IQ iQiyi Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2024

Commission File Number: 001-38431

iQIYI, Inc.

4/F, iQIYI Youth Center Yoolee Plaza,

No.21, North Road of Workers’ Stadium, Chaoyang District Beijing, 100027,

People’s Republic of China

Tel: +86 10 6267-7171

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒   Form 40-F ☐

Exhibit Index

Exhibit 99.1 — Press Release

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 29, 2024

[Signature Page to Form 6-K]

Exhibit 99.1

iQIYI Announces Fourth Quarter and Fiscal Year 2023 Financial Results

BEIJING, CHINA, February 28, 2024 – 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 fourth quarter and fiscal year ended December 31, 2023.

Fourth Quarter 2023 Highlights

Fiscal Year 2023 Highlights

“Building on the momentum of an iconic turnaround in 2022, 2023 stood as our best-performing year in corporate history. Key financial metrics, including total revenues, operating and net income, and cash flows, all hit historical highs. In addition, ARM grew for five consecutive quarters, which reflected the high attractiveness of our content and the growing value of our membership service,” commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. “I am enthusiastic to witness our business resilience and operational excellence.”

“In addition to the satisfying revenue and profit performance, our financial health also strengthened considerably as both operating and free cash flows exceeded RMB3.3 billion in 2023,” commented Mr. Jun Wang, Chief Financial Officer of iQIYI. “With that, we believe we are on the right path to generate long-term value for our stakeholders.”

Fourth Quarter and Fiscal 2023 Financial Highlights

Fourth Quarter 2023 Operating Highlights

Footnotes:

Fourth Quarter 2023 Financial Results

Total revenues reached RMB7.7 billion (US$1.1 billion), increasing 1% year over year.

Membership services revenue was RMB4.8 billion (US$677.3 million), increasing 1% year over year. The average daily number of total subscribing members for the quarter was 100.3 million, compared to 111.6 million for the same period last year. The number of total subscribing members was 101.1 million as of December 31, 2023, compared to 119.7 million as of December 31, 2022.

Online advertising services revenue was RMB1.7 billion (US$232.5 million), increasing 6% year over year. The increase was primarily driven by the growth of brand advertising business and, to a lesser extent, the growth in the performance-based advertising business.

Content distribution revenue was RMB506.1 million (US$71.3 million), decreasing 21% year over year, primarily due to the decrease in barter transactions, partially offset by the increase of revenue from distribution of theatrical movies invested by iQIYI.

Other revenues were RMB741.2 million (US$104.4 million), increasing 13% year over year, primarily driven by the increase of revenue derived from third-party cooperation.

Cost of revenues was RMB5.5 billion (US$779.3 million), increasing 2% year over year. Content costs as a component of cost of revenues were RMB3.7 billion (US$524.5 million), decreasing 5% year over year. The decrease in content cost was driven by our improvement in content strategy and operating efficiency, and fewer number of major variety shows launched in the quarter.

Selling, general and administrative expenses were RMB947.8 million (US$133.5 million), increasing 1% year over year.

Research and development expenses were RMB451.9 million (US$63.6 million), decreasing 3% year over year.

Operating income was RMB773.7 million (US$109.0 million), decreasing 1% year over year. Operating income margin was 10%, compared to operating income margin of 10% in the same period in 2022. Non-GAAP operating income was RMB927.8 million (US$130.7 million), decreasing 5% year over year. Non-GAAP operating income margin was 12%, compared to non-GAAP operating income margin of 13% in the same period in 2022.

Total other expense was RMB259.8 million (US$36.6 million), decreasing 47% year over year, primarily driven by the decrease in impairment provision, less loss pick-up from equity method investments and increased interest income, and partially offset by increased interest expenses.

Income before income taxes was RMB513.9 million (US$72.4 million), compared to income before income taxes of RMB293.1 million in the same period in 2022.

Income tax expense was RMB38.5 million (US$5.4 million), compared to income tax benefit of RMB11.6 million in the same period in 2022.

Net income attributable to iQIYI was RMB466.2 million (US$65.7 million), increasing 53% year over year. Diluted net income attributable to iQIYI per ADS was RMB0.48 (US$0.07) for the fourth quarter of 2023, compared to diluted net income attributable to iQIYI per ADS of RMB0.35 in the same period of 2022. Non-GAAP net income attributable to iQIYI was RMB682.0 million (US$96.1 million), decreasing 20% year over year. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB0.70 (US$0.10), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB0.98 in the same period of 2022.

As of December 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 RMB6.2 billion (US$876.4million). In the fourth quarter of 2023, the Company had repurchased a total principal amount of US$31.0 million of its 4% convertible senior notes due 2026 (the “2026 Notes”) for cash. As of December 31, 2023, US$395.6 million in aggregate principal amount of the 2026 Notes remained outstanding.

Fiscal Year 2023 Financial Results

Total revenues were RMB31.9 billion (US$4.5 billion), representing a 10% increase from 2022.

Membership services revenue was RMB20.3 billion (US$2.9 billion), representing a 15% increase from 2022. The increase was driven by the growth in ARM, the average daily number of total subscribing members of the year, and our continuous efforts in refining operations to improve user experience and monetization capabilities.

Online advertising services revenue was RMB6.2 billion (US$876.6 million), representing a 17% increase from 2022. The increase was primarily driven by the growth of performance-based advertising business and, to a lesser extent, the growth in the brand advertising business.

Content distribution revenue was RMB2.5 billion (US$346.3 million), representing a 4% decrease from 2022, primarily due to the decrease in barter transactions, partially offset by the increase of cash transactions and revenue from distribution of theatrical movies invested by iQIYI.

Other revenues were RMB2.9 billion (US$405.1 million), representing a 15% decrease from 2022. The decrease was primarily due to the deconsolidation of live broadcasting business.

Cost of revenues was RMB23.1 billion (US$3.3 billion), representing a 4% increase from 2022. Content costs as a component of cost of revenues were RMB16.2 billion (US$2.3 billion), representing a 2% decrease from 2022.

Selling, general and administrative expenses were RMB4.0 billion (US$565.4 million), representing a 16% increase from 2022. The increase was primarily driven by higher marketing spending.

Research and development expenses were RMB1.8 billion (US$248.8 million), representing a 7% decrease from 2022. The decrease was primarily due to the decline of personnel-related compensation expenses.

Operating income was RMB3.0 billion (US$421.1 million), increasing 128% year over year. Operating income margin was 9%, compared to operating income margin of 5% in 2022. Non-GAAP operating income was RMB3.6 billion (US$513.2 million), increasing 68% year over year. Non-GAAP operating income margin was 11%, compared to non-GAAP operating income margin of 7% in 2022.

Total other expense was RMB956.9 million (US$134.8 million), decreasing 29% year over year, primarily driven by the decrease in impairment provision, increased interest income, less loss pick-up from equity method investment, and partially offset by the increase in interest expenses.

Income before income taxes was RMB2.0 billion (US$286.3 million), compared to loss before income taxes of RMB33.8 million in 2022.

Income tax expense was RMB80.0 million (US$11.3 million), compared to income tax expense of RMB84.0 million in 2022.

Net income attributable to iQIYI was RMB1.9 billion (US$271.2 million), compared to net loss attributable to iQIYI of RMB136.2 million in 2022. Diluted net income attributable to iQIYI per ADS was RMB1.98 (US$0.28) for 2023, compared to diluted net loss attributable to iQIYI per ADS of RMB0.16 in 2022. Non-GAAP net income attributable to iQIYI was RMB2.8 billion (US$399.8 million), compared to non-GAAP net income attributable to iQIYI of RMB1.3 billion in 2022. Non-GAAP diluted net income attributable to iQIYI per ADS was RMB2.91 (US$0.42), compared to non-GAAP diluted net income attributable to iQIYI per ADS of RMB1.49 in 2022.

Conference Call Information

iQIYI’s management will hold an earnings conference call at 6:30 AM on February 28, 2024, U.S. Eastern Time (7:30 PM on February 28, 2024, 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/10036705-oxwqe9.html

It will automatically direct you to the registration page of “ iQIYI Fourth Quarter and Fiscal Year 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 March 6, 2024.

Dial-in numbers for the replay are as follows:

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 of intangible assets resulting from business combinations.

Non-GAAP net income attributable to iQIYI, Inc. represents net (loss)/income attributable to iQIYI, Inc. excluding share-based compensation expenses, amortization 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, primarily 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 share, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted net income per ADS represents diluted net (loss)/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/(Loss)

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

iQIYI, INC.

Condensed Consolidated Balance Sheets

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

iQIYI, INC.

Condensed Consolidated Statements of Cash Flows

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

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)