6-K
BAIDU, INC. filed this Form 6-K on 07/28/2017
Entire Document
 


    Net income attributable to Baidu in the second quarter of 2017 was RMB4.415 billion ($651 million), an 82.9% increase from the corresponding period in 2016. Diluted earnings attributable to Baidu per ADS for the second quarter of 2017 were RMB11.31 ($1.67); non-GAAP net income attributable to Baidu2 in the second quarter of 2017 was RMB5.571 billion ($822 million), a 98.4% increase from the corresponding period in 2016; non-GAAP diluted earnings per ADS3 for the second quarter of 2017 were RMB16.00 ($2.36).

In the following section, comparison and analysis are provided based on reported consolidated financial results.

Second Quarter 2017 Results

Baidu reported total revenues of RMB20.874 billion ($3.079 billion) for the second quarter of 2017, representing a 14.3% increase from the corresponding period in 2016.

Online marketing revenues for the second quarter of 2017 were RMB17.883 billion ($2.638 billion), representing a 5.6% increase from the corresponding period in 2016. Baidu had about 470,000 active online marketing customers4 in the second quarter of 2017, representing a 20.9% decrease from the corresponding period in 2016. Revenue per online marketing customer for the second quarter of 2017 was approximately RMB37,500 ($5,532), a 32.0% increase from the corresponding period in 2016.

Traffic acquisition costs as a component of cost of revenues was RMB2.478 billion ($365 million), representing 11.9% of total revenues, compared to 15.9% in the corresponding period in 2016 and 12.9% in the first quarter of 2017.

Bandwidth costs as a component of cost of revenues were RMB1.382 billion ($204 million), representing 6.6% of total revenues, compared to 6.3% in the corresponding period in 2016.

Depreciation costs as a component of cost of revenues were RMB828 million ($122 million), representing 4.0% of total revenues, compared to 4.1% in the corresponding period in 2016.

Operational costs as a component of cost of revenues were RMB1.225 billion ($181 million), representing 5.9% of total revenues, compared to 5.4% in the corresponding period in 2016.

Content costs as a component of cost of revenues were RMB3.112 billion ($459 million), representing 14.9% of total revenues, compared to 9.3% in the corresponding period in 2016. The year-over-year increase was mainly due to iQiyi’s increased content costs.

 

2  Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses and the gain or loss associated with the issuance of the shares by our equity method investees at a price higher or lower than our carrying value per share.
3  Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated based on non-GAAP net income attributable to Baidu.
4  The number of active online marketing customers and revenue per online active customer exclude our group-buying and delivery related businesses for consistency with previous reporting.