Chinese streaming giant iQIYI, Inc. (NASDAQ: IQ) reported disappointing fourth-quarter earnings on Tuesday, missing analyst expectations. As a result, the company’s shares fell by 2.76% in pre-market trading.
The company posted an adjusted loss per share of RMB0.06 ($0.01), missing the projected RMB0.04 loss. Revenue was RMB6.61 billion ($906.0 million), slightly below the expected RMB6.62 billion, marking a 14% year-over-year decline.
A lighter content slate weighed on performance, with membership services revenue dropping 15% year over year to RMB4.10 billion ($562.1 million). Online advertising revenue also fell 13% year over year to RMB1.43 billion ($196.4 million).
Despite the disappointing results, CEO Yu Gong emphasized positive trends as iQIYI enters 2025, noting,
“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.”
Operating income for the quarter stood at RMB285.4 million ($39.1 million), with a 4% margin, down from 10% a year earlier. Non-GAAP operating income reached RMB405.9 million ($55.6 million) with a 6% margin.
The company also reported a net loss of RMB189.4 million ($25.9 million), compared to a net income of RMB466.2 million in the same period last year. The loss was largely driven by foreign exchange losses linked to the depreciation of the Renminbi against the U.S. dollar.
Looking ahead, iQIYI (NASDAQ: IQ) aims to expand its mini-drama portfolio and enhance its ad-placement system to drive advertising revenue growth in 2025.
