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IQ posted an unimpressive report in its most recent quarter and bleak guidance, which caused its shares to retreat. IQ expects its total net revenues to be within RMB7.08 billion ($1.10 billion) and RMB7.53 billion ($1.17 billion) in its fiscal fourth quarter, representing a 5% decrease to 1% increase year over year.
“We experienced significant uncertainty in terms of content scheduling, which resulted in softer than expected top-line performance,” explained Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. Its online advertising services revenue came in at RMB1.70 billion ($257.70 million), reflecting a 10% decrease year-over-year. IQ cited less premium content launched during the quarter and a challenging macroeconomic environment in China as responsible for the decline. The company expects the uncertainty related to content scheduling to remain in the coming months.
