iQIYI Clocks 3% Revenue Growth In Q2 Driven By iQIYI Lite App's Popularity, Beats On Q2, Issues Q3 Guidance - iQIYI (NASDAQ:IQ)

Chinese online video platform iQIYI Inc IQ reported second-quarter FY21 revenue growth of 3% year-on-year to $1.2 billion, beating the analyst consensus of $1.14 billion. Alphabet, Inc's GOOG GOOGL YouTube revenue expanded 83% Y/Y to $7.34 billion above the consensus of $6.37 billion.
Segments: Membership services revenue was flat Y/Y at $618.4 million, Online advertising services revenue grew 15% Y/Y to $282.7 million, Content distribution revenue declined 20% Y/Y to $106.5 million, and Other revenues increased 20% Y/Y to $170.7 million.
Margin: The operating loss margin improved 200 bps to (15)% as the cost and expenses remained relatively subdued.
Loss per ADS of $(0.27) beat the analyst consensus loss of $(0.34).
The number of total subscribing members reached 106.2 million as of Jun. 30, driven by the original dramas launched during the quarter.
iQIYI saw encouraging momentum from its iQIYI Lite app targeting lower-tier cities in China and from its overseas expansion.
It held $1.9 billion in cash and equivalents.
Outlook: iQIYI sees Q3 revenue of $1.18 billion - $1.25 billion, representing a 6% - 12% growth Y/Y, against the analyst consensus of $1.25 billion.
Price Action: IQ shares traded higher by 1.27% at $10.34 in the premarket session on the last check Thursday.