IQiyi Shares Tumble 6% After-hours on First Quarter Losses
Chinese online streaming service provider reported higher revenue in first quarter but increased losses, sending shares lower in after-hours trading Thursday.
The stock of iQiyi Inc. (Nasdaq: IQ) fell 6 percent in after-hours trading Thursday, to $19.08 per share, after the company posted increased losses for the first quarter.
The Beijing-based company, which provides online entertainment, said in a statement today after markets closed that its revenue for the three months through March reached $1 billion, at an increase of 43 percent year-over-year.
Net loss, it said, was $270.3 million, or 35 cents per share, four times higher from the same period a year ago.
The results sent shares in the company to tumble after-hours. Its stock was up 11 cents on the day, closing at $20.38 per ADS on the day, then slid $1.30 in the evening.
The founder, chairman, and director chief executive officer of 111, Yu Gong, said in the report that the company started off 2019 with a solid quarter of results, especially in membership business driven by its rapidly growing subscriber base of 96.8 million at quarter end.
He added, "We further strengthened our platform and continued to take the lead in China's internet video streaming industry in terms of various 3rd-party tracking metrics. Our strategy remains focused on producing high quality original content and refining our IP-centered content ecosystem which will be the key drivers for our future growth. As China's online entertainment industry is entering a new phase of growth, we believe we are well-positioned to capture the enormous opportunities for us in the years to come."
Cost of revenues in the company were $1.1 billion, up 50 percent from a year ago, the company said. The increase was primarily driven by higher content costs.
Looking forward, iQiyi said it expects revenue in second quarter to reach between $1 billion and $1.1 billion, representing an increase of between 12 and 18 percent from the same period in 2018.