• iQIYI Announces Fourth Quarter and Fiscal Year 2024 Financial Results

    Source: Nasdaq GlobeNewswire / 18 Feb 2025 03:00:00   America/Chicago

    BEIJING, Feb. 18, 2025 (GLOBE NEWSWIRE) -- iQIYI, Inc. (Nasdaq: IQ) (“iQIYI” or the “Company”), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.         

    Fourth Quarter 2024 Highlights

    • Total revenues were RMB6.61 billion (US$906.0 million1), decreasing 14% year over year.
    • Operating income was RMB285.4 million (US$39.1 million) and operating income margin was 4%, compared to operating income of RMB773.7 million and operating income margin of 10% in the same period in 2023.
    • Non-GAAP operating income2 was RMB405.9 million (US$55.6 million) and non-GAAP operating income margin was 6%, compared to non-GAAP operating income of RMB927.8 million and non-GAAP operating income margin of 12% in the same period in 2023.
    • Net loss attributable to iQIYI was RMB189.4 million (US$25.9 million), compared to net income attributable to iQIYI of RMB466.2 million in the same period in 2023.
    • Non-GAAP net loss attributable to iQIYI2 was RMB58.8 million (US$8.1 million), compared to non-GAAP net income attributable to iQIYI of RMB682.0 million in the same period in 2023.

    Fiscal Year 2024 Highlights

    • Total revenues were RMB29.23 billion (US$4.00 billion), decreasing 8% from 2023.
    • Operating income was RMB1.81 billion (US$248.1 million) and operating income margin was 6%, compared to operating income of RMB2.99 billion and operating income margin of 9% in 2023.
    • Non-GAAP operating income was RMB2.36 billion (US$323.6 million) and non-GAAP operating income margin was 8%, compared to non-GAAP operating income of RMB3.64 billion and non-GAAP operating income margin of 11% in 2023.
    • Net income attributable to iQIYI was RMB764.1 million (US$104.7 million), compared to net income attributable to iQIYI of RMB1.93 billion in 2023.
    • Non-GAAP net income attributable to iQIYI was RMB1.51 billion (US$207.2 million), compared to non-GAAP net income attributable to iQIYI of RMB2.84 billion in 2023.

    “Since late November 2024, we have launched a series of blockbusters, driving a strong rebound of business performances and reinforcing our No.1 position in total drama market share in Q4 2024, according to Enlightent. With the release of more smash hits, the momentum continued into the start of 2025, which led to a significant increase in subscribing members from the end of 2024 to now.” commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI.

    “Meanwhile, our investment in mini-dramas also achieved significant progress. We have revamped our products to optimize user experience, expanded our mini-drama portfolio to over ten thousand titles, and enhanced the ad-placement system to more effectively monetize the growing traffic of our mini-dramas,” Mr. Yu Gong further commented. “Although still in an early stage, we have seen great potential of mini-dramas to bolster our ad inventory and contribute to our ad revenue growth in 2025.”

    “We continued to execute with a focus on discipline and efficiency, which led to sequential growth in operating profit for the fourth quarter. The strong operational momentum is extending into the opening of 2025, marking an encouraging start for the year.” commented Mr. Jun Wang, Chief Financial Officer of iQIYI.

    Fourth Quarter and Fiscal 2024 Financial Highlights

      Three Months EndedYear Ended
    (Amounts in thousands of Renminbi (“RMB”), except for per ADS data, unaudited) Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
      2023 2024 2024  2023 2024
      RMB RMB RMB RMB RMB
    Total revenues 7,706,468 7,245,681 6,613,417  31,872,651 29,225,238
               
    Operating income 773,709 238,921 285,436  2,989,479 1,811,203
    Operating income (non-GAAP) 927,818 368,644 405,907  3,643,384 2,361,730
               
    Net income/(loss)attributable to iQIYI, Inc. 466,233 229,412 (189,355) 1,925,469 764,059
    Net income/(loss) attributable to iQIYI, Inc. (non-GAAP) 682,026 479,787 (58,779) 2,838,292 1,512,247
               
    Diluted net income/(loss) per ADS  0.48 0.24 (0.20) 1.98 0.79
    Diluted net income/(loss) per ADS (non-GAAP)2 0.70 0.50 (0.06) 2.91 1.56
                
    Footnotes:
    [1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2993 as of December 31, 2024, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.
    [2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also “Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details).
     

    Fourth Quarter 2024 Financial Results

    Total revenues reached RMB6.61 billion (US$906.0 million), decreasing 14% year over year.

    Membership services revenue was RMB4.10 billion (US$562.1 million), decreasing 15% year over year, primarily due to a lighter content slate.

    Online advertising services revenue was RMB1.43 billion (US$196.4 million), decreasing 13% year over year. The decrease was primarily due to the decrease in brand advertising business, partially offset by the growth of performance-based advertising business.

    Content distribution revenue was RMB406.6 million (US$55.7 million), decreasing 20% year over year, primarily due to lower revenue from the distribution of theatrical movies invested by iQIYI, as well as a decrease in barter transactions, partially offset by the increase of revenue from cash transactions.

    Other revenues were RMB670.2 million (US$91.8 million), decreasing 10% year over year.

    Cost of revenues was RMB4.99 billion (US$684.2 million), decreasing 10% year over year. Content costs1 as a component of cost of revenues were RMB3.44 billion (US$471.7 million), decreasing 9% year over year. The decrease in content cost was primarily due to our improvement in content strategy, as well as a lighter content slate in the quarter.

    Selling, general and administrative expenses were RMB882.5 million (US$120.9 million), decreasing 7% year over year. The decrease was primarily due to disciplined marketing spending.

    Research and development expenses were RMB451.4 million (US$61.8 million), flat year over year.

    Operating income was RMB285.4 million (US$39.1 million), decreasing 63% year over year. Operating income margin was 4%, compared to operating income margin of 10% in the same period in 2023.

    Non-GAAP operating income was RMB405.9 million (US$55.6 million), decreasing 56% year over year. Non-GAAP operating income margin was 6%, compared to non-GAAP operating income margin of 12% in the same period in 2023.

    Total other expense was RMB466.2 million (US$63.9 million), increasing 79% year over year, primarily driven by the foreign exchange loss arising from the depreciation of the Renminbi against the U.S. dollar.

    Loss before income taxes was RMB180.8 million (US$24.8 million), compared to income before income taxes of RMB513.9 million in the same period in 2023.

    Income tax expense was RMB6.2 million (US$0.9 million), compared to income tax expense of RMB38.5 million in the same period in 2023.

    Net loss attributable to iQIYI was RMB189.4 million (US$25.9 million), compared to net income attributable to iQIYI of RMB466.2 million in the same period in 2023. The net loss was primarily due to the foreign exchange loss in the quarter. Diluted net loss attributable to iQIYI per ADS was RMB0.20 (US$0.03) for the fourth quarter of 2024, compared to diluted net income attributable to iQIYI per ADS of RMB0.48 in the same period of 2023.

    Non-GAAP net loss attributable to iQIYI was RMB58.8 million (US$8.1 million), compared to non-GAAP net income attributable to iQIYI of RMB682.0 million in the same period in 2023. Non-GAAP diluted net loss attributable to iQIYI per ADS was RMB0.06 (US$0.01), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.70 in the same period of 2023.

    Net cash provided by operating activities was RMB519.0 million (US$71.1 million), compared to net cash provided by operating activities of RMB633.6 million in the same period of 2023. Free cash flow was RMB498.1 million (US$68.2 million), compared to free cash flow of RMB614.4 million in the same period of 2023.

    As of December 31, 2024, the Company had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in prepayments and other assets of RMB4.53 billion (US$620.9 million). In December 2024, PAG drew down $122.5 million from the loan facility. As of December 31, 2024, PAG had drawn down the full amount of $522.5 million under the loan facility, and the repurchase right for the corresponding amount of the convertible senior notes due January 2028 had been waived.

     
    Footnotes:
    [1] Starting from the fourth quarter of 2024, certain items within cost of revenues have been reclassified. Personnel compensation expenses directly associated with the acquisition, licensing and production of content have been reclassified under content costs, and non-video content related costs have been removed from content costs. This reclassification has been retrospectively applied to corresponding prior periods.


    Fiscal Year 2024 Financial Results

    Total revenues were RMB29.23 billion (US$4.00 billion), decreasing 8% from 2023.

    Membership services revenue was RMB17.76 billion (US$2.43 billion), decreasing 13% from 2023, primarily due to a lighter content slate.

    Online advertising services revenue was RMB5.71 billion (US$782.8 million), decreasing 8% from 2023. The decrease was primarily due to the decrease in brand advertising business, partially offset by the growth of performance-based advertising business.

    Content distribution revenue was RMB2.85 billion (US$390.0 million), increasing 16% from 2023, primarily driven by the increase in barter transactions.

    Other revenues were RMB2.90 billion (US$397.5 million), increasing 1% from 2023.

    Cost of revenues was RMB21.95 billion (US$3.01 billion), decreasing 5% from 2023. Content costs as a component of cost of revenues were RMB15.71 billion (US$2.15 billion), decreasing 5% from 2023. The decrease in content cost was primarily due to a lighter content slate.

    Selling, general and administrative expenses were RMB3.68 billion (US$504.4 million), decreasing 8% from 2023. The decrease was primarily due to disciplined marketing spending and a decrease in personnel-related compensation expenses.

    Research and development expenses were RMB1.78 billion (US$243.6 million), increasing 1% from 2023.

    Operating income was RMB1.81 billion (US$248.1 million), decreasing 39% from 2023. Operating income margin was 6%, compared to operating income margin of 9% in 2023.

    Non-GAAP operating income was RMB2.36 billion (US$323.6 million), decreasing 35% from 2023. Non-GAAP operating income margin was 8%, compared to non-GAAP operating income margin of 11% in 2023.

    Total other expense was RMB959.5 million (US$131.5 million), flat year over year.

    Income before income taxes was RMB851.7 million (US$116.7 million), compared to income before income taxes of RMB2.03 billion in 2023.

    Income tax expense was RMB61.1 million (US$8.4 million), compared to income tax expense of RMB80.0 million in 2023.

    Net income attributable to iQIYI was RMB764.1 million (US$104.7 million), decreasing 60% from 2023. Diluted net income attributable to iQIYI per ADS was RMB0.79 (US$0.11) for 2024, compared to diluted net income attributable to iQIYI per ADS of RMB1.98 in 2023.

    Non-GAAP net income attributable to iQIYI was RMB1.51 billion (US$207.2 million), decreasing 47% from 2023. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB1.56 (US$0.21), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB2.91 in 2023.

    Net cash provided by operating activities was RMB2.11 billion (US$289.1 million), compared to net cash provided by operating activities of RMB3.35 billion in 2023. Free cash flow was RMB2.03 billion (US$278.2 million), compared to free cash flow of RMB3.31 billion in 2023.

    Conference Call Information

    iQIYI’s management will hold an earnings conference call at 6:30 AM on February 18, 2025, U.S. Eastern Time (7:30 PM on February 18, 2025, Beijing Time).

    Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite.

    Participant Online Registration: https://s1.c-conf.com/diamondpass/10044736-lk98u7.html

    It will automatically direct you to the registration page of " iQIYI Fourth Quarter and Fiscal Year 2024 Earnings Conference Call", where you may fill in your details for RSVP.

    In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

    A telephone replay of the call will be available after the conclusion of the conference call through February 25, 2025.

    Dial-in numbers for the replay are as follows:
    International Dial-in +1 855 883 1031
    Passcode: 10044736

    A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.

    About iQIYI, Inc.

    iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. iQIYI distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. Over time, iQIYI has built a massive user base and developed a diversified monetization model including membership services, online advertising services, content distribution, online games, IP licensing, talent agency, online literature, etc.

    Safe Harbor Statement

    This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the quotations from management in this announcement, as well as iQIYI's strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about iQIYI’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iQIYI’s strategies; iQIYI’s future business development, financial condition and results of operations; iQIYI’s ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law.

    Non-GAAP Financial Measures

    To supplement iQIYI’s consolidated financial results presented in accordance with GAAP, iQIYI uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income/(loss) attributable to iQIYI, non-GAAP diluted net income/(loss) attributable to iQIYI per ADS and free cash flow. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

    iQIYI believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding certain items that may not be indicative of its business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to iQIYI’s historical operating performance. The Company believes the non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that the non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

    Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization of intangible assets resulting from business combinations.

    Non-GAAP net income/(loss) attributable to iQIYI, Inc. represents net income/(loss) attributable to iQIYI, Inc. excluding share-based compensation expenses, amortization of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. iQIYI’s share of equity method investments for these non-GAAP reconciling items, primarily amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.

    Non-GAAP diluted net income/(loss) per ADS represents diluted net income/(loss) per ADS calculated by dividing non-GAAP net income/(loss) attributable to iQIYI, Inc, by the weighted average number of ordinary shares expressed in ADS.

    Free cash flow represents net cash provided by operating activities less capital expenditures.

    For more information, please contact:

    Investor Relations
    iQIYI, Inc.
    ir@qiyi.com

    iQIYI, INC.
    Condensed Consolidated Statements of Income/(Loss)
    (In RMB thousands, except for number of shares and per share data)
     
      Three Months Ended Year Ended
      December 31, September 30, December 31, December 31, December 31,
      2023  2024  2024  2023  2024 
      RMB RMB RMB RMB RMB
      (Unaudited) (Unaudited) (Unaudited)   (Unaudited)
    Revenues:           
    Membership services 4,808,727  4,365,955  4,102,688  20,314,216  17,762,814 
    Online advertising services 1,650,513  1,336,932  1,433,892  6,223,903  5,714,243 
    Content distribution 506,059  814,028  406,642  2,458,610  2,846,854 
    Others 741,169  728,766  670,195  2,875,922  2,901,327 
    Total revenues   7,706,468    7,245,681    6,613,417    31,872,651    29,225,238  
               
    Operating costs and expenses:           
    Cost of revenues (5,533,082) (5,649,836) (4,994,165) (23,102,492) (21,953,582)
    Selling, general and administrative (947,806) (907,885) (882,457) (4,014,070) (3,682,050)
    Research and development (451,871) (449,039) (451,359) (1,766,610) (1,778,403)
    Total operating costs and expenses   (6,932,759)  (7,006,760)  (6,327,981)  (28,883,172)  (27,414,035)
    Operating income   773,709    238,921    285,436   2,989,479  1,811,203 
               
    Other income/(expense):           
    Interest income 55,098  69,044  75,352  257,499  271,824 
    Interest expenses (284,301) (256,440) (235,289) (1,130,314) (1,062,026)
    Foreign exchange gain/(loss), net 10,660  296,030  (310,390) (105,434) (97,249)
    Share of (losses)/gains from equity method investments (1,284) 4,627  1,749  (51,249) 17,790 
    Others, net (39,972) (104,867) 2,387  72,620  (89,863)
    Total other (expense)/income, net  (259,799)  8,394  (466,191)  (956,878)  (959,524)
               
    Income/(loss) before income taxes  513,910   247,315  (180,755) 2,032,601   851,679 
    Income tax expense (38,473) (11,483) (6,233) (80,047) (61,090)
               
    Net income/(loss)  475,437    235,832   (186,988)  1,952,554   790,589 
    Less: Net income attributable to noncontrolling interests 9,204  6,420  2,367  27,085  26,530 
    Net income/(loss) attributable to iQIYI, Inc.  466,233   229,412  (189,355)  1,925,469    764,059  
    Net income/(loss) attributable to ordinary shareholders  466,233   229,412  (189,355)  1,925,469    764,059  
               
    Net income/(loss) per share for Class A and Class B ordinary shares:          
    Basic 0.07  0.03  (0.03) 0.29  0.11 
    Diluted 0.07  0.03  (0.03) 0.28  0.11 
               
    Net income/(loss) per ADS (1 ADS equals 7 Class A ordinary shares):          
    Basic 0.49  0.24  (0.20) 2.02  0.79 
    Diluted 0.48  0.24  (0.20) 1.98  0.79 
               
    Weighted average number of Class A and Class B ordinary shares used in net income/(loss) per share computation:           
    Basic 6,713,897,712  6,737,281,504  6,738,808,989  6,675,522,809  6,729,974,821 
    Diluted 6,834,735,594  6,779,359,665  6,738,808,989  6,823,628,066  6,799,500,149 
               


    iQIYI, INC.
    Condensed Consolidated Balance Sheets
    (In RMB thousands, except for number of shares and per share data)
     
      December 31, December 31,
      2023  2024 
      RMB RMB
        (Unaudited)
    ASSETS    
    Current assets:    
    Cash and cash equivalents 4,434,525  3,529,679 
    Restricted cash 6,120  - 
    Short-term investments 941,738  941,610 
    Accounts receivable, net 2,169,042  2,191,178 
    Prepayments and other assets 2,794,259  2,192,928 
    Amounts due from related parties 1,707,024  283,123 
    Licensed copyrights, net 582,521  388,718 
    Total current assets  12,635,229    9,527,236  
         
    Non-current assets:    
    Fixed assets, net 863,813  877,982 
    Long-term investments 2,260,785  2,108,477 
    Deferred tax assts, net -  23,536 
    Licensed copyrights, net 6,966,508  6,930,053 
    Intangible assets, net 309,534  289,861 
    Produced content, net 13,376,985  14,707,869 
    Prepayments and other assets 3,518,210  2,913,919 
    Operating lease assets 683,897  609,832 
    Goodwill 3,820,823  3,820,823 
    Amounts due from related parties 158,590  3,950,937 
    Total non-current assets  31,959,145   36,233,289 
         
    Total assets  44,594,374   45,760,525 
         
    LIABILITIES AND SHAREHOLDERS’ EQUITY    
    Current liabilities:    
    Accounts and notes payable 5,671,074  6,482,209 
    Amounts due to related parties 2,953,658  3,239,036 
    Customer advances and deferred revenue 4,373,208  4,403,686 
    Convertible senior notes, current portion(1) 2,802,442  242,460 
    Short-term loans 3,571,637  3,786,901 
    Long-term loans, current portion 2,000  167,987 
    Operating lease liabilities, current portion 100,883  96,675 
    Accrued expenses and other liabilities 2,866,632  3,058,379 
    Total current liabilities  22,341,534   21,477,333 
    Non-current liabilities:    
    Long-term loans 97,990  1,036,835 
    Convertible senior notes(1) 8,143,994  8,350,570 
    Deferred tax liabilities 824  - 
    Amounts due to related parties 80,566  59,226 
    Operating lease liabilities 523,747  461,974 
    Other non-current liabilities 1,220,804  1,000,823 
    Total non-current liabilities  10,067,925    10,909,428  
         
    Total liabilities 32,409,459   32,386,761  
         
         
    Shareholders’ equity:    
         
    Class A ordinary shares 237  238 
    Class B ordinary shares 193  193 
    Additional paid-in capital 54,971,469  55,623,841 
    Accumulated deficit (44,573,428) (43,809,369)
    Accumulated other comprehensive income 1,688,047  1,550,523 
    Non-controlling interests 98,397  8,338 
    Total shareholders’ equity  12,184,915    13,373,764  
         
    Total liabilities and shareholders' equity 44,594,374   45,760,525  
     
    (1) As of December 31, 2024, US$2.4 million principal amount of the 2025 Notes, US$0.1 million principal amount of the 2026 Notes, US$550.0 million principal amount of the PAG Notes, and US$565.6 million principal amount of the 2028 Notes remained outstanding.
     



    iQIYI, INC.
    Condensed Consolidated Statements of Cash Flows
    (In RMB thousands, except for number of shares and per share data)
     
     Three Months Ended Year Ended 
     December 31, September 30, December 31, December 31, December 31,
     2023  2024  2024  2023  2024 
     RMB RMB RMB RMB RMB
     (Unaudited) (Unaudited) (Unaudited)   (Unaudited)
              
    Net cash provided by operating activities633,586   242,517   519,015   3,351,600   2,110,057   
    Net cash used for investing activities (1,2)(1,430,634) (1,662,662) (895,709) (1,739,515) (2,444,870) 
    Net cash (used for)/provided by financing activities(22,484) (2,611,570) 114,419  (4,285,072) (1,370,121) 
    Effect of exchange rate changes on cash, cash equivalents and restricted cash(31,445) (83,808) 60,746  92,039  14,657  
    Net decrease in cash, cash equivalents and restricted cash(850,977 ) (4,115,523 ) (201,529 ) (2,580,948) (1,690,277) 
    Cash, cash equivalents and restricted cash at the beginning of the period6,131,585  7,907,383  3,791,860  7,861,556  5,280,608  
    Cash, cash equivalents and restricted cash at the end of the period5,280,608  3,791,860  3,590,331  5,280,608  3,590,331  


    Reconciliation of cash and cash equivalents and restricted cash:    		          
    Cash and cash equivalents4,434,525  3,241,336  3,529,679  4,434,525  3,529,679  
    Restricted cash6,120  -  -  6,120  -  
    Long-term restricted cash839,963  550,524  60,652  839,963  60,652  
    Total cash and cash equivalents and restricted cash shown in the statements of cash flows5,280,608  3,791,860  3,590,331  5,280,608  3,590,331  
               
    Net cash provided by operating activities633,586   242,517   519,015   3,351,600  2,110,057  
    Less: Capital expenditures (2)(19,231) (7,700) (20,891) (36,971) (79,319) 
    Free cash flow614,355   234,817   498,124   3,314,629  2,030,738  
     
    (1) Net cash provided by or used for investing activities primarily consists of net cash flows from loans provided to related party, investing in debt securities, purchase of long-term investments and capital expenditures.
    (2) Capital expenditures are incurred primarily in connection with construction in process, computers and servers.
     


    iQIYI, INC.
    Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures
    (Amounts in thousands of Renminbi (“RMB”), except for per ADS information, unaudited)
     
     Three Months EndedYear Ended
     Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
     2023  2024  2024  2023  2024 
     RMB RMB RMB RMB RMB
              
    Operating income773,709   238,921   285,436  2,989,479   1,811,203  
    Add: Share-based compensation expenses152,576  128,190  118,938  636,732  544,395 
    Add: Amortization of intangible assets(1)1,533  1,533  1,533  17,173  6,132 
    Operating income (non-GAAP)927,818  　 368,644  　405,907 　3,643,384 　2,361,730 
              
    Net income/(loss) attributable to iQIYI, Inc.466,233   229,412   (189,355) 1,925,469   764,059 
    Add: Share-based compensation expenses152,576  128,190  118,938  636,732  544,395 
    Add: Amortization of intangible assets(1)1,533  1,533  1,533  17,173  6,132 
    Add: Disposal loss/(gain)-  22,265  -  (89,571) 22,265 
    Add: Impairment of long-term investments62,231  91,243  14,034  336,226  192,613 
    Add: Fair value (gain)/loss of long-term investments(323) 7,407  (3,895) 3,816  (16,393)
    Add: Reconciling items on equity method investments(2)-  -  -  9,455  - 
    Add: Tax effects on non-GAAP adjustments(3)(224) (263) (34) (1,008) (824)
    Net income/(loss) attributable to iQIYI, Inc. (non-GAAP)682,026  　479,787 　(58,779)　2,838,292  　1,512,247 
              
    Diluted net income/(loss) per ADS 0.48   0.24   (0.20)  1.98   0.79 
    Add: Non-GAAP adjustments to earnings per ADS0.22  0.26  0.14  0.93  0.77 
    Diluted net income/(loss) per ADS (non-GAAP) 0.70   0.50   (0.06)  2.91   1.56 
     
    (1) This represents amortization of intangible assets resulting from business combinations.
    (2) This represents iQIYI’s share of equity method investments for other non-GAAP reconciling items, primarily amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share.
    (3) This represents tax impact of all relevant non-GAAP adjustments.
     

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