its unaudited first quarter financial report as of March 31, 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 average daily number of subscription members was 101.4 million, a net increase of 4.4 million over the fourth quarter of last year.Operating profit based on non-GAAP financial measures (non-GAAP) was 330 million yuan, with a profit margin of 4%, improving for three consecutive quarters and achieving a quarterly profit for the first time. Non-GAAP net profit attributable to iQiyi was 162.2 million yuan ($25.6 million), compared with a net loss of 1 billion yuan a year earlier.

In the first quarter of 2022, iQIYI’s total revenue reached 7.3 billion yuan. Among them, membership service revenue was 4.5 billion yuan, an increase of 4% year-on-year, which was mainly due to the launch of a variety of high-quality content, which improved the user experience and drove the growth of monthly average revenue per member (ARM). In the first quarter, iQiyi ARM was 14.69 yuan, compared with 13.64 yuan in the same period last year, and 14.16 yuan in the previous quarter. Revenues from online advertising, content distribution and others in the first quarter were RMB 1.3 billion, RMB 630 million and RMB 840 million, respectively.

In the first quarter, iQIYI achieved initial results in reducing costs and increasing efficiency. The cost of revenue in the quarter was 6 billion yuan, down 16% year-on-year. Selling and administrative expenses for the quarter were down 38% year over year.

In the first quarter, iQIYI achieved an operating profit of 93.4 million yuan, a profit margin of 1%; an operating loss of 1 billion yuan in the same period last year, a loss rate of 13%. In the first quarter, iQIYI achieved a non-GAAP operating profit of 330 million yuan, a profit margin of 4%; in the same period last year, a non-GAAP operating loss of 660 million yuan, a loss rate of 8%. Both operating profit and non-GAAP operating profit were positive for the first time.

Net profit attributable to iQIYI in the first quarter was RMB 170 million, which greatly exceeded market expectations. The market expected a net loss of RMB 670 million. Non-GAAP net profit attributable to iQiyi in the first quarter was RMB 160 million.

IT House learned that iQIYI has continuously increased the price of VIP members in the past two years, and announced the price increase again at the end of December last year.