||Baidu formed a strategic partnership with NVIDIA to enable NVIDIA SHIELD launched in China to be equipped with Baidus 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 iQIYIs 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.
||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. |