6-K
BAIDU, INC. filed this Form 6-K on 02/14/2018
Entire Document
 
EX-99.1

Exhibit 99.1

Baidu Announces Fourth Quarter and Fiscal Year 2017 Results

BEIJING, China, February 13, 2018 – Baidu, Inc. (NASDAQ: BIDU) (“Baidu” or the “Company”), the leading Chinese language internet search provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 20171.

“In 2017, Baidu sharpened its strategic focus. We strengthened our management team and built strong momentum by adopting AI-first in our mobile businesses and investing in new AI businesses,” said Robin Li, Chairman and CEO of Baidu. “As we enter 2018, we will continue to strengthen Baidu’s search business, fuel feed’s growth and differentiate iQIYI with AI. We also look forward to further strengthening our position in autonomous driving and conversational AI, on top of the strong progress that we have made with Apollo and DuerOS in 2017.”

“We are deepening user engagement with Baidu core products and helping Baidu customers optimize their ad spending on our platform through the use of AI,” said Qi Lu, COO of Baidu. “On Baidu’s AI-enabled businesses, we are focused on expanding our partner and developer programs for our open platforms Apollo and DuerOS, which we successfully showcased at Baidu World and CES events.”

“We delivered solid financial performance in the fourth quarter with revenues up 29% year over year to RMB 23.6 billion, exceeding our guidance,” said Herman Yu, CFO of Baidu. “Entering 2018, we plan to continue our strategy to exit non-core businesses and increase investments in Baidu’s mobile and new AI businesses, which we believe play to Baidu’s strengths as a technology leader and will sow the seed for Baidu’s future growth in autonomous driving and conversational AI, particularly in the home environment.”

Fourth Quarter 2017 Financial Highlights

 

    Total revenues were RMB 23.6 billion ($3.62 billion), increasing 29% year over year. Mobile revenue represented 76% of total revenues, compared to 65% for the fourth quarter of 2016.

 

    Operating profit was RMB 4.8 billion ($734 million), increasing 118% year over year. Operating margin reached 20%, compared to 12% for the fourth quarter of 2016.

 

    Non-GAAP operating profit was RMB 5.8 billion ($884 million), increasing 104% year over year. Non-GAAP operating margin reached 24%, compared to 15% for the fourth quarter of 2016. iQIYI reduced non-GAAP operating margin by 12 percentage points for the fourth quarter of 2017.

 

    Net income attributable to Baidu was RMB 4.2 billion ($639 million) and diluted earnings attributable to Baidu per ADS was RMB 12 ($1.90). Non-GAAP net income attributable to Baidu2 was RMB 5.2 billion ($804 million) and non-GAAP diluted earnings per ADS3 was RMB 15 ($2.29).

 

    Adjusted EBITDA was RMB 6.9 billion ($1.05 billion), increasing 78% year over year, or 29% of total revenues.

 

1  This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.5063 to US$1.00, the effective noon buying rate as of December 29, 2017, in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.
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.

 

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