IQIYI Inc. (NASDAQ:IQ) on Monday reported first-quarter results broadly in line with expectations.

Management's guidance reflects a deceleration in the year-over-year revenue decline, according to Benchmark.

The IQIYI Analyst: Analyst Fawne Jiang reiterated a Hold rating on the stock.

The IQIYI Thesis: The key takeaway from the print is the company's "accelerating strategic pivot toward AI-driven production and a more decentralized content ecosystem," Jiang said in the note.

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The Q1 Results: IQIYI's total revenue contracted 13% year-on-year to RMB 6.2 billion but came in-line with consensus estimates, with continued weakness across major segments, the analyst stated. He added that:

Although membership services declined 5% year-on-year, the company reported sequential growth, driven by a strong performance from premium titles like The Punishment and Pursuit of Jade.

Advertising revenue fell 7% year-on-year.

Content distribution revenue shrank 43% year-on-year.

IQIYI's profitability deteriorated sequentially, while the ...