Baidu Announces Fourth Quarter and Fiscal Year 2023 Results

BEIJING, Feb. 28, 2024 /PRNewswire/ — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)) (“Baidu” or the “Company”), a leading AI company with a strong Internet foundation, today announced its unaudited financial results for the quarter and fiscal year ended December 31, 2023.

“Baidu Core reported another solid quarter,” said Robin Li, Co-founder and CEO of Baidu. “Throughout 2023, we made significant strides in advancing ERNIE and ERNIE Bot, reinventing our products and services, and achieving breakthroughs in monetization. Concurrently, our core business remained resilient and healthy. Looking ahead, our commitment to Gen-AI and foundation models remains unwavering, paving the way for the [gradual] creation of a new growth engine.”

“In the fourth quarter, we maintained our focus on enhancing operational efficiencies,” said Rong Luo, CFO of Baidu. “As we look ahead into 2024, our goal is to persistently enhance operational efficiencies and achieve high-quality growth.”

Fourth Quarter and Fiscal Year 2023 Financial Highlights[1]


Baidu, Inc.

(In millions except per

Q4


Q3


Q4





FY


FY




ADS, unaudited)

2022


2023


2023



YOY


2022


2023



YOY


RMB


RMB


RMB

US$




RMB


RMB

US$



Total revenues

33,077


34,447


34,951

4,923


6 %


123,675


134,598

18,958


9 %

















Operating income

4,593


6,274


5,392

759


17 %


15,911


21,856

3,078


37 %

Operating income

(non-GAAP) [2]

6,497


7,596


7,075

996


9 %


23,186


28,433

4,005


23 %

















Net income to Baidu

4,953


6,681


2,599

366


(48 %)


7,559


20,315

2,861


169 %

Net income to Baidu

(non-GAAP) [2]

5,371


7,267


7,755

1,092


44 %


20,680


28,747

4,049


39 %

















Diluted earnings per

ADS

13.59


18.22


6.77

0.95


(50 %)


19.85


55.08

7.76


177 %

Diluted earnings per

ADS (non-GAAP)
[2]

15.25


20.40


21.86

3.08


43 %


58.93


80.85

11.39


37 %

















Adjusted EBITDA [2]

8,231


9,505


9,057

1,276


10 %


29,663


35,823

5,046


21 %

Adjusted EBITDA

margin

25 %


28 %


26 %

26 %




24 %


27 %

27 %



 


Baidu Core


Q4


Q3


Q4





FY


FY




(In millions, unaudited)

2022


2023


2023



YOY


2022


2023



YOY


RMB


RMB


RMB

US$




RMB


RMB

US$



Total revenues

25,654


26,572


27,488

3,872


7 %


95,431


103,465

14,573


8 %

















Operating income

3,782


5,498


4,668

657


23 %


14,534


18,825

2,651


30 %

Operating income

(non-GAAP) [2]

5,491


6,672


6,197

873


13 %


20,948


24,748

3,486


18 %

















Net income to Baidu

Core

4,773


6,436


2,440

344


(49 %)


7,551


19,401

2,733


157 %

Net income to Baidu

Core (non-GAAP) [2]

4,915


6,956


7,500

1,056


53 %


19,935


27,418

3,862


38 %

















Adjusted EBITDA [2]

7,146


8,513


8,118

1,143


14 %


27,088


31,863

4,488


18 %

Adjusted EBITDA

margin

28 %


32 %


30 %

30 %




28 %


31 %

31 %




[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 7.0999 as of December 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 returned US$318 million to shareholders since the beginning of Q4 2023, bringing the cumulative repurchase to US$669 million under the 2023 share repurchase program.

AI Cloud

  • PaddlePaddle developer community has grown to 10.7 million and has served 235,000 businesses, as of the end of 2023. Developers have created 860,000 models on PaddlePaddle by the end of 2023.

Intelligent Driving

  • Apollo Go, Baidu’s autonomous ride-hailing service, provided about 839K rides in the fourth quarter of 2023, up 49% year over year. As of January 2, 2024, accumulated rides provided by Apollo Go on public roads surpassed 5 million.
  • In the fourth quarter of 2023, the proportion of fully driverless orders within the overall order portfolio in Wuhan reached 45%, up from 40% in the third quarter of 2023.

Mobile Ecosystem

  • In December 2023, Baidu App’s MAUs reached 667 million, up 3% year over year.
  • Managed Page accounted for 51% of Baidu Core’s online marketing revenue in the fourth quarter of 2023.

iQIYI

  • iQIYI’s average daily number of total subscribing members for the quarter was 100.3 million, compared to 111.6 million for the fourth quarter of 2022 and 107.5 million for the third quarter of 2023. More importantly, iQIYI’s monthly average revenue per membership (ARM) for the quarter was RMB15.98, compared to RMB14.17 for the fourth quarter of 2022 and RMB15.54 for the third quarter of 2023.

Fourth Quarter 2023 Financial Results

Total revenues were RMB35.0 billion ($4.92 billion), increasing 6% year over year.

  • Revenue from Baidu Core was RMB27.5 billion ($3.87 billion), increasing 7% year over year; online marketing revenue was RMB19.2 billion ($2.70 billion), up 6% year over year, and non-online marketing revenue was RMB8.3 billion ($1.17 billion), up 9% year over year, mainly driven by AI Cloud business.
  • Revenue from iQIYI was RMB7.7 billion ($1.09 billion), increasing 2% year over year.

Cost of revenues was RMB17.4 billion ($2.45 billion), increasing 3% year over year, primarily due to an increase in costs related to AI Cloud business, partially offset by a decrease in content costs.

Selling, general and administrative expenses were RMB5.9 billion ($825 million), which remained flat compared to the same period last year.

Research and development expenses were RMB6.3 billion ($886 million), increasing 11% year over year, primarily due to an increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs.

Operating income was RMB5.4 billion ($759 million). Baidu Core operating income was RMB4.7 billion ($657 million), and Baidu Core operating margin was 17%. Non-GAAP operating income was RMB7.1 billion ($996 million). Non-GAAP Baidu Core operating income was RMB6.2 billion ($873 million), and non-GAAP Baidu Core operating margin was 23%.

Total other loss, net was RMB2.5 billion ($356 million), compared to total other income, net of RMB1.8 billion for the same period last year, mainly due to a pickup of losses from an equity method investment as a result of a modification of certain terms of the underlying preferred shares.

Income tax benefit was RMB96 million ($14 million), compared to income tax expense of RMB1.3 billion for the same period last year, mainly due to a change of certain subsidiaries’ amounts of valuation allowance for deferred tax assets.

Net income attributable to Baidu was RMB2.6 billion ($366 million), and diluted earnings per ADS was RMB6.77 ($0.95). Net income attributable to Baidu Core was RMB2.4 billion ($344 million), and net margin for Baidu Core was 9%. Non-GAAP net income attributable to Baidu was RMB7.8 billion ($1.09 billion). Non-GAAP diluted earnings per ADS was RMB21.86 ($3.08). Non-GAAP net income attributable to Baidu Core was RMB7.5 billion ($1.06 billion), and non-GAAP net margin for Baidu Core was 27%.

Adjusted EBITDA was RMB9.1 billion ($1.28 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB8.1 billion ($1.14 billion) and adjusted EBITDA margin for Baidu Core was 30%.

As of December 31, 2023, cash, cash equivalents, restricted cash and short-term investments were RMB205.4 billion ($28.93 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB200.0 billion ($28.17 billion). Free cash flow was RMB7.0 billion ($980 million), and free cash flow excluding iQIYI was RMB6.3 billion ($894 million).

Fiscal Year 2023 Results

Total revenues were RMB134.6 billion ($18.96 billion), increasing 9% year over year.

  • Revenue from Baidu Core was RMB103.5 billion ($14.57 billion), increasing 8% year over year; online marketing revenue was RMB75.1 billion ($10.58 billion), up 8% year over year, and non-online marketing revenue was RMB28.4 billion ($3.99 billion), up 9% year over year.
  • Revenue from iQIYI was RMB31.9 billion ($4.49 billion), increasing 10% year over year.

Cost of revenues was RMB65.0 billion ($9.16 billion), increasing 2% year over year, primarily due to an increase in traffic acquisition costs, partially offset by a decrease in content costs and costs related to AI Cloud business.

Selling, general and administrative expenses were RMB23.5 billion ($3.31 billion), increasing 15% year over year, primarily due to an increase in channel spending and promotional marketing expenses.

Research and development expenses were RMB24.2 billion ($3.41 billion), increasing 4% year over year, primarily due to an increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs.

Operating income was RMB21.9 billion ($3.08 billion). Baidu Core operating income was RMB18.8 billion ($2.65 billion), and Baidu Core operating margin was 18%. Non-GAAP operating income was RMB28.4 billion ($4.01 billion). Non-GAAP Baidu Core operating income was RMB24.7 billion ($3.49 billion), and non-GAAP Baidu Core operating margin was 24%.

Total other income, net was RMB3.3 billion ($472 million), compared to total other loss, net of RMB5.8 billion last year, mainly due to a fair value gain of RMB198 million from long-term investments this year, compared to a fair value loss of RMB3.9 billion last year; and a decrease of RMB2.2 billion in impairment of long-term investments.

Income tax expense was RMB3.6 billion ($514 million), increasing 42% year over year, primarily due to an increase in profit before tax.

Net income attributable to Baidu was RMB20.3 billion ($2.86 billion), and diluted earnings per ADS was RMB55.08 ($7.76). Net income attributable to Baidu Core was RMB19.4 billion ($2.73 billion), and net margin for Baidu Core was 19%. Non-GAAP net income attributable to Baidu was RMB28.7 billion ($4.05 billion). Non-GAAP diluted earnings per ADS was RMB80.85 ($11.39). Non-GAAP net income attributable to Baidu Core was RMB27.4 billion ($3.86 billion), and non-GAAP net margin for Baidu Core was 26%.

Adjusted EBITDA was RMB35.8 billion ($5.05 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB31.9 billion ($4.49 billion) and adjusted EBITDA margin for Baidu Core was 31%.

Free cash flow was RMB25.4 billion ($3.58 billion), and free cash flow excluding iQIYI was RMB22.1 billion ($3.11 billion).

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on February 28, 2024, U.S. Eastern Time (8.30 PM on February 28, 2024, 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 Q4 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/10036733-mjkcdg.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, charitable donation from Baidu, 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


Twelve Months Ended




December 31,


September 30,


December 31,


December 31,


December 31,


December 31,


December 31,




2022


2023


2023


2023


2022


2023


2023




RMB


RMB


RMB


US$(2)


RMB


RMB


US$(2)


Revenues:
















Online marketing services


19,571


21,346


20,804


2,930


74,711


81,203


11,437


Others


13,506


13,101


14,147


1,993


48,964


53,395


7,521


Total revenues 


33,077


34,447


34,951


4,923


123,675


134,598


18,958


















Costs and expenses:
















Cost of revenues(1)


16,945


16,294


17,418


2,453


63,935


65,031


9,159


Selling, general and administrative(1)


5,881


5,778


5,854


825


20,514


23,519


3,314


Research and development(1)


5,658


6,101


6,287


886


23,315


24,192


3,407


Total costs and expenses


28,484


28,173


29,559


4,164


107,764


112,742


15,880


Operating income


4,593


6,274


5,392


759


15,911


21,856


3,078


















Other income (loss):
















Interest income


1,647


2,082


2,064


291


6,245


8,009


1,128


Interest expense


(738)


(853)


(774)


(109)


(2,913)


(3,248)


(457)


Foreign exchange (loss) gain, net


(338)


(26)


(449)


(63)


(1,484)


595


84


Share of losses from equity method investments


(523)


(398)


(2,970)


(418)


(1,910)


(3,799)


(535)


Others, net


1,733


1,100


(398)


(57)


(5,737)


1,785


252


Total other income (loss), net


1,781


1,905


(2,527)


(356)


(5,799)


3,342


472


















Income before income taxes


6,374


8,179


2,865


403


10,112


25,198


3,550


Income tax expense (benefit)


1,254


1,282


(96)


(14)


2,578


3,649


514


Net income 


5,120


6,897


2,961


417


7,534


21,549


3,036


Net income (loss) attributable to noncontrolling interests

167


216


362


51


(25)


1,234


175


Net income attributable to Baidu


4,953


6,681


2,599


366


7,559


20,315


2,861


































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














 -Basic


13.73


18.45


6.85


0.96


20.02


55.83


7.86


 -Diluted


13.59


18.22


6.77


0.95


19.85


55.08


7.76


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














 -Basic


1.72


2.31


0.86


0.12


2.50


6.98


0.98


 -Diluted


1.70


2.28


0.85


0.12


2.48


6.89


0.97


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












 -Basic 


2,789


2,814


2,812


2,812


2,782


2,807


2,807


 -Diluted


2,801


2,846


2,830


2,830


2,809


2,837


2,837


















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














 Cost of revenues 


158


139


159


23


409


590


83


 Selling, general and administrative 


450


358


411


58


1,750


1,678


236


 Research and development 


1,233


778


1,068


150


4,629


4,077


575


 Total share-based compensation expenses 


1,841


1,275


1,638


231


6,788


6,345


894


















(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 7.0999 to US$1.00, the exchange rate in effect as of December 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,


December 31,


December 31,



2022


2023


2023



RMB


RMB


US$

ASSETS







Current assets:







Cash and cash equivalents


53,156


25,231


3,554

Restricted cash


11,330


11,503


1,620

Short-term investments, net


120,839


168,670


23,757

Accounts receivable, net


11,733


10,848


1,528

Amounts due from related parties


5,432


1,424


201

Other current assets, net


10,360


12,579


1,772

Total current assets


212,850


230,255


32,432








Non-current assets:







Fixed assets, net


23,973


27,960


3,938

Licensed copyrights, net


6,841


6,967


981

Produced content, net


13,002


13,377


1,884

Intangible assets, net


1,254


881


124

Goodwill


22,477


22,586


3,181

Long-term investments, net


55,297


47,957


6,755

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

23,629


24,666


3,474

Amounts due from related parties


60


195


27

Deferred tax assets, net


2,129


2,100


296

Operating lease right-of-use assets


10,365


10,851


1,528

Other non-current assets


19,096


18,964


2,671

Total non-current assets


178,123


176,504


24,859








Total assets


390,973


406,759


57,291








LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY



Current liabilities:







Short-term loans


5,343


10,257


1,445

Accounts payable and accrued liabilities


38,014


37,717


5,312

Customer deposits and deferred revenue


13,116


14,627


2,060

Deferred income


72


306


43

Long-term loans, current portion



2


Convertible senior notes, current portion


8,305


2,802


395

Notes payable, current portion


6,904


6,029


849

Amounts due to related parties


5,067


1,603


226

Operating lease liabilities


2,809


3,108


438

Total current liabilities


79,630


76,451


10,768








Non-current liabilities:







Deferred income


159


200


28

Deferred revenue


331


481


68

Amounts due to related parties


99


77


11

Long-term loans


13,722


14,223


2,003

Notes payable


39,893


34,990


4,928

Convertible senior notes


9,568


8,144


1,147

Deferred tax liabilities


2,898


2,725


384

Operating lease liabilities


4,810


5,040


710

Other non-current liabilities


2,058


1,820


257

Total non-current liabilities


73,538


67,700


9,536








Total liabilities


153,168


144,151


20,304








Redeemable noncontrolling interests


8,393


9,465


1,333








Equity







Total Baidu shareholders’ equity


223,478


243,626


34,314

Noncontrolling interests


5,934


9,517


1,340

Total equity


229,412


253,143


35,654








Total liabilities, redeemable noncontrolling interests,

and equity


390,973


406,759


57,291

 

 

 

Baidu, Inc. 

























Selected Information

























(In millions, unaudited)




















































Three months ended

December 31, 2022 (RMB)


Three months ended

September 30, 2023 (RMB)


Three months ended

December 31, 2023 (RMB)


Three months ended

December 31, 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 


25,654

7,593

(170)


33,077


26,572

8,015

(140)


34,447


27,488

7,707

(244)


34,951


3,872

1,086

(35)


4,923

  YOY














7 %

2 %



6 %







  QOQ














3 %

(4 %)



1 %
































Costs and expenses: 

























  Cost of revenues (1)


11,712

5,405

(172)


16,945


10,610

5,840

(156)


16,294


12,050

5,533

(165)


17,418


1,698

779

(24)


2,453

  Selling, general and administrative (1)


4,969

939

(27)


5,881


4,810

981

(13)


5,778


4,936

948

(30)


5,854


695

134

(4)


825

  Research and development (1)


5,191

467


5,658


5,654

447


6,101


5,834

453


6,287


822

64


886

Total costs and expenses 


21,872

6,811

(199)


28,484


21,074

7,268

(169)


28,173


22,820

6,934

(195)


29,559


3,215

977

(28)


4,164

  YOY 

























  Cost of revenues 














3 %

2 %



3 %







  Selling, general and administrative 














(1 %)

1 %



(0 %)







  Research and development 














12 %

(3 %)



11 %







  Costs and expenses














4 %

2 %



4 %
































Operating income (loss)


3,782

782

29


4,593


5,498

747

29


6,274


4,668

773

(49)


5,392


657

109

(7)


759

  YOY














23 %

(1 %)



17 %







  QOQ














(15 %)

3 %



(14 %)







Operating margin 


15 %

10 %



14 %


21 %

9 %



18 %


17 %

10 %



15 %
































  Add: total other income (loss), net


2,271

(490)


1,781


2,159

(254)


1,905


(2,267)

(260)


(2,527)


(319)

(37)


(356)

  Less: income tax expense (benefit)


1,265

(11)


1,254


1,272

10


1,282


(134)

38


(96)


(19)

5


(14)

  Less: net income (loss) attributable to NCI


15

(1)

153

(3)

167


(51)

7

260

(3)

216


95

9

258

(3)

362


13

1

37

(3)

51

Net income (loss) attributable to Baidu


4,773

304

(124)


4,953


6,436

476

(231)


6,681


2,440

466

(307)


2,599


344

66

(44)


366

  YOY














(49 %)

53 %



(48 %)







  QOQ














(62 %)

(2 %)



(61 %)







Net margin 


19 %

4 %



15 %


24 %

6 %



19 %


9 %

6 %



7 %
































Non-GAAP financial measures:

























Operating income (non-GAAP)


5,491

977



6,497


6,672

895



7,596


6,197

927



7,075


873

130



996

  YOY














13 %

(5 %)



9 %







  QOQ














(7 %)

4 %



(7 %)







Operating margin (non-GAAP)


21 %

13 %



20 %


25 %

11 %



22 %


23 %

12 %



20 %
































Net income attributable to Baidu (non-

GAAP)


4,915

856



5,371


6,956

622



7,267


7,500

681



7,755


1,056

96



1,092

  YOY














53 %

(20 %)



44 %







  QOQ














8 %

9 %



7 %







Net margin (non-GAAP)


19 %

11 %



16 %


26 %

8 %



21 %


27 %

9 %



22 %
































Adjusted EBITDA


7,146

1,056



8,231


8,513

963



9,505


8,118

988



9,057


1,143

140



1,276

  YOY














14 %

(6 %)



10 %







  QOQ














(5 %)

3 %



(5 %)







Adjusted EBITDA margin 


28 %

14 %



25 %


32 %

12 %



28 %


30 %

13 %



26 %
































(1)  Includes share-based compensation as follows:























 Cost of revenues 


122

36



158


107

32



139


125

34



159


18

5



23

 Selling, general and administrative 


355

95



450


290

68



358


340

71



411


48

10



58

 Research and development 


1,177

56



1,233


732

46



778


1,020

48



1,068


144

6



150

 Total share-based compensation 


1,654

187



1,841


1,129

146



1,275


1,485

153



1,638


210

21



231

 (2) Relates to intersegment eliminations and adjustments 























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





















 

 

 

Baidu, Inc. 



















Selected Information



















(In millions except for per ADS information, unaudited)






































Twelve months ended

December 31, 2022 (RMB)


Twelve months ended

December 31, 2023 (RMB)


Twelve months ended

December 31, 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.

Total revenues 


95,431

28,998

(754)


123,675


103,465

31,873

(740)


134,598


14,573

4,489

(104)


18,958

  YOY








8 %

10 %



9 %













































Costs and expenses: 



















  Cost of revenues (1)


42,378

22,321

(764)


63,935


42,592

23,103

(664)


65,031


5,999

3,254

(94)


9,159

  Selling, general and administrative (1)


17,103

3,466

(55)


20,514


19,623

4,014

(118)


23,519


2,765

565

(16)


3,314

  Research and development (1)


21,416

1,899


23,315


22,425

1,767


24,192


3,158

249


3,407

Total costs and expenses 


80,897

27,686

(819)


107,764


84,640

28,884

(782)


112,742


11,922

4,068

(110)


15,880

  YOY 



















  Cost of revenues 








1 %

4 %



2 %







  Selling, general and administrative 








15 %

16 %



15 %







  Research and development 








5 %

(7 %)



4 %







  Cost and expenses








5 %

4 %



5 %


























Operating income


14,534

1,312

65


15,911


18,825

2,989

42


21,856


2,651

421

6


3,078

  YOY








30 %

128 %



37 %







Operating margin 


15 %

5 %



13 %


18 %

9 %



16 %


























  Add: total other (loss) income, net


(4,453)

(1,346)


(5,799)


4,298

(956)


3,342


607

(135)


472

  Less: income tax expense


2,494

84


2,578


3,568

81


3,649


503

11


514

  Less: net income (loss) attributable to NCI


36

18

(79)

(3)

(25)


154

27

1,053

(3)

1,234


22

4

149

(3)

175

Net income (loss) attributable to Baidu


7,551

(136)

144


7,559


19,401

1,925

(1,011)


20,315


2,733

271

(143)


2,861

  YOY








157 %

(1515 %)



169 %







Net margin 


8 %

(0 %)



6 %


19 %

6 %



15 %


























Non-GAAP financial measures:



















Operating income (non-GAAP)


20,948

2,173



23,186


24,748

3,643



28,433


3,486

513



4,005

  YOY








18 %

68 %



23 %







Operating margin (non-GAAP)


22 %

7 %



19 %


24 %

11 %



21 %


























Net income attributable to Baidu (non-GAAP)

19,935

1,284



20,680


27,418

2,838



28,747


3,862

400



4,049

  YOY








38 %

121 %



39 %







Net margin (non-GAAP)


21 %

4 %



17 %


26 %

9 %



21 %


























Adjusted EBITDA


27,088

2,510



29,663


31,863

3,918



35,823


4,488

552



5,046

  YOY








18 %

56 %



21 %







Adjusted EBITDA margin 


28 %

9 %



24 %


31 %

12 %



27 %


























(1)  Includes share-based compensation as follows:



















 Cost of revenues 


261

148



409


457

133



590


64

19



83

 Selling, general and administrative 


1,326

424



1,750


1,363

315



1,678


192

44



236

 Research and development 


4,390

239



4,629


3,888

189



4,077


548

27



575

 Total share-based compensation 


5,977

811



6,788


5,708

637



6,345


804

90



894

 (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 



December 31, 2022 (RMB)


September 30, 2023 (RMB)


December 31, 2023 (RMB)


December 31, 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


6,999

854

7,853


8,694

831

9,525


9,985

633

10,618


1,407

89

1,496

Net cash (used in) provided by investing activities 


(5,902)

579

(5,323)


(11,345)

(55)

(11,400)


(11,805)

(1,431)

(13,236)


(1,662)

(202)

(1,864)

Net cash (used in) provided by financing activities


(5,124)

2,862

(2,262)


(5,253)

269

(4,984)


(7,586)

(22)

(7,608)


(1,069)

(3)

(1,072)

Effect of exchange rate changes on cash, cash

equivalents and restricted cash


(1,420)

(9)

(1,429)


153

5

158


(364)

(31)

(395)


(52)

(4)

(56)

Net (decrease) increase in cash, cash equivalents

and restricted cash 


(5,447)

4,286

(1,161)


(7,751)

1,050

(6,701)


(9,770)

(851)

(10,621)


(1,376)

(120)

(1,496)

Cash, cash equivalents and restricted cash

















  At beginning of period


62,821

3,576

66,397


49,814

5,082

54,896


42,063

6,132

48,195


5,924

864

6,788

  At end of period


57,374

7,862

65,236


42,063

6,132

48,195


32,293

5,281

37,574


4,548

744

5,292


















Net cash provided by operating activities


6,999

854

7,853


8,694

831

9,525


9,985

633

10,618


1,407

89

1,496

Less: Capital expenditures


(1,920)

(9)

(1,929)


(3,525)

(4)

(3,529)


(3,641)

(19)

(3,660)


(513)

(3)

(516)

Free cash flow


5,079

845

5,924


5,169

827

5,996


6,344

614

6,958


894

86

980


















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













 

 

 

Baidu, Inc. 













Condensed Consolidated Statements of Cash Flows











(In millions,unaudited)




























Twelve months ended


Twelve months ended


Twelve months ended



December 31, 2022 (RMB)


December 31, 2023 (RMB)


December 31, 2023 (US$)



 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


26,241

(71)

26,170


33,263

3,352

36,615


4,685

472

5,157

Net cash (used in) provided by investing activities 


(4,210)

266

(3,944)


(48,657)

(1,740)

(50,397)


(6,853)

(245)

(7,098)

Net cash (used in) provided by financing activities


(10,859)

4,469

(6,390)


(9,876)

(4,286)

(14,162)


(1,391)

(604)

(1,995)

Effect of exchange rate changes on cash, cash

equivalents and restricted cash


1,606

123

1,729


189

93

282


27

13

40

Net increase (decrease) in cash, cash equivalents

and restricted cash 


12,778

4,787

17,565


(25,081)

(2,581)

(27,662)


(3,532)

(364)

(3,896)

Cash, cash equivalents and restricted cash













  At beginning of period


44,596

3,075

47,671


57,374

7,862

65,236


8,080

1,108

9,188

  At end of period


57,374

7,862

65,236


32,293

5,281

37,574


4,548

744

5,292














Net cash provided by (used in) operating activities


26,241

(71)

26,170


33,263

3,352

36,615


4,685

472

5,157

Less: Capital expenditures


(8,112)

(174)

(8,286)


(11,154)

(36)

(11,190)


(1,571)

(5)

(1,576)

Free cash flow


18,129

(245)

17,884


22,109

3,316

25,425


3,114

467

3,581



























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 




















December 31, 2022 (RMB)


September 30, 2023 (RMB)


December 31, 2023 (RMB)


December 31, 2023 (US$)




















Baidu

Core

iQIYI

Baidu,

Inc.


Baidu

Core

iQIYI

Baidu,

Inc.


Baidu

Core

iQIYI

Baidu,

Inc.


Baidu

Core

iQIYI

Baidu,

Inc.


















Operating income


3,782

782

4,593


5,498

747

6,274


4,668

773

5,392


657

109

759


















Add: Share-based compensation expenses


1,654

187

1,841


1,129

146

1,275


1,485

153

1,638


210

21

231


















Add: Amortization and impairment of intangible assets(1)


55

8

63


45

2

47


44

1

45


6

6


















Operating income (non-GAAP)


5,491

977

6,497


6,672

895

7,596


6,197

927

7,075


873

130

996




















































Add:  Depreciation of fixed assets


1,655

79

1,734


1,841

68

1,909


1,921

61

1,982


270

10

280


















Adjusted EBITDA


7,146

1,056

8,231


8,513

963

9,505


8,118

988

9,057


1,143

140

1,276




















































Net income attributable to Baidu


4,773

304

4,953


6,436

476

6,681


2,440

466

2,599


344

66

366


















Add: Share-based compensation expenses


1,654

187

1,748


1,128

146

1,194


1,484

153

1,553


209

22

219


















Add: Amortization and impairment of intangible assets(1)


50

8

55


43

2

44


42

1

42


6

6


















Add: Disposal (gain) loss


(484)

62

(453)


(753)

(753)


(37)

(1)

(38)


(5)

(5)


















Add: Impairment of long-term investments


318

271

453


46

46


132

62

160


19

8

23


















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


(1,662)

8

(1,658)


(384)

(2)

(385)


403

403


57

57


















Add: Reconciling items on equity method investments(2)


377

18

386


572

572


3,172

3,172


447

447


















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


(111)

(2)

(113)


(132)

(132)


(136)

(136)


(21)

(21)


















Net income attributable to Baidu (non-GAAP)


4,915

856

5,371


6,956

622

7,267


7,500

681

7,755


1,056

96

1,092




















































Diluted earnings per ADS




13.59




18.22




6.77




0.95


















Add:  Accretion of the redeemable noncontrolling interests




0.46




0.53




0.53




0.07


















Add:  Non-GAAP adjustments to earnings per ADS




1.20




1.65




14.56




2.06


















Diluted earnings per ADS (non-GAAP)




15.25




20.40




21.86




3.08




















































(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.


















 

 

 

Baidu, Inc. 


























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




















(In millions except for ADS and per ADS information, unaudited)




















































Twelve months ended


Twelve months ended


Twelve months ended
















December 31, 2022 (RMB)


December 31, 2023 (RMB)


December 31, 2023 (US$)
















Baidu

Core

iQIYI

Baidu,

Inc.


Baidu

Core

iQIYI

Baidu,

Inc.


Baidu

Core

iQIYI

Baidu,

Inc.














Operating income


14,534

1,312

15,911


18,825

2,989

21,856


2,651

421

3,078














Add:  Share-based compensation expenses


5,977

811

6,788


5,708

637

6,345


804

90

894














Add:  Amortization and impairment of intangible assets(1)


223

50

273


215

17

232


31

2

33














Add:  Contingent loss(2)


214

214
















Operating income (non-GAAP)


20,948

2,173

23,186


24,748

3,643

28,433


3,486

513

4,005








































Add:  Depreciation of fixed assets


6,140

337

6,477


7,115

275

7,390


1,002

39

1,041














Adjusted EBITDA


27,088

2,510

29,663


31,863

3,918

35,823


4,488

552

5,046








































Net income (loss) attributable to Baidu


7,551

(136)

7,559


19,401

1,925

20,315


2,733

271

2,861














Add: Share-based compensation expenses


5,964

811

6,371


5,704

637

5,993


803

90

844














Add: Amortization and impairment of intangible assets(1)


200

50

229


195

17

204


27

2

29














Add: Disposal (gain)


(515)

(368)

(700)


(1,926)

(90)

(1,967)


(271)

(13)

(277)














Add: Impairment of long-term investments


2,180

841

2,601


479

336

631


67

47

89














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


3,977

(18)

3,968


(54)

4

(52)


(8)

1

(7)














Add: Reconciling items on equity method investments(3)


1,473

105

1,548

3,918

9

3,922

552

2

551














Add: Charitable donation from Baidu(4)


136

136
















Add: Contingent loss(2)


214

214
















Add: Tax effects on non-GAAP adjustments(5)


(1,245)

(1)

(1,246)


(299)

(299)


(41)

(41)














Net income attributable to Baidu (non-GAAP)


19,935

1,284

20,680


27,418

2,838

28,747


3,862

400

4,049








































Diluted earnings per ADS




19.85




55.08




7.76














Add:  Accretion of the redeemable noncontrolling interests




1.68




2.02




0.28














Add:  Non-GAAP adjustments to earnings per ADS




37.40




23.75




3.35














Diluted earnings per ADS (non-GAAP)




58.93




80.85




11.39


































































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














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














(3) 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.















(4) This represents non-recurring charitable donation to discrete events.














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














 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/baidu-announces-fourth-quarter-and-fiscal-year-2023-results-302073884.html

SOURCE Baidu, Inc.

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