China's iQIYI Q4 revenue rises, loss narrows on overseas business strength

Overview

• China online video service's Q4 revenue rose 3% yr/yr

• Net loss for Q4 narrowed significantly compared to last year

• Company's Q4 results driven by IP-centric strategy and overseas business growth

Outlook

• iQIYI plans to advance content excellence and strengthen membership and advertising businesses

• Company aims to accelerate growth in overseas and experience businesses

• iQIYI intends to leverage AI to enhance its content ecosystem

Result Drivers

• IP-CENTRIC STRATEGY - iQIYI's IP-centric strategy reinforced user engagement and market leadership, contributing to improved financial performance

• OVERSEAS BUSINESS - Overseas business maintained strong growth momentum, achieving record top-line performance in Q4

• CONTENT DISTRIBUTION - Content distribution revenue increased 94% yr/yr, driven by more cash transactions

Company press release: ID:nGNX1xMc32

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for iQIYI Inc is $2.41, about 35.9% above its February 25 closing price of $1.77

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 26 three months ago

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