It was a solid end to the fiscal 2018 for iQiyi (NASDAQ:IQ) as the online video platform posted earnings and revenue that were ahead of the mark, but certain issues with the company’s lack of profitability balanced out its fourth quarter.
The Beijing, China-based video site — which has more than 80 million subscribers — is still trying to turn a profit and is moving in the wrong direction as its net losses for the period were $505.7 million, or 70 cents per American deposity share (ADS). The company posted losses of $91.1 million during its year-ago quarter.
Analysts were calling for iQiyi to bring in losses of 73 cents per ADS, meaning the company’s results did beat what Wall Street projected, according to data compiled by FactSet. Revenue was also a strong point for the video content platform, gaining 55% when compared to the year-ago quarter to reach $1 billion.
Wall Street said it projected the company to bring in revenue of $972 million, also according to data compiled by FactSet. For its first quarter of its fiscal 2019, iQiyi sees its earnings at 63 cents per share, while its sales are slated to be around $979 million.
“We delivered another quarter of solid growth and closed out the year on a strong footing with over 87 million total subscribing members,” said Dr. Yu Gong, Founder, Director and CEO of iQIYI.
IQ stock fell about 0.7% after the bell following the company’s quarterly figures. Shares had been gaining about 0.7% during regular trading hours as the company geared up to report for the period.