Interface journalists| Xiao Fang
Interface news editor| Song Jianan
On May 16, iQIYI released its unaudited financial report for the first quarter as of March 31, 2024. his The total revenue was 7.9 billion yuan, Non GAAP (non US GAAP) operating profit was 1.1 billion yuan, and operating profit margin was 14%, a record high. In contrast, the operating profit in the same period last year was 1 billion yuan, and the operating profit margin was 12%.
Double increase of revenue and operating profit yes from cost continued decline and operating efficiency Caused by lifting 。 Financial statements display ， The total cost of iQIYI was 5.6 billion yuan, down 5% year on year. As a major part of the cost, the content cost was 4 billion yuan, down 5% year on year 。
according to Interface Journalism understand ， IQIYI It has achieved positive operating cash flow for 8 consecutive quarters. By the end of the first quarter, the company's operating cash flow was 938 million yuan and free cash flow was 915 million yuan Cash balance (including cash, cash equivalents, short-term investments, and long-term restricted funds in prepayments and other assets) totaled 7.3 billion yuan.
Member business as the core business of iQIYI ， Contributed more than half of the revenue. The revenue from member services was 4.8 billion yuan, and the monthly average single member revenue (ARM) reached a new high, with six consecutive quarter on quarter growth.
stay Financial statements Telephone meeting upper ， IQIYI CEO Gong Yu express ， The value of ARM still has room for improvement for a long time. In the future, it will continue to provide users with high-quality content, optimize the rights and interests of members, strengthen the construction of member loyalty, and encourage users to subscribe to long-term and high-level member services.
at present ， IQIYI Is adopt Value added services such as Jiagengli strengthen member operate , with Improve members' willingness to pay 。 among , on Drama "Three Teams" Part I Of The income of Jiagengli payment broke the record 。
IQIYI Another part main income source yes advertisement 。 first quarter ， his Online advertising service revenue was 1.5 billion yuan, up 6% year on year.
stay After the popularity of short videos, Many advertisements Launch already from Long video platform to turn to Dithering 、 Quick hand etc. Short video platform ， IQIYI also faces some problems advertisement revenue Pressure on. in order to seek Differentiation compete ， It adopted Rely on high quality Drama Customization of sales content Advertising strategy. these ones here customized Advertising in Drama in Insertion ， can and Drama Of character 、 plot conduct join 。
Financial statements display ， More than half of brand advertising revenue in the quarter came from content oriented advertising. The original drama of iQIYI, "From South to North", performed well in attracting investment. The advertising income of "Farming Bar 2" increased by about 80% compared with the first quarter.
stay Cost reduction Efficiency improvement Of background lower , this company already stay advertisement business upper of large number use Generative A I Tools. Advertisers can use these ones here A I tool Automatic generation of high-quality advertising materials ， it's fine too send Advertising is more accurate and personalized, helping advertisers improve the efficiency of flow realization.
according to Interface Journalism understand ， AI production of advertising materials drives the return on investment of advertisers in games, short plays and other industries to increase by more than 50% ， IQIYI Of Double digit year-on-year growth of advertising revenue 。
meanwhile ， IQIYI still start attempt use Generative AI technology conduct Drama Content refining and Marketing promotion 。 Use the story outline, character biographies, and character relationship diagram functions provided by generative AI to improve the reading efficiency of producers by 9 times.
from whole Of Finance data Look ， IQIYI's company has run through relatively difficult Of a section period 。 At the iQIYI World Conference in 2019, CEO Gong Yu once said that the cost of copyright procurement had risen rapidly, which was a serious directional error in the industry in the past seven or eight years.
also Exactly Since then start , the company from stay content upper Invest heavily to turn to Has Cost reduction Increase efficiency, and finally The first quarter of 2022 will turn loss into profit.
lately three years ， IQIYI Of Cost reduction Mainly reflected stay reduce Overall content cost of the series upper 。 The content cost rate of iQIYI series in 2023 decreased by 12 percentage points compared with that in 2022, which directly promoted its profit growth. Financial statements display , iQIYI two zero two three year Non GAAP net profit was 2.8 billion yuan, up 121% year on year 。
Not only yes IQIYI ， tencent video and Youku also same stay conduct Cost reduction and efficiency increase 。 at present ， tencent video already realization profit ， and Youku still continued Turn round losses Be profitable in 。 Several Long video platform common face Of problem yes ， how stay compress content cost Of situation lower ， continued manufacture Hot money content 。 Long video platform should not only face competitors Of compete And also face the challenge of short video competing for the length of long video users.
before ， IQIYI chief content officer Wang Xiaohui once express ， want Work with high public recognition and high market returns , creating innovative and high-quality content ， Continue to focus on the efficiency of content launch, the number of header content and social insight.
actually ， stay domestic fierce Of compete Environmental Science in ， IQIYI also start seek new Of increase direction —— go to sea 。 Gong Yu stay Financial statements teleconference upper express ， future use of three organs simultaneously five years ， IQIYI stay While improving the quality of business in the domestic market, we should also expand the growth space of overseas market with appropriate investment 。
according to Interface Journalism understand ， at present IQIYI already stay China Hong Kong 、 malaysia Asia 、 britain etc. overseas market operate 。 although overseas revenue stay IQIYI whole revenue in Of Proportion still compare Small ， but First quarter his Member revenue stay UK, Hong Kong, China, up nearly 80% year on year ， yes more increase potential 。
