<< Back

Baidu Announces Second Quarter 2021 Results

Aug 12, 2021

BEIJING, Aug. 12, 2021 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2021.

"Baidu Core delivered another strong quarter, powered by the fast growth of our new AI business. AI enables businesses and local governments to do more and serve more people," said Robin Li, co-founder and CEO of Baidu. "We are excited about the opportunities to help different industries transform their business with AI and support our goal to become carbon neutral by 2030."

"Baidu Core revenue grew 27% year over year in the second quarter, boosted by AI cloud growing 71% year over year," said Herman Yu, CFO of Baidu. "Baidu's search and feed business was solid, and we continue to execute and lead on our new AI business, including AI cloud, autonomous driving and smart assistant."

Second Quarter 2021 Financial Highlights[1]


Baidu, Inc.

(In millions except per 

Q2


Q1


Q2






ADS, unaudited)

2020


2021


2021



YOY


QOQ


RMB


RMB


RMB

US$





Total revenues

26,034


28,134


31,350

4,855


20%


11%












Operating income 

3,644


2,789


3,463

536


(5%)


24%

Operating income (non-GAAP) [2]

5,605


4,362


5,653

876


1%


30%












Net income (loss) to Baidu

3,579


25,653


(583)

(90)


-


-

Net income to Baidu (non-GAAP) [2]

5,082


4,297


5,359

830


5%


25%












Diluted earnings (loss) per ADS

10.31


73.76


(1.70)

(0.26)


-


-

Diluted earnings per ADS (non-GAAP) [2]

14.73


12.38


15.41

2.39


5%


24%












Adjusted EBITDA [2]

7,015


5,900


7,295

1,130


4%


24%

Adjusted EBITDA margin 

27%


21%


23%

23%





 


Baidu Core


Q2


Q1


Q2






(In millions, unaudited)

2020


2021


2021



YOY


QOQ


RMB


RMB


RMB

US$





Total revenues

18,926


20,483


24,041

3,723


27%


17%












Operating income

4,966


3,847


4,619

715


(7%)


20%

Operating income (non-GAAP) [2]

6,482


5,064


6,467

1,002


(0%)


28%












Net income to Baidu Core

4,424


26,354


172

27


(96%)


(99%)

Net income to Baidu Core (non-GAAP) [2]

5,656


4,870


5,942

920


5%


22%












Adjusted EBITDA2

7,771


6,487


7,991

1,238


3%


23%

Adjusted EBITDA margin

41%


32%


33%

33%

















 

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.4566 as of June 30, 2021, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details).

Other Highlights

Corporate

  • Q2 2021 net loss of RMB 0.6 billion included a RMB 3.1 billion fair value loss from long-term investments, compared to a fair value gain of RMB 23.7 billion in Q1 2021, both primarily related to a mark-to-market adjustment on Kuaishou Technology (see also Total other loss, net below).
  • ESG: in June, Baidu announced its goal to become carbon neutral by 2030.
    - Baidu's low-carbon business practices have been featured in the UN Global Compact Corporate Net Zero Pathway Report.
    - Baidu's data center in Yangquan, Shanxi was awarded the carbon neutral data center leader (5A) certification (highest rating of green data centers).
  • Baidu has returned US$566 million to shareholders under the 2020 Share Repurchase Program this year, bringing the cumulative repurchase to $2.5 billion since 2020.

AI Cloud

  • Baidu held the Intelligent Economy Summit on July 29th, featuring speakers from leading enterprises and municipalities highlighting the importance of AI to the development of industrial internet, smart city and digital economy.
  • Baidu was ranked the No. 1 AI cloud provider again, according to IDC's 2020 China's public cloud market report.
  • Baidu deep learning platform became the most widely used in China, according to an IDC report in June 2021. PaddlePaddle developer community grew to 3.6 million, up 62% year over year, and serves 130,000 businesses.
  • Baidu signed with Geely Holding, a leading automotive manufacturer, to provide private cloud solution and other cloud applications, to enable Geely to leverage Baidu's AI to optimize its manufacturing capabilities and provide cloud services to its automotive suppliers and customers.
  • Quanzhou, Fujian with a resident of 8 million, implemented Baidu AI solutions to remotely monitor its water-treatment plant for equipment malfunction and dynamically adjust water pressure, based on predicted usage, cutting electricity use by 8%.
  • Coverage of Apollo ACE smart transportation has grown to 20 cities in June 2021, up four folds from a year ago, based on contract amounts over RMB 10 million.
  • Xiongan, Hebei signed with Apollo ACE to deploy V2X smart highway, to remotely detect highway maintenance needs, assess road closure for poor weather conditions and identify travelers who dodge toll terminals.

Intelligent Driving

  • Apollo L4 autonomous driving accumulated 7.5 million test miles, up 152% year over year. Apollo has received 278 autonomous driving permits, reflecting Apollo's piloting in dispersed geographic regions and under wide-ranging test scenarios.
  • Baidu introduced Apollo's 5th generation robotaxi vehicles in June, which again saw a 60% drop in cost per mile.
  • Apollo Go ride hailing expanded into Guangzhou, Guangdong, its fourth city of operation, and provided 47K trips to the public, up 200% sequentially, in Q2. Customer satisfaction has been high, with user rating averaging 4.9 out of 5.0.
  • Great Wall Motors announced in June that its flagship WEY Mocha SUV will feature Apollo Automated Valet Parking (AVP) in its new release later this year.

Other Growth Initiatives

  • Xiaodu was ranked No.1 in smart display shipments globally and No.1 in smart speaker shipments in China, according to IDC and Canalys, for Q1 2021.
  • China's elderly population is slated to exceed 300 million. Xiaodu smart displays connect elders with immediate senior-community assistance and serve as an always-on virtual companionship through conversational AI, improving their quality of life, while allowing family members to remotely monitor their love ones.
  • Xiaodu's Tiantian T10 (10" smart display with karaoke) was released in May at an MSRP of RMB1,699, exemplifying how hardware can be differentiated with AI features.
  • Xiaodu services revenue, including advertising and membership, grew 5 folds from last year, accounting for over 10% of Xiaodu Q2 revenue.

Mobile Ecosystem

  • In June, Baidu MAUs reached 580 million and daily logged in users reaching 77%.
  • Managed Page reached 40% of Baidu Core Q2 online marketing revenue, as merchants adopted Baidu's hosted service with marketing cloud for their online storefront.

iQIYI

  • iQIYI subscribers reached 106.2 million in June 2021, serving as a strong foundation to support in-house production of entertainment blockbuster originals.

Second Quarter 2021 Financial Results

Total revenues were RMB 31.4 billion ($4.86 billion), increasing 20% year over year.

  • Revenue from Baidu Core was RMB 24.0 billion ($3.72 billion), increasing 27% year over year; online marketing revenue was RMB 19.0 billion ($2.95 billion), up 18% year over year, and non-online marketing revenue was RMB 5.0 billion ($771 million), up 80% year over year, driven by cloud and other services.
  • Revenue from iQIYI was RMB 7.6 billion ($1.18 billion), increasing 3% year over year.

Cost of revenues was RMB 15.9 billion ($2.46 billion), increasing 21% year over year, primarily due to an increase in traffic acquisition costs and cost of goods sold related to new AI business.

Selling, general and administrative expenses were RMB 5.7 billion ($884 million), increasing 29% year over year, primarily due to an increase in channel spending, promotional expenses and personnel-related expenses.

Research and development expense was RMB 6.3 billion ($973 million), increasing 30% year over year, primarily related to personnel-related expenses.

Operating income was RMB 3.5 billion ($536 million). Baidu Core operating income was RMB 4.6 billion ($715 million), and Baidu Core operating margin was 19%. Non-GAAP operating income was RMB 5.7 billion ($876 million). Non-GAAP Baidu Core operating income was RMB 6.5 billion ($1.00 billion), and non-GAAP Baidu Core operating margin was 27%.

Total other loss, net was RMB 2.4 billion ($376 million), which included a fair value loss of RMB 3.1 billion from long-term investments. A significant portion of long-term investments is subject to quarterly mark-to-market adjustment, which may contribute to net income volatility in the future.

Income tax expense was RMB 2.2 billion ($341 million), increasing year over year primarily due to an increase in deferred income tax expense recognized on the fair value gain of certain long-term investments.

Net loss attributable to Baidu was RMB 583 million ($90 million), and diluted loss per ADS was RMB 1.70 ($0.26). Net income attributable to Baidu Core was RMB 172 million ($27 million). Non-GAAP net income attributable to Baidu was RMB 5.4 billion ($830 million), and non-GAAP diluted earnings per ADS was RMB 15.41 ($2.39). Non-GAAP net income attributable to Baidu Core was RMB 5.9 billion ($920 million).

Adjusted EBITDA was RMB 7.3 billion ($1.13 billion). Adjusted EBITDA for Baidu Core was RMB 8.0 billion ($1.24 billion) and adjusted EBITDA margin for Baidu Core was 33%. 

As of June 30, 2021, cash, cash equivalents, restricted cash and short-term investments were RMB 179.9 billion ($27.87 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 167.7 billion ($25.97 billion). Free cash flow was RMB 5.4 billion ($843 million), and free cash flow excluding iQIYI was RMB 6.9 billion ($1.07 billion).

Management Transition

Baidu today is pleased to announce that Herman Yu has been appointed as Chief Strategy Officer (CSO) of the Company, and will be responsible for corporate strategy and business development. Mr. Yu will report to Baidu's CEO Robin Li. Mr. Yu will continue to serve as CFO until the appointment of a new CFO.

Financial Guidance

For the third quarter of 2021, Baidu expects revenues to be between RMB 30.6 billion ($4.7 billion) and RMB 33.5 billion ($5.2 billion), representing a growth rate of 8% to 19% year over year, which assumes that Baidu Core revenue will grow between 9% and 20% year over year.

The COVID-19 situation in China is evolving and business visibility is limited. The above forecast reflects Baidu's current and preliminary view, which is subject to substantial uncertainties.

Conference Call Information

Baidu's management will hold an earnings conference call at 8:00 AM on August 12, 2021, U.S. Eastern Time (8:00 PM on August 12, 2021, Beijing Time).

Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.

For pre-registration, please click http://apac.directeventreg.com/registration/event/3059294.  t will automatically direct you to the registration page of "Baidu Q2 2021 Earnings Conference Call", where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter " 3059294".

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), Direct Event passcode and unique registrant ID) provided in the confirmation email that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.

A replay of the conference call may be accessed by phone at the following number until August 20 2021:

International:

+61 2 8199 0299

Conference ID:

3059294

About Baidu

Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on the NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

Contacts

Investors Relations, Baidu, Inc.
Tel: +86-10-5992-8888
Email: ir@baidu.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for the third quarter of 2021, quotations from management in this announcement, as well as Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses and amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, which is adjusted for accretion for the redeemable non-controlling interests, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share-based compensation expenses.

For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures."


 

 

 

Baidu, Inc. 















Condensed Consolidated Statements of Income (Loss)













(In millions except for per share (or ADS) information, unaudited)















Three Months Ended


Six Months Ended



June 30,


March 31,


June 30,


June 30,


June 30,


June 30,


June 30,



2020


2021


2021


2021


2020


2021


2021



RMB


RMB


RMB


US$(2)


RMB


RMB


US$(2)

 Revenues: 















 Online marketing services 


17,688


18,094


20,828


3,225


31,931


38,922


6,028

 Others 


8,346


10,040


10,522


1,630


16,648


20,562


3,185

 Total revenues  


26,034


28,134


31,350


4,855


48,579


59,484


9,213
















 Costs and expenses: 















     Cost of revenues(1)


13,134


15,002


15,897


2,462


27,821


30,899


4,785

     Selling, general and administrative(1)


4,417


5,245


5,707


884


8,269


10,952


1,697

     Research and development(1)


4,839


5,098


6,283


973


9,282


11,381


1,763

 Total costs and expenses 


22,390


25,345


27,887


4,319


45,372


53,232


8,245

 Operating income 


3,644


2,789


3,463


536


3,207


6,252


968
















 Other income (loss): 















 Interest income 


1,312


1,233


1,342


208


2,753


2,575


399

 Interest expense 


(820)


(823)


(845)


(131)


(1,571)


(1,668)


(258)

 Foreign exchange income (loss), net 


55


156


(36)


(6)


(43)


120


19

 Share of loss from equity method investments 


(1,732)


(151)


(4)


(1)


(1,551)


(155)


(24)

 Others, net 


1,551


23,362


(2,887)


(446)


(265)


20,475


3,171

 Total other income (loss), net 


366


23,777


(2,430)


(376)


(677)


21,347


3,307
















 Income before income taxes 


4,010


26,566


1,033


160


2,530


27,599


4,275

 Income tax expense 


1,222


1,534


2,197


341


1,420


3,731


578

 Net income (loss)  


2,788


25,032


(1,164)


(181)


1,110


23,868


3,697

 Net loss attributable to noncontrolling interests 


(791)


(621)


(581)


(91)


(2,510)


(1,202)


(186)

 Net income (loss) attributable to Baidu 


3,579


25,653


(583)


(90)


3,620


25,070


3,883































Earnings (loss) per ADS (1 ADS representing 8 Class A ordinary shares):













 -Basic


10.34


76.10


(1.70)


(0.26)


10.37


73.12


11.32

 -Diluted


10.31


73.76


(1.70)


(0.26)


10.32


71.23


11.03

Earnings (loss) per share for Class A and Class B ordinary shares:













 -Basic


1.29


9.51


(0.21)


(0.03)


1.30


9.14


1.42

 -Diluted


1.29


9.22


(0.21)


(0.03)


1.29


8.90


1.38

Weighted average number of Class A and Class B ordinary shares outstanding  (in millions):











 -Basic 


2,750


2,692


2,782


2,782


2,758


2,737


2,737

 -Diluted


2,760


2,777


2,782


2,782


2,771


2,809


2,809
















(1)  Includes share-based compensation expenses as follows:













 Cost of revenues 


108


79


112


18


189


191


30

 Selling, general and administrative 


550


471


483


75


1,014


954


147

 Research and development 


1,188


949


1,521


236


2,133


2,470


384

 Total share-based compensation expenses 


1,846


1,499


2,116


329


3,336


3,615


561
















(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 6.4566 to US$1.00, the exchange rate in effect as of June 30, 2021 as set forth in the H.10 statistical release of
The Board of Governors of the Federal Reserve System.

 

 

 

Baidu, Inc. 







Condensed Consolidated Balance Sheets







(In millions, unaudited)
















December 31,


June 30,


June 30,



2020


2021


2021



RMB


RMB


US$

ASSETS







    Current assets:







 Cash and cash equivalents


35,782


42,896


6,644

 Restricted cash


758


10,652


1,649

 Short-term investments, net


126,402


126,387


19,575

 Accounts receivable, net


8,668


9,197


1,424

 Amounts due from related parties


726


866


134

 Other current assets, net


11,006


9,936


1,539

    Total current assets


183,342


199,934


30,965








    Non-current assets:







 Fixed assets, net


17,508


18,554


2,874

 Licensed copyrights, net


6,435


6,714


1,040

 Produced content, net


6,556


8,676


1,344

 Intangible assets, net


2,022


1,883


292

 Goodwill


22,248


22,592


3,499

 Long-term investments, net


76,233


101,310


15,691

 Amounts due from related parties


3,438


3,484


540

 Deferred tax assets, net


1,674


433


67

 Operating lease right-of-use assets


9,804


10,058


1,558

 Other non-current assets


3,448


15,649


2,423

    Total non-current assets


149,366


189,353


29,328








Total assets


332,708


389,287


60,293








LIABILITIES AND EQUITY







  Current liabilities:







      Short-term loans


3,016


3,025


469

Accounts payable and accrued liabilities


36,716


38,276


5,928

Customer deposits and deferred revenue


12,626


13,400


2,075

Deferred income


158


108


17

Long-term loans, current portion


7,427


915


142

Convertible senior notes, current portion


4,752


4,777


740

Amounts due to related parties


1,324


1,802


279

Operating lease liabilities


2,366


2,495


386

Total current liabilities


68,385


64,798


10,036








Non-current liabilities:







Deferred income


97


108


17

Deferred revenue


686


316


49

Amounts due to related parties


3,543


3,384


524

Long-term loans


-


12,784


1,980

Notes payable


48,408


47,915


7,421

Convertible senior notes


11,927


12,592


1,950

Deferred tax liabilities


3,067


3,275


507

Operating lease liabilities


4,693


4,696


727

Other non-current liabilities


59


91


15

Total non-current liabilities


72,480


85,161


13,190








Total liabilities


140,865


149,959


23,226








Redeemable noncontrolling interests


3,102


4,814


746








Equity







    Total Baidu shareholders' equity


182,696


228,907


35,453

    Noncontrolling interests


6,045


5,607


868

Total equity


188,741


234,514


36,321








Total liabilities, redeemable noncontrolling
interests, and equity


332,708


389,287


60,293

 

 

 

Baidu, Inc. 

























Selected Information

























(In millions, unaudited)




















































Three months ended
June 30, 2020 (RMB)


Three months ended
March 31, 2021 (RMB)


Three months ended
June 30, 2021 (RMB)


Three months ended
June 30, 2021 (US$)



Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.

Total revenues 


18,926

7,412

(304)


26,034


20,483

7,968

(317)


28,134


24,041

7,608

(299)


31,350


3,723

1,178

(46)


4,855

  YOY














27%

3%



20%







  QOQ














17%

(5%)



11%
































Costs and expenses: 

























  Cost of revenues (1)


6,555

6,834

(255)


13,134


8,162

7,109

(269)


15,002


9,289

6,869

(261)


15,897


1,439

1,063

(40)


2,462

  Selling, general and administrative (1)


3,230

1,196

(9)


4,417


4,048

1,201

(4)


5,245


4,526

1,185

(4)


5,707


701

184

(1)


884

  Research and development (1)


4,175

664

-


4,839


4,426

672

-


5,098


5,607

676

-


6,283


868

105

-


973

Total costs and expenses 


13,960

8,694

(264)


22,390


16,636

8,982

(273)


25,345


19,422

8,730

(265)


27,887


3,008

1,352

(41)


4,319

  YOY 

























  Cost of revenues 














42%

1%



21%







  Selling, general and administrative 














40%

(1%)



29%







  Research and development 














34%

2%



30%







  Cost and expenses














39%

0%



25%
































Operating income (loss)


4,966

(1,282)

(40)


3,644


3,847

(1,014)

(44)


2,789


4,619

(1,122)

(34)


3,463


715

(174)

(5)


536

  YOY














(7%)

(12%)



(5%)







  QOQ














20%

11%



24%







Operating margin 


26%

(17%)



14%


19%

(13%)



10%


19%

(15%)



11%
































  Add: total other income (loss), net


507

(141)

-


366


23,999

(222)

-


23,777


(2,204)

(226)

-


(2,430)


(341)

(35)

-


(376)

  Less: income tax expense


1,206

16

-


1,222


1,513

21

-


1,534


2,167

30

-


2,197


336

5

-


341

  Less: net (loss) income attributable to NCI


(157)

3

(637)

(3)

(791)


(21)

10

(610)

(3)

(621)


76

19

(676)

(3)

(581)


11

2

(104)

(3)

(91)

Net income (loss) attributable to Baidu


4,424

(1,442)

597


3,579


26,354

(1,267)

566


25,653


172

(1,397)

642


(583)


27

(216)

99


(90)

  YOY














(96%)

(3%)



-







  QOQ














(99%)

10%



-







Net margin 


23%

(19%)



14%


129%

(16%)



91%


1%

(18%)



(2%)
































Non-GAAP financial measures:

























Operating income (loss) (non-GAAP)


6,482

(837)



5,605


5,064

(658)



4,362


6,467

(780)



5,653


1,002

(121)



876

  YOY














(0%)

(7%)



1%







  QOQ














28%

19%



30%







Operating margin (non-GAAP)


34%

(11%)



22%


25%

(8%)



16%


27%

(10%)



18%
































Net income (loss) attributable to Baidu
(non-GAAP)


5,656

(956)



5,082


4,870

(1,021)



4,297


5,942

(1,065)



5,359


920

(164)



830

  YOY














5%

11%



5%







  QOQ














22%

4%



25%







Net margin (non-GAAP)


30%

(13%)



20%


24%

(13%)



15%


25%

(14%)



17%
































Adjusted EBITDA


7,771

(716)



7,015


6,487

(543)



5,900


7,991

(662)



7,295


1,238

(103)



1,130

  YOY














3%

(8%)



4%







  QOQ














23%

22%



24%







Adjusted EBITDA margin 


41%

(10%)



27%


32%

(7%)



21%


33%

(9%)



23%
































(1)  Includes share-based compensation as follows:























 Cost of revenues 


49

59



108


33

46



79


69

43



112


11

7



18

 Selling, general and administrative 


331

219



550


256

215



471


274

209



483


43

32



75

 Research and development 


1,102

86



1,188


866

83



949


1,443

78



1,521


224

12



236

 Total share-based compensation 


1,482

364



1,846


1,155

344



1,499


1,786

330



2,116


278

51



329

 (2) Relates to intersegment eliminations and adjustments 























 (3) Relates to the net loss attributable to iQIYI noncontrolling interests 






















 

 

 

Baidu, Inc. 

















Condensed Consolidated Statements of Cash Flows















(In millions,unaudited)




































Three months ended 


Three months ended 


Three months ended 


Three months ended 



June 30, 2020 (RMB)


March 31, 2021 (RMB)


June 30, 2021 (RMB)


June 30, 2021 (US$)



 Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.


 Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.


 Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.


 Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.

Net cash provided by (used in) operating
activities


9,547

(1,358)

8,189


5,467

(1,350)

4,117


9,362

(1,426)

7,936


1,450

(221)

1,229

Net cash (used in) provided by investing activities 


(8,854)

1,144

(7,710)


(4,579)

(2,778)

(7,357)


(12,220)

58

(12,162)


(1,893)

9

(1,884)

Net cash (used in) provided by financing activities


(2,211)

823

(1,388)


18,018

611

18,629


5,256

801

6,057


813

124

937

Effect of exchange rate changes on cash, cash
equivalents and restricted cash


26

(10)

16


251

(29)

222


(342)

(92)

(434)


(53)

(14)

(67)

Net (decrease) increase in cash, cash
equivalents and restricted cash 


(1,492)

599

(893)


19,157

(3,546)

15,611


2,056

(659)

1,397


317

(102)

215

Cash, cash equivalents and restricted cash

















  At beginning of period


18,089

4,681

22,770


25,599

10,941

36,540


44,756

7,395

52,151


6,933

1,145

8,078

  At end of period


16,597

5,280

21,877


44,756

7,395

52,151


46,812

6,736

53,548


7,250

1,043

8,293


















Net cash provided by (used in) operating
activities


9,547

(1,358)

8,189


5,467

(1,350)

4,117


9,362

(1,426)

7,936


1,450

(221)

1,229

Less: Capital expenditures


(797)

(57)

(854)


(1,438)

(61)

(1,499)


(2,435)

(61)

(2,496)


(377)

(9)

(386)

Free cash flow


8,750

(1,415)

7,335


4,029

(1,411)

2,618


6,927

(1,487)

5,440


1,073

(230)

843


















Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows.













 

 

 

Baidu, Inc. 

















Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures  










(In millions except for per ADS information, unaudited)




































Three months ended 


Three months ended 


Three months ended 


Three months ended 



June 30, 2020 (RMB)


March 31, 2021 (RMB)


June 30, 2021 (RMB)


June 30, 2021 (US$)



Baidu
Core

iQIYI

Baidu,
Inc.


Baidu
Core

iQIYI

Baidu,
Inc.


Baidu Core

iQIYI

Baidu,
Inc.


Baidu
Core

iQIYI

Baidu,
Inc.

Operating income (loss)


4,966

(1,282)

3,644


3,847

(1,014)

2,789


4,619

(1,122)

3,463


715

(174)

536

Add:  Share-based compensation expenses


1,482

364

1,846


1,155

344

1,499


1,786

330

2,116


278

51

329

Add:  Amortization and impairment of intangible assets(1)


34

81

115


62

12

74


62

12

74


9

2

11

Operating income (loss) (non-GAAP)


6,482

(837)

5,605


5,064

(658)

4,362


6,467

(780)

5,653


1,002

(121)

876


















Add:  Depreciation of fixed assets


1,289

121

1,410


1,423

115

1,538


1,524

118

1,642


236

18

254

Adjusted EBITDA


7,771

(716)

7,015


6,487

(543)

5,900


7,991

(662)

7,295


1,238

(103)

1,130


















Net income (loss) attributable to Baidu


4,424

(1,442)

3,579


26,354

(1,267)

25,653


172

(1,397)

(583)


27

(216)

(90)

Add: Share-based compensation expenses


1,473

364

1,676


1,146

344

1,325


1,777

330

1,947


275

51

302

Add: Amortization and impairment of intangible assets(1)


27

81

79


55

12

61


55

12

62


9

2

10

Add: Disposal loss (gain)


495

-

495


-

-

-


-

(45)

(28)


-

(7)

(4)

Add: Impairment of long-term investments


772

49

800


-

-

-


205

2

206


32

-

32

Add: Fair value (gain) loss of long-term investments


(2,754)

-

(2,754)


(23,545)

(88)

(23,590)


3,180

(9)

3,175


493

(1)

491

Add: Reconciling items on equity method investments(2)


1,191

10

1,197


593

(20)

583


190

32

207


28

5

31

Add: Tax effects on non-GAAP adjustments(3)


28

(18)

10


267

(2)

265


363

10

373


56

2

58

Net income (loss) attributable to Baidu (non-GAAP)


5,656

(956)

5,082


4,870

(1,021)

4,297


5,942

(1,065)

5,359


920

(164)

830


















Diluted earnings (loss) per ADS




10.31




73.76




(1.70)




(0.26)

Add:  Accretion of the redeemable noncontrolling interests




0.07




0.14




0.02




-

Add:  Non-GAAP adjustments to earnings per ADS




4.35




(61.52)




17.09




2.65

Diluted earnings per ADS (non-GAAP)




14.73




12.38




15.41




2.39