iQIYI, Inc. reported total revenues of RMB7.2 billion (US$1.0 billion) for the third quarter of 2024, marking a 10% decrease year over year. Membership services revenue declined by 13% year over year to RMB4.4 billion (US$622.1 million), primarily attributed to a lighter content slate. Online advertising services revenue also decreased by 20% year over year to RMB1.3 billion (US$190.5 million), mainly due to a decrease in brand advertising business.
Despite these declines, content distribution revenue increased by 52% year over year to RMB814.0 million (US$116.0 million), driven by an increase in barter transactions. The company reported a net income attributable to iQIYI of RMB229.4 million (US$32.7 million), representing a 52% decrease year over year. Diluted net income per ADS was RMB0.24 (US$0.03), down from RMB0.49 in the same period of 2023.
Non-GAAP operating income for the quarter was RMB368.6 million (US$52.5 million), a 59% decrease year over year, with a non-GAAP operating income margin of 5%. Operating cash flow was RMB242.5 million (US$34.6 million), and free cash flow was RMB234.8 million (US$33.5 million). As of September 30, 2024, iQIYI held RMB4.7 billion (US$673.8 million) in cash, cash equivalents, and short-term investments.
In August 2024, PAG drew down an additional US$200.0 million under a loan facility, bringing the total drawn to US$400.0 million as of September 30, 2024. This action resulted in the waiver of PAG’s repurchase right for US$522.5 million principal of the convertible senior notes due January 2028. Management noted that iQIYI topped the industry in drama series market share during the quarter and has been enhancing its entertainment offerings with mini and short dramas and a family account option.
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