iQIYI (IQ.US) 2023 Q4 and full-year financial report: Achieving the best financial performance of the fiscal year, with all core financial indicators reaching new highs.

On February 28, iQiyi (IQ.US) released its financial report for the fourth quarter and full year of 2023. The total revenue for the year was 31.9 billion yuan, a year-on-year increase of 10%; Non-GAAP operating profit was 3.6 billion yuan, a year-on-year increase of 68%; Non-GAAP net profit was 2.8 billion yuan, a year-on-year increase of 121%. In the fourth quarter, revenue was 7.7 billion yuan, with Non-GAAP operating profit of 928 million yuan. iQiyi Founder and CEO Gong Yu said, After achieving a milestone turnaround in performance in 2022, the company continued its strong momentum and achieved its best annual performance in 2023, with record revenue, operating profit, net profit, and cash flow. The monthly average revenue per member (ARM) has maintained quarter-on-quarter growth for five consecutive quarters, reflecting the popularity of our high-quality content and the continuous improvement of member services. I am pleased to witness the company's business resilience and outstanding operational capabilities. iQiyi CFO Wang Jun said, While achieving satisfactory revenue and profit performance, the financial health of the company has significantly improved, with operating cash flow and free cash flow in 2023 exceeding 3.3 billion yuan. We are steadily moving forward on the right path to create long-term value for investors and partners. In 2023, iQiyi's membership service revenue was 20.3 billion yuan, a year-on-year increase of 15%, driven mainly by growth in ARM and daily average subscription members, as well as continuous optimization of operations to enhance member experience and monetization capabilities. In the fourth quarter, membership service revenue was 4.8 billion yuan, achieving a year-on-year increase. ARM reached a historical high of 15.98 yuan in the fourth quarter, up 13% from 14.17 yuan in the same period of 2022. In the fourth quarter, iQiyi had a daily average of 100 million subscription members, with a total of 1.011 billion subscription members as of December 31, 2023. In 2023, online advertising revenue reached 6.2 billion yuan, a year-on-year increase of 17%. In the fourth quarter, online advertising revenue was 1.7 billion yuan, a year-on-year increase of 6%, with growth in brand advertising and performance advertising. Content distribution and other revenue in 2023 were 2.5 billion yuan and 2.9 billion yuan, respectively, with content distribution revenue in the fourth quarter at 506 million yuan and other revenue at 741 million yuan. In terms of costs, iQiyi's revenue costs in 2023 were 23.1 billion yuan, a year-on-year increase of 4%. As an important component of revenue costs, content costs for the full year were 16.2 billion yuan, down 2% year-on-year; sales and management expenses were 4 billion yuan for the full year, a year-on-year increase of 16%; research and development expenses were 1.8 billion yuan, a 7% decrease year-on-year. In the fourth quarter, revenue costs were 5.5 billion yuan, with content costs down 5% year-on-year to 3.7 billion yuan. Sales and management expenses in the fourth quarter were 948 million yuan, basically flat with the same period last year; research and development expenses were 452 million yuan, down 3% year-on-year. In 2023, iQiyi achieved record high operating profit and net profit. The annual Non-GAAP operating profit was 3.6 billion yuan, with a Non-GAAP operating profit margin of 11%. The annual Non-GAAP net profit attributable to iQiyi was 2.8 billion yuan, with a Non-GAAP net profit margin of 9%. In the fourth quarter, Non-GAAP operating profit was 928 million yuan, with a Non-GAAP operating profit margin of 12%. The fourth quarter Non-GAAP net profit attributable to iQiyi was 682 million yuan, with a Non-GAAP net profit margin of 9%.