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.

SOURCE Baidu, Inc.

Go to Source