IQIYI Reports CNY 7802.3 Million Revenue and CNY 365.2 Million Net Income for Q2 2023, Up 17.2% and 579.2 Million Year-Over-Year Respectively
August 31, 2023
☀️Earnings Overview
On August 22 2023, IQIYI ($NASDAQ:IQ) reported its total revenue and net income for the second quarter ending June 30 2023. These figures increased to CNY 7802.3 million and CNY 365.2 million respectively, which is an increase of 17.2% and 579.2 million year-over-year.
Analysis
GoodWhale has conducted an analysis of IQIYI‘s wellbeing and the results show that IQIYI is strong in growth, medium in profitability and weak in asset and dividend, according to the Star Chart. IQIYI is classified as a ‘rhino’, which we can conclude is a company that has achieved moderate revenue or earnings growth. Investors interested in this type of company may be looking for a company with potential growth, and IQIYI could be of interest, despite its low health score of 2/10 in regards to cashflows and debt. This means that IQIYI is less likely to be able to pay off debt and fund future operations. Investors who are looking for a company that can offer these benefits may want to look elsewhere. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Iqiyi. More…
| Total Revenues | Net Income | Net Margin |
| 31.22k | 892.01 | 3.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Iqiyi. More…
| Operations | Investing | Financing |
| 2.94k | 732.1 | -1.78k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Iqiyi. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 43.09k | 32.35k | 11.14 |
Key Ratios Snapshot
Some of the financial key ratios for Iqiyi are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.4% | – | 6.1% |
| FCF Margin | ROE | ROA |
| 8.5% | 11.1% | 2.7% |
Peers
There is intense competition between iQIYI Inc and its competitors: Glory Star New Media Group Holdings Ltd, Vidaroo Corp, LiveOne Inc. These companies are vying for supremacy in the online video market in China. iQIYI has the advantage of being the first mover in the market and has been able to build a large customer base. It has also invested heavily in technology and content to make its platform more attractive to users.
However, its competitors are not far behind and are catching up quickly. They have deep pockets and are willing to spend heavily to gain market share. It is going to be a tough battle for iQIYI to maintain its lead in the market.
– Glory Star New Media Group Holdings Ltd ($NASDAQ:GSMG)
Glory Star New Media Group Holdings Ltd is a Chinese media company that focuses on online video and operates the Youku Tudou video streaming service. As of 2022, the company has a market capitalization of 98.1 million and a return on equity of 11.8%. The company was founded in 2006 and is headquartered in Beijing, China.
– Vidaroo Corp ($OTCPK:VIDA)
Vidaroo Corp is a publicly traded company with a market capitalization of 87.69k as of 2022. The company has a return on equity of 16.18%. Vidaroo Corp is a provider of online video advertising and marketing solutions. The company offers a range of video advertising products and services that help businesses to reach their target audiences through online video. Vidaroo Corp’s video advertising products and services include video ad creation, video ad targeting, video ad placement, and video ad reporting. The company also offers video marketing solutions that help businesses to promote their products and services through online video. Vidaroo Corp is headquartered in San Francisco, California.
– LiveOne Inc ($NASDAQ:LVO)
LiveOne Inc is a publicly traded company with a market capitalization of $59.47 million as of 2022. The company has a return on equity of 106.11%. LiveOne Inc is engaged in the development, marketing, and sale of live streaming products and services. The company’s products and services are used by broadcasters, content creators, and businesses to live stream their content to audiences around the world.
Summary
IQIYI, a Chinese online streaming platform, reported strong second quarter financial results for the period ending June 30 2023. Total revenue increased 17.2% year-over-year to CNY 7802.3 million, while net income increased 579.2% to CNY 365.2 million. Despite these impressive results, their stock price fell on the same day.
This could be due to investor concerns regarding their long-term profitability, or could be a result of other market factors. Investors should consider IQIYI’s results in context and should research the company’s competitive position in the streaming market before investing.
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