On the evening of February 28, iQiyi released its full-year and fourth-quarter financial results for 2023.。

Data show that in the fourth quarter of 2023, iQiyi achieved 77.06 billion yuan (RMB, the same below) of total revenue, up 1% year-on-year; net profit of about 4.6.6 billion yuan, compared with 3.$0.4 billion; net profit attributable to the Company under non-GAAP (Non-GAAP) was 6.8.2 billion yuan, compared with the same period last year..5.6 billion yuan, a slight decline。The quarter was the fifth consecutive profitable quarter since the fourth quarter of 2022.。

For the full year 2023, total revenue reached 31.9 billion yuan, up 10% from the previous year; net profit exceeded 19.2.5 billion yuan, compared with a net loss of 1 in 2022..3.6 billion yuan to achieve a turnaround; adjusted net profit of 2.8.3.8 billion yuan, compared with 12 in the previous year..8.4 billion yuan, up about 121% year on year。

Gong Yu, founder and CEO of iQiyi, said: "After achieving a landmark reversal in 2022, the company continued its good momentum and achieved its best annual performance in 2023, with core indicators such as total revenue, operating profit, net profit and cash flow all hitting the best in history, with monthly average single member revenue (ARM) maintaining ring growth for five consecutive quarters.。"

In addition to satisfactory revenue and profit performance, the company's financial position has also been significantly enhanced, with operating cash flow and free cash flow exceeding $3.3 billion in 2023, and we are on track to create long-term value for our stakeholders, "said Wang Jun, Chief Financial Officer of iQiyi.。"

Membership services, online advertising become business pillars

By business, iQiyi's revenue from membership services and online advertising both achieved double-digit year-on-year growth in 2023, continuing the growth momentum since 2022, with a number of core financial indicators hitting record highs.。

Innovative member value-added service value sense to enhance payment conversion

During the year, iQiyi innovative member value-added services, through the promotion of member value and willingness to pay, in ARM, the average number of daily subscription members and annual card three aspects are record highs, member prices also largely ensure the growth trend.。

For the full year 2023, iQiyi membership services revenue 203.1.4 billion yuan, up 15% from the previous year, mainly due to the growth of ARM (average monthly single member revenue) and average daily subscription membership, as well as the continuous optimization of operations to improve the membership experience and liquidity.。

In the fourth quarter, iQiyi member business revenue 48.09 billion yuan, ARM hit a record high during the period, reaching 15.98 yuan, compared with 14 in the same period in 2022.17 yuan increased by 13 percentage points。As of December 31, 2023, the number of iQiyi subscription members was 1.01.1 billion, compared to the total number of subscription members at this time last year of 1.19.7 billion, but member annual card subscription willingness further strengthened。

Among them, ARM and member life cycle is the focus of the company at this stage, but also to achieve the long-term economic value of members of the core drivers.。In order to achieve this goal, iQiyi has launched a number of innovative member value-added services such as bonus gifts, offline activities, commodity benefits, exclusive rights and interests of high-level members on the basis of diversified and high-quality content, and has also attracted more basic gold members to upgrade to high-level platinum or star diamond members.。

In 2024, iQiyi will further optimize member products, content scheduling and operations, as well as member loyalty programs to enhance member stickiness and extend the member life cycle.。

Brand + Effect Double Chain Income Generation International Edition Shows Sea Advantage

According to data, iQiyi's online advertising revenue for the year 2023 reached 62.2.4 billion yuan, up 17% year-on-year; during the quarter, 6% higher than last year, driven by growth in brand advertising and performance advertising.。

Among them, the content-targeted advertising revenue in brand advertising accounted for more than 50%, "Ning'an such as a dream," "a read Guanshan" and other head drama by advertisers favor; and for effect advertising, the use of generative AI technology to produce advertising material, quality and conversion performance improved, driving the year-on-year growth of its revenue.。

As for overseas markets, International's fourth-quarter membership and advertising services revenue also achieved double-digit year-on-year growth, with International's first full-year operating profit and increased revenue from third-party partnerships boosting revenue in other businesses.。

Gong Yu also said at a subsequent earnings meeting that the company will seek to cultivate and incubate a second growth curve in addition to its regular content business, with overseas operations being one of them。

This year and next, iQiyi will launch more than 280 new Chinese-language content in overseas markets, and at the same time, in-depth cooperation with Singapore Tourism Board, Thailand and Malaysia's top production companies, on the new "career double," "CITY OF STARS," "SUNSET X VIBES," "Steal My Heart 2" and other 35 Southeast Asian local original content and authorized dramas.。

High-quality content attracts the public's favor. Explosive machines must belong to it.

For the full year 2023, iQiyi re-content distribution revenue 24.5.9 billion yuan, but the fourth quarter of the barter transaction volume declined significantly, and was offset by its cinema film distribution revenue, did not cause the business to plummet, the period decreased to 5.06 billion yuan。

At the beginning of 2023, Gong Yu said that iQiyi had realized the transformation from "iQiyi can create explosive models" to "iQiyi is an explosive model manufacturing camp."。In the past year, iQiyi started from the TV series "Frenzy," to "Long Wind Crossing," "Lotus House," "Ning'an Like a Dream" and "Yinianguanshan," and achieved five episodes throughout the year with a popularity value of more than 10,000, with a significant increase in the number of platform members and member income.。

According to Yunhe data, Aiqi's share of the art drama market has ranked first in the industry for three consecutive years.。In terms of online movies, iQiyi ranked first with 47% of the broadcast market share for the year.。User research also shows that iQiyi has become synonymous with users choosing high-quality film and television content.。

At present, iQiyi's original strategy has covered multiple tracks including episodes, movies, variety shows, children's and anime.。In 2023, there were four original movies that grossed over $100 million at the box office, and the number of original animations launched throughout the year doubled from 2022, with revenue contributions increasing by more than 90% year-on-year.。Through its strong content strategy and steady growth in viewership, iQiyi has consolidated its leadership position in China's feature-length video industry.。

In the future, iQiyi's goal is still to provide users with high-quality diversified content steadily and continuously.。While consolidating its strengths in the drama area, continue to seek breakthroughs in other content areas, focus on head content strategies, strengthen supply and quality, and improve revenue conversion。

Insiders said the company is planning to increase revenue in new areas, such as live streaming, e-commerce and short video, and through technological innovation to promote content production, improve user experience and improve operational efficiency.。

AIGC Changes Industrial Pattern Long-term Doctrine Steady and Far-reaching

The emergence of Sora, OpenAI's first literary video model, has also become a hot topic in the film and television industry.。Liu Wenfeng, chief technology officer of iQiyi, is very optimistic about the development of AIGC technology, and believes that it will bring many opportunities for the film and television industry, greatly improve the efficiency of creation and decision-making level, and even change the pattern of the film and television industry.。

Earlier, Gong Yu had said that the company has been planning, development, production, publicity and other four core aspects of the use of AIGC technology。AI-generated poster plots have better click-through rates and playback durations than manual charting。AI's ability to understand video content at the minute level, which can refine the detailed story of the album dimension, has covered more than 3,000 episodes。

For the next content planning, iQiyi said: first, to do high public recognition, high market returns of the works, consolidate and strengthen the market position;。