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.