BEIJING, May 16, 2023 /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, 2023.
"In the first quarter of 2023, Baidu Core delivered a solid performance, with year-on-year revenue growth accelerating from previous quarters, supporting operating margin improvement through operating leverage," said Robin Li, Co-founder and CEO of Baidu. "We believe the emergence of generative AI and large language model presents a transformative potential of AI in various industries, to help people and organizations to achieve more and to place a positive impact on society. In light of this trend, Baidu has introduced its ERNIE Bot in China, which we plan to steadily incorporate into all our businesses. This will empower our products and offerings, drawing in a larger user and customer base, while allowing us to establish a new ecosystem around the ERNIE Bot for the new era. It will also enable us to drive long-term, sustainable growth."
"Non-GAAP operating margin of Baidu Core expanded to 23% in the quarter, up from 17% in the same period last year and 21% in the previous quarter, driven by our ability to leverage our operations effectively," said Rong Luo, CFO of Baidu. "Generative AI represents a new paradigm shift in the AI, and Baidu is poised to take advantage of this massive market opportunity. Baidu will continue to invest unwaveringly in this area in the coming quarters."
First Quarter 2023 Financial Highlights[1] |
||||||||||
Baidu, Inc. |
||||||||||
(In millions except per |
Q1 |
Q4 |
Q1 |
|||||||
ADS, unaudited) |
2022 |
2022 |
2023 |
YOY |
QOQ |
|||||
RMB |
RMB |
RMB |
US$ |
|||||||
Total revenues |
28,411 |
33,077 |
31,144 |
4,535 |
10 % |
(6 %) |
||||
Operating income |
2,601 |
4,593 |
4,980 |
725 |
91 % |
8 % |
||||
Operating income (non-GAAP) [2] |
3,996 |
6,497 |
6,428 |
936 |
61 % |
(1 %) |
||||
Net (loss) income to Baidu |
(885) |
4,953 |
5,825 |
848 |
- |
18 % |
||||
Net income to Baidu (non-GAAP) [2] |
3,879 |
5,371 |
5,727 |
834 |
48 % |
7 % |
||||
Diluted (loss) earnings per ADS |
(2.87) |
13.59 |
15.92 |
2.32 |
- |
17 % |
||||
Diluted earnings per ADS (non-GAAP) [2] |
11.22 |
15.25 |
16.10 |
2.34 |
43 % |
6 % |
||||
Adjusted EBITDA [2] |
5,499 |
8,231 |
8,145 |
1,186 |
48 % |
(1 %) |
||||
Adjusted EBITDA margin |
19 % |
25 % |
26 % |
26 % |
||||||
Baidu Core |
||||||||||
Q1 |
Q4 |
Q1 |
||||||||
(In millions, unaudited) |
2022 |
2022 |
2023 |
YOY |
QOQ |
|||||
RMB |
RMB |
RMB |
US$ |
|||||||
Total revenues |
21,378 |
25,654 |
22,998 |
3,349 |
8 % |
(10 %) |
||||
Operating income |
2,524 |
3,782 |
4,091 |
596 |
62 % |
8 % |
||||
Operating income (non-GAAP) [2] |
3,686 |
5,491 |
5,363 |
781 |
45 % |
(2 %) |
||||
Net (loss) income to Baidu Core |
(963) |
4,773 |
5,513 |
803 |
- |
16 % |
||||
Net income to Baidu Core (non-GAAP) [2] |
3,804 |
4,915 |
5,268 |
767 |
38 % |
7 % |
||||
Adjusted EBITDA[2] |
5,106 |
7,146 |
7,003 |
1,020 |
37 % |
(2 %) |
||||
Adjusted EBITDA margin |
24 % |
28 % |
30 % |
30 % |
||||||
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 6.8676 as of March 31, 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
Intelligent Driving
Other Growth Initiatives
Mobile Ecosystem
iQIYI
First Quarter 2023 Financial Results
Total revenues were RMB 31.1 billion ($4.54 billion), increasing 10% year over year.
Cost of revenues was RMB 15.2 billion ($2.21 billion), decreasing 3% year over year, primarily due to a decrease in content costs, bandwidth costs and cost of goods sold, partially offset by the increase of traffic acquisition costs.
Selling, general and administrative expenses were RMB 5.6 billion ($814 million), increasing 20% year over year, primarily due to an increase in channel spending and promotional marketing expenses.
Research and development expense was RMB 5.4 billion ($790 million), decreasing 3% year over year, primarily due to a decrease in personnel related expense.
Operating income was RMB 5.0 billion ($725 million). Baidu Core operating income was RMB 4.1 billion ($596 million), and Baidu Core operating margin was 18%. Non-GAAP operating income was RMB 6.4 billion ($936 million). Non-GAAP Baidu Core operating income was RMB 5.4 billion ($781 million), and non-GAAP Baidu Core operating margin was 23%.
Total other income, net was RMB 2.6 billion ($378 million), which mainly included a fair value gain of RMB 1.5 billion from long-term investments. Total other loss, net was RMB 3.0 billion for the same period last year, which mainly included a fair value loss of RMB 3.0 billion from long-term investments. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies, private equity funds, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods.
Income tax expense was RMB 1.2 billion ($174 million), increasing 205% year over year, primarily due to an increase in profit before tax.
Net income attributable to Baidu was RMB 5.8 billion ($848 million), and diluted earnings per ADS was RMB 15.92 ($2.32). Net income attributable to Baidu Core was RMB 5.5 billion ($803 million), and net margin for Baidu Core was 24%. Non-GAAP net income attributable to Baidu was RMB 5.7 billion ($834 million). Non-GAAP diluted earnings per ADS was RMB 16.10 ($2.34). Non-GAAP net income attributable to Baidu Core was RMB 5.3 billion ($767 million), and non-GAAP net margin for Baidu Core was 23%.
Adjusted EBITDA was RMB 8.1 billion ($1.19 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB 7.0 billion ($1.02 billion) and adjusted EBITDA margin for Baidu Core was 30%.
As of March 31, 2023, cash, cash equivalents, restricted cash and short-term investments were RMB 194.0 billion ($28.25 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 188.8 billion ($27.49 billion). Free cash flow was RMB 4.5 billion ($661 million), and free cash flow excluding iQIYI was RMB 3.5 billion ($515 million).
Conference Call Information
Baidu's management will hold an earnings conference call at 8 AM on May 16, 2023, U.S. Eastern Time (8 PM on May 16, 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 Q1 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/10030497-jz1rwg.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.
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, 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 measure.
Baidu, Inc. |
|||||||||
Condensed Consolidated Statements of (Loss) Income |
|||||||||
(In millions except for per share (or ADS) information, unaudited) |
|||||||||
Three Months Ended |
|||||||||
March 31, |
December 31, |
March 31, |
March 31, |
||||||
2022 |
2022 |
2023 |
2023 |
||||||
RMB |
RMB |
RMB |
US$(2) |
||||||
Revenues: |
|||||||||
Online marketing services |
16,929 |
19,571 |
17,972 |
2,617 |
|||||
Others |
11,482 |
13,506 |
13,172 |
1,918 |
|||||
Total revenues |
28,411 |
33,077 |
31,144 |
4,535 |
|||||
Costs and expenses: |
|||||||||
Cost of revenues(1) |
15,546 |
16,945 |
15,152 |
2,206 |
|||||
Selling, general and administrative(1) |
4,656 |
5,881 |
5,589 |
814 |
|||||
Research and development(1) |
5,608 |
5,658 |
5,423 |
790 |
|||||
Total costs and expenses |
25,810 |
28,484 |
26,164 |
3,810 |
|||||
Operating income |
2,601 |
4,593 |
4,980 |
725 |
|||||
Other (loss) income: |
|||||||||
Interest income |
1,454 |
1,647 |
1,915 |
279 |
|||||
Interest expense |
(710) |
(738) |
(804) |
(117) |
|||||
Foreign exchange loss, net |
(11) |
(338) |
(106) |
(15) |
|||||
Share of losses from equity method investments |
(408) |
(523) |
(48) |
(7) |
|||||
Others, net |
(3,286) |
1,733 |
1,638 |
238 |
|||||
Total other (loss) income, net |
(2,961) |
1,781 |
2,595 |
378 |
|||||
(Loss) income before income taxes |
(360) |
6,374 |
7,575 |
1,103 |
|||||
Income tax expense |
391 |
1,254 |
1,193 |
174 |
|||||
Net (loss) income |
(751) |
5,120 |
6,382 |
929 |
|||||
Net income attributable to noncontrolling interests |
134 |
167 |
557 |
81 |
|||||
Net (loss) income attributable to Baidu |
(885) |
4,953 |
5,825 |
848 |
|||||
(Loss) earnings per ADS (1 ADS representing 8 Class A ordinary shares): |
|||||||||
-Basic |
(2.87) |
13.73 |
16.17 |
2.35 |
|||||
-Diluted |
(2.87) |
13.59 |
15.92 |
2.32 |
|||||
(Loss) earnings per share for Class A and Class B ordinary shares: |
|||||||||
-Basic |
(0.36) |
1.72 |
2.02 |
0.29 |
|||||
-Diluted |
(0.36) |
1.70 |
1.99 |
0.29 |
|||||
Weighted average number of Class A and Class B ordinary shares outstanding (in millions): |
|||||||||
-Basic |
2,767 |
2,789 |
2,798 |
2,798 |
|||||
-Diluted |
2,767 |
2,801 |
2,837 |
2,837 |
|||||
(1) Includes share-based compensation expenses as follows: |
|||||||||
Cost of revenues |
82 |
158 |
98 |
14 |
|||||
Selling, general and administrative |
377 |
450 |
463 |
68 |
|||||
Research and development |
864 |
1,233 |
828 |
120 |
|||||
Total share-based compensation expenses |
1,323 |
1,841 |
1,389 |
202 |
|||||
(2) All translations from RMB to U.S. dollars are made at a rate of RMB 6.8676 to US$1.00, the exchange rate in effect as of March 31, 2023 as set |
|||||||||
Baidu, Inc. |
||||||
Condensed Consolidated Balance Sheets |
||||||
(In millions, unaudited) |
||||||
December 31, |
March 31, |
March 31, |
||||
2022 |
2023 |
2023 |
||||
RMB |
RMB |
US$ |
||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
53,156 |
23,638 |
3,442 |
|||
Restricted cash |
11,330 |
11,252 |
1,638 |
|||
Short-term investments, net |
120,839 |
159,127 |
23,171 |
|||
Accounts receivable, net |
11,733 |
10,798 |
1,572 |
|||
Amounts due from related parties |
5,432 |
5,211 |
759 |
|||
Other current assets, net(1) |
10,360 |
19,179 |
2,793 |
|||
Total current assets |
212,850 |
229,205 |
33,375 |
|||
Non-current assets: |
||||||
Fixed assets, net |
23,973 |
22,975 |
3,345 |
|||
Licensed copyrights, net |
6,841 |
6,701 |
976 |
|||
Produced content, net |
13,002 |
12,603 |
1,835 |
|||
Intangible assets, net |
1,254 |
1,183 |
172 |
|||
Goodwill |
22,477 |
22,589 |
3,289 |
|||
Long-term investments, net |
55,297 |
55,463 |
8,076 |
|||
Long-term time deposits and held-to-maturity investments |
23,629 |
18,676 |
2,719 |
|||
Amounts due from related parties |
60 |
96 |
14 |
|||
Deferred tax assets, net |
2,129 |
2,091 |
304 |
|||
Operating lease right-of-use assets |
10,365 |
10,183 |
1,483 |
|||
Other non-current assets |
19,096 |
19,214 |
2,798 |
|||
Total non-current assets |
178,123 |
171,774 |
25,011 |
|||
Total assets |
390,973 |
400,979 |
58,386 |
|||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
||||||
Current liabilities: |
||||||
Short-term loans |
5,343 |
6,833 |
995 |
|||
Accounts payable and accrued liabilities |
38,014 |
34,043 |
4,957 |
|||
Customer deposits and deferred revenue |
13,116 |
13,913 |
2,026 |
|||
Deferred income |
72 |
142 |
21 |
|||
Long-term loans, current portion |
- |
1 |
- |
|||
Convertible senior notes, current portion |
8,305 |
8,265 |
1,203 |
|||
Notes payable, current portion |
6,904 |
6,865 |
1,000 |
|||
Amounts due to related parties |
5,067 |
5,211 |
759 |
|||
Operating lease liabilities |
2,809 |
2,797 |
407 |
|||
Total current liabilities |
79,630 |
78,070 |
11,368 |
|||
Non-current liabilities: |
||||||
Deferred income |
159 |
116 |
17 |
|||
Deferred revenue |
331 |
375 |
55 |
|||
Amounts due to related parties |
99 |
94 |
14 |
|||
Long-term loans |
13,722 |
13,678 |
1,992 |
|||
Notes payable |
39,893 |
39,670 |
5,776 |
|||
Convertible senior notes |
9,568 |
11,668 |
1,699 |
|||
Deferred tax liabilities |
2,898 |
3,014 |
439 |
|||
Operating lease liabilities |
4,810 |
4,650 |
677 |
|||
Other non-current liabilities |
2,058 |
2,068 |
300 |
|||
Total non-current liabilities |
73,538 |
75,333 |
10,969 |
|||
Total liabilities |
153,168 |
153,403 |
22,337 |
|||
Redeemable noncontrolling interests |
8,393 |
8,709 |
1,268 |
|||
Equity |
||||||
Total Baidu shareholders' equity |
223,478 |
230,095 |
33,504 |
|||
Noncontrolling interests |
5,934 |
8,772 |
1,277 |
|||
Total equity |
229,412 |
238,867 |
34,781 |
|||
Total liabilities, redeemable noncontrolling interests, and equity |
390,973 |
400,979 |
58,386 |
|||
(1) This includes payment of US$1,198 million to the paying agent to meet the iQIYI's repurchase obligation of the 2.00% |
||||||
Baidu, Inc. |
||||||||||||||||||||||||
Selected Information |
||||||||||||||||||||||||
(In millions, unaudited) |
||||||||||||||||||||||||
Three months ended |
Three months ended |
Three months ended |
Three months ended |
|||||||||||||||||||||
Baidu |
iQIYI |
Elim & |
Baidu, |
Baidu |
iQIYI |
Elim & |
Baidu, |
Baidu |
iQIYI |
Elim & |
Baidu, |
Baidu |
iQIYI |
Elim & |
Baidu, |
|||||||||
Total revenues |
21,378 |
7,277 |
(244) |
28,411 |
25,654 |
7,593 |
(170) |
33,077 |
22,998 |
8,349 |
(203) |
31,144 |
3,349 |
1,216 |
(30) |
4,535 |
||||||||
YOY |
8 % |
15 % |
10 % |
|||||||||||||||||||||
QOQ |
(10 %) |
10 % |
(6 %) |
|||||||||||||||||||||
Costs and expenses: |
||||||||||||||||||||||||
Cost of revenues(1) |
9,807 |
5,964 |
(225) |
15,546 |
11,712 |
5,405 |
(172) |
16,945 |
9,379 |
5,956 |
(183) |
15,152 |
1,365 |
867 |
(26) |
2,206 |
||||||||
Selling, general and administrative(1) |
3,913 |
745 |
(2) |
4,656 |
4,969 |
939 |
(27) |
5,881 |
4,533 |
1,106 |
(50) |
5,589 |
660 |
161 |
(7) |
814 |
||||||||
Research and development(1) |
5,134 |
474 |
- |
5,608 |
5,191 |
467 |
- |
5,658 |
4,995 |
428 |
- |
5,423 |
728 |
62 |
- |
790 |
||||||||
Total costs and expenses |
18,854 |
7,183 |
(227) |
25,810 |
21,872 |
6,811 |
(199) |
28,484 |
18,907 |
7,490 |
(233) |
26,164 |
2,753 |
1,090 |
(33) |
3,810 |
||||||||
YOY |
||||||||||||||||||||||||
Cost of revenues |
(4 %) |
(0 %) |
(3 %) |
|||||||||||||||||||||
Selling, general and administrative |
16 % |
48 % |
20 % |
|||||||||||||||||||||
Research and development |
(3 %) |
(10 %) |
(3 %) |
|||||||||||||||||||||
Cost and expenses |
0 % |
4 % |
1 % |
|||||||||||||||||||||
Operating income (loss) |
2,524 |
94 |
(17) |
2,601 |
3,782 |
782 |
29 |
4,593 |
4,091 |
859 |
30 |
4,980 |
596 |
126 |
3 |
725 |
||||||||
YOY |
62 % |
814 % |
91 % |
|||||||||||||||||||||
QOQ |
8 % |
10 % |
8 % |
|||||||||||||||||||||
Operating margin |
12 % |
1 % |
9 % |
15 % |
10 % |
14 % |
18 % |
10 % |
16 % |
|||||||||||||||
Add: total other (loss) income, net |
(3,058) |
97 |
- |
(2,961) |
2,271 |
(490) |
- |
1,781 |
2,803 |
(208) |
- |
2,595 |
408 |
(30) |
- |
378 |
||||||||
Less: income tax expense (benefit) |
374 |
17 |
- |
391 |
1,265 |
(11) |
- |
1,254 |
1,168 |
25 |
- |
1,193 |
170 |
4 |
- |
174 |
||||||||
Less: net income (loss) attributable to NCI |
55 |
5 |
74 |
(3) |
134 |
15 |
(1) |
153 |
(3) |
167 |
213 |
8 |
336 |
(3) |
557 |
31 |
1 |
49 |
(3) |
81 |
||||
Net (loss) income attributable to Baidu |
(963) |
169 |
(91) |
(885) |
4,773 |
304 |
(124) |
4,953 |
5,513 |
618 |
(306) |
5,825 |
803 |
91 |
(46) |
848 |
||||||||
YOY |
- |
266 % |
- |
|||||||||||||||||||||
QOQ |
16 % |
103 % |
18 % |
|||||||||||||||||||||
Net margin |
(5 %) |
2 % |
(3 %) |
19 % |
4 % |
15 % |
24 % |
7 % |
19 % |
|||||||||||||||
Non-GAAP financial measures: |
||||||||||||||||||||||||
Operating income (non-GAAP) |
3,686 |
327 |
3,996 |
5,491 |
977 |
6,497 |
5,363 |
1,035 |
6,428 |
781 |
152 |
936 |
||||||||||||
YOY |
45 % |
217 % |
61 % |
|||||||||||||||||||||
QOQ |
(2 %) |
6 % |
(1 %) |
|||||||||||||||||||||
Operating margin (non-GAAP) |
17 % |
4 % |
14 % |
21 % |
13 % |
20 % |
23 % |
12 % |
21 % |
|||||||||||||||
Net income attributable to Baidu (non-GAAP) |
3,804 |
162 |
3,879 |
4,915 |
856 |
5,371 |
5,268 |
940 |
5,727 |
767 |
138 |
834 |
||||||||||||
YOY |
38 % |
480 % |
48 % |
|||||||||||||||||||||
QOQ |
7 % |
10 % |
7 % |
|||||||||||||||||||||
Net margin (non-GAAP) |
18 % |
2 % |
14 % |
19 % |
11 % |
16 % |
23 % |
11 % |
18 % |
|||||||||||||||
Adjusted EBITDA |
5,106 |
410 |
5,499 |
7,146 |
1,056 |
8,231 |
7,003 |
1,112 |
8,145 |
1,020 |
163 |
1,186 |
||||||||||||
YOY |
37 % |
171 % |
48 % |
|||||||||||||||||||||
QOQ |
(2 %) |
5 % |
(1 %) |
|||||||||||||||||||||
Adjusted EBITDA margin |
24 % |
6 % |
19 % |
28 % |
14 % |
25 % |
30 % |
13 % |
26 % |
|||||||||||||||
(1) Includes share-based compensation as follows: |
||||||||||||||||||||||||
Cost of revenues |
45 |
37 |
82 |
122 |
36 |
158 |
65 |
33 |
98 |
9 |
5 |
14 |
||||||||||||
Selling, general and administrative |
257 |
120 |
377 |
355 |
95 |
450 |
377 |
86 |
463 |
55 |
13 |
68 |
||||||||||||
Research and development |
804 |
60 |
864 |
1,177 |
56 |
1,233 |
778 |
50 |
828 |
113 |
7 |
120 |
||||||||||||
Total share-based compensation |
1,106 |
217 |
1,323 |
1,654 |
187 |
1,841 |
1,220 |
169 |
1,389 |
177 |
25 |
202 |
||||||||||||
(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 |
|||||||||||||
March 31, 2022 (RMB) |
December 31, 2022 (RMB) |
March 31, 2023 (RMB) |
March 31, 2023 (US$) |
|||||||||||||
Baidu |
iQIYI |
Baidu, |
Baidu |
iQIYI |
Baidu, |
Baidu |
iQIYI |
Baidu, |
Baidu |
iQIYI |
Baidu, |
|||||
Net cash provided by (used in) operating activities |
3,039 |
(1,167) |
1,872 |
6,999 |
854 |
7,853 |
4,838 |
1,002 |
5,840 |
704 |
146 |
850 |
||||
Net cash (used in) provided by investing activities |
(2,884) |
(67) |
(2,951) |
(5,902) |
579 |
(5,323) |
(32,816) |
167 |
(32,649) |
(4,778) |
24 |
(4,754) |
||||
Net cash (used in) provided by financing activities |
(644) |
2,046 |
1,402 |
(5,124) |
2,862 |
(2,262) |
1,055 |
(3,357) |
(2,302) |
154 |
(489) |
(335) |
||||
Effect of exchange rate changes on cash, cash equivalents |
(183) |
(4) |
(187) |
(1,420) |
(9) |
(1,429) |
(96) |
(9) |
(105) |
(14) |
(1) |
(15) |
||||
Net (decrease) increase in cash, cash equivalents and |
(672) |
808 |
136 |
(5,447) |
4,286 |
(1,161) |
(27,019) |
(2,197) |
(29,216) |
(3,934) |
(320) |
(4,254) |
||||
Cash, cash equivalents and restricted cash |
||||||||||||||||
At beginning of period |
44,596 |
3,075 |
47,671 |
62,821 |
3,576 |
66,397 |
57,374 |
7,862 |
65,236 |
8,354 |
1,145 |
9,499 |
||||
At end of period |
43,924 |
3,883 |
47,807 |
57,374 |
7,862 |
65,236 |
30,355 |
5,665 |
36,020 |
4,420 |
825 |
5,245 |
||||
Net cash provided by (used in) operating activities |
3,039 |
(1,167) |
1,872 |
6,999 |
854 |
7,853 |
4,838 |
1,002 |
5,840 |
704 |
146 |
850 |
||||
Less: Capital expenditures |
(1,928) |
(51) |
(1,979) |
(1,920) |
(9) |
(1,929) |
(1,295) |
- |
(1,295) |
(189) |
- |
(189) |
||||
Free cash flow |
1,111 |
(1,218) |
(107) |
5,079 |
845 |
5,924 |
3,543 |
1,002 |
4,545 |
515 |
146 |
661 |
||||
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, 2022 (RMB) |
December 31, 2022 (RMB) |
March 31, 2023 (RMB) |
March 31, 2023 (US$) |
|||||||||||||
Baidu |
iQIYI |
Baidu, Inc. |
Baidu |
iQIYI |
Baidu, Inc. |
Baidu |
iQIYI |
Baidu, Inc. |
Baidu |
iQIYI |
Baidu, Inc. |
|||||
Operating income |
2,524 |
94 |
2,601 |
3,782 |
782 |
4,593 |
4,091 |
859 |
4,980 |
596 |
126 |
725 |
||||
Add: Share-based compensation expenses |
1,106 |
217 |
1,323 |
1,654 |
187 |
1,841 |
1,220 |
169 |
1,389 |
177 |
25 |
202 |
||||
Add: Amortization and impairment of intangible assets(1) |
56 |
16 |
72 |
55 |
8 |
63 |
52 |
7 |
59 |
8 |
1 |
9 |
||||
Operating income (non-GAAP) |
3,686 |
327 |
3,996 |
5,491 |
977 |
6,497 |
5,363 |
1,035 |
6,428 |
781 |
152 |
936 |
||||
Add: Depreciation of fixed assets |
1,420 |
83 |
1,503 |
1,655 |
79 |
1,734 |
1,640 |
77 |
1,717 |
239 |
11 |
250 |
||||
Adjusted EBITDA |
5,106 |
410 |
5,499 |
7,146 |
1,056 |
8,231 |
7,003 |
1,112 |
8,145 |
1,020 |
163 |
1,186 |
||||
Net (loss) income attributable to Baidu |
(963) |
169 |
(885) |
4,773 |
304 |
4,953 |
5,513 |
618 |
5,825 |
803 |
91 |
848 |
||||
Add: Share-based compensation expenses |
1,101 |
217 |
1,210 |
1,654 |
187 |
1,748 |
1,220 |
169 |
1,297 |
177 |
25 |
189 |
||||
Add: Amortization and impairment of intangible assets(1) |
50 |
16 |
59 |
50 |
8 |
55 |
49 |
7 |
53 |
7 |
1 |
8 |
||||
Add: Disposal (gain) loss |
- |
(430) |
(216) |
(484) |
62 |
(453) |
(217) |
- |
(217) |
(32) |
- |
(32) |
||||
Add: Impairment of long-term investments |
598 |
183 |
690 |
318 |
271 |
453 |
31 |
119 |
85 |
5 |
17 |
12 |
||||
Add: Fair value loss (gain) of long-term investments |
3,037 |
(1) |
3,037 |
(1,662) |
8 |
(1,658) |
(1,312) |
10 |
(1,307) |
(191) |
1 |
(190) |
||||
Add: Reconciling items on equity method investments(2) |
456 |
11 |
462 |
377 |
18 |
386 |
(122) |
18 |
(114) |
(17) |
3 |
(16) |
||||
Add: Tax effects on non-GAAP adjustments(3) |
(475) |
(3) |
(478) |
(111) |
(2) |
(113) |
106 |
(1) |
105 |
15 |
- |
15 |
||||
Net income attributable to Baidu (non-GAAP) |
3,804 |
162 |
3,879 |
4,915 |
856 |
5,371 |
5,268 |
940 |
5,727 |
767 |
138 |
834 |
||||
Diluted (loss) earnings per ADS |
(2.87) |
13.59 |
15.92 |
2.32 |
||||||||||||
Add: Accretion of the redeemable noncontrolling interests |
0.31 |
0.46 |
0.46 |
0.07 |
||||||||||||
Add: Non-GAAP adjustments to (loss) earnings per ADS |
13.78 |
1.20 |
(0.28) |
(0.05) |
||||||||||||
Diluted earnings per ADS (non-GAAP) |
11.22 |
15.25 |
16.10 |
2.34 |
||||||||||||
(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) This represents tax impact of all non-GAAP adjustments. |
||||||||||||||||
