CHU - 3 Things Every iQiyi Investor Should Know
With the stock currently trading right around the level of its March 2018 IPO price, iQiyi (NASDAQ: IQ) shareholders were looking for reassurances that China's streaming video leader was still a worthwhile investment going into its second-quarter earnings report earlier this week.
iQiyi delivered revenue of RMB 7.1 billion ($1 billion), up 15% year over year -- near the midpoint of management's guidance and on the low end of analysts' consensus estimates. Heavy spending to expand its library of original content continued, with the cost of revenue coming in at RMB 7 billion ($1 billion), up 14% compared to the prior-year quarter. This resulted in a loss per share of $0.49, about 10% worse year over year.
iQiyi's management provided a wealth of other valuable information to shareholders on the conference call it held to discuss the results. Here are three important takeaways from that call.