iQiyi Inc. (NASDAQ: IQ), a leading online entertainment service in China, witnessed a significant pre-market plunge of 5.12% on Tuesday. This downward movement followed the company's Q4 2024 earnings release, which fell short of market expectations.
According to the earnings report, iQiyi posted a non-GAAP net loss of $0.01 per American depositary share (ADS) for the fourth quarter, in line with analysts' estimates. However, the company's total revenue of $906 million missed the FactSet consensus estimate of $913.55 million, reflecting a year-over-year decline of 14%.
The disappointing financial results can be attributed to a weaker content pipeline during the quarter, which impacted membership services revenue. Membership services, the company's primary revenue stream, decreased by 15% year-over-year to $562.1 million. Additionally, online advertising services revenue and content distribution revenue also witnessed declines of 13% and 20%, respectively.
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