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iQIYI Announces First Quarter 2023 Financial Results

BEIJING, May 16, 2023 (GLOBE NEWSWIRE) -- iQIYI, Inc. (Nasdaq: IQ) ("iQIYI" or the "Company"), a leading provider of online entertainment video services in China, today announced its unaudited financial results for the first quarter ended March 31, 2023.

First Quarter 2023 Highlights

  • Total revenues were RMB8.3 billion (US$1.2 billion1), increasing 15% year over year.

  • Operating income was RMB858.6 million (US$125.0 million) and operating income margin was 10%, compared to operating income of RMB93.4 million and operating income margin of 1% in the same period in 2022.

  • Non-GAAP operating income2 was RMB1.0 billion (US$150.6 million) and non-GAAP operating income margin was 12%, compared to non-GAAP operating income of RMB326.6 million and non-GAAP operating income margin of 4% in the same period in 2022.

  • Net income attributable to iQIYI was RMB618.1 million (US$90.0 million), compared to net income attributable to iQIYI of RMB169.1 million in the same period in 2022.

  • Non-GAAP net income attributable to iQIYI2 was RMB939.5 million (US$136.8 million), compared to non-GAAP net income attributable to iQIYI of RMB162.2 million in the same period in 2022.

“We kicked off the year with an exceptional first quarter. iQIYI originals once again demonstrated its power, driving our financial performance and market share to new highs, and expanding our subscriber base by over 17 million net additions,” commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. “This demonstrated the success of our high-quality growth strategy.”

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“This was another record-setting quarter for us. Both total revenues and membership services revenue reached all-time high. Meanwhile, our operating income continued to expand for the sixth consecutive quarter and our operating cash flow also expanded for the fourth consecutive quarter,” commented Mr. Jun Wang, Chief Financial Officer of iQIYI. “We have improved profitability, cash flow and balance sheet, and we aim to create more value for our stakeholders.”

First Quarter 2023 Financial Highlights

 

 

Three Months Ended

(Amounts in thousands of Renminbi (“RMB”), except for per ADS data, unaudited)

 

March 31,

 

December 31,

 

March 31,

 

 

 

2022

 

2022

 

2023

 

 

 

RMB

 

RMB

 

RMB

 

Total revenues

 

7,277,059

 

7,592,859

 

8,348,807

 

 

 

 

 

 

 

 

 

Operating income

 

93,413

 

783,556

 

858,631

 

Operating income (non-GAAP)

 

326,555

 

978,681

 

1,034,296

 

 

 

 

 

 

 

 

 

Net income attributable to iQIYI, Inc.

 

169,093

 

304,259

 

618,109

 

Net income attributable to iQIYI, Inc. (non-GAAP)

 

162,189

 

856,374

 

939,533

 

 

 

 

 

 

 

 

 

Diluted net income per ADS

 

0.21

 

0.35

 

0.64

 

Diluted net income per ADS (non-GAAP)2

 

0.20

 

0.98

 

0.97

 

 

 

 

 

 

 

 

 

First Quarter 2023 Other Operating Highlights

  • The average daily number of total subscribing members3 for the quarter was 128.9 million, compared to 101.4 million for the same period in 2022 and 111.6 million for the fourth quarter in 2022. The average daily number of subscribing members excluding individuals with trial memberships4 for the quarter was 128.1 million, compared to 100.8 million for the same period in 2022 and 110.9 million for the fourth quarter in 2022.

  • The monthly average revenue per membership (ARM5) for the quarter was RMB14.35, compared to RMB14.69 for the same period in 2022 and RMB14.17 for the fourth quarter in 2022.

Footnotes:
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.8676 as of March 31, 2023, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.
[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also “Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details).
[3] The average daily number of total subscribing members for a quarter is calculated by averaging the number of total subscribing members in each day of such quarter.
[4] The average daily number of subscribing members excluding individuals with trial memberships for the quarter is calculated by averaging the number of subscribing members excluding individuals with trial memberships in each day of such quarter.
[5] The monthly ARM for the quarter is calculated by dividing our total revenues from membership services during a given quarter by the average daily number of total subscribing members for that quarter and the number of months in the quarter.

First Quarter 2023 Financial Results

Total revenues reached RMB8.3 billion (US$1.2 billion), increasing 15% year over year.

Membership services revenue was RMB5.5 billion (US$807.8 million), increasing 24% year over year. The increase was primarily attributable to the strong growth in the number of total subscribing members as we launched a series of premium content during the quarter. The average daily number of total subscribing members increased from 101.4 million for the first quarter in 2022 to 128.9 million for the first quarter in 2023. The number of total subscribing members increased from 101.4 million as of March 31, 2022 to 120.3 million as of March 31, 2023.

Online advertising services revenue was RMB1.4 billion (US$204.4 million), increasing 5% year over year. The increase was driven by the growth of performance-based advertising business.

Content distribution revenue was RMB727.3 million (US$105.9 million), increasing 16% year over year, primarily driven by the increase in average unit price of cash transactions, partially offset by the decrease in the number of barter transactions.

Other revenues were RMB670.5 million (US$97.6 million), decreasing 20% year over year, primarily due to the adjustment in business operation model of certain business line and relatively soft performance of online game business compared with the same period last year.

Cost of revenues was RMB6.0 billion (US$867.3 million), flat year over year. Content costs as a component of cost of revenues were RMB4.2 billion (US$610.5 million), decreasing 5% year over year, primarily associated with the adjustment in business operation model of certain business line.

Selling, general and administrative expenses were RMB1.1 billion (US$161.0 million), increasing 48% year over year, primarily due to higher marketing spending.

Research and development expenses were RMB428.3 million (US$62.4 million), decreasing 10% year over year, primarily due to the decrease of personnel-related compensation expenses.

Operating income was RMB858.6 million (US$125.0 million), compared to operating income of RMB93.4 million in the same period in 2022. Operating income margin was 10%, compared to operating income margin of 1% in the same period in 2022. Non-GAAP operating income was RMB1.0 billion (US$150.6 million) and non-GAAP operating income margin was 12%, compared to non-GAAP operating income of RMB326.6 million and non-GAAP operating income margin of 4% in the same period in 2022.

Total other expense was RMB208.2 million (US$30.3 million), compared to total other income of RMB97.3 million during the same period of 2022. The year over year variance was primarily due to the disposal gain derived from the deconsolidation of certain subsidiaries due to change in control in the first quarter of 2022, increased interest expenses and loss from equity method investment, partially offset by higher interest income and the foreign exchange gain due to the fluctuation of exchange rate between Renminbi and the U.S. dollar.

Income before income taxes was RMB650.4 million (US$94.7 million), compared to income before income taxes of RMB190.7 million in the same period in 2022.

Income tax expense was RMB24.6 million (US$3.6 million), compared to income tax expense of RMB16.9 million in the same period in 2022.

Net income attributable to iQIYI was RMB618.1 million (US$90.0 million), compared to net income attributable to iQIYI of RMB169.1 million in the same period in 2022. Diluted net income attributable to iQIYI per ADS was RMB0.64 (US$0.09) for the first quarter of 2023, compared to diluted net income attributable to iQIYI per ADS of RMB0.21 in the same period of 2022. Non-GAAP net income attributable to iQIYI was RMB939.5 million (US$136.8 million), compared to non-GAAP net income attributable to iQIYI of RMB162.2 million in the same period in 2022. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB0.97 (US$0.14), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.20 in the same period of 2022.

As of March 31, 2023, the Company had cash, cash equivalents, restricted cash, short-term investments and long-term restricted cash included in prepayments and other assets of RMB6.3 billion (US$922.3 million).

Conference Call Information

iQIYI’s management will hold an earnings conference call at 7:00 AM on May 16, 2023, U.S. Eastern Time (7:00 PM on May 16, 2023, Beijing Time).

Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite.

Participant Online Registration: https://s1.c-conf.com/diamondpass/10030369-tfg7d8.html

It will automatically direct you to the registration page of "iQIYI First Quarter 2023 Earnings Conference Call", where you may fill in your details for RSVP.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

A telephone replay of the call will be available after the conclusion of the conference call through May 23, 2023.

Dial-in numbers for the replay are as follows:

International Dial-in:

+1 855 883 1031

Passcode:

10030369

 

 

A live and archived webcast of the conference call will be available at http://ir.iqiyi.com/.

About iQIYI, Inc.

iQIYI, Inc. is a leading provider of online entertainment video services in China. It combines creative talent with technology to foster an environment for continuous innovation and the production of blockbuster content. It produces, aggregates and distributes a wide variety of professionally produced content, as well as a broad spectrum of other video content in a variety of formats. The Company distinguishes itself in the online entertainment industry by its leading technology platform powered by advanced AI, big data analytics and other core proprietary technologies. iQIYI attracts a daily subscriber base of more than 100 million, and its diversified monetization model includes membership services, online advertising services, content distribution, online games, IP licensing, talent agency, online literature, etc.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the quotations from management in this announcement, as well as iQIYI's strategic and operational plans, contain forward-looking statements. iQIYI may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about iQIYI's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: iQIYI's strategies; iQIYI's future business development, financial condition and results of operations; iQIYI's ability to retain and increase the number of users, members and advertising customers, and expand its service offerings; competition in the online entertainment industry; changes in iQIYI's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online entertainment industry, general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and iQIYI undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement iQIYI’s consolidated financial results presented in accordance with GAAP, iQIYI uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income attributable to iQIYI, non-GAAP diluted net income attributable to iQIYI per ADS and free cash flow. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

iQIYI believes that these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance by excluding certain items that may not be indicative of its business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to the non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to iQIYI’s historical operating performance. The Company believes the non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that the non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to iQIYI, Inc. represents net income attributable to iQIYI, Inc. excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. iQIYI’s share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted net income per ADS represents diluted net income per ADS calculated by dividing non-GAAP net income attributable to iQIYI, Inc, by the weighted average number of ordinary shares expressed in ADS.

Free cash flow represents net cash provided by operating activities less capital expenditures.

For more information, please contact:

Investor Relations
iQIYI, Inc.
ir@qiyi.com

iQIYI, INC.

Condensed Consolidated Statements of Income

(In RMB thousands, except for number of shares and per share data)

 

 

Three Months Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2022

 

2022

 

2023

 

 

 

RMB

 

RMB

 

RMB

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Revenues:

 

 

 

 

 

 

 

Membership services

 

4,471,475

 

 

4,743,562

 

 

5,547,305

 

 

Online advertising services

 

1,337,299

 

 

1,553,475

 

 

1,403,752

 

 

Content distribution

 

626,116

 

 

634,696

 

 

727,262

 

 

Others

 

842,169

 

 

661,126

 

 

670,488

 

 

Total revenues

 

7,277,059

 

 

7,592,859

 

 

8,348,807

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of revenues

 

(5,963,853

)

 

(5,402,243

)

 

(5,956,003

)

 

Selling, general and administrative

 

(744,781

)

 

(940,903

)

 

(1,105,855

)

 

Research and development

 

(475,012

)

 

(466,157

)

 

(428,318

)

 

Total operating costs and expenses

 

(7,183,646

)

 

(6,809,303

)

 

(7,490,176

)

 

Operating income

 

93,413

 

 

783,556

 

 

858,631

 

 

 

 

 

 

 

 

 

 

Other income/(expense):

 

 

 

 

 

 

 

Interest income

 

8,947

 

 

26,292

 

 

104,986

 

 

Interest expenses

 

(175,515

)

 

(176,018

)

 

(285,964

)

 

Foreign exchange (loss)/gain, net

 

(9,017

)

 

19,029

 

 

36,982

 

 

Loss from equity method investments

 

(3,158

)

 

(46,754

)

 

(85,109

)

 

Other income/(expense), net

 

276,076

 

 

(313,054

)

 

20,862

 

 

Total other income/(expense), net

 

97,333

 

 

(490,505

)

 

(208,243

)

 

 

 

 

 

 

 

 

 

Income before income taxes

 

190,746

 

 

293,051

 

 

650,388

 

 

Income tax (expense)/benefit

 

(16,882

)

 

11,587

 

 

(24,632

)

 

 

 

 

 

 

 

 

 

Net income

 

173,864

 

 

304,638

 

 

625,756

 

 

Less: Net income attributable to noncontrolling interests

 

4,771

 

 

379

 

 

7,647

 

 

Net income attributable to iQIYI, Inc.

 

169,093

 

 

304,259

 

 

618,109

 

 

Net income attributable to ordinary shareholders

 

169,093

 

 

304,259

 

 

618,109

 

 

 

 

 

 

 

 

 

 

Net income per share for Class A and Class B ordinary shares:

 

 

 

 

 

 

 

Basic

 

0.03

 

 

0.05

 

 

0.09

 

 

Diluted

 

0.03

 

 

0.05

 

 

0.09

 

 

 

 

 

 

 

 

 

 

Net income per ADS (1 ADS equals 7 Class A ordinary shares):

 

 

 

 

 

 

 

Basic

 

0.21

 

 

0.35

 

 

0.66

 

 

Diluted

 

0.21

 

 

0.35

 

 

0.64

 

 

 

 

 

 

 

 

 

 

Weighted average number of Class A and Class B ordinary shares used in net income per share computation:

 

 

 

 

 

 

 

Basic

 

5,706,290,530

 

 

6,084,021,514

 

 

6,569,658,687

 

 

Diluted

 

5,742,801,024

 

 

6,099,971,176

 

 

6,754,965,091

 

 


iQIYI, INC.

Condensed Consolidated Balance Sheets

(In RMB thousands, except for number of shares and per share data)

 

 

December 31,

 

March 31,

 

 

2022

 

2023

 

 

RMB

 

RMB

 

 

 

 

(Unaudited)

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

7,097,938

 

 

4,529,267

 

Restricted cash

 

13,618

 

 

6,120

 

Short-term investments

 

818,265

 

 

668,991

 

Accounts receivable, net

 

2,402,675

 

 

2,722,295

 

Prepayments and other assets(1)

 

2,602,927

 

 

11,221,073

 

Amounts due from related parties

 

104,154

 

 

171,926

 

Licensed copyrights, net

 

746,058

 

 

940,429

 

Total current assets

 

13,785,635

 

 

20,260,101

 

 

 

 

 

 

Non-current assets:

 

 

 

 

Fixed assets, net

 

1,104,721

 

 

1,035,514

 

Long-term investments

 

2,453,644

 

 

2,224,545

 

Licensed copyrights, net

 

6,840,629

 

 

6,701,062

 

Intangible assets, net

 

436,685

 

 

413,238

 

Produced content, net

 

13,001,904

 

 

12,604,535

 

Prepayments and other assets

 

3,865,133

 

 

4,217,029

 

Operating lease assets

 

673,971

 

 

654,667

 

Goodwill

 

3,826,147

 

 

3,826,147

 

Amounts due from related parties

 

59,880

 

 

95,880

 

Total non-current assets

 

32,262,714

 

 

31,772,617

 

 

 

 

 

 

Total assets

 

46,048,349

 

 

52,032,718

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts and notes payable

 

5,993,416

 

 

5,721,544

 

Amounts due to related parties

 

3,521,646

 

 

2,949,896

 

Customer advances and deferred revenue

 

4,232,110

 

 

4,727,981

 

Convertible senior notes, current portion

 

8,305,447

 

 

8,264,709

 

Short-term loans

 

3,347,638

 

 

3,262,497

 

Operating lease liabilities, current portion

 

103,517

 

 

99,808

 

Accrued expenses and other liabilities

 

2,626,244

 

 

2,650,143

 

Total current liabilities

 

28,130,018

 

 

27,676,578

 

Non-current liabilities:

 

 

 

 

Convertible senior notes

 

9,568,279

 

 

11,668,397

 

Deferred tax liabilities

 

1,832

 

 

811

 

Amounts due to related parties

 

100,941

 

 

95,322

 

Operating lease liabilities

 

508,571

 

 

488,470

 

Other non-current liabilities

 

1,395,269

 

 

1,451,575

 

Total non-current liabilities

 

11,574,892

 

 

13,704,575

 

 

 

 

 

 

Total liabilities

 

39,704,910

 

 

41,381,153

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

Class A ordinary shares

 

194

 

 

236

 

Class B ordinary shares

 

193

 

 

193

 

Additional paid-in capital

 

50,885,688

 

 

54,473,865

 

Accumulated deficit

 

(46,498,897

)

 

(45,880,788

)

Accumulated other comprehensive income

 

1,863,454

 

 

1,975,578

 

Noncontrolling interests

 

92,807

 

 

82,481

 

Total shareholders’ equity

 

6,343,439

 

 

10,651,565

 

 

 

 

 

 

Total liabilities, redeemable noncontrolling interests and shareholders' equity

 

46,048,349

 

 

52,032,718

 

(1)   This includes payment of US$1,197.6 million to the paying agent to meet the Company's repurchase obligation of the 2.00% Convertible Senior Notes due 2025. The repurchase was completed in April 2023.

iQIYI, INC.

Condensed Consolidated Statements of Cash Flows

(In RMB thousands, except for number of shares and per share data)

 

Three Months Ended

 

 

March 31,

 

December 31,

 

March 31,

 

 

2022

 

2022

 

2023

 

 

RMB

 

RMB

 

RMB

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

Net cash (used for)/provided by operating activities

(1,167,049

)

 

853,397

 

 

1,001,765

 

 

Net cash (used for)/provided by investing activities (1,2)

(67,305

)

 

578,899

 

 

166,845

 

 

Net cash provided/ (used for) by financing activities

2,046,550

 

 

2,861,582

 

 

(3,356,630

)

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(4,284

)

 

(8,576

)

 

(8,862

)

 

Net increase/(decrease) in cash, cash equivalents and restricted cash



807,912

 

 

4,285,302

 

 



(2,196,882



)

 

Cash, cash equivalents and restricted cash at the beginning of the period


3,074,864

 

 

3,576,254

 

 

7,861,556

 

 

Cash, cash equivalents and restricted cash at the end of the period


3,882,776

 

 

7,861,556

 

 


5,664,674

 

 


Reconciliation of cash and cash equivalents and restricted cash:

 

 

 

 

 

 

Cash and cash equivalents

3,811,350

 

 

7,097,938

 

 

4,529,267

 

 

Restricted cash

71,426

 

 

13,618

 

 

6,120

 

 

Long-term restricted cash

-

 

 

750,000

 

 

1,129,287

 

 

Total cash and cash equivalents and restricted cash shown in the statements of cash flows

3,882,776

 

 

7,861,556

 

 

5,664,674

 

 

 

 

 

 

 

 

Net cash (used for)/provided by operating activities

(1,167,049

)

 

853,397

 

 

1,001,765

 

 

Less: Capital expenditures (2)

(51,315

)

 

(8,800

)

 

(241

)

 

Free cash flow

(1,218,364

)

 

844,597

 

 

1,001,524

 

 

(1)   Net cash provided by or used for investing activities primarily consists of net cash flows from investing in debt securities, purchase of long-term investments and capital expenditures.
(2)   Capital expenditures are incurred primarily in connection with leasehold improvements, computers and servers.


iQIYI, INC.

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

(Amounts in thousands of Renminbi (“RMB”), except for per ADS information, unaudited)

 

Three Months Ended

 

Mar 31,

 

Dec 31,

 

March 31,

 

 

2022

 

2022

 

2023

 

 

RMB

 

RMB

 

RMB

 

 

 

 

 

 

 

 

Operating income

93,413

 

 

783,556

 

 

858,631

 

 

Add: Share-based compensation expenses

216,644

 

 

188,506

 

 

169,046

 

 

Add: Amortization and impairment of intangible assets(1)

16,498

 

 

6,619

 

 

6,619

 

 

Operating income (non-GAAP)

326,555

 

978,681

 

1,034,296

 

 

 

 

 

 

 

 

Net income attributable to iQIYI, Inc.

169,093

 

 

304,259

 

 

618,109

 

 

Add: Share-based compensation expenses

216,644

 

 

188,506

 

 

169,046

 

 

Add: Amortization and impairment of intangible assets(1)

16,498

 

 

6,619

 

 

6,619

 

 

Add: Disposal (gain)/loss

(429,916

)

 

62,199

 

 

-

 

 

Add: Impairment of long-term investments

182,277

 

 

271,873

 

 

118,984

 

 

Add: Fair value (gain)/loss of long-term investments

(792

)

 

8,001

 

 

9,445

 

 

Add: Reconciling items on equity method investments

10,914

 

 

17,621

 

 

18,351

 

 

Add: Tax effects on non-GAAP adjustments(2)

(2,529

)

 

(2,704

)

 

(1,021

)

 

Net income attributable to iQIYI, Inc. (non-GAAP)

162,189

 

 

856,374

 

 

939,533

 

 

 

 

 

 

 

 

 

Diluted net income per ADS

0.21

 

 

0.35

 

 

0.64

 

 

Add: Non-GAAP adjustments to earnings per ADS

(0.01

)

 

0.63

 

 

0.33

 

 

Diluted net income per ADS (non-GAAP)

0.20

 

 

0.98

 

 

0.97

 

 

(1)    This represents amortization and impairment of intangible assets resulting from business combinations.
(2)    This represents tax impact of all non-GAAP adjustments.