Newsletter

Menu

What to expect from iQIYI Q2 earnings on August 19?

By Staff Correspondent |
Earnings preview

iQIYI (NASDAQ: IQ) subscriber base touched 100 million mark in June aided by growing subscriber base and demand for quality content at an affordable price in China. However, the streaming giant has been facing multiple headwinds like the trade war between the US and China, economic slowdown, muted advertising sales along with increased costs dragging the bottom line.

The company’s stock has recovered 17% this year, still it is down 39% in the last 12 months. Amidst this backdrop, iQIYI is planning to report its second quarter results on Monday after the bell. Investors would be looking for more insights from the management on how the streaming company is tackling headwinds and the planned international expansion.

What to expect?

iQIYI is anticipating revenue to come in the range of RMB6.91 billion (US$1 billion) and RMB7.29 billion (US$1.1 billion), an increase of 12-18% from last year. The company didn’t provide earnings outlook for the second quarter. Analysts are estimating top line of $994 million and loss per share of 42 cents. Going by the projections, the company could beat the estimates without any hiccups.

iqiyi financial performance

iQIYI is dubbed as the Netflix of China. The company was spun off from the Chinese giant Baidu (BIDU) with the IPO in April last year. The streaming firm’s subscriber addition has been impressive from last year. It’s worth noting that out of the total memberships, over 98% of them are paid subscribers. Last quarter, membership revenues brought in 50% to the top line growing 61% over prior year period.

On the flip side, advertising revenues came in flat in the first quarter hurt by tough macros and continued weakness in the in-feed advertising. The management has already hinted last quarter that the weakness in the ad business might continue into the latter half of the year.

Content distribution and other revenues also witnessed strong growth last quarter, offsetting the weakness in the ad business. Investors would be expecting the trend to continue into the second quarter as well.

Similar to Netflix, iQIYI has been investing on producing original content. Last quarter, out of the $1.1 billion cost of revenues, nearly 72% went to content production. The company believes the investments are going to increase the moat compared to its peers and bring in sustainable revenues and subscribers in the long-term.

iqiyi vs netflix subscriber growth

In the first quarter, iQIYI reported a 43% increase in revenue backed by a 58% jump in subscriber base. Analysts had projected revenue of $1.03 billion. Loss per share came in at RMB 2.52 ($0.35), narrower than the street estimates of $0.52 loss. At the end of the Q1 period, the streaming giant had 96.8 million subscribers, of which over 98.6% were paid members.

Looking Ahead

For the third quarter, the street is guiding revenue of $1.11 billion and loss of 56 cents per share. When it comes to fiscal 2019 consensus, top line is expected to touch $4.3 billion and loss per share to contract from last year’s $2.53 level to $1.81.

iQIYI’s parent Baidu is also slated to report its second quarter results on August 19 after the bell. Last quarter Baidu’s saw its revenue increasing 15% surpassing estimates, while adjusted EPS dropped 80% failing to beat consensus. Daily active users rose 28% to 174 million at the end of March 2019.

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

Advertisement

More on this Company

208 responses to “What to expect from iQIYI Q2 earnings on August 19?”

  12. Finance job market

    […]that would be the end of this report. Right here you will come across some websites that we think you’ll enjoy, just click the hyperlinks over[…]

  16. العقاقير

    […]Wonderful story, reckoned we could combine some unrelated information, nevertheless truly worth taking a search, whoa did one particular discover about Mid East has got extra problerms too […]

  18. Top dental master’s programs

    […]we like to honor lots of other internet websites around the web, even if they aren’t linked to us, by linking to them. Below are some webpages really worth checking out[…]

  22. QS World University Rankings

    […]we prefer to honor lots of other world-wide-web internet sites on the net, even though they aren’t linked to us, by linking to them. Beneath are some webpages worth checking out[…]

  26. Maillot de football

    […]although websites we backlink to below are considerably not associated to ours, we really feel they may be truly worth a go by means of, so possess a look[…]

  29. Maillot de football

    […]we prefer to honor lots of other web web-sites around the net, even when they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[…]

  35. Fiverr Earn

    […]although websites we backlink to below are considerably not associated to ours, we feel they’re really really worth a go via, so have a look[…]

  36. Fiverr Earn

    […]Wonderful story, reckoned we could combine a few unrelated data, nevertheless actually worth taking a look, whoa did one master about Mid East has got much more problerms also […]

  37. Fiverr Earn

    […]Wonderful story, reckoned we could combine a handful of unrelated data, nonetheless really worth taking a search, whoa did one find out about Mid East has got far more problerms at the same time […]

  38. Fiverr Earn

    […]we prefer to honor a lot of other net web sites around the net, even though they aren’t linked to us, by linking to them. Underneath are some webpages worth checking out[…]

  39. fiverrearn.com

    […]we like to honor a lot of other internet internet sites around the net, even though they aren’t linked to us, by linking to them. Below are some webpages really worth checking out[…]

  44. weather

    […]Wonderful story, reckoned we could combine a couple of unrelated information, nevertheless definitely really worth taking a search, whoa did one particular discover about Mid East has got much more problerms also […]

  54. isla mujeres

    […]although web-sites we backlink to beneath are considerably not associated to ours, we feel they may be basically worth a go through, so possess a look[…]

  58. bitcoin

    […]that would be the finish of this post. Right here you will locate some internet sites that we believe you’ll appreciate, just click the hyperlinks over[…]

  61. french bulldogs for sale tx

    […]Wonderful story, reckoned we could combine a number of unrelated data, nonetheless actually worth taking a appear, whoa did a single study about Mid East has got far more problerms also […]

  62. future university

    […]that could be the finish of this post. Right here you will find some web-sites that we believe you’ll appreciate, just click the links over[…]

  64. french bulldog pin

    […]we prefer to honor quite a few other net web-sites on the net, even though they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]

  73. FUE

    […]although internet websites we backlink to beneath are considerably not related to ours, we really feel they’re essentially really worth a go by, so possess a look[…]

  76. Office packing

    […]although sites we backlink to beneath are considerably not connected to ours, we really feel they’re essentially worth a go via, so possess a look[…]

  82. FiverrEarn

    […]we like to honor lots of other web web pages around the net, even if they aren’t linked to us, by linking to them. Beneath are some webpages really worth checking out[…]

  83. Training Philippines

    […]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless seriously really worth taking a look, whoa did one particular find out about Mid East has got far more problerms at the same time […]

  86. FiverrEarn

    […]very few internet sites that transpire to be detailed beneath, from our point of view are undoubtedly properly worth checking out[…]

  90. partners

    […]Every after in a although we decide on blogs that we read. Listed beneath are the newest web sites that we decide on […]

  99. FiverrEarn

    […]that is the finish of this report. Right here you’ll obtain some web pages that we believe you’ll value, just click the hyperlinks over[…]

  105. FiverrEarn

    […]just beneath, are a lot of entirely not associated web pages to ours, nevertheless, they are surely really worth going over[…]

  110. gifts

    […]we like to honor several other internet sites on the web, even though they aren’t linked to us, by linking to them. Beneath are some webpages really worth checking out[…]

  111. gold

    […]Every as soon as inside a although we decide on blogs that we study. Listed beneath are the most current websites that we opt for […]

  116. FiverrEarn

    […]Wonderful story, reckoned we could combine some unrelated information, nonetheless definitely really worth taking a search, whoa did one particular study about Mid East has got a lot more problerms at the same time […]

  127. Judi slot online

    […]that will be the end of this report. Right here you’ll locate some sites that we assume you’ll value, just click the hyperlinks over[…]

  131. allgame

    […]Every after inside a while we pick out blogs that we study. Listed beneath would be the latest internet sites that we opt for […]

  133. หวย24

    […]although sites we backlink to beneath are considerably not associated to ours, we really feel they’re truly worth a go by means of, so have a look[…]

  135. bulldog with clothes

    […]that could be the finish of this report. Right here you will obtain some websites that we consider you will enjoy, just click the links over[…]

  144. 6.5 prc ammo

    […]very handful of sites that occur to become detailed beneath, from our point of view are undoubtedly effectively really worth checking out[…]

  148. Bulk URL Shortener

    […]we like to honor a lot of other online web pages on the internet, even though they aren’t linked to us, by linking to them. Beneath are some webpages worth checking out[…]

  152. seo wix

    […]Wonderful story, reckoned we could combine a few unrelated information, nonetheless definitely really worth taking a search, whoa did a single learn about Mid East has got extra problerms too […]

  153. satoshi t shirt

    […]although sites we backlink to below are considerably not associated to ours, we really feel they’re essentially worth a go by, so have a look[…]

  155. de zaragoza

    […]check below, are some completely unrelated internet sites to ours, even so, they may be most trustworthy sources that we use[…]

  159. free adult webcams

    […]although internet sites we backlink to below are considerably not associated to ours, we really feel they are essentially really worth a go through, so possess a look[…]

  169. french bulldog texas

    […]Wonderful story, reckoned we could combine some unrelated data, nevertheless genuinely worth taking a search, whoa did one master about Mid East has got a lot more problerms at the same time […]

  173. micro french bulldog

    […]although internet websites we backlink to beneath are considerably not related to ours, we really feel they are essentially really worth a go by means of, so possess a look[…]

  180. family ho

    […]very few internet sites that transpire to become detailed below, from our point of view are undoubtedly properly worth checking out[…]

  183. dog probiotic

    […]just beneath, are many totally not related web sites to ours, on the other hand, they are certainly really worth going over[…]

  184. dr kim acupuncture

    […]Wonderful story, reckoned we could combine several unrelated information, nevertheless seriously really worth taking a look, whoa did one particular discover about Mid East has got a lot more problerms at the same time […]

  190. mexican candy store

    […]we like to honor lots of other online web sites on the net, even if they aren’t linked to us, by linking to them. Under are some webpages really worth checking out[…]

  193. Dog Papers

    […]very few web sites that happen to become detailed below, from our point of view are undoubtedly well really worth checking out[…]

  202. French Bulldog Adoption

    […]we prefer to honor many other online websites around the internet, even when they aren’t linked to us, by linking to them. Underneath are some webpages worth checking out[…]

  203. French Bulldog Adoption

    […]that will be the finish of this post. Here you will come across some web sites that we believe you will value, just click the hyperlinks over[…]

  206. grey fluffy french bulldog

    […]although web sites we backlink to below are considerably not associated to ours, we feel they may be in fact worth a go as a result of, so possess a look[…]

Top