424B2
BAIDU, INC. filed this Form 424B2 on 06/29/2017
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Table of Contents

Segment Revenues

The following table sets forth our revenues by segment and year-over-year change rate for the periods indicated, with each segment revenues including inter-segment revenues:

 

     For the Three Months Ended March 31,  
     2016      2017  
     RMB      RMB      US$      YoY%  
     (in thousands, except percentages, unaudited)  

Revenues:

           

Search Services

     13,246,699        12,420,545        1,804,472        (6.2

Transaction Services

     900,062        1,362,006        197,874        51.3  

iQiyi

     1,925,405        3,316,571        481,836        72.3  

Search Services. Our search services revenues decreased by 6.2% from RMB13.2 billion in the three months ended March 31, 2016 to RMB12.4 billion (US$1.8 billion) in the three months ended March 31, 2017. This decrease was primarily due to the implementation of additional customer verification measures starting in May 2016 in order to deliver a better user experience and build a safer and more trustworthy platform for users, which had a negative impact on the number of customers and our revenues in the short term. The total number of paid clicks decreased by 5.7% from the three months ended March 31, 2016 to the three months ended March 31, 2017.

Transaction Services. Our transaction services revenues increased by 51.3% from RMB900.1 million in the three months ended March 31, 2016 to RMB1.4 billion (US$197.9 million) in the three months ended March 31, 2017, which was mainly contributed by the increased revenue of Baidu Delivery business, Baidu Netdisk business and Baidu Financial Services.

iQiyi. Our iQiyi revenues increased by 72.3% from RMB1.9 billion in the three months ended March 31, 2016 to RMB3.3 billion (US$481.8 million) in the three months ended March 31, 2017. This increase was mainly attributable to the increase in online marketing revenues and subscription services revenues.

Segment Operating Costs and Expenses

The following table sets forth our operating costs and expenses by segment and year-over-year change rate for the periods indicated:

 

     For the Three Months Ended March 31,  
     2016      2017  
     RMB      RMB      US$      YoY%  
     (in thousands, except percentages, unaudited)  

Operating Costs and Expenses:

           

Search Services

     (6,491,540      (6,982,333      (1,014,401      7.6  

Transaction Services

     (4,268,822      (3,114,395      (452,463      (27.0

iQiyi

     (2,843,982      (4,243,253      (616,466      49.2  

Search Services. Operating costs and expenses of search services mainly consist of traffic acquisition costs, staff related costs, business tax and surcharges, depreciation and intangible amortization expenses, bandwidth costs, content costs and marketing and promotion expenses.

Operating costs and expenses of search services were RMB7.0 billion (US$1.0 billion) in the three months ended March 31, 2017, compared to RMB6.5 billion in the three months ended March 31, 2016. The increase was primarily a result of a 23.6% increase in staff related costs, a 26.6% increase in bandwidth costs, a 750.3% increase in content costs, and a 16.9% increase in depreciation of servers and other equipment, partially offset by

 

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