Categories AlphaGraphs, Earnings, LATEST, Technology

iQiyi stock plunges after reporting Q2 results

Chinese streaming platform iQiyi (NASDAQ: IQ), a video streaming unit of Baidu (NASDAQ: BIDU), reported second quarter 2019 results after the market closed today. For the second quarter, iQiyi’s revenue surged 15% to RMB 7.1 billion (US$1.0 billion) backed by a 50% jump in subscriber base. Loss per share came in at RMB 3.22 ($0.49). iQiyi stock was trading down more than 10% immediately after the company’s earnings announcement.

iQiyi (IQ) stock plunges after reporting Q2 2019 earnings resultsNet loss attributable to iQiyi widened to RMB 2.3 billion (US$339.0 million) from a net loss of RMB 2.1 billion in the second quarter of 2018.

Membership services revenue jumped 38% to RMB 3.4 billion (US$497.1 million). Content distribution revenue declined 4% to RMB 517.9 million (US$75.4 million) due to the delay of certain content launches during the quarter.

Online advertising services revenue decreased 16% year-over-year to RMB 2.2 billion (US$320.6 million), hurt by the challenging macroeconomic environment in China, the delay of certain content launches and slower-than-expected recovery of in-feed advertising.

Read: Netflix stock plunges on big miss in paid subscriber additions in Q2

At the end of the second quarter, iQiyi had 100.5 million subscribers, of which 98.9% were paid members.

iQiyi versus Netflix subscribers trend

For the third quarter of 2019, iQiyi expects revenue to be between RMB 7.21 billion (US$1.03 billion) and RMB 7.63 billion (US$1.09 billion), representing a 4% to 10% growth from the third quarter of 2018.

“We achieved continued revenue growth in the second quarter despite some recent challenges facing our industry. Our membership business generated solid growth with subscription revenues increasing 38% year-over-year, driven by our strong content slate during the quarter,” said CFO Xiaodong Wang.

iQiyi’s parent Baidu also reported its second quarter results earlier today. Baidu stock rose about 9% in the extended trading hours as it posted better-than-expected results for the recently ended quarter.

Shares of iQiyi have gained 22% so far this year, while they have lost 31% in the trailing 12 months.

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top