公司公佈24Q4業績。 2024Q4公司實現營業收入66.1億元，同比下降14.2%，基本符合彭博一致預期; Non-GAAP營業利潤為4.06億元，同比下降56%，Non-GAAP運營利潤率為6%; Non-GAAP凈虧損為5878萬元。
優化融資結構，降低融資成本，財務費用減少。
會員業務開年以來環比改善，會員權益有望優化
2024Q4，公司實現會員服務收入41億元，同比下降15%，主要系公司內容排期波動，公司管理層表示自2024年11月下旬起，隨著一系列爆款內容回歸，公司業務表現出現顯著反彈，多個指標表現良好，根據雲合數據，公司訂閱會員數及用户使用時長均有所增加，市場份額的領先地位進一步鞏固，主要系頭部內容的強勢回歸; 兩部熱門劇集《我是刑警》和《漂白》熱度均突破萬，多部作品熱度指數超過9000，如《白月梵星》、《冬至》等。
品牌廣告承壓，微劇或帶來商業化收入增量
2024Q4，公司實現廣告業務收入14億元，同比下降13%，主要系品牌廣告業務的減少，部分被效果廣告業務的增長所抵消。 公司表示預計到2025年，公司將持續探索廣告業務機會，吸引食品飲料、化妝品、通信、醫療保健等新客戶，推動品牌廣告業務穩健增長; 微劇有望通過「付費訂閱+廣告形式」帶來收入增量; 雙十一購物節期間，電商行業廣告收入貢獻同比超40%，網服行業廣告收入同比增長超30%。 24Q4，公司內容分銷業務收入4.1億元，同比下降20%; 其他業務收入6.7億元，同比下降10%。
優質內容儲備豐富，自製能力穩步提升
公司堅持製作原創內容，2025年上線多部優質內容，迷霧劇場《漂白》上線6天熱度破萬，1Q25已播出《白月梵星》《漂白》等，後續長劇儲備包括《愛你》《北上》《烏雲之上》《淮水竹亭》《書卷一夢》《臨江仙》《在人間》《生萬物》《唐朝詭事錄之長安》等。 公司將繼續保持在懸疑犯罪賽道、女性向及現實主義題材的領先優勢。
持續降本，費用投入謹慎
24Q4，公司毛利率為24.5%，同比下滑3.7個百分點;內容成本為34億元，同比下降9%，主要系內容排播數量較少; 費用端，24Q4公司Non-GAAP營銷及管理費用率為8.8億元，同比下降7%，主要系相對謹慎的成本費用策略; 整體來看我們認為公司成本費用端仍然相對節制。
Looking past less than sterling Q4 results amid ad revenue pressure, iQIYI is burnishing its proprietary production portfolio to release better original content in 2025. It aims to maintain its lead in genres like crime and suspense, strong female and realistic genres. We maintain our BUY call.
The gist: BUY
· 24Q4E results: revenue dipped 14% yoy with non-GAAP net loss at RMB59m
· Membership revenue fell in Q4E and could rebound qoq in 25Q1E
· Brand ad revenue under pressure; micro dramas could boost monetization
· Quality content pipeline: iQIYI beefs up portfolio of own productions
24Q4E results: revenue dipped 14% yoy with non-GAAP net loss at RMB59m
Top and bottom lines:
iQIYI released unaudited results for 24Q4E on 18 Feb.
· Total revenue: the company posted RMB6.61bn in revenue for the final quarter, down 14.2% yoy, basically in line with the Bloomberg consensus expectation (BBG).
· Non-GAAP operating profit: RMB406m, down 56% yoy.
· Non-GAAP operating profit margin: 6%.
· Non-GAAP net loss: RMB58.78m.
Cost management and cautious investments:
gross margin slipped to 24.5% in 24Q4E, narrowing 3.7ppt yoy, but overall, we believe the company is exercising restraint over costs and expenses.
· Content costs dropped to RMB3.4bn, down 9% yoy, largely because scheduled content was limited.
· Non-GAAP marketing and management expenses dropped 7% yoy to RMB880m, due mainly to the company’s cautious cost-management strategy.
Membership business declined in 24Q4E and could rebound qoq in 25Q1E
· Memberships:
iQIYI’s membership service revenue came to RMB4.1bn in Q4E, down 15% yoy, due mainly to fluctuations in the company’s content scheduling. Management notes that since late November 2024, following the launch of blockbuster content, business has recovered substantially with multiple indicators performing well. And since the beginning of this year, the membership business has improved qoq and the company hopes to optimize member benefits. iQIYI grew membership subscriptions as well as user viewing times in Q4E, according to Enlightent data.
· Content:
the company notes it lengthened its market lead on stronger premium content. Two popular crime and suspense dramas, We Are Criminal Police and Drifting Away, shot past the 10,000 mark on the content popularity index, while many of its other drama series exceeded 9,000 on the index, including fantasy period drama Moonlight Mystique and Love Song in Winter, an urban suspense drama.
Brand ad revenue under pressure; micro dramas could boost monetization
· Ads:
iQIYI’s online advertising business brought in RMB1.4bn revenue in 24Q4E, down 13% yoy, due mainly to brand ad weakness, which was partially offset by performance-based ad growth. For 2025E, the company plans to keep tapping fresh ad opportunities, including wooing new clients in the F&B, cosmetics, communications and healthcare segments, while brand advertising would maintain a steady growth trend.
· Subs-and-ads model:
the company believes its dual drivers of paid subscriptions and advertising will bring in incremental revenue. At the Double-11 shopping festival in November, ecommerce contributed over 40% yoy of advertising revenue, while online services ad revenue grew more than 30% yoy.
·
Content distribution:
this business generated RMB407m revenue in 24Q4E, down 20% yoy, while iQIYI’s other businesses drew RMB670m revenue, down 10% yoy.
Quality content pipeline: ramping up its portfolio of own productions
Original productions:
iQIYI is committed to producing premium original content and plans to roll out more quality content in 2025E. It hopes to maintain its lead in the suspense and crime genre, as well female-oriented and realistic themes.
25Q1 drama line-up:
the company’s acclaimed Light on Theater label, which it launched in 2020, remains one of China’s most influential brands for its curated collection of premium suspense dramas. Light on Theater’s Drifting Away topped 10,000 on the content popularity index within the first 6 days of release in January. Another title also released in January was Moonlight Mystique. Its long-form drama pipeline includes The Best Thing, Northward, Breaking the Shadows, Love in Pavilion, Dream Within a Dream, Lin Jiang Xian, What a Wonderful World, This Thriving Land and Strange Tales of Tang Dynasty III.
