iQiyi (NASDAQ:IQ) reported its quarterly earnings results late today, bringing in mixed results that included revenue that surged considerably thanks to the company’s subscriber base gaining more than 50%, yet the three-month period saw the company tally in a loss that was much wider than during the year-ago quarter, sending IQ stock down.
The China-based online video platform said that for its first quarter of the current fiscal year, it posted revenue of RMB 7 billion (roughly $1 billion), marking a 43% increase year-over-year. The Wall Street consensus estimate called for the company to amass revenue of $1.03 billion during the period.
This result was fueled thanks in large part to iQiyi’s subscriber base, which gained roughly 58% when compared to the year-ago quarter. By the end of the period, the business had about 96.8 million subscribers, out of which roughly 98.6% were paying members.
Nevertheless, the company’s results included a net loss attributable to iQiyi of RMB 1.8 billion ($270.3 million), which is several times wider than its year-ago loss of RMB 395.7 million. The wider loss was affected by the higher costs associated with producing original content weighed on the bottom line.
This loss tallied up to roughly RMB 2.52 ($0.35) per share, narrower than analysts’ projection of a loss of 52 cents per share.
IQ stock is down about 4.4% after hours on Thursday following the company’s quarterly figures, due in part to the company’s loss widening considerably year-over-year. Shares had been increasing about 0.5% during regular trading hours for iQiyi in anticipation of the company’s results.