Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2022

Commission File Number: 000-51469

 

 

BAIDU, INC.

 

 

Baidu Campus

No. 10 Shangdi 10th Street

Haidian District, Beijing 100085

The People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


Exhibit 99.1 — Press Release


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BAIDU, INC.

By :

 

/s/ Rong Luo

Name :

 

Rong Luo

Title :

 

Chief Financial Officer

Date: May 27, 2022

EX-99.1

Exhibit 99.1

Baidu Announces First Quarter 2022 Results

BEIJING, China, May 26, 2022 — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) (“Baidu” or the “Company”), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the first quarter ended March 31, 2022.

“Baidu delivered solid first quarter results, especially with regard to our cloud and intelligent driving businesses. Baidu AI Cloud reported another quarter of strong revenue growth and Apollo Go was granted the first permit in China to provide driverless ride-hailing services on public roads in Beijing,” said Robin Li, Co-founder and CEO of Baidu. “Since mid-March, our business has been negatively impacted by the recent COVID-19 resurgence in China. Although challenges related to the virus continue to pressure our near term business operations, we remain confident that our new AI businesses will boost the long-term growth of Baidu and contribute to China’s innovation- driven economy and sustainable development.”

“Revenues from Baidu Core remained healthy with non-ad revenues increasing by 35% year over year, driven by Baidu AI Cloud, which grew 45% year over year in the quarter, ” said Rong Luo, CFO of Baidu. “Looking ahead, we remain committed to quality revenue growth and an enduring business model. In addition, we will further enhance our overall operational efficiency to drive long-term growth.”

First Quarter 2022 Financial Highlights1

 

     Baidu, Inc.  

(In millions except per

ADS, unaudited)

   Q1 2021     Q4 2021     Q1 2022     YOY     QOQ  
     RMB     RMB     RMB     US$              

Total revenues

     28,134       33,088       28,411       4,482       1     (14 %) 

Operating income

     2,789       1,958       2,601       410       (7 %)      33

Operating income (non-GAAP) 2

     4,362       4,307       3,996       630       (8 %)      (7 %) 

Net income (loss) to Baidu

     25,653       1,715       (885     (140     —         —    

Net income to Baidu (non-GAAP)2

     4,297       4,084       3,879       612       (10 %)      (5 %) 

Diluted earnings (loss) per ADS

     73.76       4.51       (2.87     (0.45     —         —    

Diluted earnings per ADS (non-GAAP)2

     12.38       11.60       11.22       1.77       (9 %)      (3 %) 

Adjusted EBITDA2

     5,900       5,757       5,499       867       (7 %)      (4 %) 

Adjusted EBITDA margin

     21     17     19     19    

 

1 

Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.3393 as of March 31, 2022, 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).

 

1


     Baidu Core  
(In millions, unaudited)    Q1 2021     Q4 2021     Q1 2022     YOY     QOQ  
     RMB     RMB     RMB     US$              

Total revenues

     20,483       25,978       21,378       3,372       4     (18 %) 

Operating income

     3,847       2,958       2,524       398       (34 %)      (15 %) 

Operating income (non-GAAP)2

     5,064       4,847       3,686       581       (27 %)      (24 %) 

Net income (loss) to Baidu Core

     26,354       2,656       (963     (152     —         —    

Net income to Baidu Core (non-GAAP)2

     4,870       4,625       3,804       600       (22 %)      (18 %) 

Adjusted EBITDA2

     6,487       6,210       5,106       805       (21 %)      (18 %) 

Adjusted EBITDA margin

     32     24     24     24    

Operational Highlights

Corporate

 

 

Baidu released its annual ESG Report in May 2022, which details Baidu’s ESG policies and sustainability initiatives ( http://esg.baidu.com/en/esg_download.html ).

AI Cloud

 

 

PaddlePaddle developer community has grown to 4.77 million and has served 180,000 businesses and created 560,000 models, as of May 20, 2022.

 

 

Baidu ACE smart transportation has been adopted by 41 cities, up from 16 cities a year ago, based on contract value of over RMB10 million, as of the end of the first quarter of 2022.

Intelligent Driving

 

 

Baidu received a nomination letter from Dongfeng Motor, a Top 3 domestic automaker, in April 2022, indicating that Dongfeng Motor intends to adopt Apollo Self Driving (ANP, AVP, HD Map) in one of its popular models. This followed the nomination letter from BYD earlier this year.

 

 

On April 28th 2022, Apollo Go was granted the permits to provide driverless ride hailing services on public roads of the Yizhuang region of Beijing. Apollo also received the first permits in Chongqing to conduct driverless testing on May 20th, 2022.

 

 

Apollo Go provided 196K rides in the first quarter of 2022.

 

 

Apollo Go is now available in ten cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Changsha, Cangzhou, Yangquan, Wuzhen Water Town in Jiaxing and Wuhan. Apollo Go expanded into Wuzhen Water Town in Jiaxing on March 26, 2022 and Wuhan on May 10, 2022.

 

2


Other Growth Initiatives

 

 

Xiaodu again ranked No.1 in smart display shipments globally for 2021, according to Strategy Analytics and Canalys. Xiaodu continues to be ranked No.1 in smart speaker shipments in China for 2021, according to Strategy Analytics, IDC and Canalys.

Mobile Ecosystem

 

 

In March, Baidu App’s MAUs reached 632 million, up 13% year over year, and daily logged in users reached 83%.

 

 

In March, Baidu Smart Mini Program (“SMPs”) MAUs reached 508 million, up 22% year over year, and the number of SMPs grew by 26% year over year.

 

 

Revenue from Managed Page grew by 31% and reached 47% of Baidu Core’s online marketing revenue in the first quarter of 2022.

iQIYI

 

 

iQIYI’s average daily number of total subscribing members for the quarter was 101 million, compared to 105 million for the first quarter of 2021 and 97 million for the fourth quarter of

2021.

First Quarter 2022 Financial Results

Total revenues were RMB28.4 billion ($4.48 billion), increasing 1% year over year.

 

 

Revenue from Baidu Core was RMB21.4 billion ($3.37 billion), increasing 4% year over year; online marketing revenue was RMB15.7 billion ($2.47 billion), decreasing 4% year over year, and non-online marketing revenue was RMB5.7 billion ($903 million), up 35% year over year, driven by cloud and other AI-powered businesses.

 

 

Revenue from iQIYI was RMB7.3 billion ($1.15 billion), decreasing 9% year over year.

Cost of revenues was RMB15.5 billion ($2.45 billion), increasing 4% year over year, primarily due to an increase in cost of goods sold, traffic acquisition costs, bandwidth costs, and other costs related to new AI business, offset by a decrease in content costs.

Selling, general and administrative expenses were RMB4.7 billion ($735 million), decreasing 11% year over year, primarily due to a decrease in channel spending, promotional marketing and expected credit losses.

Research and development expense was RMB5.6 billion ($885 million), increasing 10% year over year, primarily due to an increase in personnel related expense.

 

3


Operating income was RMB2.6 billion ($410 million). Baidu Core operating income was RMB2.5 billion ($398 million), and Baidu Core operating margin was 12%. Non-GAAP operating income was RMB4.0 billion ($630 million). Non-GAAP Baidu Core operating income was RMB3.7 billion ($581 million), and non-GAAP Baidu Core operating margin was 17%.

Total other loss, net was RMB3.0 billion ($466 million), which mainly included a fair value loss of RMB3.0 billion from long-term investments. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies, private equity funds and digital assets, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods.

Income tax expense was RMB391 million ($62 million), decreasing 75% year over year, primarily due to a decrease in profit before tax and an increase in deduction on certain expenses that were previously considered non-deductible.

Net loss attributable to Baidu was RMB885 million ($140 million), and diluted loss per ADS was RMB2.87 ($0.45). Net loss attributable to Baidu Core was RMB963 million ($152 million). Non- GAAP net income attributable to Baidu was RMB3.9 billion ($612 million). Non-GAAP diluted earnings per ADS was RMB11.22 ($1.77). Non-GAAP net income attributable to Baidu Core was RMB3.8 billion ($600 million), and non-GAAP net margin for Baidu Core was 18%.

Adjusted EBITDA was RMB5.5 billion ($867 million) and adjusted EBITDA margin was 19%. Adjusted EBITDA for Baidu Core was RMB5.1 billion ($805 million) and adjusted EBITDA margin for Baidu Core was 24%.

As of March 31, 2022, cash, cash equivalents, restricted cash and short-term investments were RMB191.0 billion ($30.13 billion), and cash, cash equivalents, restricted cash and short- term investments excluding iQIYI were RMB185.8 billion ($29.31 billion). Free cash flow was negative RMB107 million ($17 million), and free cash flow excluding iQIYI was RMB1.1 billion ($175 million).

 

4


Conference Call Information

Baidu’s management will hold an earnings conference call at 8.00AM on May 26, 2022, U.S. Eastern Time (8.00PM on May 26, 2022, Beijing Time).

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

For pre-registration, please click http://apac.directeventreg.com/registration/event/3917105

It will automatically direct you to the registration page of “Baidu Q1 2022 Earnings Conference Call”, where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter “3917105”.

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

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

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.

Contacts

Investors Relations, Baidu, Inc.

Tel: +86-10-5992-8888

Email: ir@baidu.com

 

5


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.

 

6


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 and iQIYI’s non-recurring employee severance costs.

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, contingent loss pertaining to legal proceeding in relation to former advertising agencies, iQIYI’s non-recurring employee severance costs, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, 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 shares, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, contingent loss pertaining to legal proceeding in relation to former advertising agencies, iQIYI’s non-recurring employee severance costs, and share-based compensation expenses.

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

 

7


Baidu, Inc.

Condensed Consolidated Statements of Income (Loss)

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

 

     Three Months Ended  
     March 31,
2021
    December 31,
2021
    March 31,
2022
    March 31,
2022
 
     RMB     RMB     RMB     US$(2)  

Revenues:

        

Online marketing services

     18,094       20,723       16,929       2,670  

Others

     10,040       12,365       11,482       1,812  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     28,134       33,088       28,411       4,482  
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Cost of revenues(1)

     15,002       17,289       15,546       2,452  

Selling, general and administrative(1)

     5,245       6,451       4,656       735  

Research and development(1)

     5,098       7,390       5,608       885  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     25,345       31,130       25,810       4,072  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     2,789       1,958       2,601       410  

Other income (loss):

        

Interest income

     1,233       1,514       1,454       229  

Interest expense

     (823     (873     (710     (112

Foreign exchange income (loss), net

     156       (27     (11     (2

Share of losses from equity method investments

     (151     (773     (408     (64

Others, net

     23,362       566       (3,286     (517
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (loss), net

     23,777       407       (2,961     (466
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     26,566       2,365       (360     (56

Income tax expense

     1,534       1,295       391       62  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     25,032       1,070       (751     (118

Net (loss) income attributable to noncontrolling interests

     (621     (645     134       22  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Baidu

     25,653       1,715       (885     (140
  

 

 

   

 

 

   

 

 

   

 

 

 

 

8


     Three Months Ended  
     March 31,
2021
     December 31,
2021
     March 31,
2022
    March 31,
2022
 
     RMB      RMB      RMB     US$(2)  

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

          

— Basic

     76.10        4.57        (2.87     (0.45

— Diluted

     73.76        4.51        (2.87     (0.45

Earnings (loss) per share for Class A and Class B ordinary shares:

          

— Basic

     9.51        0.57        (0.36     (0.06

— Diluted

     9.22        0.56        (0.36     (0.06

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

          

— Basic

     2,692        2,780        2,767       2,767  

— Diluted

     2,777        2,816        2,767       2,767  

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

          

Cost of revenues

     79        134        82       13  

Selling, general and administrative

     471        533        377       60  

Research and development

     949        1,426        864       136  
  

 

 

    

 

 

    

 

 

   

 

 

 

Total share-based compensation expenses

     1,499        2,093        1,323       209  

 

(2)

All translations from RMB to U.S. dollars are made at a rate of RMB6.3393 to US$1.00, the exchange rate in effect as of March 31, 2022 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

 

9


Baidu, Inc.

Condensed Consolidated Balance Sheets

(In millions, unaudited)

 

     December 31,
2021
     March 31,
2022
     March 31,
2022
 
     RMB      RMB      US$  

ASSETS

        

Current assets:

        

Cash and cash equivalents

     36,850        36,832        5,810  

Restricted cash

     10,821        10,975        1,731  

Short-term investments, net

     143,243        143,172        22,585  

Accounts receivable, net

     9,981        9,671        1,526  

Amounts due from related parties

     1,368        903        142  

Other current assets, net

     11,052        9,950        1,569  
  

 

 

    

 

 

    

 

 

 

Total current assets

     213,315        211,503        33,363  
  

 

 

    

 

 

    

 

 

 

Non-current assets:

        

Fixed assets, net

     23,027        23,133      3,649  

Licensed copyrights, net

     7,258        7,096      1,119  

Produced content, net

     10,951        12,032      1,898  

Intangible assets, net

     1,689      1,556      245  

Goodwill

     22,605      22,605      3,566  

Long-term investments, net

     67,332      64,247      10,135  

Amounts due from related parties

     3,487        3,471      548  

Deferred tax assets, net

     2,372      2,670      421  

Operating lease right-of-use assets

     12,065      10,769      1,699  

Other non-current assets

     15,933      16,551      2,611  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     166,719        164,130        25,891  
  

 

 

    

 

 

    

 

 

 

Total assets

     380,034        375,633        59,254  
  

 

 

    

 

 

    

 

 

 

 

10


     December 31,
2021
     March 31,
2022
     March 31,
2022
 
     RMB      RMB      US$  

LIABILITIES,

        

REDEEMABLE NONCONTROLLING

        

INTERESTS AND EQUITY

        

Current liabilities:

        

Short-term loans

     4,168        4,442        701  

Accounts payable and accrued liabilities

     41,384        35,693        5,630  

Customer deposits and deferred revenue

     13,706        13,153        2,075  

Deferred income

     97        87        14  

Long-term loans, current portion

     2        —          —    

Notes payable, current portion

     10,505        10,457        1,650  

Amounts due to related parties

     1,764        1,553        245  

Operating lease liabilities

     2,862        2,804        442  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     74,488        68,189        10,757  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities:

        

Deferred income

     129        147        23  

Deferred revenue

     223        234        37  

Amounts due to related parties

     3,268        3,243        512  

Long-term loans

     12,629        12,573        1,983  

Notes payable

     43,120        42,917        6,770  

Convertible senior notes

     12,652        13,238        2,088  

Deferred tax liabilities

     3,286        3,006        474  

Operating lease liabilities

     5,569        5,149        812  

Other non-current liabilities

     718        1,707        269  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     81,594        82,214        12,968  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     156,082        150,403        23,725  
  

 

 

    

 

 

    

 

 

 

Redeemable noncontrolling interests

     7,148        6,872        1,084  

Equity

        

Total Baidu shareholders’ equity

     211,459        212,170        33,469  

Noncontrolling interests

     5,345        6,188        976  
  

 

 

    

 

 

    

 

 

 

Total equity

     216,804        218,358        34,445  
  

 

 

    

 

 

    

 

 

 

Total liabilities, redeemable noncontrolling interests, and equity

     380,034        375,633        59,254  
  

 

 

    

 

 

    

 

 

 

 

11


Baidu, Inc.

Selected Information

(In millions, unaudited)

 

    Three months ended     Three months ended     Three months ended     Three months ended  
    March 31, 2021 (RMB)     December 31, 2021 (RMB)     March 31, 2022 (RMB)     March 31, 2022 (US$)  
    Baidu           Elim &     Baidu,     Baidu           Elim &     Baidu,     Baidu           Elim &     Baidu,     Baidu           Elim &     Baidu,  
    Core     iQIYI     adj(2)     Inc.     Core     iQIYI     adj(2)     Inc.     Core     iQIYI     adj(2)     Inc.     Core     iQIYI     adj(2)     Inc.  

Total revenues

    20,483       7,968       (317     28,134       25,978       7,389       (279     33,088       21,378       7,277       (244     28,411       3,372       1,148       (38     4,482  

YOY

                    4     (9 %)        1        

QOQ

                    (18 %)      (2 %)        (14 %)         

Costs and expenses:

                               

Cost of revenues (1)

    8,162       7,109       (269     15,002       11,017       6,507       (235     17,289       9,807       5,964       (225     15,546       1,547       941       (36     2,452  

Selling, general and administrative (1)

    4,048       1,201       (4     5,245       5,377       1,093       (19     6,451       3,913       745       (2     4,656       617       118             735  

Research and development (1)

    4,426       672       —         5,098       6,626       764       —         7,390       5,134       474       —         5,608       810       75       —         885  
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

 

Total costs and expenses

    16,636       8,982       (273     25,345       23,020       8,364       (254     31,130       18,854       7,183       (227     25,810       2,974       1,134       (36     4,072  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

YOY

                               

Cost of revenues

                    20     (16 %)        4        

Selling, general and administrative

                    (3 %)      (38 %)        (11 %)         

Research and development

                    16     (29 %)        10        

Cost and expenses

                    13     (20 %)        2        

Operating income (loss)

    3,847       (1,014     (44     2,789       2,958       (975     (25     1,958       2,524       94       (17     2,601       398       14       (2     410  

YOY

                    (34 %)      —           (7 %)         

QOQ

                    (15 %)      —           33        

Operating margin

    19     (13 %)        10     11     (13 %)        6     12     1       9        

Add: total other income (loss), net

    23,999       (222     —         23,777       1,161       (754     —         407       (3,058     97       —         (2,961     (481     15       —         (466

Less: income tax expense

    1,513       21       —         1,534       1,258       37       —         1,295       374       17       —         391       59       3       —         62  

Less: net (loss) income attributable to NCI

    (21     10       (610 )(3)      (621     205       10       (860 )(3)      (645     55       5       74 (3)      134       10       1       11 (3)      22  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Baidu

    26,354       (1,267     566       25,653       2,656       (1,776     835       1,715       (963     169       (91 )      (885     (152     25       (13 )      (140
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

YOY

                    —         —           —            

QOQ

                    —         —           —            

Net margin

    129     (16 %)        91     10     (24 %)        5     (5 %)      2       (3 %)         

 

12


    Three months ended
March 31, 2021 (RMB)
    Three months ended
December 31, 2021
(RMB)
    Three months ended
March 31, 2022 (RMB)
    Three months ended
March 31, 2022 (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.
 

Non-GAAP financial measures:

                               

Operating income (loss) (non-GAAP)

    5,064       (658       4,362       4,847       (515       4,307       3,686       327         3,996       581       51         630  

YOY

                    (27 %)      —           (8 %)         

QOQ

                    (24 %)      —           (7 %)         

Operating margin (non-GAAP)

    25     (8 %)        16     19     (7 %)        13     17     4       14        

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

    4,870       (1,021       4,297       4,625       (1,001       4,084       3,804       162         3,879       600       25         612  

YOY

                    (22 %)      —           (10 %)         

QOQ

                    (18 %)      —           (5 %)         

Net margin (non-GAAP)

    24     (13 %)        15     18     (14 %)        12     18     2       14        

Adjusted EBITDA

    6,487       (543       5,900       6,210       (428       5,757       5,106       410         5,499       805       64         867  

YOY

                    (21 %)      —           (7 %)         

QOQ

                    (18 %)      —           (4 %)         

Adjusted EBITDA margin

    32     (7 %)        21     24     (6 %)        17     24     6       19        

(1) Includes share-based compensation as follows:

 

Cost of revenues

    33       46         79       90       44         134       45       37         82       7       6         13  

Selling, general and administrative

    256       215         471       396       137         533       257       120         377       41       19         60  

Research and development

    866       83         949       1,343       83         1,426       804       60         864       127       9         136  
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

 

Total share-based compensation

    1,155       344         1,499       1,829       264         2,093       1,106       217         1,323       175       34         209  

 

(2)

Relates to intersegment eliminations and adjustments

(3)

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

 

13


Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions,unaudited)

 

     Three months ended
March 31, 2021 (RMB)
    Three months ended
December 31, 2021 (RMB)
    Three months ended
March 31, 2022 (RMB)
    Three months ended
March 31, 2022 (US$)
 
     Baidu
excl.
iQIYI
    iQIYI     Baidu,
Inc.
    Baidu
excl.
iQIYI
    iQIYI     Baidu,
Inc.
    Baidu
excl.
iQIYI
    iQIYI     Baidu,
Inc.
    Baidu
excl.
iQIYI
    iQIYI     Baidu,
Inc.
 

Net cash provided by (used in) operating activities

     5,467       (1,350     4,117       5,809       (1,095     4,714       3,039       (1,167     1,872       479       (184     295  

Net cash (used in) provided by investing activities

     (4,579     (2,778     (7,357     (50     2,097       2,047       (2,884     (67     (2,951     (455     (11     (466

Net cash provided by (used in) financing activities

     18,018       611       18,629       (4,662     (5,239     (9,901     (644     2,046       1,402       (102     323       221  

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

     251       (29     222       (589     (74     (663     (183     (4     (187     (28     (1     (29

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

     19,157       (3,546     15,611       508       (4,311     (3,803     (672     808       136       (106     127       21  

Cash, cash equivalents and restricted cash

                        

At beginning of period

     25,599       10,941       36,540       44,088       7,386       51,474       44,596       3,075       47,671       7,035       485       7,520  

At end of period

     44,756       7,395       52,151       44,596       3,075       47,671       43,924       3,883       47,807       6,929       612       7,541  

Net cash provided by (used in) operating activities

     5,467       (1,350     4,117       5,809       (1,095     4,714       3,039       (1,167     1,872       479       (184     295  

Less: Capital expenditures

     (1,438     (61     (1,499     (4,213     (24     (4,237     (1,928     (51     (1,979     (304     (8     (312
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

     4,029       (1,411     2,618       1,596       (1,119     477       1,111       (1,218     (107     175       (192     (17

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

 

14


Baidu, Inc.

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

(In millions except for per ADS information, unaudited)

 

     Three months ended     Three months ended     Three months ended     Three months ended  
     March 31, 2021 (RMB)     December 31, 2021 (RMB)     March 31, 2022 (RMB)     March 31, 2022 (US$)  
     Baidu
Core
    iQIYI     Baidu,
Inc.
    Baidu
Core
    iQIYI     Baidu,
Inc.
    Baidu
Core
    iQIYI     Baidu,
Inc.
    Baidu
Core
    iQIYI     Baidu,
Inc.
 

Operating income (loss)

     3,847       (1,014     2,789       2,958       (975     1,958       2,524       94       2,601       398       14       410  

Add: Share-based compensation expenses

     1,155       344       1,499       1,829       264       2,093       1,106       217       1,323       175       34       209  

Add: Amortization and impairment of intangible assets(1)

     62       12       74       60       17       77       56       16       72       8       3       11  

Add: iQIYI non-recurring employee severance costs(4)

     —         —         —         —         179       179       —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss) (non-GAAP)

     5,064       (658     4,362       4,847       (515     4,307       3,686       327       3,996       581       51       630  

Add: Depreciation of fixed assets

     1,423       115       1,538       1,363       87       1,450       1,420       83       1,503       224       13       237  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     6,487       (543     5,900       6,210       (428     5,757       5,106       410       5,499       805       64       867  

Net income (loss) attributable to Baidu

     26,354       (1,267     25,653       2,656       (1,776     1,715       (963     169       (885     (152     25       (140

Add: Share-based compensation expenses

     1,146       344       1,325       1,805       264       1,941       1,101       217       1,210       175       34       191  

Add: Amortization and impairment of intangible assets(1)

     55       12       61       55       17       65       50       16       59       8       3       9  

Add: Disposal (gain) loss

     —         —         —         —         —         —         —         (430     (216     —         (68     (34

Add: Impairment of long-term investments

     —         —         —         752       139       824       598       183       690       93       29       109  

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

     (23,545     (88     (23,590     (1,339     2       (1,337     3,037       (1     3,037       479       —         479  

Add: Reconciling items on equity method investments(2)

     593       (20     583       430       177       521       456       11       462       72       2       73  

Add: Charitable donation from Baidu(3)

     —         —         —         50       —         50       —         —         —         —         —         —    

Add: iQIYI non-recurring employee severance costs(4)

     —         —         —         —         179       92       —         —         —         —         —         —    

Add: Tax effects on non-GAAP adjustments

     267       (2     265       216       (3     213       (475     (3     (478     (75     —         (75
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     4,870       (1,021     4,297       4,625       (1,001     4,084       3,804       162       3,879       600       25       612  

 

15


     Three months ended     Three months ended      Three months ended     Three months ended  
     March 31, 2021 (RMB)     December 31, 2021 (RMB)      March 31, 2022 (RMB)     March 31, 2022 (US$)  
     Baidu
Core
     iQIYI      Baidu,
Inc.
    Baidu
Core
     iQIYI      Baidu,
Inc.
     Baidu
Core
     iQIYI      Baidu,
Inc.
    Baidu
Core
     iQIYI      Baidu,
Inc.
 

Diluted earnings (loss) per ADS

           73.76             4.51              (2.87           (0.45

Add: Accretion of the redeemable noncontrolling interests

           0.14             0.36              0.31             0.05  

Add: Non-GAAP adjustments to earnings per ADS

           (61.52           6.73              13.78             2.17  
        

 

 

         

 

 

          

 

 

         

 

 

 

Diluted earnings per ADS (non-GAAP)

           12.38             11.60              11.22             1.77  

 

(1)

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

(2)

This represents Baidu’s share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares.

(3)

This represents non-recurring charitable donation to discrete events.

(4)

This represents non-recurring employee severance costs in relation to the iQIYI employee optimization program incurred in 2021.

 

16