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  "documentTitle": "iQIYI, Inc. (IQ)",
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  "presentationDate": "2020-04-07 00:00:00",
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      "text": "The relationship between IQ’s deferred revenues and realized revenues is the opposite of what we would expect based on their claims – the realized revenue curve consistently leads the deferred revenue curve and the gap between the two is widening.",
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      "text": "Example: Deferred Revenues to Realized Revenues at a Growing Membership Based Company",
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      "text": "Between 3Q18 and 1Q19, IQ reported an increase of 16.1 million paying subscribers and an increase in the average subscription period from 6 months to 8 months. However, IQ's deferred revenue declined by 17% during the same period – this mathematical contradiction shows that at least one of these numbers is made up.",
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      "text": "We contend that IQ's management must be misrepresenting its number of paying subscribers, the average membership period, or both.",
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      "kind": "paragraph",
      "text": "This following chart shows IQ's actual deferred and realized revenue curves. The relationship between IQ's deferred revenues and realized revenues is the opposite of what we would expect based on their claims – the realized revenue curve consistently leads the deferred revenue curve and the gap between the two is widening.",
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      "text": "17 IQ 3Q18 Earnings Call, October 31, 2018\n18 IQ 1Q19 Earnings Call, May 17, 2019",
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      "text": "IQ's Claims of Membership Growth are Contradicted by Declining Real Deferred Revenue",
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