Core Viewpoint - iQIYI (IQ) is experiencing significant challenges due to macroeconomic headwinds, sluggish consumer spending, and increasing competition from free entertainment platforms, leading to a notable decline in its stock performance and earnings estimates [1][10]. Stock Performance - IQ shares have dropped 42.3% in the last six months, underperforming the Zacks Consumer Discretionary sector's appreciation of 15.1% and the Zacks Film and Television Production and Distribution industry's return of 16.8% [2]. - Compared to peers, IQ has underperformed Bilibili (BILI), Alibaba (BABA), and Tencent (TCEHY), which returned 25.3%, 19.4%, and 14.2%, respectively, in the same timeframe [2]. Earnings Estimates - The Zacks Consensus Estimate for IQ's fourth-quarter 2024 revenues is $916.29 million, indicating a year-over-year decline of 14.33% [3]. - The consensus mark for fourth-quarter earnings is currently 3 cents per share, unchanged over the past 30 days, indicating a year-over-year decline of 70% [3]. - For full-year 2024, revenues are estimated at $4.04 billion, reflecting a year-over-year decline of 7.18% [3]. - The consensus mark for 2024 earnings is pegged at 25 cents per share, unchanged over the past 30 days, indicating a year-over-year decline of 39.02% [4]. Content and Strategic Initiatives - IQ is benefiting from strategic content innovations, tech-driven enhancements, and an expanding global footprint, diversifying its offerings with mini and short dramas alongside long-form videos [6]. - The company has a rich content portfolio, including critically acclaimed hits and audience favorites, reinforcing its market dominance [7]. - A strong content pipeline for 2025 includes anticipated titles that are expected to boost membership and top-line growth, particularly in regions like the U.K., U.S., Japan, and others [8]. - Upgraded interactive features and AI-powered ads are enhancing user engagement and operational efficiency [9]. Competitive Landscape - Despite its strengths, IQ faces significant macroeconomic challenges, including sluggish consumer spending and intense competition from platforms offering free content [10]. - Limited availability of titles in certain genres is creating content supply gaps, affecting membership revenues [10]. - Declining ad revenues and reduced investment in variety shows due to macroeconomic pressures are also impacting top-line growth [11].

Core Insights - iQIYI has announced the return of its "Light On Theater" brand, celebrating its fifth anniversary with seven new suspense-themed titles, reinforcing its leadership in the genre [1][4] - The new lineup includes notable titles such as "Low IQ Crime," "Let Wind Goes By," and "A Life for a Life," showcasing a mix of dark comedy and complex narratives [2][4] - The brand has gained global recognition, with series like "The Bad Kids" and "The Long Night" winning awards, and "Why Try to Change Me Now" being selected for the Berlinale Series [3][6] Company Developments - "Light On Theater" has become a benchmark for suspense storytelling in China since its launch in 2020, with "The Bad Kids" emerging as a cultural phenomenon [4][5] - iQIYI has expanded its genre-based approach with new brands like "Love On Theater" for romance and "Laugh On Theater" for comedy, indicating a commitment to diverse audience preferences [5] - The brand's success has led to a surge in high-quality suspense productions across the industry, establishing suspense as a sought-after genre in Chinese entertainment [4][5] International Recognition - "Light On Theater" has gained popularity in overseas markets, resonating with global audiences through universal themes of human nature [6][7] - The adaptation of "The Bad Kids" into a local version in Japan in 2024 highlights the widespread appeal of iQIYI's content [7]

Core Insights - iQIYI hosted its 10th annual Scream Night event, celebrating exceptional content and creative talent in the entertainment industry [1][2] - The event featured 66 honors across various categories, including drama and variety shows, and was streamed live globally [1][2] Event Highlights - The event included surprise reunions, live performances, and a red carpet, generating significant buzz on social media with over 1,700 trending searches [2] - It solidified its status as one of the most anticipated events in China's entertainment calendar [2] Drama Awards - iQIYI's dramas received multiple prestigious honors, with "Drama of the Year" awarded to "For the Young Ones" and "Fangs of Fortune," while "Mini Series of the Year" went to "To the Wonder" [3] - "Always on the Move" was recognized as "Long Series of the Year," showcasing a variety of engaging narratives [3] Variety Show Awards - "Tendays" won "Original Variety Show of the Year," and "The Rap of China 2024" was honored as "Stage Presentation of the Year" [4] - "Become a Farmer" was named "Most Popular Variety Show," reflecting iQIYI's commitment to social themes like sustainable farming [4] - "The King of Stand-up Comedy" received "Influential Show of the Year," with its winner, Hang FU, named "Comedy Star of the Year" [4] - "Starlight Boys" was recognized as APAC's "Innovative Program of the Year," highlighting iQIYI's influence in the Asian entertainment landscape [4] Film Awards - "Black Storm" was celebrated as Cloud Cinema's "Influential Film of the Year" [4] - Three blockbuster series received special honors for surpassing a popularity index of 10,000, bringing the total inductees to 13 [4] Social Impact Recognition - iQIYI's initiative "Growth Plan Inspired by Movies" was awarded "Social Impact of the Year" for enriching young people's lives through educational film and TV productions [5] - The cast of "Become a Farmer" was recognized for their focus on environmental protection themes, emphasizing the positive societal impact of premium content [5]

Core Viewpoint - The discussions regarding Baidu's potential sale of iQiYi are deemed unnecessary given the recent technological collaboration established between Baidu and iQiYi in the field of AI [1] Group 1 - Baidu has officially initiated a technological collaboration with iQiYi, focusing on artificial intelligence [1]

Core Viewpoint - iQIYI, Inc. reported mixed Q3 results, prompting a detailed analysis of the numbers and future outlook for the company [1]. Financial Performance - The Q3 results were characterized by a combination of positive and negative indicators, suggesting a complex financial landscape for iQIYI [1]. Investment Perspective - The analysis indicates a long-term investment horizon of 5-10 years, emphasizing a portfolio strategy that includes a mix of growth, value, and dividend-paying stocks, with a particular focus on value [1].

爱奇艺（IQ.O）发布 24Q3 业绩 Q3 会员业务受内容影响承压，关注微短剧进展 2024 年 11 月 25 日 ➢ 事件：2024 年 11 月 21 日，公司发布 24Q3 业绩，24Q3 收入 72.5 亿 元，yoy-10%；营业利润 2.4 亿元，Non-GAAP 营业利润 3.7 亿元；归母净 利润 2.3 亿元，Non-GAAP 归母净利润 4.8 亿元。 ➢ 24Q3 会员收入受内容影响，品牌广告表现拖累广告收入。24Q3，分业 务收入来看：1）会员服务收入 44 亿元，yoy-13%，主要受内容表现影响。此 外，爱奇艺创新增值服务继续获用户认可，Q3 推出了 13 场加更礼，现金购 买金额环比增长超 40%。2）在线广告收入 13 亿元，yoy-20%，主要系品牌 广告下降，部分被效果广告增长抵消。3）内容分销收入 8.1 亿元，yoy+52%。 4）其他收入 7.3 亿元，yoy-8%。 ➢ 24Q3 成本费用支出审慎，整体盈利略好于指引。成本端，24Q3 公司营 业成本 56 亿元，yoy-3%，其中内容成本 40 亿元，yoy-5%，主要系电影减 少。费用端，销售及管理费用 9. ...

Investment Rating - The report assigns a "Buy" rating to iQIYI (IQ) with a target price of $3.30 per ADS, compared to the current price of $2.02 [5] Core Views - iQIYI reported 24Q3 revenue of RMB 7.246 billion, down 10% YoY and 3% QoQ, slightly above Bloomberg consensus of RMB 7.242 billion [4] - Non-GAAP net profit was RMB 480 million, down 23% YoY but up 94% QoQ, significantly exceeding Bloomberg consensus of RMB 266 million [4] - GAAP net profit attributable to shareholders was RMB 230 million, down 52% YoY but up 235% QoQ, beating consensus of RMB 202 million [4] - Gross profit declined 27% YoY to RMB 1.596 billion, with gross margin at 22%, down 5 percentage points YoY [4] - Content costs were RMB 4 billion, accounting for 50% of revenue, down 5% YoY and 2% QoQ [4] Business Segment Performance - Membership revenue was RMB 4.366 billion, down 13% YoY and 3% QoQ, slightly above consensus of RMB 4.335 billion [4] - Advertising revenue was RMB 1.337 billion, down 20% YoY and 9% QoQ, slightly below consensus of RMB 1.344 billion [4] - Content distribution revenue grew 55% YoY to RMB 814 million [4] - Other revenue was RMB 729 million, down 9% YoY and 7% QoQ [4] Strategic Upgrades - Optimizing long-form drama production mechanisms to improve flexibility and ROI [4] - Expanding short-form drama offerings, with a focus on the iQIYI Lite app [4] - Launching family sharing accounts to enhance membership services [4] Financial Projections - 2024 revenue forecast adjusted to RMB 29.2 billion, down 8% YoY [8] - 2025 revenue expected to grow 5% YoY to RMB 30.6 billion [8] - 2024 Non-GAAP net profit projected at RMB 1.765 billion [8] - 2025 Non-GAAP net profit expected to reach RMB 2.901 billion [8] Valuation - Based on 13x PE multiple on 2024 adjusted net profit, target price set at $3.30 per ADS [8]

交银国际研究 财务模型更新 展望：基于 10-11 月内容播放表现，我们预计 4 季度会员收入继续承压， 同/环比-13%/-5%。广告收入或受电商大促、手机/医药行业投放旺季带动 环比小幅增长。考虑较少的内容置换，预计内容发行收入同比降 20%。我 们预计微短剧内容增加有望丰富供给、提升对用户吸引及留存。但在短剧 内容同质化背景下，行业竞争激烈，预计长期内容质量及内容创新仍是决 胜点。我们建议关注微短剧投入、用户运营数据及商业化进展。 股份资料 52周高位 (美元) 5.79 52周低位 (美元) 1.96 市值 (百万美元) 1,060.94 日均成交量 (百万) 40.40 年初至今变化 (%) (58.61) 200天平均价 (美元) 3.21 资料来源: FactSet 盈利预测变动 收盘价 目标价 潜在涨幅 美元 2.02 美元 2.90↓ +43.6% 互联网 2024 年 11 月 22 日 爱奇艺 (IQ US) 会员持续承压，关注微短剧投入及商业化进展 我们下调爱奇艺 （IQ US） 的 2024/25 年收入及盈利预测，考虑剧集表现仍有 不确定性，短期会员压力持续。基于 10 倍 202 ...

iQIYI, Inc. (NASDAQ:IQ) Q3 2024 Earnings Conference Call November 21, 2024 6:30 AM ET Company Participants Chang You - Investor Relations Director Yu Gong - Founder, Chief Executive Officer and Director Jun Wang - Chief Financial Officer Youqiao Duan - Senior Vice President, Membership Business Xiaohui Wang - Chief Content Officer Conference Call Participants Xueqing Zhang - CICC Lei Zhang - Bank of America Maggie Ye - CLSA Operator Thank you for standing by and welcome to the iQIYI Third Quarter 2024 Earni ...

22 Nov 2024 CMB International Global Markets | Equity Research | Company Update iQIYI (IQ US) Short-term headwind continues; strategic upgrades to drive long-term growth iQiyi reported 3Q24 financial results: total revenue declined by 10% YoY to RMB7.2bn, in line with Bloomberg consensus and our estimate; non-GAAP net income was down by 23% YoY to RMB480mn, ahead of consensus/our estimate of RMB266/426mn primarily due to better-than-expected opex control and foreign exchange gains. Looking ahead in 4Q24E, w ...