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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.











 

 

Cision View original content:https://www.prnewswire.com/news-releases/baidu-announces-third-quarter-2023-results-301994558.html

SOURCE Baidu, Inc.

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