omniture

Baidu Announces First Quarter 2021 Results

2021-05-18 17:40 10738

BEIJING, May 18, 2021 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the first quarter ended March 31, 2021.

"We are delighted to bring innovation across many sectors, including marketing cloud, enterprise cloud, smart transportation, autonomous driving, smart assistant and AI chip, through our decade-long investment in AI," said Robin Li, co-founder and CEO of Baidu. "With AI powering the next stage of technology growth, many Baidu alumni have rejoined us, and our employees are energized from working on intelligent computing that can improve daily life and make the complex world simpler."

"Baidu Core delivered a strong first quarter with revenue growing 34% year over year, powered by non-advertising revenue growing 70% year over year," said Herman Yu, CFO of Baidu. "We will continue to invest heavily in sales, R&D and operations to support the rapid growth of our AI-powered business."

First Quarter 2021 Financial Highlights[1]

 

Baidu, Inc.

(In millions except per

Q1

 

Q4

 

Q1

         

ADS, unaudited

2020

 

2020

 

2021

   

YOY

 

QOQ

 

RMB

 

RMB

 

RMB

US$

       

Total revenues

22,545

 

30,263

 

28,134

4,294

 

25%

 

(7%)

                     

Operating (loss) income 

(437)

 

4,977

 

2,789

426

 

-

 

(44%)

Operating income (non-GAAP) [2]

1,437

 

7,055

 

4,362

666

 

204%

 

(38%)

                     

Net income to Baidu

41

 

5,174

 

25,653

3,915

 

62468%

 

396%

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

3,082

 

6,868

 

4,297

656

 

39%

 

(37%)

                     

Diluted earnings per ADS

0.02

 

15.05

 

73.76

11.26

 

368700%

 

390%

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

8.84

 

20.08

 

12.38

1.89

 

40%

 

(38%)

                     

Adjusted EBITDA[2]

2,852

 

8,564

 

5,900

901

 

107%

 

(31%)

Adjusted EBITDA margin 

13%

 

28%

 

21%

21%

       

 

 

Baidu Core

 

Q1

 

Q4

 

Q1

         

(In millions, unaudited)

2020

 

2020

 

2021

   

YOY

 

QOQ

 

RMB

 

RMB

 

RMB

US$

       

Total revenues 

15,268

 

23,111

 

20,483

3,126

 

34%

 

(11%)

                     

Operating income

1,848

 

6,320

 

3,847

587

 

108%

 

(39%)

Operating income (non-GAAP) [2]

3,348

 

8,031

 

5,064

773

 

51%

 

(37%)

                     

Net income to Baidu Core

1,698

 

6,036

 

26,354

4,022

 

1452%

 

337%

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

4,519

 

7,533

 

4,870

743

 

8%

 

(35%)

                     

Adjusted EBITDA [2]

4,641

 

9,422

 

6,487

990

 

40%

 

(31%)

Adjusted EBITDA margin 

30%

 

41%

 

32%

32%

       

 

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.5518 as of March 31, 2021, 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).

Other Highlights

Corporate

  • Baidu ranks Top 3 in cloud services and No.1 in the utilization of renewable energy for data centers, according to Greenpeace, a global environmental organization, based on its April 2021 report Clean Cloud: Tracking Renewable Energy Use in China's Tech Industry.
  • Baidu released its annual ESG Report in February 2021, which details Baidu's ESG policies and sustainability initiatives (http://esg.baidu.com/en/esg_download.html).
  • On March 23, 2021, Baidu listed on the HKEX (9888) through a global offering of 95,000,000 Class A ordinary shares, receiving $3.1 billion in net proceeds.
  • Baidu returned US$300 million to shareholders under the 2020 Share Repurchase Program this year, bringing the cumulative repurchase to $2.2 billion since 2020.

AI Cloud

  • Baidu EasyDL, a simple to use machine learning service, was rated No.1 in terms of usage in China, per IDC in December 2020, topping the list for the second time.
  • Baidu deep learning framework PaddlePaddle, upgraded to v2.0 in March 2021, was ranked among the Top 3 globally in terms of usage based on pull request, according to Github.
  • A leading retail bank in China implemented Baidu's AI PaaS, which has led to five follow-on purchases, including application to automate customer service and consumer loan approval, and the recent purchase of private cloud services.
  • Baidu partnered with the online arm of China's largest TV network CCTV to implement Baidu AI PaaS with capabilities to automate video clip creation and tagging from live broadcasting and use smart assistant to quickly locate desired video content. During an important annual event, Baidu enabled CCTV.com to simultaneously interview congressional meeting participants with AI reporters, powered by Baidu Brain, and timely share these interviews on the Internet.
  • Chongqing, which implemented Apollo V2X last year, marking Baidu's entry into western China, signed with Apollo to make its smart transportation infrastructure 5G enabled, to support robotaxi ride hailing operation.
  • Chengdu (Sichuan), a leader in science and technology development, signed with Apollo to implement V2X vehicle-to-road infrastructure.

Intelligent Driving

  • Apollo has accumulated 6.2 million miles of L4 autonomous driving testing on the road and 600 million miles of simulated testing since its founding in 2013.
  • Apollo received permit to operate autonomous driving at night and under special weather conditions on public roads in Beijing. Apollo also received permits to pilot fully autonomous driving in Beijing, Cangzhou (Hebei), and Changsha (Hunan).
  • Apollo Go, China's first fully autonomous ride-hailing service, with no one on the driver’s seat, is now open to the public at the Shougang Park, a Beijing 2022 Winter Olympics site.
  • Apollo Go begins to charge for robotaxi ride hailing in Cangzhou, based on the distance traveled starting with a minimum fare, similarly to regular ride hailing.
  • The total addressable market for robotaxi ride hailing will reach US$224 billion in China by 2025, according to China Insights Consultancy, a market research and consulting company.
  • Jidu Auto, an intelligent EV company established in partnership with Zhejiang Geely Holding Group, appointed Yiping Xia as its CEO. Mr. Xia previously served as CTO at Mobike and held positions at Fiat Chrysler and Ford.
  • Guangzhou Automobile Group joins Apollo's network of over 10 leading automakers to install Apollo Self Driving (ASD) services in its new vehicles.
  • Guidehouse Insights (previously Navigant Research) has rated Baidu in the "leader" category for the second consecutive year, the only Chinese company honored among the four AI companies selected globally for this category. Apollo's open platform, to empower Jidu and other automakers as well as Apollo Go robotaxi, puts Apollo in a unique position to be well funded and widely adopted.
  • DuerOS for Auto, powering infotainment, has been installed in over 1.5 million new vehicles, recorded Q1 2021 installation more than doubled from the prior year.

Other Growth Initiatives

  • DuerOS monthly voice queries reached 6.6 billion with first-party voice queries reaching 3.9 billion in March 2021.
  • Xiaodu ranked No.1 in smart display shipments globally and No.1 in smart speaker shipments in China for 2020, according to IDC, Strategy Analytics and Canalys.
  • Xiaodu S12 smart pad for the education market was introduced in March with an MSRP of 1,699.
  • Baidu Kunlun completed its first round of funding at a post-money valuation of $2 billion in April 2021. Kunlun chips are designed to optimize workload and improve cloud cost structure.

Mobile Ecosystem

  • Baidu has strengthened its strong Internet foundation with Baidu App monthly active users (MAUs) reaching 558 million and daily logged in users reaching over 75% in March 2021.
  • Baidu's AI building blocks are helping creators, service providers and merchants better engage with users and perform user life-time management:
  • BJH publisher accounts grew 40% year over year to reached 4.2 million.
  • Smart Mini Program MAUs reached 416 million, and the number of SMPs grew 74% from a year ago; and
  • Revenue from Managed Page accounted for 35% of Baidu Core's online marketing revenue, up from 21% a year ago.

iQIYI

iQIYI subscribers reached 105.3 million as of March 31, 2021, serving as a strong foundation to support its over 50 in-house studios and produce entertainment blockbuster originals. iQIYI's net loss narrowed to RMB1.3 billion in Q1 21, compared to RMB 2.9 billion from a year ago.

First Quarter 2021 Results

Total revenues were RMB 28.1 billion ($4.29 billion), increasing 25% year over year.

  • Revenue from Baidu Core was RMB 20.5 billion ($3.13 billion), increasing 34% year over year. Online marketing revenue was RMB 16.3 billion ($2.48 billion), up 27% year over year. Non-marketing revenue was RMB 4.2 billion ($646 million), up 70% year over year, driven by cloud and other services.
  • Revenue from iQIYI was RMB 8.0 billion ($1.22 billion), increasing 4% year over year.

Cost of revenues was RMB 15.0 billion ($2.29 billion), increasing 2% year over year, primarily due to an increase in traffic acquisition costs and cost of goods sold, offset by a decrease in content costs and the amortization/impairment of intangible assets.

Selling, general and administrative expenses were RMB 5.2 billion ($800 million), increasing 36% year over year, primarily due to an increase in channel spending and promotional expenses.

Research and development expense was RMB 5.1 billion ($778 million), increasing 15% year over year, primarily related to personnel-related expenses.

Operating income was RMB 2.8 billion ($426 million). Baidu Core operating income was RMB 3.8 billion ($587 million), and Baidu Core operating margin was 19%. Non-GAAP operating income was RMB 4.4 billion ($666 million). Non-GAAP Baidu Core operating income was RMB 5.1 billion ($773 million), and non-GAAP Baidu Core operating margin was 25%.

Total other income, net was RMB 23.8 billion ($3.63 billion), which included a fair value gain of RMB 23.7 billion from long-term investments, mainly including a gain from the investment in Kuaishou Technology.

Income tax expense was RMB 1.5 billion ($234 million), compared to RMB 198 million last year, primarily due to the increase in profit.

Net income attributable to Baidu was RMB 25.7 billion ($3.92 billion), and diluted earnings per ADS was RMB 73.76 ($11.26). Net income attributable to Baidu Core was RMB 26.4 billion ($4.02 billion). Non-GAAP net income attributable to Baidu was RMB 4.3 billion ($656 million), and non-GAAP diluted earnings per ADS was RMB 12.38 ($1.89). Non-GAAP net income attributable to Baidu Core was RMB 4.9 billion ($743 million).

Adjusted EBITDA was RMB 5.9 billion ($901 million). Adjusted EBITDA for Baidu Core was RMB 6.5 billion ($990 million) and adjusted EBITDA margin for Baidu Core was 32%. 

As of March 31, 2021, cash, cash equivalents, restricted cash and short-term investments were RMB 172.9 billion ($26.40 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 159.6 billion ($24.37 billion). Free cash flow was RMB 2.6 billion ($400 million), and free cash flow excluding iQIYI was RMB 4.0 billion ($615 million).

Financial Guidance

For the second quarter of 2021, Baidu expects revenues to be between RMB 29.7 billion ($4.5 billion) and RMB 32.5 billion ($5.0 billion), representing a growth rate of 14% to 25% year over year, which assumes that Baidu Core revenue will grow between 20% and 33% year over year. This guidance does not include potential contribution from an acquisition of YY Live.

The above forecast reflects Baidu's current and preliminary view, which is subject to substantial uncertainties.

Conference Call Information

Baidu's management will hold an earnings conference call at 8:00 AM on May 18, 2021, U.S. Eastern Time (8:00 PM on May 18, 2021, Beijing Time).

Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.

For pre-registration, please click http://apac.directeventreg.com/registration/event/4696103. It will automatically direct you to the registration page of "Baidu Q1 2021 Earnings Conference Call", where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter "4696103".

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

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

A replay of the conference call may be accessed by phone at the following number until May 26 2021:

International:

+61 2 8199 0299

Conference ID:

4696103

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 the NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

Contacts

Investors Relations, Baidu, Inc.
Tel: +86-10-5992-8888
Email: ir@baidu.com

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, the outlook for the second quarter of 2021, quotations from management in this announcement, as well as 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 and amortization and impairment of intangible assets resulting from business combinations.

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, 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 shares, 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, which is adjusted for accretion for the redeemable non-controlling interests, 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, and share-based compensation expenses.

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

 

 

Baidu, Inc. 

Condensed Consolidated Statements of Income (Loss)

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

   

Three Months Ended

 
   

March 31,

 

December 31,

 

March 31,

 

March 31,

 
   

2020

 

2020

 

2021

 

2021

 
   

RMB

 

RMB

 

RMB

 

US$(2)

 

 Revenues: 

                 

 Online marketing services 

 

14,243

 

20,708

 

18,094

 

2,762

 

 Others 

 

8,302

 

9,555

 

10,040

 

1,532

 

 Total revenues  

 

22,545

 

30,263

 

28,134

 

4,294

 
                   

 Costs and expenses: 

                 

     Cost of revenues(1)

 

14,687

 

14,522

 

15,002

 

2,290

 

     Selling, general and administrative(1)

 

3,852

 

5,094

 

5,245

 

800

 

     Research and development(1)

 

4,443

 

5,670

 

5,098

 

778

 

 Total costs and expenses 

 

22,982

 

25,286

 

25,345

 

3,868

 

 Operating (loss) income 

 

(437)

 

4,977

 

2,789

 

426

 
                   

 Other income (loss): 

                 

 Interest income 

 

1,441

 

1,308

 

1,233

 

187

 

 Interest expense 

 

(751)

 

(777)

 

(823)

 

(126)

 

 Foreign exchange (loss) income, net 

 

(98)

 

(346)

 

156

 

24

 

 Share of income (loss) from 
     equity method investments 

 

181

 

(151)

 

(151)

 

(23)

 

 Others, net 

 

(1,816)

 

499

 

23,362

 

3,566

 

 Total other (loss) income, net 

 

(1,043)

 

533

 

23,777

 

3,628

 
                   

 (Loss) income before income taxes 

 

(1,480)

 

5,510

 

26,566

 

4,054

 

 Income tax expense 

 

198

 

1,026

 

1,534

 

234

 

 Net (loss) income 

 

(1,678)

 

4,484

 

25,032

 

3,820

 

 Net loss attributable to noncontrolling interests 

 

(1,719)

 

(690)

 

(621)

 

(95)

 

 Net income attributable to Baidu 

 

41

 

5,174

 

25,653

 

3,915

 
                   
                   

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

             

 -Basic

 

0.05

 

15.28

 

76.10

 

11.62

 

 -Diluted

 

0.02

 

15.05

 

73.76

 

11.26

 

Earnings per share for Class A and Class B ordinary shares:

                 

 -Basic

 

0.01

 

1.91

 

9.51

 

1.45

 

 -Diluted

 

-

 

1.88

 

9.22

 

1.41

 

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

         

 -Basic 

 

2,766

 

2,696

 

2,692

 

2,692

 

 -Diluted

 

2,781

 

2,736

 

2,777

 

2,777

 
                   

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

             

 Cost of revenues 

 

81

 

91

 

79

 

12

 

 Selling, general and administrative 

 

464

 

480

 

471

 

72

 

 Research and development 

 

945

 

1,408

 

949

 

146

 

 Total share-based compensation expenses 

 

1,490

 

1,979

 

1,499

 

230

 
                   

(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 6.5518 to US$1.00, the exchange rate in effect as of March 31,
2021 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,

 

March 31,

 

March 31,

   

2020

 

2021

 

2021

   

RMB

 

RMB

 

US$

ASSETS

           

    Current assets:

           

 Cash and cash equivalents

 

35,782

 

41,544

 

6,340

 Restricted cash

 

758

 

10,607

 

1,618

 Short-term investments, net

 

126,402

 

120,794

 

18,437

 Accounts receivable, net

 

8,668

 

8,492

 

1,296

 Amounts due from related parties

 

726

 

741

 

113

 Other current assets, net

 

11,006

 

9,451

 

1,443

    Total current assets

 

183,342

 

191,629

 

29,247

             

    Non-current assets:

           

 Fixed assets, net

 

17,508

 

17,681

 

2,699

 Licensed copyrights, net

 

6,435

 

6,516

 

995

 Produced content, net

 

6,556

 

7,281

 

1,111

 Intangible assets, net

 

2,022

 

1,921

 

293

 Goodwill

 

22,248

 

22,248

 

3,396

 Long-term investments, net

 

76,233

 

101,771

 

15,533

 Amounts due from related parties

 

3,438

 

3,440

 

525

 Deferred tax assets, net

 

1,674

 

1,379

 

210

 Operating lease right-of-use assets

 

9,804

 

9,655

 

1,474

 Other non-current assets

 

3,448

 

15,827

 

2,417

    Total non-current assets

 

149,366

 

187,719

 

28,653

             

Total assets

 

332,708

 

379,348

 

57,900

             

LIABILITIES AND EQUITY

           

   Current liabilities:

           

      Short-term loans

 

3,016

 

2,230

 

340

Accounts payable and accrued liabilities

 

36,716

 

35,902

 

5,480

Customer deposits and deferred revenue

 

12,626

 

12,504

 

1,908

Deferred income

 

158

 

144

 

22

Long-term loans, current portion

 

7,427

 

7,457

 

1,138

Convertible senior notes, current portion

 

4,752

 

4,808

 

734

Notes payable, current portion

 

-

 

-

 

-

Amounts due to related parties

 

1,324

 

1,468

 

224

Operating lease liabilities

 

2,366

 

2,377

 

363

    Total current liabilities

 

68,385

 

66,890

 

10,209

             

    Non-current liabilities:

           

Deferred income

 

97

 

104

 

16

Deferred revenue

 

686

 

685

 

105

Amounts due to related parties

 

3,543

 

3,524

 

538

Long-term loans

 

-

 

-

 

-

Notes payable

 

48,408

 

48,601

 

7,418

Convertible senior notes

 

11,927

 

12,670

 

1,934

Deferred tax liabilities

 

3,067

 

3,171

 

484

Operating lease liabilities

 

4,693

 

4,535

 

692

Other non-current liabilities

 

59

 

53

 

8

    Total non-current liabilities

 

72,480

 

73,343

 

11,195

             

Total liabilities

 

140,865

 

140,233

 

21,404

             

Redeemable noncontrolling interests

 

3,102

 

3,340

 

510

             

Equity

           

    Total Baidu shareholders' equity

 

182,696

 

229,814

 

35,076

    Noncontrolling interests

 

6,045

 

5,961

 

910

Total equity

 

188,741

 

235,775

 

35,986

             

Total liabilities, redeemable noncontrolling
interests, and equity

 

332,708

 

379,348

 

57,900

 

 

 

Baidu, Inc. 

Selected Information

(In millions, unaudited)

                                                 
   

Three months ended
March 31, 2020 (RMB)

 

Three months ended
December 31, 2020 (RMB)

 

Three months ended
March 31, 2021 (RMB)

 

Three months ended
March 31, 2021 (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 

 

15,268

7,650

(373)

 

22,545

 

23,111

7,458

(306)

 

30,263

 

20,483

7,968

(317)

 

28,134

 

3,126

1,216

(48)

 

4,294

  YOY

                         

34%

4%

   

25%

           

  QOQ

                         

(11%)

7%

   

(7%)

           
                                                 

Costs and expenses: 

                                               

  Cost of revenues (1)

 

7,088

7,903

(304)

 

14,687

 

7,997

6,785

(260)

 

14,522

 

8,162

7,109

(269)

 

15,002

 

1,246

1,085

(41)

 

2,290

  Selling, general and administrative (1)

 

2,560

1,311

(19)

 

3,852

 

3,787

1,317

(10)

 

5,094

 

4,048

1,201

(4)

 

5,245

 

618

183

(1)

 

800

  Research and development (1)

 

3,772

678

(7)

 

4,443

 

5,007

663

-

 

5,670

 

4,426

672

-

 

5,098

 

675

103

-

 

778

Total costs and expenses 

 

13,420

9,892

(330)

 

22,982

 

16,791

8,765

(270)

 

25,286

 

16,636

8,982

(273)

 

25,345

 

2,539

1,371

(42)

 

3,868

  YOY 

                                               

  Cost of revenues 

                         

15%

(10%)

   

2%

           

  Selling, general and administrative 

                         

58%

(8%)

   

36%

           

  Research and development 

                         

17%

(1%)

   

15%

           

  Cost and expenses

                         

24%

(9%)

   

10%

           
                                                 

Operating income (loss)

 

1,848

(2,242)

(43)

 

(437)

 

6,320

(1,307)

(36)

 

4,977

 

3,847

(1,014)

(44)

 

2,789

 

587

(155)

(6)

 

426

  YOY

                         

108%

(55%)

   

-

           

  QOQ

                         

(39%)

(22%)

   

(44%)

           

Operating margin 

 

12%

(29%)

   

(2%)

 

27%

(18%)

   

16%

 

19%

(13%)

   

10%

           
                                                 

  Add: total other (loss) income,net

 

(414)

(629)

-

 

(1,043)

 

774

(241)

-

 

533

 

23,999

(222)

-

 

23,777

 

3,662

(34)

-

 

3,628

  Less: income tax expense

 

193

5

-

 

198

 

1,042

(16)

-

 

1,026

 

1,513

21

-

 

1,534

 

231

3

-

 

234

  Less: net (loss) income attributable to NCI

 

(457)

(1)

(1,261)

(3)

(1,719)

 

16

16

(722)

(3)

(690)

 

(21)

10

(610)

(3)

(621)

 

(4)

2

(93)

(3)

(95)

Net income (loss) attributable to Baidu

 

1,698

(2,875)

1,218

 

41

 

6,036

(1,548)

686

 

5,174

 

26,354

(1,267)

566

 

25,653

 

4,022

(194)

87

 

3,915

  YOY

                         

1452%

(56%)

   

62468%

           

  QOQ

                         

337%

(18%)

   

396%

           

Net margin 

 

11%

(38%)

   

0%

 

26%

(21%)

   

17%

 

129%

(16%)

   

91%

           
                                                 

Non-GAAP financial measures:

                                               

Operating income (loss) (non-GAAP)

 

3,348

(1,868)

   

1,437

 

8,031

(940)

   

7,055

 

5,064

(658)

   

4,362

 

773

(101)

   

666

  YOY

                         

51%

(65%)

   

204%

           

  QOQ

                         

(37%)

(30%)

   

(38%)

           

Operating margin (non-GAAP)

 

22%

(24%)

   

6%

 

35%

(13%)

   

23%

 

25%

(8%)

   

16%

           
                                                 

Net income (loss) attributable to Baidu (non-GAAP)

 

4,519

(2,482)

   

3,082

 

7,533

(1,177)

   

6,868

 

4,870

(1,021)

   

4,297

 

743

(156)

   

656

  YOY

                         

8%

(59%)

   

39%

           

  QOQ

                         

(35%)

(13%)

   

(37%)

           

Net margin (non-GAAP)

 

30%

(32%)

   

14%

 

33%

(16%)

   

23%

 

24%

(13%)

   

15%

           
                                                 

Adjusted EBITDA

 

4,641

(1,746)

   

2,852

 

9,422

(822)

   

8,564

 

6,487

(543)

   

5,900

 

990

(83)

   

901

  YOY

                         

40%

(69%)

   

107%

           

  QOQ

                         

(31%)

(34%)

   

(31%)

           

Adjusted EBITDA margin 

 

30%

(23%)

   

13%

 

41%

(11%)

   

28%

 

32%

(7%)

   

21%

           
                                                 

(1)  Includes share-based compensation as follows:

                                           

 Cost of revenues 

 

34

47

   

81

 

46

45

   

91

 

33

46

   

79

 

5

7

   

12

 Selling, general and administrative 

 

273

191

   

464

 

255

225

   

480

 

256

215

   

471

 

39

33

   

72

 Research and development 

 

877

68

   

945

 

1,329

79

   

1,408

 

866

83

   

949

 

133

13

   

146

 Total share-based compensation 

 

1,184

306

   

1,490

 

1,630

349

   

1,979

 

1,155

344

   

1,499

 

177

53

   

230

 (2) Relates to intersegment eliminations and adjustments 

                                           

 (3) Relates to the net 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 

   

March 31, 2020 (RMB)

 

December 31, 2020 (RMB)

 

March 31, 2021 (RMB)

 

March 31, 2021 (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 (used in) operating activities

 

2,801

(604)

2,197

 

7,546

(1,519)

6,027

 

5,467

(1,350)

4,117

 

834

(206)

628

Net cash (used in) provided by investing activities 

 

(11,084)

(1,610)

(12,694)

 

(1,196)

281

(915)

 

(4,579)

(2,778)

(7,357)

 

(699)

(424)

(1,123)

Net cash (used in) provided by financing activities

 

(1,296)

(79)

(1,375)

 

4,185

8,392

12,577

 

18,018

611

18,629

 

2,749

93

2,842

Effect of exchange rate changes on cash, cash
equivalents and restricted cash

 

139

64

203

 

(209)

(32)

(241)

 

251

(29)

222

 

38

(4)

34

Net (decrease) increase in cash, cash
equivalents and restricted cash 

 

(9,440)

(2,229)

(11,669)

 

10,326

7,122

17,448

 

19,157

(3,546)

15,611

 

2,922

(541)

2,381

Cash, cash equivalents and restricted cash

                               

  At beginning of period

 

27,529

6,910

34,439

 

15,273

3,819

19,092

 

25,599

10,941

36,540

 

3,907

1,670

5,577

  At end of period

 

18,089

4,681

22,770

 

25,599

10,941

36,540

 

44,756

7,395

52,151

 

6,829

1,129

7,958

                                 

Net cash provided by (used in) operating
activities

 

2,801

(604)

2,197

 

7,546

(1,519)

6,027

 

5,467

(1,350)

4,117

 

834

(206)

628

Less: Capital expenditures

 

(478)

(67)

(545)

 

(2,151)

(27)

(2,178)

 

(1,438)

(61)

(1,499)

 

(219)

(9)

(228)

Free cash flow

 

2,323

(671)

1,652

 

5,395

(1,546)

3,849

 

4,029

(1,411)

2,618

 

615

(215)

400

                                 

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 

   

March 31, 2020 (RMB)

 

December 31, 2020 (RMB)

 

March 31, 2021 (RMB)

 

March 31, 2021 (US$)

   

Baidu
Core

iQIYI

Baidu,
Inc.

 

Baidu
Core

iQIYI

Baidu,
Inc.

 

Baidu
Core

iQIYI

Baidu,
Inc.

 

Baidu
Core

iQIYI

Baidu,
Inc.

Operating income (loss)

 

1,848

(2,242)

(437)

 

6,320

(1,307)

4,977

 

3,847

(1,014)

2,789

 

587

(155)

426

Add:  Share-based compensation expenses

 

1,184

306

1,490

 

1,630

349

1,979

 

1,155

344

1,499

 

177

53

230

Add:  Amortization and impairment of intangible assets(1)

 

316

68

384

 

81

18

99

 

62

12

74

 

9

1

10

Operating income (loss) (non-GAAP)

 

3,348

(1,868)

1,437

 

8,031

(940)

7,055

 

5,064

(658)

4,362

 

773

(101)

666

                                 

Add:  Depreciation of fixed assets

 

1,293

122

1,415

 

1,391

118

1,509

 

1,423

115

1,538

 

217

18

235

Adjusted EBITDA

 

4,641

(1,746)

2,852

 

9,422

(822)

8,564

 

6,487

(543)

5,900

 

990

(83)

901

                                 

Net income (loss) attributable to Baidu

 

1,698

(2,875)

41

 

6,036

(1,548)

5,174

 

26,354

(1,267)

25,653

 

4,022

(194)

3,915

Add: Share-based compensation expenses

 

1,177

306

1,348

 

1,618

349

1,802

 

1,146

344

1,325

 

175

53

203

Add: Amortization and impairment of intangible assets(1)

 

223

68

267

 

67

18

78

 

55

12

61

 

8

1

9

Add: Disposal loss (gain)

 

(252)

-

(252)

 

(28)

-

(28)

 

-

-

-

 

-

-

-

Add: Impairment of long-term investments

 

1,615

25

1,630

 

147

-

147

 

-

-

-

 

-

-

-

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

 

(89)

-

(89)

 

(380)

(1)

(380)

 

(23,545)

(88)

(23,590)

 

(3,594)

(13)

(3,601)

Add: Reconciling items on equity method investments(2)

 

450

10

456

 

250

9

256

 

593

(20)

583

 

91

(3)

89

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

 

(303)

(16)

(319)

 

(177)

(4)

(181)

 

267

(2)

265

 

41

-

41

Net income (loss) attributable to Baidu (non-GAAP)

 

4,519

(2,482)

3,082

 

7,533

(1,177)

6,868

 

4,870

(1,021)

4,297

 

743

(156)

656

                                 

Diluted earnings per ADS

     

0.02

     

15.05

     

73.76

     

11.26

Add:  Accretion of the redeemable noncontrolling interests

     

0.07

     

0.08

     

0.14

     

0.02

Add:  Non-GAAP adjustments to earnings per ADS

     

8.75

     

4.95

     

(61.52)

     

(9.39)

Diluted earnings per ADS (non-GAAP)

     

8.84

     

20.08

     

12.38

     

1.89

                                 
                                 
                                 
                                 

(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 shares.

(3) Tax impact of non-GAAP adjustments is separately presented from 2020Q4, with comparative periods retrospectively adjusted.

 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/baidu-announces-first-quarter-2021-results-301293372.html

Source: Baidu, Inc.
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