Why did IQ's Q1 2024 EPS exceed forecasts?

iQiyi's (NASDAQ: IQ) Q1 2024 EPS exceeded forecasts due to a strategic shift and operational efficiency improvements, despite a slight revenue shortfall. 1. **Strategic Shift and Operational Efficiency**: iQiyi's improvement in content strategy and operating efficiency, along with a reduction in the number of major variety shows launched, contributed to a decrease in content cost. This strategic move positively impacted profitability, allowing the company to achieve better EPS than expected. 2. **Revenue Shortfall**: Although total revenues were slightly below forecasts, the company's focus on premium original content and double-digit growth in income from paid memberships and online advertising services drove overall revenue growth. However, this was not enough to meet all revenue estimates, as content distribution revenue saw a decline due to fewer barter transactions. In summary, iQiyi's EPS exceeded expectations due to strategic cost management and operational improvements, despite a modest revenue shortfall.