iQIYI, Inc. (NASDAQ:IQ) Q3 2023 Earnings Call Transcript November 21, 2023 6:30 AM ET

Company Participants

Chang You - Director of Investor Relations

Yu Gong - Founder, Director & Chief Executive Officer

Jun Wang - Chief Financial Officer

Youqiao Duan - Senior Vice President, Membership Business

Xiaohui Wang - Chief Content Officer

Wenfeng Liu - Chief Technology Officer

Conference Call Participants

Xueqing Zhang - CICC

Lincoln Kong - Goldman Sachs

Daniel Chen - JPMorgan

Thomas Chong - Jefferies

Maggie Ye - CLSA

Operator

Thank you for standing by and welcome to the iQIYI Third Quarter 2023 Earnings Conference Call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. [Operator Instructions].

I would now like to hand the conference over to Chang You, Investor Relations Director of iQIYI. Please go ahead.

Chang You

Thank you, operator. Hello, everyone, and thank you for joining iQIYI third quarter 2023 earnings conference call. The Company's results were released earlier today and are available on the Company's Investor Relations website at ir.iqiyi.com.

On the call today are Mr. Yu Gong, our Founder, Director and CEO; Mr. Jun Wang, our CFO; Mr. Xiaohui Wang, our CCO, Chief Content Officer; Mr. Wenfeng Liu, our CTO; Mr. Youqiao Duan, Senior Vice President of our Membership Business and Mr. Xianghua Yang of Senior Vice President of -- and Overseas. Mr. Gong will give a brief overview of the Company's business operations and highlights, followed by Jun, who will go through the financials. After the prepared remarks, the management team will participate in the Q&A session.

Before we proceed, please note that the discussion today will contain forward-looking statements, made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in our public filings with the SEC. iQIYI does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

I will now pass on to Mr. Gong. Please go ahead.

Yu Gong

Hello everyone. Thank you for joining us today. Our focus of the quarter remains firmly on generating high-quality growth, achieving strong results in both revenues and profits. Our total revenues grew 7% year-on-year, while profit performance was far more remarkable. Gross profit and non-GAAP operating profit had annual growth of 23% and 71%, respectively. The impressive financial results demonstrate the strength of our robust operating leverage occurred by all exceptional content, which took as a whole competitive advantage. iQIYI is natural brand for our top-tier content. According to Enlighten data, we have been leading the industry in drama viewership shell for seven consecutive quarters. Our original dramas remain as a key driver for container supply and revenue contribution.