Baidu Announces Third Quarter 2023 Results

BEIJING, Nov. 21, 2023 /PRNewswire/ — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), (“Baidu” or the “Company”), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the third quarter ended September 30, 2023.

“Baidu reported solid third-quarter financial results, demonstrating resilience in a challenging economic climate,” said Robin Li, Co-founder and CEO of Baidu. “I am particularly pleased with our continuous technological enhancements and product improvements against the backdrop of emerging opportunities in generative AI and foundation models. Notably, we launched ERNIE 4.0, our most powerful foundation model. We have also harnessed the power of ERNIE and ERNIE Bot to reinvent our consumer-facing and enterprise-facing products, as well as our own operations, providing AI-native experiences and driving efficiency gains. Meanwhile, we’ve fully opened ERNIE API to cloud enterprises, empowering them to develop their own AI-native applications and solutions. Our AI-centric business and product strategy should set the stage for sustained multi-year revenue and profit expansion within our ERNIE and ERNIE Bot ecosystem.”

“Baidu Core maintained stable margins in the quarter,” said Rong Luo, CFO of Baidu. “Our ongoing investments in AI have underpinned technological and product innovations. Moving forward, while we will continue prioritizing investments in AI, especially in generative AI and foundation models, we will do so with an unrelenting focus on efficiency and strategic resource allocation.”

Third Quarter 2023 Financial Highlights[1]

Baidu, Inc.

(In millions except per 

Q3

Q2

Q3

ADS, unaudited)

2022

2023

2023

YOY

QOQ

RMB

RMB

RMB

US$

Total revenues

32,540

34,056

34,447

4,721

6 %

1 %

Operating income 

5,317

5,210

6,274

860

18 %

20 %

Operating income (non-GAAP) [2]

7,200

7,334

7,596

1,041

6 %

4 %

Net (loss) income to Baidu

(146)

5,210

6,681

916

28 %

Net income to Baidu (non-GAAP) [2]

5,889

7,998

7,267

996

23 %

(9 %)

Diluted (loss) earnings per ADS

(0.87)

14.17

18.22

2.50

29 %

Diluted earnings per ADS (non-GAAP) [2]

16.87

22.55

20.40

2.80

21 %

(10 %)

Adjusted EBITDA [2]

8,879

9,116

9,505

1,303

7 %

4 %

Adjusted EBITDA margin 

27 %

27 %

28 %

28 %

Baidu Core

Q3

Q2

Q3

(In millions, unaudited)

2022

2023

2023

YOY

QOQ

RMB

RMB

RMB

US$

Total revenues 

25,239

26,407

26,572

3,642

5 %

1 %

Operating income

4,982

4,568

5,498

754

10 %

20 %

Operating income (non-GAAP) [2]

6,650

6,516

6,672

914

0 %

2 %

Net income to Baidu Core

25

5,012

6,436

882

25644 %

28 %

Net income to Baidu Core (non-GAAP) [2]

5,767

7,694

6,956

953

21 %

(10 %)

Adjusted EBITDA[2]

8,239

8,229

8,513

1,167

3 %

3 %

Adjusted EBITDA margin 

33 %

31 %

32 %

32 %

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 7.2960 as of September 29, 2023,

as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are

provided solely for the convenience of the reader.

[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also “Reconciliations of

Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details).

Operational Highlights

Corporate

Baidu launched ERNIE 4.0 (EB4) in October 2023. EB4 is now accessible to users on ERNIE Bot. In addition, enterprise customers can use EB4 via our cloud API.Baidu returned US$126 million to shareholders since the beginning of Q3 2023, bringing the cumulative repurchase to US$351 million under the current share repurchase program.Baidu established the Technology Ethics Committee in October 2023 to guide the practices of technology professionals.

Intelligent Driving

Apollo Go, Baidu’s autonomous ride-hailing service, provided 821K rides in the third quarter of 2023, up 73% year over year. As of September 30, 2023, the cumulative rides provided to the public by Apollo Go reached 4.1 million.

Mobile Ecosystem

In September 2023, Baidu App’s MAUs reached 663 million, up 5% year over year.Managed Page accounted for 53% of Baidu Core’s online marketing revenue in the third quarter of 2023.

iQIYI

iQIYI’s average daily number of total subscribing members for the quarter was 107.5 million, compared to 101.0 million for the third quarter of 2022 and 111.2 million for the second quarter of 2023. More importantly, iQIYI’s monthly average revenue per membership (ARM[3]) for the quarter was RMB15.54, compared to RMB13.90 for the third quarter of 2022 and RMB14.82 for the second quarter of 2023, increasing 12% year over year.

[3] The monthly ARM for the quarter is calculated by dividing iQIYI’s total revenues from membership services during a given quarter by the average daily number of total subscribing members for that quarter and the number of months in the quarter.

Third Quarter 2023 Financial Results 

Total revenues were RMB 34.4 billion ($4.72 billion), increasing 6% year over year.

Revenue from Baidu Core was RMB 26.6 billion ($3.64 billion), increasing 5% year over year; online marketing revenue was RMB 19.7 billion ($2.70 billion), up 5% year over year, and non-online marketing revenue was RMB 6.9 billion ($943 million), up 6% year over year.Revenue from iQIYI was RMB 8.0 billion ($1.10 billion), increasing 7% year over year.

Cost of revenues was RMB 16.3 billion ($2.23 billion), which remained essentially unchanged compared to the same period last year.

Selling, general and administrative expenses were RMB 5.8 billion ($792 million), increasing 11% year over year, primarily due to an increase in channel spending and promotional marketing expenses.

Research and development expenses were RMB 6.1 billion ($836 million), increasing 6% year over year, primarily due to an increase in server depreciation expenses and server custody fees which support ERNIE Bot research inputs.

Operating income was RMB 6.3 billion ($860 million). Baidu Core operating income was RMB 5.5 billion ($754 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB 7.6 billion ($1.04 billion). Non-GAAP Baidu Core operating income was RMB 6.7 billion ($914 million), and non-GAAP Baidu Core operating margin was 25%.

Total other income, net was RMB 1.9 billion ($261 million), compared to total other loss, net of RMB 4.8 billion for the same period last year, mainly due to: (1) a recognition of RMB 338 million gain versus RMB 3.1 billion loss for the same period last year from fair value changes in long-term investments; and (2) a decrease in impairment of long-term investments by RMB 1.4 billion.

Income tax expense was RMB 1.3 billion ($175 million), increasing 41% year over year, primarily due to an increase in profit before tax.

Net income attributable to Baidu was RMB 6.7 billion ($916 million), and diluted earnings per ADS was RMB 18.22 ($2.50). Net income attributable to Baidu Core was RMB 6.4 billion ($882 million), and net margin for Baidu Core was 24%. Non-GAAP net income attributable to Baidu was RMB 7.3 billion ($996 million). Non-GAAP diluted earnings per ADS was RMB 20.40 ($2.80). Non-GAAP net income attributable to Baidu Core was RMB 7.0 billion ($953 million), and non-GAAP net margin for Baidu Core was 26%.

Adjusted EBITDA was RMB 9.5 billion ($1.30 billion) and adjusted EBITDA margin was 28%. Adjusted EBITDA for Baidu Core was RMB 8.5 billion ($1.17 billion) and adjusted EBITDA margin for Baidu Core was 32%.

As of September 30, 2023, cash, cash equivalents, restricted cash and short-term investments were RMB 202.7 billion ($27.78 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 197.4 billion ($27.06 billion). Free cash flow was RMB 6.0 billion ($822 million), and free cash flow excluding iQIYI was RMB 5.2 billion ($709 million).

Recent Development

Baidu has appointed Ms. Sandy Ran Xu as an independent director of the Board of Directors of the Company (the “Board”), effective from January 1, 2024.

Ms. Xu has served as CEO and executive director of JD.com since May 2023. Prior to her current role, Ms. Xu served as CFO of JD.com from June 2020 to May 2023. Prior to joining JD.com, Ms. Xu was an audit partner and spent nearly 20 years with PricewaterhouseCoopers Zhong Tian LLP, Beijing office and PricewaterhouseCoopers, San Jose office. Ms. Xu currently also serves as a director of Yonghui Supermarket Co., Ltd. Ms. Xu was a Certified Public Accountant in both China and the United States. Ms. Xu received her bachelor’s degree with a double major in information science and economics from Peking University.

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on November 21, 2023, U.S. Eastern Time (8.30 PM on November 21, 2023, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of “Baidu Inc Q3 2023 Earnings Conference Call”. Please follow the steps to enter your registration details, then click “Register”. Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click:
https://s1.c-conf.com/diamondpass/10034602-0jdhg4.html

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.

About Baidu

Founded in 2000, Baidu’s mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under “BIDU” and HKEX under “9888”. One Baidu ADS represents eight Class A ordinary shares.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, Baidu’s and other parties’ strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu’s growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company’s revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement Baidu’s consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Baidu’s historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, and contingent loss pertaining to legal proceeding in relation to former advertising agencies.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, and contingent loss pertaining to legal proceeding in relation to former advertising agencies, adjusted for related income tax effects. Baidu’s share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, share-based compensation expenses, and contingent loss pertaining to legal proceeding in relation to former advertising agencies.

For more information on non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure.

 

Baidu, Inc. 

Condensed Consolidated Statements of  Income 

(In millions except for per share (or ADS) information, unaudited)

Three Months Ended

September 30,

June 30,

September 30,

September 30,

2022

2023

2023

2023

RMB

RMB

RMB

US$(2)

 Revenues: 

 Online marketing services 

19,943

21,081

21,346

2,926

 Others 

12,597

12,975

13,101

1,795

 Total revenues  

32,540

34,056

34,447

4,721

 Costs and expenses: 

     Cost of revenues(1)

16,273

16,167

16,294

2,233

     Selling, general and administrative(1)

5,193

6,298

5,778

792

     Research and development(1)

5,757

6,381

6,101

836

 Total costs and expenses 

27,223

28,846

28,173

3,861

 Operating income 

5,317

5,210

6,274

860

 Other (loss) income: 

 Interest income 

1,619

1,948

2,082

285

 Interest expense 

(724)

(817)

(853)

(117)

 Foreign exchange (loss) gain, net 

(806)

1,176

(26)

(4)

 Share of losses from equity method investments 

(376)

(383)

(398)

(55)

 Others, net 

(4,483)

(555)

1,100

152

 Total other (loss) income, net 

(4,770)

1,369

1,905

261

 Income before income taxes 

547

6,579

8,179

1,121

 Income tax expense 

908

1,270

1,282

175

 Net (loss) income  

(361)

5,309

6,897

946

 Net (loss) income attributable to noncontrolling interests 

(215)

99

216

30

 Net (loss) income attributable to Baidu 

(146)

5,210

6,681

916

(Loss) earnings per ADS (1 ADS representing 8 Class A ordinary shares):

 -Basic

(0.87)

14.34

18.45

2.53

 -Diluted

(0.87)

14.17

18.22

2.50

(Loss) earnings per share for Class A and Class B ordinary shares:

 -Basic

(0.11)

1.79

2.31

0.32

 -Diluted

(0.11)

1.77

2.28

0.31

Weighted average number of Class A and Class B ordinary shares outstanding  (in millions):

 -Basic 

2,790

2,804

2,814

2,814

 -Diluted

2,790

2,834

2,846

2,846

(1)  Includes share-based compensation expenses as follows:

 Cost of revenues 

84

194

139

19

 Selling, general and administrative 

480

446

358

49

 Research and development 

1,039

1,403

778

108

 Total share-based compensation expenses 

1,603

2,043

1,275

176

(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 7.2960 to US$1.00, the exchange rate in effect as of

September 29, 2023 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

 

 

Baidu, Inc. 

Condensed Consolidated Balance Sheets

(In millions, unaudited)

December 31,

September 30,

September 30,

2022

2023

2023

RMB

RMB

US$

ASSETS

    Current assets:

 Cash and cash equivalents

53,156

34,908

4,785

 Restricted cash

11,330

11,392

1,561

 Short-term investments, net

120,839

156,359

21,431

 Accounts receivable, net

11,733

10,712

1,468

 Amounts due from related parties

5,432

4,962

680

 Other current assets, net

10,360

12,084

1,656

    Total current assets

212,850

230,417

31,581

    Non-current assets:

 Fixed assets, net

23,973

26,481

3,630

 Licensed copyrights, net

6,841

6,992

958

 Produced content, net

13,002

12,626

1,731

 Intangible assets, net

1,254

1,012

139

 Goodwill

22,477

22,586

3,096

 Long-term investments, net

55,297

52,553

7,203

 Long-term time deposits and held-to-maturity investments

23,629

25,260

3,462

 Amounts due from related parties

60

147

20

 Deferred tax assets, net

2,129

1,783

244

 Operating lease right-of-use assets

10,365

10,512

1,441

 Other non-current assets

19,096

20,665

2,832

    Total non-current assets

178,123

180,617

24,756

Total assets

390,973

411,034

56,337

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

   Current liabilities:

Short-term loans

5,343

11,735

1,608

Accounts payable and accrued liabilities

38,014

37,184

5,096

Customer deposits and deferred revenue

13,116

15,043

2,062

Deferred income

72

151

21

Long-term loans, current portion

1

Convertible senior notes, current portion

8,305

3,114

427

Notes payable, current portion

6,904

6,179

847

Amounts due to related parties

5,067

5,241

718

Operating lease liabilities

2,809

2,953

405

    Total current liabilities

79,630

81,601

11,184

    Non-current liabilities:

Deferred income

159

119

16

Deferred revenue

331

421

58

Amounts due to related parties

99

83

11

Long-term loans

13,722

14,472

1,984

Notes payable

39,893

35,861

4,915

Convertible senior notes

9,568

8,349

1,144

Deferred tax liabilities

2,898

2,750

377

Operating lease liabilities

4,810

4,830

662

Other non-current liabilities

2,058

1,838

253

    Total non-current liabilities

73,538

68,723

9,420

Total liabilities

153,168

150,324

20,604

Redeemable noncontrolling interests

8,393

9,276

1,271

Equity

    Total Baidu shareholders’ equity

223,478

242,427

33,227

    Noncontrolling interests

5,934

9,007

1,235

Total equity

229,412

251,434

34,462

Total liabilities, redeemable noncontrolling

interests, and equity

390,973

411,034

56,337

 

 

Baidu, Inc. 

Selected Information

(In millions, unaudited)

Three months ended
September 30, 2022 (RMB)

Three months ended
June 30, 2023 (RMB)

Three months ended
September 30, 2023 (RMB)

Three months ended
September 30, 2023 (US$)

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &

adj(2)

Baidu,

Inc.

Baidu

Core

iQIYI

Elim &

adj(2)

Baidu,

Inc.

Total revenues 

25,239

7,471

(170)

32,540

26,407

7,802

(153)

34,056

26,572

8,015

(140)

34,447

3,642

1,098

(19)

4,721

  YOY

5 %

7 %

6 %

  QOQ

1 %

3 %

1 %

Costs and expenses: 

  Cost of revenues (1)

10,745

5,705

(177)

16,273

10,553

5,774

(160)

16,167

10,610

5,840

(156)

16,294

1,454

800

(21)

2,233

  Selling, general and administrative (1)

4,231

980

(18)

5,193

5,344

979

(25)

6,298

4,810

981

(13)

5,778

659

135

(2)

792

  Research and development (1)

5,281

476

5,757

5,942

439

6,381

5,654

447

6,101

775

61

836

Total costs and expenses 

20,257

7,161

(195)

27,223

21,839

7,192

(185)

28,846

21,074

7,268

(169)

28,173

2,888

996

(23)

3,861

  YOY 

  Cost of revenues 

(1 %)

2 %

0 %

  Selling, general and administrative 

14 %

0 %

11 %

  Research and development 

7 %

(6 %)

6 %

  Costs and expenses

4 %

1 %

3 %

Operating income

4,982

310

25

5,317

4,568

610

32

5,210

5,498

747

29

6,274

754

102

4

860

  YOY

10 %

141 %

18 %

  QOQ

20 %

22 %

20 %

Operating margin 

20 %

4 %

16 %

17 %

8 %

15 %

21 %

9 %

18 %

  Add: total other (loss) income, net

(4,108)

(662)

(4,770)

1,603

(234)

1,369

2,159

(254)

1,905

296

(35)

261

  Less: income tax expense

866

42

908

1,262

8

1,270

1,272

10

1,282

174

1

175

  Less: net (loss) income attributable to NCI

(17)

1

(199)

(3)

(215)

(103)

3

199

(3)

99

(51)

7

260

(3)

216

(6)

1

35

(3)

30

Net income (loss) attributable to Baidu

25

(395)

224

(146)

5,012

365

(167)

5,210

6,436

476

(231)

6,681

882

65

(31)

916

  YOY

25644 %

  QOQ

28 %

30 %

28 %

Net margin 

0 %

(5 %)

(0 %)

19 %

5 %

15 %

24 %

6 %

19 %

Non-GAAP financial measures:

Operating income (non-GAAP)

6,650

525

7,200

6,516

786

7,334

6,672

895

7,596

914

123

1,041

  YOY

0 %

70 %

6 %

  QOQ

2 %

14 %

4 %

Operating margin (non-GAAP)

26 %

7 %

22 %

25 %

10 %

22 %

25 %

11 %

22 %

Net income attributable to Baidu (non-

GAAP)

5,767

187

5,889

7,694

595

7,998

6,956

622

7,267

953

85

996

  YOY

21 %

233 %

23 %

  QOQ

(10 %)

5 %

(9 %)

Net margin (non-GAAP)

23 %

3 %

18 %

29 %

8 %

23 %

26 %

8 %

21 %

Adjusted EBITDA

8,239

615

8,879

8,229

855

9,116

8,513

963

9,505

1,167

132

1,303

  YOY

3 %

57 %

7 %

  QOQ

3 %

13 %

4 %

Adjusted EBITDA margin 

33 %

8 %

27 %

31 %

11 %

27 %

32 %

12 %

28 %

(1)  Includes share-based compensation as follows:

 Cost of revenues 

45

39

84

160

34

194

107

32

139

15

4

19

 Selling, general and administrative 

375

105

480

356

90

446

290

68

358

40

9

49

 Research and development 

978

61

1,039

1,358

45

1,403

732

46

778

100

8

108

 Total share-based compensation 

1,398

205

1,603

1,874

169

2,043

1,129

146

1,275

155

21

176

 (2) Relates to intersegment eliminations and adjustments 

 (3) Relates to the net income/(loss) attributable to iQIYI noncontrolling interests 

 

 

Baidu, Inc. 

Condensed Consolidated Statements of Cash Flows

(In millions,unaudited)

Three months ended 

Three months ended 

Three months ended 

Three months ended 

September 30, 2022 (RMB)

June 30, 2023 (RMB)

September 30, 2023 (RMB)

September 30, 2023 (US$)

 Baidu

excl. 

iQIYI

iQIYI

Baidu,

Inc.

 Baidu

excl. 

iQIYI

iQIYI

Baidu,

Inc.

 Baidu

excl. 

iQIYI

iQIYI

Baidu,

Inc.

 Baidu

excl. 

iQIYI

iQIYI

Baidu,

Inc.

Net cash provided by operating activities

8,543

196

8,739

9,746

886

10,632

8,694

831

9,525

1,192

114

1,306

Net cash provided by (used in) investing activities 

7,603

407

8,010

7,309

(421)

6,888

(11,345)

(55)

(11,400)

(1,555)

(8)

(1,563)

Net cash (used in) provided by financing activities

(5,967)

(106)

(6,073)

1,908

(1,176)

732

(5,253)

269

(4,984)

(720)

37

(683)

Effect of exchange rate changes on cash, cash

equivalents and restricted cash

1,980

60

2,040

496

128

624

153

5

158

21

1

22

Net increase (decrease) in cash, cash

equivalents and restricted cash 

12,159

557

12,716

19,459

(583)

18,876

(7,751)

1,050

(6,701)

(1,062)

144

(918)

Cash, cash equivalents and restricted cash

  At beginning of period

50,662

3,019

53,681

30,355

5,665

36,020

49,814

5,082

54,896

6,828

697

7,525

  At end of period

62,821

3,576

66,397

49,814

5,082

54,896

42,063

6,132

48,195

5,766

841

6,607

Net cash provided by operating activities

8,543

196

8,739

9,746

886

10,632

8,694

831

9,525

1,192

114

1,306

Less: Capital expenditures

(2,140)

(48)

(2,188)

(2,693)

(13)

(2,706)

(3,525)

(4)

(3,529)

(483)

(1)

(484)

Free cash flow

6,403

148

6,551

7,053

873

7,926

5,169

827

5,996

709

113

822

Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI’s consolidated cash flows.

 

 

Baidu, Inc. 

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures  

(In millions except for per ADS information, unaudited)

Three months ended 

Three months ended 

Three months ended 

Three months ended 

September 30, 2022 (RMB)

June 30, 2023 (RMB)

September 30, 2023 (RMB)

September 30, 2023 (US$)

Baidu

Core

iQIYI

Baidu,

Inc.

Baidu

Core

iQIYI

Baidu,

Inc.

Baidu

Core

iQIYI

Baidu,

Inc.

Baidu

Core

iQIYI

Baidu,

Inc.

Operating income

4,982

310

5,317

4,568

610

5,210

5,498

747

6,274

754

102

860

Add: Share-based compensation expenses

1,398

205

1,603

1,874

169

2,043

1,129

146

1,275

155

21

176

Add: Amortization and impairment of intangible assets(1)

56

10

66

74

7

81

45

2

47

5

5

Add: Contingent loss(4)

214

214

Operating income (non-GAAP)

6,650

525

7,200

6,516

786

7,334

6,672

895

7,596

914

123

1,041

Add:  Depreciation of fixed assets

1,589

90

1,679

1,713

69

1,782

1,841

68

1,909

253

9

262

Adjusted EBITDA

8,239

615

8,879

8,229

855

9,116

8,513

963

9,505

1,167

132

1,303

Net income (loss) attributable to Baidu

25

(395)

(146)

5,012

365

5,210

6,436

476

6,681

882

65

916

Add: Share-based compensation expenses

1,394

205

1,497

1,872

169

1,949

1,128

146

1,194

155

20

164

Add: Amortization and impairment of intangible assets(1)

50

10

56

61

7

65

43

2

44

6

6

Add: Disposal (gain)

(6)

(6)

(919)

(89)

(959)

(753)

(753)

(103)

(103)

Add: Impairment of long-term investments

1,042

376

1,230

270

155

340

46

46

6

6

Add: Fair value loss (gain) of long-term investments

3,149

(27)

3,135

1,239

(4)

1,237

(384)

(2)

(385)

(53)

(53)

Add: Reconciling items on equity method investments(2)

237

16

245

296

(9)

292

572

572

78

78

Add: Contingent loss(4)

214

214

Add: Tax effects on non-GAAP adjustments(3)

(338)

2

(336)

(137)

1

(136)

(132)

(132)

(18)

(18)

Net income attributable to Baidu (non-GAAP)

5,767

187

5,889

7,694

595

7,998

6,956

622

7,267

953

85

996

Diluted earnings per ADS

(0.87)

14.17

18.22

2.50

Add:  Accretion of the redeemable noncontrolling

interests

0.45

0.50

0.53

0.07

Add:  Non-GAAP adjustments to earnings per ADS

17.29

7.88

1.65

0.23

Diluted earnings per ADS (non-GAAP)

16.87

22.55

20.40

2.80

(1) This represents amortization and impairment of intangible assets resulting from business combinations.

(2) This represents Baidu’s share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee’s books, accretion of

their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share.

(3) This represents tax impact of all non-GAAP adjustments.

(4) This represents contingent loss pertaining to legal proceeding involving former advertising agency.

 

 

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SOURCE Baidu, Inc.