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Baidu Announces Fourth Quarter and Fiscal Year 2022 Results

Feb 22, 2023

BEIJING, Feb. 22, 2023 /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 quarter and fiscal year ended December 31, 2022.

"2022 was a challenging year, but we used this period to prepare the company for better times. In 2023, we believe we have a clear path to reaccelerate our revenue growth, and we are now well positioned to make use of the opportunities that China's economic recovery offers us," said Robin Li, Co-founder and CEO of Baidu. "With our long-term investments in AI, we are poised to capitalize on the imminent inflection point in AI, unlocking exciting new opportunities across our entire business portfolio - from mobile ecosystem to AI Cloud, autonomous driving, smart devices, and beyond."

"We initiated our efforts towards cost optimization and business efficiency at an early stage in the pandemic, creating a stronger, leaner company. In the second half of 2022, Baidu Core non-GAAP operating profit grew 14% year over year. We believe a more streamlined operation will support the sustainable development of our company over the long term," said Rong Luo, CFO of Baidu.

Fourth Quarter and Fiscal Year 2022 Financial Highlights[1]


Baidu, Inc.

(In millions except per

Q4


Q3


Q4





FY


FY




ADS, unaudited)

2021


2022


2022



YOY


2021


2022



YOY


RMB


RMB


RMB

US$




RMB


RMB

US$



Total revenues

33,088


32,540


33,077

4,796


0 %


124,493


123,675

17,931


(1 %)

















Operating income

1,958


5,317


4,593

666


135 %


10,518


15,911

2,307


51 %

Operating income (non-GAAP) [2]

4,307


7,200


6,497

942


51 %


19,030


23,186

3,362


22 %

















Net income (loss) to Baidu

1,715


(146)


4,953

718


189 %


10,226


7,559

1,096


(26 %)

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

4,084


5,889


5,371

779


32 %


18,830


20,680

2,998


10 %

















Diluted earnings (loss) per ADS

4.51


(0.87)


13.59

1.97


201 %


28.07


19.85

2.88


(29 %)

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

11.60


16.87


15.25

2.21


31 %


53.53


58.93

8.54


10 %

















Adjusted EBITDA [2]

5,757


8,879


8,231

1,193


43 %


24,914


29,663

4,301


19 %

Adjusted EBITDA margin

17 %


27 %


25 %

25 %




20 %


24 %

24 %



 


Baidu Core


Q4


Q3


Q4





FY


FY




(In millions, unaudited)

2021


2022


2022



YOY


2021


2022



YOY


RMB


RMB


RMB

US$




RMB


RMB

US$



Total revenues

25,978


25,239


25,654

3,719


(1 %)


95,163


95,431

13,836


0 %

















Operating income

2,958


4,982


3,782

548


28 %


15,142


14,534

2,107


(4 %)

Operating income (non-GAAP) [2]

4,847


6,650


5,491

796


13 %


22,201


20,948

3,037


(6 %)

















Net income to Baidu Core

2,656


25


4,773

692


80 %


13,557


7,551

1,095


(44 %)

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

4,625


5,767


4,915

713


6 %


21,292


19,935

2,890


(6 %)

















Adjusted EBITDA[2]

6,210


8,239


7,146

1,036


15 %


27,682


27,088

3,927


(2 %)

Adjusted EBITDA margin

24 %


33 %


28 %

28 %




29 %


28 %

28 %



 

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 6.8972 as of December 30, 2022, 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).

Operational Highlights

Corporate

  • Baidu's board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$5 billion of its shares, effective through December 31, 2025.
  • Baidu received a B rating at the latest CDP climate change scores, making a significant improvement from its D rating in 2021. CDP is a non-profit organization that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts.

AI Cloud

  • Baidu ACE smart transportation has been adopted by 69 cities, up from 35 cities a year ago, based on contract amounts of over RMB10 million, as of the end of 2022.
  • Baidu was once again ranked the No. 1 AI Cloud provider, according to IDC's first half of 2022 report on China's public cloud market for the fourth consecutive year.
  • PaddlePaddle developer community has grown to 5.35 million and has served 200,000 businesses, as of the end of 2022. Developers have created 670,000 models on PaddlePaddle by the end of 2022.

Intelligent Driving

  • Apollo Go, Baidu's autonomous ride-hailing service, provided 561K rides in the fourth quarter of 2022, up 162% year over year. The cumulative rides provided to the public by Apollo Go exceeded 2 million by the end of January 2023.
  • Apollo Go received Beijing's first license to test vehicles with no driver or safety operator in the car on December 30, 2022, taking Baidu one step closer to providing fully driverless ride-hailing service on public roads in the capital city.

Other Growth Initiatives

  • Xiaodu ranked No.1 in smart display shipments and smart speaker shipments in China for the first nine months of 2022, according to IDC, Strategy Analytics, and Canalys.

Mobile Ecosystem

  • In December, Baidu App's MAUs reached 648 million, up 4% year over year.
  • Managed Page accounted for 45% of Baidu Core's online marketing revenue in the fourth quarter of 2022. In 2022, revenues from Managed Page accounted for 48% of total online marketing revenue, up from about 40% a year ago.

iQIYI

  • iQIYI's average daily number of total subscribing members for the quarter was 111.6 million, compared to 97.0 million for the fourth quarter of 2021 and 101.0 million for the third quarter of 2022.

Fourth Quarter 2022 Financial Results

Total revenues were RMB 33.1 billion ($4.80 billion), which is basically flat from last year.

  • Revenue from Baidu Core was RMB 25.7 billion ($3.72 billion), decreasing 1% year over year; online marketing revenue was RMB 18.1 billion ($2.62 billion), down 6% year over year primarily due to the resurgence of Covid-19 in certain cities in China, and non-online marketing revenue was RMB 7.6 billion ($1.10 billion), up 11% year over year, mainly driven by other AI-powered businesses and cloud business.
  • Revenue from iQIYI was RMB 7.6 billion ($1.10 billion), increasing 3% year over year.

Cost of revenues was RMB 16.9 billion ($2.46 billion), decreasing 2% year over year, primarily due to the reduction in content costs, cost of goods sold and other costs related to new AI business, partially offset by the increase in traffic acquisition costs.

Selling, general and administrative expenses were RMB 5.9 billion ($853 million), decreasing 9% year over year, primarily due to the decrease in personnel-related expenses.

Research and development expense was RMB 5.7 billion ($820 million), decreasing 23% year over year, primarily due to the decrease in personnel-related expense.

Operating income was RMB 4.6 billion ($666 million). Baidu Core operating income was RMB 3.8 billion ($548 million), and Baidu Core operating margin was 15%. Non-GAAP operating income was RMB 6.5 billion ($942 million). Non-GAAP Baidu Core operating income was RMB 5.5 billion ($796 million), and non-GAAP Baidu Core operating margin was 21%.

Total other income, net was RMB 1.8 billion ($258 million), which mainly included a fair value gain of RMB 1.6 billion from long-term investments. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies and private equity funds, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods. Total other income, net was RMB 407 million for the same period last year, which mainly included a fair value gain of RMB 1.5 billion and an impairment loss of RMB 891 million from long-term investments.

Income tax expense was RMB 1.3 billion ($181 million), decreasing 3% year over year.

Net income attributable to Baidu was RMB 5.0 billion ($718 million), and diluted earnings per ADS was RMB 13.59 ($1.97). Net income attributable to Baidu Core was RMB 4.8 billion ($692 million), and net margin for Baidu Core was 19%. Non-GAAP net income attributable to Baidu was RMB 5.4 billion ($779 million). Non-GAAP diluted earnings per ADS was RMB 15.25 ($2.21). Non-GAAP net income attributable to Baidu Core was RMB 4.9 billion ($713 million), and non-GAAP net margin for Baidu Core was 19%.

Adjusted EBITDA was RMB 8.2 billion ($1.19 billion) and adjusted EBITDA margin was 25%. Adjusted EBITDA for Baidu Core was RMB 7.1 billion ($1.04 billion) and adjusted EBITDA margin for Baidu Core was 28%. 

As of December 31, 2022, cash, cash equivalents, restricted cash and short-term investments were RMB 185.3 billion ($26.87 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 177.4 billion ($25.72 billion). Free cash flow was RMB 5.9 billion ($859 million), and free cash flow excluding iQIYI was RMB 5.1 billion ($736 million).

Fiscal Year 2022 Results

Total revenues were RMB 123.7 billion ($17.93 billion), decreasing 1% year over year.

  • Revenue from Baidu Core was RMB 95.4 billion ($13.84 billion), which is basically flat from last year; online marketing revenue was RMB 69.5 billion ($10.08 billion), decreasing 6% year over year, and non-online marketing revenue was RMB 25.9 billion ($3.76 billion), up 22% year over year, mainly driven by cloud and other AI-powered businesses.
  • Revenue from iQIYI was RMB 29.0 billion ($4.20 billion), decreasing 5% year over year.

Cost of revenues was RMB 63.9 billion ($9.27 billion), decreasing 1% year over year, which is basically flat from last year, primarily due to the increase in traffic acquisition costs, bandwidth costs, cost of goods sold and other costs related to new AI business, offset by the decrease in content costs.

Selling, general and administrative expenses were RMB 20.5 billion ($2.98 billion), decreasing 17% year over year, primarily due to the decrease in channel spending, promotional marketing and personnel-related expenses.

Research and development expenses were RMB 23.3 billion ($3.38 billion), decreasing 7% year over year, primarily due to the decrease in personnel-related expenses.

Operating income was RMB 15.9 billion ($2.31 billion). Baidu Core operating income was RMB 14.5 billion ($2.11 billion), and Baidu Core operating margin was 15%. Non-GAAP operating income was RMB 23.2 billion ($3.36 billion). Non-GAAP Baidu Core operating income was RMB 20.9 billion ($3.04 billion), and non-GAAP Baidu Core operating margin was 22%.

Total other loss, net was RMB 5.8 billion ($841 million), which mainly included a fair value loss of RMB 3.9 billion and an impairment loss of RMB 3.0 billion from long-term investments. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies and private equity funds, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods. Total other income, net was RMB 260 million for 2021, which mainly included a fair value gain of RMB 3.1 billion and an impairment loss of RMB 4.3 billion from long-term investments.

Income tax expense was RMB 2.6 billion ($374 million), decreasing 19% year over year, primarily due to deferred tax benefit recognized on fair value loss of long-term investments in 2022 whereas the Company had deferred tax expense recognized on fair value gain of long-term investments in 2021.

Net income attributable to Baidu was RMB 7.6 billion ($1.10 billion), and diluted earnings per ADS was RMB 19.85 ($2.88). Net income attributable to Baidu Core was RMB 7.6 billion ($1.10 billion), and net margin for Baidu Core was 8%. Non-GAAP net income attributable to Baidu was RMB 20.7 billion ($3.00 billion), and non-GAAP diluted earnings per ADS amounted to RMB 58.93 ($8.54). Non-GAAP net income attributable to Baidu Core was RMB 19.9 billion ($2.89 billion), and non-GAAP net margin for Baidu Core was 21%.

Adjusted EBITDA was RMB 29.7 billion ($4.30 billion) and adjusted EBITDA margin was 24%. Adjusted EBITDA to Baidu Core was RMB 27.1 billion ($3.93 billion) and adjusted EBITDA margin for Baidu Core was 28%. 

Free cash flow was RMB 17.9 billion ($2.59 billion), and free cash flow excluding iQIYI was RMB 18.1 billion ($2.63 billion).

Conference Call Information

Baidu's management will hold an earnings conference call at 7.30AM on February 22, 2023, U.S. Eastern Time (8.30PM on February 22, 2023, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of "Baidu Inc. Q4 2022 Earnings Conference Call". Please follow the steps to enter your registration details, then click "Register". Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click
https://s1.c-conf.com/diamondpass/10028709-re5fs4.html  

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

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

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 NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

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, 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, non-GAAP operating margin, non-GAAP net income 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, amortization and impairment of intangible assets resulting from business combinations and contingent loss pertaining to legal proceeding in relation to former advertising agencies and iQIYI's non-recurring employee severance costs.

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, contingent loss pertaining to legal proceeding in relation to former advertising agencies, iQIYI's non-recurring employee severance costs, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, charitable donation from Baidu, 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, 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, contingent loss pertaining to legal proceeding in relation to former advertising agencies, iQIYI's non-recurring employee severance costs, 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 measure.

 

Baidu, Inc. 

Condensed Consolidated Statements of (Loss) Income 

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



Three Months Ended


Twelve Months Ended




December 31,


September 30,


December 31,


December 31,


December 31,


December 31,


December 31,




2021


2022


2022


2022


2021


2022


2022




RMB


RMB


RMB


US$(2)


RMB


RMB


US$(2)


 Revenues: 
















 Online marketing services 


20,723


19,943


19,571


2,838


80,695


74,711


10,832


 Others 


12,365


12,597


13,506


1,958


43,798


48,964


7,099


 Total revenues  


33,088


32,540


33,077


4,796


124,493


123,675


17,931


















 Costs and expenses: 
















     Cost of revenues(1)


17,289


16,273


16,945


2,457


64,314


63,935


9,269


     Selling, general and administrative(1)


6,451


5,193


5,881


853


24,723


20,514


2,975


     Research and development(1)


7,390


5,757


5,658


820


24,938


23,315


3,380


 Total costs and expenses 


31,130


27,223


28,484


4,130


113,975


107,764


15,624


 Operating income 


1,958


5,317


4,593


666


10,518


15,911


2,307


















 Other income (loss): 
















 Interest income 


1,514


1,619


1,647


239


5,551


6,245


905


 Interest expense 


(873)


(724)


(738)


(107)


(3,421)


(2,913)


(422)


 Foreign exchange (loss) gain, net 


(27)


(806)


(338)


(49)


100


(1,484)


(215)


 Share of losses from equity method investments 


(773)


(376)


(523)


(76)


(932)


(1,910)


(277)


 Others, net 


566


(4,483)


1,733


251


(1,038)


(5,737)


(832)


 Total other income (loss), net 


407


(4,770)


1,781


258


260


(5,799)


(841)


















 Income before income taxes 


2,365


547


6,374


924


10,778


10,112


1,466


 Income tax expense 


1,295


908


1,254


181


3,187


2,578


374


 Net income (loss)  


1,070


(361)


5,120


743


7,591


7,534


1,092


 Net (loss) income attributable to noncontrolling interests 

(645)


(215)


167


25


(2,635)


(25)


(4)


 Net income (loss) attributable to Baidu 


1,715


(146)


4,953


718


10,226


7,559


1,096


































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














 -Basic


4.57


(0.87)


13.73


1.99


28.64


20.02


2.90


 -Diluted


4.51


(0.87)


13.59


1.97


28.07


19.85


2.88


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














 -Basic


0.57


(0.11)


1.72


0.25


3.58


2.50


0.36


 -Diluted


0.56


(0.11)


1.70


0.25


3.51


2.48


0.36


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












 -Basic 


2,780


2,790


2,789


2,789


2,758


2,782


2,782


 -Diluted


2,816


2,790


2,801


2,801


2,814


2,809


2,809


















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














 Cost of revenues 


134


84


158


23


399


409


59


 Selling, general and administrative 


533


480


450


65


1,840


1,750


253


 Research and development 


1,426


1,039


1,233


179


4,817


4,629


672


 Total share-based compensation expenses 


2,093


1,603


1,841


267


7,056


6,788


984


















(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 6.8972 to US$1.00, the exchange rate in effect as of December 30, 2022 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,


December 31,


December 31,



2021


2022


2022



RMB


RMB


US$

ASSETS







    Current assets:







 Cash and cash equivalents


36,850


53,156


7,707

 Restricted cash


10,821


11,330


1,643

 Short-term investments, net


143,243


120,839


17,520

 Accounts receivable, net


9,981


11,733


1,701

 Amounts due from related parties


1,368


5,432


788

 Other current assets, net


11,052


10,360


1,501

    Total current assets


213,315


212,850


30,860








    Non-current assets:







 Fixed assets, net


23,027


23,973


3,476

 Licensed copyrights, net


7,258


6,841


992

 Produced content, net


10,951


13,002


1,885

 Intangible assets, net


1,689


1,254


182

 Goodwill


22,605


22,477


3,259

 Long-term investments, net


59,418


55,297


8,017

 Long-term time deposits and held-to-maturity investments

7,914


23,629


3,426

 Amounts due from related parties


3,487


60


9

 Deferred tax assets, net


2,372


2,129


309

 Operating lease right-of-use assets


12,065


10,365


1,503

 Other non-current assets


15,933


19,096


2,768

    Total non-current assets


166,719


178,123


25,826








Total assets


380,034


390,973


56,686








LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY



   Current liabilities:







      Short-term loans


4,168


5,343


775

Accounts payable and accrued liabilities


41,384


38,014


5,512

Customer deposits and deferred revenue


13,706


13,116


1,902

Deferred income


97


72


10

Long-term loans, current portion


2


-


-

Convertible senior notes, current portion


-


8,305


1,204

Notes payable, current portion


10,505


6,904


1,001

Amounts due to related parties


1,764


5,067


735

Operating lease liabilities


2,862


2,809


407

    Total current liabilities


74,488


79,630


11,546








    Non-current liabilities:







Deferred income


129


159


23

Deferred revenue


223


331


48

Amounts due to related parties


3,268


99


14

Long-term loans


12,629


13,722


1,990

Notes payable


43,120


39,893


5,784

Convertible senior notes


12,652


9,568


1,387

Deferred tax liabilities


3,286


2,898


420

Operating lease liabilities


5,569


4,810


697

Other non-current liabilities


718


2,058


299

    Total non-current liabilities


81,594


73,538


10,662








Total liabilities


156,082


153,168


22,208








Redeemable noncontrolling interests


7,148


8,393


1,217








Equity







    Total Baidu shareholders' equity


211,459


223,478


32,401

    Noncontrolling interests


5,345


5,934


860

Total equity


216,804


229,412


33,261








Total liabilities, redeemable noncontrolling interests, and equity


380,034


390,973


56,686

 

Baidu, Inc. 

Selected Information

(In millions, unaudited)




























Three months ended
December 31, 2021 (RMB)


Three months ended
September 30, 2022 (RMB)


Three months ended
December 31, 2022 (RMB)


Three months ended
December 31, 2022, 2022 (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 


25,978

7,389

(279)


33,088


25,239

7,471

(170)


32,540


25,654

7,593

(170)


33,077


3,719

1,101

(24)


4,796

  YOY














(1 %)

3 %



(0 %)







  QOQ














2 %

2 %



2 %
































Costs and expenses: 

























  Cost of revenues (1)


11,017

6,507

(235)


17,289


10,745

5,705

(177)


16,273


11,712

5,405

(172)


16,945


1,699

784

(26)


2,457

  Selling, general and administrative (1)


5,377

1,093

(19)


6,451


4,231

980

(18)


5,193


4,969

939

(27)


5,881


720

136

(3)


853

  Research and development (1)


6,626

764

-


7,390


5,281

476

-


5,757


5,191

467

-


5,658


752

68

-


820

Total costs and expenses 


23,020

8,364

(254)


31,130


20,257

7,161

(195)


27,223


21,872

6,811

(199)


28,484


3,171

988

(29)


4,130

  YOY 

























  Cost of revenues 














6 %

(17 %)



(2 %)







  Selling, general and administrative 














(8 %)

(14 %)



(9 %)







  Research and development 














(22 %)

(39 %)



(23 %)







  Cost and expenses














(5 %)

(19 %)



(8 %)
































Operating income (loss)


2,958

(975)

(25)


1,958


4,982

310

25


5,317


3,782

782

29


4,593


548

113

5


666

  YOY














28 %

-



135 %







  QOQ














(24 %)

152 %



(14 %)







Operating margin 


11 %

(13 %)



6 %


20 %

4 %



16 %


15 %

10 %



14 %
































  Add: total other income (loss), net


1,161

(754)

-


407


(4,108)

(662)

-


(4,770)


2,271

(490)

-


1,781


329

(71)

-


258

  Less: income tax expense (benefit)


1,258

37

-


1,295


866

42

-


908


1,265

(11)

-


1,254


183

(2)

-


181

  Less: net income (loss) attributable to NCI


205

10

(860)

(3)

(645)


(17)

1

(199)

(3)

(215)


15

(1)

153

(3)

167


2

-

23

(3)

25

Net income (loss) attributable to Baidu


2,656

(1,776)

835


1,715


25

(395)

224


(146)


4,773

304

(124)


4,953


692

44

(18)


718

  YOY














80 %

-



189 %







  QOQ














18992 %

-



-







Net margin 


10 %

(24 %)



5 %


0 %

(5 %)



(0 %)


19 %

4 %



15 %
































Non-GAAP financial measures:

























Operating income (loss) (non-GAAP)


4,847

(515)



4,307


6,650

525



7,200


5,491

977



6,497


796

141



942

  YOY














13 %

-



51 %







  QOQ














(17 %)

86 %



(10 %)







Operating margin (non-GAAP)


19 %

(7 %)



13 %


26 %

7 %



22 %


21 %

13 %



20 %
































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


4,625

(1,001)



4,084


5,767

187



5,889


4,915

856



5,371


713

124



779

  YOY














6 %

-



32 %







  QOQ














(15 %)

358 %



(9 %)







Net margin (non-GAAP)


18 %

(14 %)



12 %


23 %

3 %



18 %


19 %

11 %



16 %
































Adjusted EBITDA


6,210

(428)



5,757


8,239

615



8,879


7,146

1,056



8,231


1,036

152



1,193

  YOY














15 %

-



43 %







  QOQ














(13 %)

72 %



(7 %)







Adjusted EBITDA margin 


24 %

(6 %)



17 %


33 %

8 %



27 %


28 %

14 %



25 %
































(1)  Includes share-based compensation as follows:























 Cost of revenues 


90

44



134


45

39



84


122

36



158


18

5



23

 Selling, general and administrative 


396

137



533


375

105



480


355

95



450


51

14



65

 Research and development 


1,343

83



1,426


978

61



1,039


1,177

56



1,233


171

8



179

 Total share-based compensation 


1,829

264



2,093


1,398

205



1,603


1,654

187



1,841


240

27



267

 (2) Relates to intersegment eliminations and adjustments 























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





















 

Baidu, Inc. 

Selected Information

(In millions except for per ADS information, unaudited)






















Twelve months ended
December 31, 2021 (RMB)


Twelve months ended
December 31, 2022 (RMB)


Twelve months ended
December 31, 2022 (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.

Total revenues 


95,163

30,554

(1,224)


124,493


95,431

28,998

(754)


123,675


13,836

4,204

(109)


17,931

  YOY








0 %

(5 %)



(1 %)













































Costs and expenses: 



















  Cost of revenues (1)


37,838

27,513

(1,037)


64,314


42,378

22,321

(764)


63,935


6,144

3,236

(111)


9,269

  Selling, general and administrative (1)


20,040

4,725

(42)


24,723


17,103

3,466

(55)


20,514


2,480

503

(8)


2,975

  Research and development (1)


22,143

2,795

-


24,938


21,416

1,899

-


23,315


3,105

275

-


3,380

Total costs and expenses 


80,021

35,033

(1,079)


113,975


80,897

27,686

(819)


107,764


11,729

4,014

(119)


15,624

  YOY 



















  Cost of revenues 








12 %

(19 %)



(1 %)







  Selling, general and administrative 








(15 %)

(27 %)



(17 %)







  Research and development 








(3 %)

(32 %)



(7 %)







  Cost and expenses








1 %

(21 %)



(5 %)