6-K
BAIDU, INC. filed this Form 6-K on 02/14/2018
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    Baidu formed a strategic partnership with NVIDIA to enable NVIDIA SHIELD launched in China to be equipped with Baidu’s voice assistant DuerOS, offering Chinese consumers a cutting-edge gaming, AI and home entertainment experience.

 

    Baidu launched raven H, a smart speaker, as its first 1st party AI hardware. Three new DuerOS-powered smart devices were showcased at CES, including Little Fish VSI smart video speaker, Sengled smart lamp speaker and popIn Aladdin, a smart projector lamp for the Japanese market.

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

Fourth Quarter 2017 Results

Total revenues reached RMB 23.6 billion ($3.62 billion), representing a 29% increase year over year. Online marketing revenues were RMB 20.4 billion ($3.14 billion), representing a 26% increase year over year. Baidu had approximately 460,000 active online marketing customers4, representing a 2% increase year over year. Revenue per online marketing customer was approximately RMB 44,300 ($6,800), a 25% increase year over year.

Traffic acquisition cost as a component of cost of revenues was RMB 2.5 billion ($387 million), representing 10.7% of total revenues, compared to 14.5% in the fourth quarter of 2016.

Bandwidth costs as a component of cost of revenues were RMB 1.4 billion ($215 million), representing 5.9% of total revenues, compared to 6.8% in the fourth quarter of 2016.

Depreciation costs as a component of cost of revenues were RMB 885 million ($136 million), representing 3.8% of total revenues, compared to 4.5% in the fourth quarter of 2016.

Operational costs as a component of cost of revenues were RMB 1.1 billion ($174 million), representing 4.8% of total revenues, compared to 6.5% in the fourth quarter of 2016.

Content costs as a component of cost of revenues were RMB 3.8 billion ($577 million), representing 15.9% of total revenues, compared to 14.1% in the fourth quarter of 2016. The year-over-year increase was mainly due to iQIYI’s increased content costs.

Selling, general and administrative expenses were RMB 3.6 billion ($558 million), representing an increase of 9% year over year.

Research and development expenses were RMB 3.7 billion ($569 million), a 25% increase year over year. The increase was primarily due to the growth of research and development personnel-related cost.

 

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.

 

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