iQIYI's Q1 earnings report highlights innovation, growth

Revenue from online advertising services increased by 6 percent year over year to 1.5 billion yuan. Performance ads experienced double-digit growth and hit a historical high in Q1 fueled by the growing adaptation of Generative AI, which in turn, boosts ROI. Brand ad business continues to attract advertisers, with over half of revenue stemming from content-targeted ads, exemplified by a notable 80 percent increase in this year’s revenue for the hit variety show Become a Farmer.

Content distribution revenue was 928 million yuan, increasing 27 percent year over year, primarily driven by the distribution of several major titles. Other revenues were 718.4 million yuan, increasing 8 percent year over year.

The report also highlighted the streaming giant’s robust growth in the overseas market as iQIYI original productions found increasing resonance with global audiences.

Membership revenue grew both annually and sequentially, with a nearly 80 percent annual increase in multiple markets outside of the Chinese mainland, including Hong Kong and the UK.

The original Chinese drama Sword and Fairy 4 topped viewership in all regions and categories on iQIYI’s overseas platform, while Malaysian original drama Rampas Cintaku 2 bolstered both traffic and membership revenue growth on iQIYI’s Malaysian site.