6-K
BAIDU, INC. filed this Form 6-K on 10/27/2017
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    Net income attributable to Baidu in the third quarter of 2017 was RMB 7.9 billion ($1.20 billion), a 156% increase from the corresponding period in 2016. Diluted earnings attributable to Baidu per ADS for the third quarter of 2017 were RMB 24 ($3.62); non-GAAP net income attributable to Baidu2 in the third quarter of 2017 was RMB 9.1 billion ($1.36 billion), a 163% increase from the corresponding period in 2016; non-GAAP diluted earnings per ADS3 for the third quarter of 2017 were RMB 26 ($3.89).

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

Third Quarter 2017 Results

Baidu reported total revenues of RMB 23.5 billion ($3.53 billion) for the third quarter of 2017, representing a 29% increase from the corresponding period in 2016.

Online marketing revenues for the third quarter of 2017 were RMB 20.1 billion ($3.02 billion), representing a 22% increase from the corresponding period in 2016. Baidu had about 486,000 active online marketing customers4 in the third quarter of 2017, representing a 7% decrease from the corresponding period in 2016. Revenue per online marketing customer for the third quarter of 2017 was approximately RMB 40,900 ($6,147), a 31% increase from the corresponding period in 2016.

Traffic acquisition costs as a component of cost of revenues was RMB 2.5 billion ($372 million), representing 10.5% of total revenues, compared to 14.2% in the corresponding period in 2016 and 11.9% in the second quarter of 2017.

Bandwidth costs as a component of cost of revenues were RMB 1.4 billion ($216 million), representing 6.1% of total revenues, compared to 6.8% in the corresponding period in 2016.

Depreciation costs as a component of cost of revenues were RMB 0.9 billion ($128 million), representing 3.6% of total revenues, compared to 4.4% in the corresponding period in 2016.

Operational costs as a component of cost of revenues were RMB 1.4 billion ($208 million), representing 5.9% of total revenues, compared to 6.3% in the corresponding period in 2016.

Content costs as a component of cost of revenues were RMB 3.9 billion ($586 million), representing 16.6% of total revenues, compared to 12.1% in the corresponding period in 2016. The year-over-year increase was mainly due to iQIYI’s increased content costs.

Selling, general and administrative expenses were RMB 3.7 billion ($563 million), representing an increase of 4% from the corresponding period in 2016.

 

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.