iQIYI (FRA:IQ8) Gross Margin % : 28.20% (As of Dec. 2023)

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What is iQIYI Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. iQIYI's Gross Profit for the three months ended in Dec. 2023 was €279 Mil. iQIYI's Revenue for the three months ended in Dec. 2023 was €990 Mil. Therefore, iQIYI's Gross Margin % for the quarter that ended in Dec. 2023 was 28.20%.

The historical rank and industry rank for iQIYI's Gross Margin % or its related term are showing as below:

FRA:IQ8' s Gross Margin % Range Over the Past 10 Years
Min: -13.6 Med: -0.05 Max: 27.53
Current: 27.53

During the past 9 years, the highest Gross Margin % of iQIYI was 27.53%. The lowest was -13.60%. And the median was -0.05%.

FRA:IQ8's Gross Margin % is ranked worse than
66.8% of 964 companies
in the Media - Diversified industry
Industry Median: 38.52 vs FRA:IQ8: 27.53

iQIYI had a gross margin of 28.20% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for iQIYI was 0.00% per year.

iQIYI Gross Margin % Historical Data

The historical data trend for iQIYI's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

iQIYI Gross Margin % Chart

iQIYI Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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-4.67

6.14

9.95

23.03

27.52

iQIYI Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															28.85	28.66	26.00	27.14	28.20

Competitive Comparison of iQIYI's Gross Margin %

For the Entertainment subindustry, iQIYI's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

iQIYI's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, iQIYI's Gross Margin % distribution charts can be found below:

* The bar in red indicates where iQIYI's Gross Margin % falls into.

iQIYI Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

iQIYI's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1126.3	/	4093.334
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4093.334 - 2967.002)	/	4093.334
	=	27.52 %

iQIYI's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	279.1	/	989.725
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(989.725 - 710.602)	/	989.725
	=	28.20 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

iQIYI (FRA:IQ8) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

iQIYI had a gross margin of 28.20% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

iQIYI Gross Margin % Related Terms

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iQIYI (FRA:IQ8) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » iQIYI Inc (FRA:IQ8) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

IQ:USA 0XWG:UK I1QY34:Brazil

Address

No. 21, North Road of Workers' Stadium, 4th Floor, iQIYI Youth Center, Yoolee Plaza, Chaoyang District, Beijing, CHN, 100027

Website

https://ir.iqiyi.com

Iqiyi is a leading streaming video-on-demand company in China that generates revenue through a mostly subscription basis and has over 100 million paying subscribers and 500 million monthly average users on its platform. The platform also provides user-generated content in long-form videos free of charge to nonpaying users, monetized through video-brand ads and performance-based ads. The company self-produces much of the subscription content and also generates revenue through content distribution, gaming, and IP licensing. Iqiyi competes in a crowded industry with Tencent Video, Alibaba's Youku, ByteDance's MangoTV, and Tencent-backed Bilibili. The company is 45.5% and 5.1% owned by Baidu and Xiaomi, respectively. Baidu also held 89.3% of the voting power as of end-February 2023.

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