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Baidu Announces Fourth Quarter and Fiscal Year 2023 Results

Feb 28, 2024

BEIJING, Feb. 28, 2024 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)) ("Baidu" or the "Company"), a leading AI company with a strong Internet foundation, today announced its unaudited financial results for the quarter and fiscal year ended December 31, 2023.

"Baidu Core reported another solid quarter," said Robin Li, Co-founder and CEO of Baidu. "Throughout 2023, we made significant strides in advancing ERNIE and ERNIE Bot, reinventing our products and services, and achieving breakthroughs in monetization. Concurrently, our core business remained resilient and healthy. Looking ahead, our commitment to Gen-AI and foundation models remains unwavering, paving the way for the gradual creation of a new growth engine."

"In the fourth quarter, we maintained our focus on enhancing operational efficiencies," said Rong Luo, CFO of Baidu. "As we look ahead into 2024, our goal is to persistently enhance operational efficiencies and achieve high-quality growth."

Fourth Quarter and Fiscal Year 2023 Financial Highlights[1]

 

Baidu, Inc.

(In millions except per

Q4

 

Q3

 

Q4

       

FY

 

FY

     

ADS, unaudited)

2022

 

2023

 

2023

   

YOY

 

2022

 

2023

   

YOY

 

RMB

 

RMB

 

RMB

US$

     

RMB

 

RMB

US$

   

Total revenues

33,077

 

34,447

 

34,951

4,923

 

6 %

 

123,675

 

134,598

18,958

 

9 %

                               

Operating income

4,593

 

6,274

 

5,392

759

 

17 %

 

15,911

 

21,856

3,078

 

37 %

Operating income
(non-GAAP) [2]

6,497

 

7,596

 

7,075

996

 

9 %

 

23,186

 

28,433

4,005

 

23 %

                               

Net income to Baidu

4,953

 

6,681

 

2,599

366

 

(48 %)

 

7,559

 

20,315

2,861

 

169 %

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

5,371

 

7,267

 

7,755

1,092

 

44 %

 

20,680

 

28,747

4,049

 

39 %

                               

Diluted earnings per
ADS

13.59

 

18.22

 

6.77

0.95

 

(50 %)

 

19.85

 

55.08

7.76

 

177 %

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

15.25

 

20.40

 

21.86

3.08

 

43 %

 

58.93

 

80.85

11.39

 

37 %

                               

Adjusted EBITDA [2]

8,231

 

9,505

 

9,057

1,276

 

10 %

 

29,663

 

35,823

5,046

 

21 %

Adjusted EBITDA
margin

25 %

 

28 %

 

26 %

26 %

     

24 %

 

27 %

27 %

   

 

 

Baidu Core

 

Q4

 

Q3

 

Q4

       

FY

 

FY

     

(In millions, unaudited)

2022

 

2023

 

2023

   

YOY

 

2022

 

2023

   

YOY

 

RMB

 

RMB

 

RMB

US$

     

RMB

 

RMB

US$

   

Total revenues

25,654

 

26,572

 

27,488

3,872

 

7 %

 

95,431

 

103,465

14,573

 

8 %

                               

Operating income

3,782

 

5,498

 

4,668

657

 

23 %

 

14,534

 

18,825

2,651

 

30 %

Operating income
(non-GAAP) [2]

5,491

 

6,672

 

6,197

873

 

13 %

 

20,948

 

24,748

3,486

 

18 %

                               

Net income to Baidu
Core

4,773

 

6,436

 

2,440

344

 

(49 %)

 

7,551

 

19,401

2,733

 

157 %

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

4,915

 

6,956

 

7,500

1,056

 

53 %

 

19,935

 

27,418

3,862

 

38 %

                               

Adjusted EBITDA [2]

7,146

 

8,513

 

8,118

1,143

 

14 %

 

27,088

 

31,863

4,488

 

18 %

Adjusted EBITDA
margin

28 %

 

32 %

 

30 %

30 %

     

28 %

 

31 %

31 %

   
 

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 7.0999 as of December 29, 2023, 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 returned US$318 million to shareholders since the beginning of Q4 2023, bringing the cumulative repurchase to US$669 million under the 2023 share repurchase program.

AI Cloud

  • PaddlePaddle developer community has grown to 10.7 million and has served 235,000 businesses, as of the end of 2023. Developers have created 860,000 models on PaddlePaddle by the end of 2023.

Intelligent Driving

  • Apollo Go, Baidu's autonomous ride-hailing service, provided about 839K rides in the fourth quarter of 2023, up 49% year over year. As of January 2, 2024, accumulated rides provided by Apollo Go on public roads surpassed 5 million.
  • In the fourth quarter of 2023, the proportion of fully driverless orders within the overall order portfolio in Wuhan reached 45%, up from 40% in the third quarter of 2023.

Mobile Ecosystem

  • In December 2023, Baidu App's MAUs reached 667 million, up 3% year over year.
  • Managed Page accounted for 51% of Baidu Core's online marketing revenue in the fourth quarter of 2023.

iQIYI

  • iQIYI's average daily number of total subscribing members for the quarter was 100.3 million, compared to 111.6 million for the fourth quarter of 2022 and 107.5 million for the third quarter of 2023. More importantly, iQIYI's monthly average revenue per membership (ARM) for the quarter was RMB15.98, compared to RMB14.17 for the fourth quarter of 2022 and RMB15.54 for the third quarter of 2023.

Fourth Quarter 2023 Financial Results

Total revenues were RMB35.0 billion ($4.92 billion), increasing 6% year over year.

  • Revenue from Baidu Core was RMB27.5 billion ($3.87 billion), increasing 7% year over year; online marketing revenue was RMB19.2 billion ($2.70 billion), up 6% year over year, and non-online marketing revenue was RMB8.3 billion ($1.17 billion), up 9% year over year, mainly driven by AI Cloud business.
  • Revenue from iQIYI was RMB7.7 billion ($1.09 billion), increasing 2% year over year.

Cost of revenues was RMB17.4 billion ($2.45 billion), increasing 3% year over year, primarily due to an increase in costs related to AI Cloud business, partially offset by a decrease in content costs.

Selling, general and administrative expenses were RMB5.9 billion ($825 million), which remained flat compared to the same period last year.

Research and development expenses were RMB6.3 billion ($886 million), increasing 11% year over year, primarily due to an increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs.

Operating income was RMB5.4 billion ($759 million). Baidu Core operating income was RMB4.7 billion ($657 million), and Baidu Core operating margin was 17%. Non-GAAP operating income was RMB7.1 billion ($996 million). Non-GAAP Baidu Core operating income was RMB6.2 billion ($873 million), and non-GAAP Baidu Core operating margin was 23%.

Total other loss, net was RMB2.5 billion ($356 million), compared to total other income, net of RMB1.8 billion for the same period last year, mainly due to a pickup of losses from an equity method investment as a result of a modification of certain terms of the underlying preferred shares.

Income tax benefit was RMB96 million ($14 million), compared to income tax expense of RMB1.3 billion for the same period last year, mainly due to a change of certain subsidiaries' amounts of valuation allowance for deferred tax assets.

Net income attributable to Baidu was RMB2.6 billion ($366 million), and diluted earnings per ADS was RMB6.77 ($0.95). Net income attributable to Baidu Core was RMB2.4 billion ($344 million), and net margin for Baidu Core was 9%. Non-GAAP net income attributable to Baidu was RMB7.8 billion ($1.09 billion). Non-GAAP diluted earnings per ADS was RMB21.86 ($3.08). Non-GAAP net income attributable to Baidu Core was RMB7.5 billion ($1.06 billion), and non-GAAP net margin for Baidu Core was 27%.

Adjusted EBITDA was RMB9.1 billion ($1.28 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB8.1 billion ($1.14 billion) and adjusted EBITDA margin for Baidu Core was 30%.

As of December 31, 2023, cash, cash equivalents, restricted cash and short-term investments were RMB205.4 billion ($28.93 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB200.0 billion ($28.17 billion). Free cash flow was RMB7.0 billion ($980 million), and free cash flow excluding iQIYI was RMB6.3 billion ($894 million).

Fiscal Year 2023 Results

Total revenues were RMB134.6 billion ($18.96 billion), increasing 9% year over year.

  • Revenue from Baidu Core was RMB103.5 billion ($14.57 billion), increasing 8% year over year; online marketing revenue was RMB75.1 billion ($10.58 billion), up 8% year over year, and non-online marketing revenue was RMB28.4 billion ($3.99 billion), up 9% year over year.
  • Revenue from iQIYI was RMB31.9 billion ($4.49 billion), increasing 10% year over year.

Cost of revenues was RMB65.0 billion ($9.16 billion), increasing 2% year over year, primarily due to an increase in traffic acquisition costs, partially offset by a decrease in content costs and costs related to AI Cloud business.

Selling, general and administrative expenses were RMB23.5 billion ($3.31 billion), increasing 15% year over year, primarily due to an increase in channel spending and promotional marketing expenses.

Research and development expenses were RMB24.2 billion ($3.41 billion), increasing 4% year over year, primarily due to an increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs.

Operating income was RMB21.9 billion ($3.08 billion). Baidu Core operating income was RMB18.8 billion ($2.65 billion), and Baidu Core operating margin was 18%. Non-GAAP operating income was RMB28.4 billion ($4.01 billion). Non-GAAP Baidu Core operating income was RMB24.7 billion ($3.49 billion), and non-GAAP Baidu Core operating margin was 24%.

Total other income, net was RMB3.3 billion ($472 million), compared to total other loss, net of RMB5.8 billion last year, mainly due to a fair value gain of RMB198 million from long-term investments this year, compared to a fair value loss of RMB3.9 billion last year; and a decrease of RMB2.2 billion in impairment of long-term investments.

Income tax expense was RMB3.6 billion ($514 million), increasing 42% year over year, primarily due to an increase in profit before tax.

Net income attributable to Baidu was RMB20.3 billion ($2.86 billion), and diluted earnings per ADS was RMB55.08 ($7.76). Net income attributable to Baidu Core was RMB19.4 billion ($2.73 billion), and net margin for Baidu Core was 19%. Non-GAAP net income attributable to Baidu was RMB28.7 billion ($4.05 billion). Non-GAAP diluted earnings per ADS was RMB80.85 ($11.39). Non-GAAP net income attributable to Baidu Core was RMB27.4 billion ($3.86 billion), and non-GAAP net margin for Baidu Core was 26%.

Adjusted EBITDA was RMB35.8 billion ($5.05 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB31.9 billion ($4.49 billion) and adjusted EBITDA margin for Baidu Core was 31%.

Free cash flow was RMB25.4 billion ($3.58 billion), and free cash flow excluding iQIYI was RMB22.1 billion ($3.11 billion).

Conference Call Information

Baidu's management will hold an earnings conference call at 7.30 AM on February 28, 2024, U.S. Eastern Time (8.30 PM on February 28, 2024, 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 2023 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/10036733-mjkcdg.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 (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, amortization and impairment of intangible assets resulting from business combinations, and contingent loss pertaining to legal proceeding in relation to former advertising agencies.

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, and contingent loss pertaining to legal proceeding in relation to former advertising agencies, 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 share, 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, share-based compensation expenses, and contingent loss pertaining to legal proceeding in relation to former advertising agencies.

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  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,

 
   

2022

 

2023

 

2023

 

2023

 

2022

 

2023

 

2023

 
   

RMB

 

RMB

 

RMB

 

US$(2)

 

RMB

 

RMB

 

US$(2)

 

Revenues:

                             

Online marketing services

 

19,571

 

21,346

 

20,804

 

2,930

 

74,711

 

81,203

 

11,437

 

Others

 

13,506

 

13,101

 

14,147

 

1,993

 

48,964

 

53,395

 

7,521

 

Total revenues 

 

33,077

 

34,447

 

34,951

 

4,923

 

123,675

 

134,598

 

18,958

 
                               

Costs and expenses:

                             

Cost of revenues(1)

 

16,945

 

16,294

 

17,418

 

2,453

 

63,935

 

65,031

 

9,159

 

Selling, general and administrative(1)

 

5,881

 

5,778

 

5,854

 

825

 

20,514

 

23,519

 

3,314

 

Research and development(1)

 

5,658

 

6,101

 

6,287

 

886

 

23,315

 

24,192

 

3,407

 

Total costs and expenses

 

28,484

 

28,173

 

29,559

 

4,164

 

107,764

 

112,742

 

15,880

 

Operating income

 

4,593

 

6,274

 

5,392

 

759

 

15,911

 

21,856

 

3,078

 
                               

Other income (loss):

                             

Interest income

 

1,647

 

2,082

 

2,064

 

291

 

6,245

 

8,009

 

1,128

 

Interest expense

 

(738)

 

(853)

 

(774)

 

(109)

 

(2,913)

 

(3,248)

 

(457)

 

Foreign exchange (loss) gain, net

 

(338)

 

(26)

 

(449)

 

(63)

 

(1,484)

 

595

 

84

 

Share of losses from equity method investments

 

(523)

 

(398)

 

(2,970)

 

(418)

 

(1,910)

 

(3,799)

 

(535)

 

Others, net

 

1,733

 

1,100

 

(398)

 

(57)

 

(5,737)

 

1,785

 

252

 

Total other income (loss), net

 

1,781

 

1,905

 

(2,527)

 

(356)

 

(5,799)

 

3,342

 

472

 
                               

Income before income taxes

 

6,374

 

8,179

 

2,865

 

403

 

10,112

 

25,198

 

3,550

 

Income tax expense (benefit)

 

1,254

 

1,282

 

(96)

 

(14)

 

2,578

 

3,649

 

514

 

Net income 

 

5,120

 

6,897

 

2,961

 

417

 

7,534

 

21,549

 

3,036

 

Net income (loss) attributable to noncontrolling interests

167

 

216

 

362

 

51

 

(25)

 

1,234

 

175

 

Net income attributable to Baidu

 

4,953

 

6,681

 

2,599

 

366

 

7,559

 

20,315

 

2,861

 
                               
                               

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

                         

 -Basic

 

13.73

 

18.45

 

6.85

 

0.96

 

20.02

 

55.83

 

7.86

 

 -Diluted

 

13.59

 

18.22

 

6.77

 

0.95

 

19.85

 

55.08

 

7.76

 

Earnings per share for Class A and Class B ordinary shares:

                         

 -Basic

 

1.72

 

2.31

 

0.86

 

0.12

 

2.50

 

6.98

 

0.98

 

 -Diluted

 

1.70

 

2.28

 

0.85

 

0.12

 

2.48

 

6.89

 

0.97

 

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

                     

 -Basic 

 

2,789

 

2,814

 

2,812

 

2,812

 

2,782

 

2,807

 

2,807

 

 -Diluted

 

2,801

 

2,846

 

2,830

 

2,830

 

2,809

 

2,837

 

2,837

 
                               

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

                         

 Cost of revenues 

 

158

 

139

 

159

 

23

 

409

 

590

 

83

 

 Selling, general and administrative 

 

450

 

358

 

411

 

58

 

1,750

 

1,678

 

236

 

 Research and development 

 

1,233

 

778

 

1,068

 

150

 

4,629

 

4,077

 

575

 

 Total share-based compensation expenses 

 

1,841

 

1,275

 

1,638

 

231

 

6,788

 

6,345

 

894

 
                               

(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 7.0999 to US$1.00, the exchange rate in effect as of December 29, 2023 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,

   

2022

 

2023

 

2023

   

RMB

 

RMB

 

US$

ASSETS

           

Current assets:

           

Cash and cash equivalents

 

53,156

 

25,231

 

3,554

Restricted cash

 

11,330

 

11,503

 

1,620

Short-term investments, net

 

120,839

 

168,670

 

23,757

Accounts receivable, net

 

11,733

 

10,848

 

1,528

Amounts due from related parties

 

5,432

 

1,424

 

201

Other current assets, net

 

10,360

 

12,579

 

1,772

Total current assets

 

212,850

 

230,255

 

32,432

             

Non-current assets:

           

Fixed assets, net

 

23,973

 

27,960

 

3,938

Licensed copyrights, net

 

6,841

 

6,967

 

981

Produced content, net

 

13,002

 

13,377

 

1,884

Intangible assets, net

 

1,254

 

881

 

124

Goodwill

 

22,477

 

22,586

 

3,181

Long-term investments, net

 

55,297

 

47,957

 

6,755

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

23,629

 

24,666

 

3,474

Amounts due from related parties

 

60

 

195

 

27

Deferred tax assets, net

 

2,129

 

2,100

 

296

Operating lease right-of-use assets

 

10,365

 

10,851

 

1,528

Other non-current assets

 

19,096

 

18,964

 

2,671

Total non-current assets

 

178,123

 

176,504

 

24,859

             

Total assets

 

390,973

 

406,759

 

57,291

             

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

   

Current liabilities:

           

Short-term loans

 

5,343

 

10,257

 

1,445

Accounts payable and accrued liabilities

 

38,014

 

37,717

 

5,312

Customer deposits and deferred revenue

 

13,116

 

14,627

 

2,060

Deferred income

 

72

 

306

 

43

Long-term loans, current portion

 

-

 

2

 

-

Convertible senior notes, current portion

 

8,305

 

2,802

 

395

Notes payable, current portion

 

6,904

 

6,029

 

849

Amounts due to related parties

 

5,067

 

1,603

 

226

Operating lease liabilities

 

2,809

 

3,108

 

438

Total current liabilities

 

79,630

 

76,451

 

10,768

             

Non-current liabilities:

           

Deferred income

 

159

 

200

 

28

Deferred revenue

 

331

 

481

 

68

Amounts due to related parties

 

99

 

77

 

11

Long-term loans

 

13,722

 

14,223

 

2,003

Notes payable

 

39,893

 

34,990

 

4,928

Convertible senior notes

 

9,568

 

8,144

 

1,147

Deferred tax liabilities

 

2,898

 

2,725

 

384

Operating lease liabilities

 

4,810

 

5,040

 

710

Other non-current liabilities

 

2,058

 

1,820

 

257

Total non-current liabilities

 

73,538

 

67,700

 

9,536

             

Total liabilities

 

153,168

 

144,151

 

20,304

             

Redeemable noncontrolling interests

 

8,393

 

9,465

 

1,333

             

Equity

           

Total Baidu shareholders' equity

 

223,478

 

243,626

 

34,314

Noncontrolling interests

 

5,934

 

9,517

 

1,340

Total equity

 

229,412

 

253,143

 

35,654

             

Total liabilities, redeemable noncontrolling interests,
and equity

 

390,973

 

406,759

 

57,291

 

 

 

Baidu, Inc. 

                                               

Selected Information

                                               

(In millions, unaudited)

                                               
                                                 
   

Three months ended
December 31, 2022 (RMB)

 

Three months ended
September 30, 2023 (RMB)

 

Three months ended
December 31, 2023 (RMB)

 

Three months ended
December 31, 2023 (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 

 

25,654

7,593

(170)

 

33,077

 

26,572

8,015

(140)

 

34,447

 

27,488

7,707

(244)

 

34,951

 

3,872

1,086

(35)

 

4,923

  YOY

                         

7 %

2 %

   

6 %

           

  QOQ

                         

3 %

(4 %)

   

1 %

           
                                                 

Costs and expenses: 

                                               

  Cost of revenues (1)

 

11,712

5,405

(172)

 

16,945

 

10,610

5,840

(156)

 

16,294

 

12,050

5,533

(165)

 

17,418

 

1,698

779

(24)

 

2,453

  Selling, general and administrative (1)

 

4,969

939

(27)

 

5,881

 

4,810

981

(13)

 

5,778

 

4,936

948

(30)

 

5,854

 

695

134

(4)

 

825

  Research and development (1)

 

5,191

467

-

 

5,658

 

5,654

447

-

 

6,101

 

5,834

453

-

 

6,287

 

822

64

-

 

886

Total costs and expenses 

 

21,872

6,811

(199)

 

28,484

 

21,074

7,268

(169)

 

28,173

 

22,820

6,934

(195)

 

29,559

 

3,215

977

(28)

 

4,164

  YOY 

                                               

  Cost of revenues 

                         

3 %

2 %

   

3 %

           

  Selling, general and administrative 

                         

(1 %)

1 %

   

(0 %)

           

  Research and development 

                         

12 %

(3 %)

   

11 %

           

  Costs and expenses

                         

4 %

2 %

   

4 %

           
                                                 

Operating income (loss)

 

3,782

782

29

 

4,593

 

5,498

747

29

 

6,274

 

4,668

773

(49)

 

5,392

 

657

109

(7)

 

759

  YOY

                         

23 %

(1 %)

   

17 %

           

  QOQ

                         

(15 %)

3 %

   

(14 %)

           

Operating margin 

 

15 %

10 %

   

14 %

 

21 %

9 %

   

18 %

 

17 %

10 %

   

15 %

           
                                                 

  Add: total other income (loss), net

 

2,271

(490)

-

 

1,781

 

2,159

(254)

-

 

1,905

 

(2,267)

(260)

-

 

(2,527)

 

(319)

(37)

-

 

(356)

  Less: income tax expense (benefit)

 

1,265

(11)

-

 

1,254

 

1,272

10

-

 

1,282

 

(134)

38

-

 

(96)

 

(19)

5

-

 

(14)

  Less: net income (loss) attributable to NCI

 

15

(1)

153

(3)

167

 

(51)

7

260

(3)

216

 

95

9

258

(3)

362

 

13

1

37

(3)

51

Net income (loss) attributable to Baidu

 

4,773

304

(124)

 

4,953

 

6,436

476

(231)

 

6,681

 

2,440

466

(307)

 

2,599

 

344

66

(44)

 

366

  YOY

                         

(49 %)

53 %

   

(48 %)

           

  QOQ

                         

(62 %)

(2 %)

   

(61 %)

           

Net margin 

 

19 %

4 %

   

15 %

 

24 %

6 %

   

19 %

 

9 %

6 %

   

7 %

           
                                                 

Non-GAAP financial measures:

                                               

Operating income (non-GAAP)

 

5,491

977

   

6,497

 

6,672

895

   

7,596

 

6,197

927

   

7,075

 

873

130

   

996

  YOY

                         

13 %

(5 %)

   

9 %

           

  QOQ

                         

(7 %)

4 %

   

(7 %)

           

Operating margin (non-GAAP)

 

21 %

13 %

   

20 %

 

25 %

11 %

   

22 %

 

23 %

12 %

   

20 %

           
                                                 

Net income attributable to Baidu (non-
GAAP)

 

4,915

856

   

5,371

 

6,956

622

   

7,267

 

7,500

681

   

7,755

 

1,056

96

   

1,092

  YOY

                         

53 %

(20 %)

   

44 %

           

  QOQ

                         

8 %

9 %

   

7 %

           

Net margin (non-GAAP)

 

19 %

11 %

   

16 %

 

26 %

8 %

   

21 %

 

27 %

9 %

   

22 %

           
                                                 

Adjusted EBITDA

 

7,146

1,056

   

8,231

 

8,513

963

   

9,505

 

8,118

988

   

9,057

 

1,143

140

   

1,276

  YOY

                         

14 %

(6 %)

   

10 %

           

  QOQ

                         

(5 %)

3 %

   

(5 %)

           

Adjusted EBITDA margin 

 

28 %

14 %

   

25 %

 

32 %

12 %

   

28 %

 

30 %

13 %

   

26 %

           
                                                 

(1)  Includes share-based compensation as follows:

                                           

 Cost of revenues 

 

122

36

   

158

 

107

32

   

139

 

125

34

   

159

 

18

5

   

23

 Selling, general and administrative 

 

355

95

   

450

 

290

68

   

358

 

340

71

   

411

 

48

10

   

58

 Research and development 

 

1,177

56

   

1,233

 

732

46

   

778

 

1,020

48

   

1,068

 

144

6

   

150

 Total share-based compensation 

 

1,654

187

   

1,841

 

1,129

146

   

1,275

 

1,485

153

   

1,638

 

210

21

   

231

 (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, 2022 (RMB)

 

Twelve months ended
December 31, 2023 (RMB)

 

Twelve months ended
December 31, 2023 (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 

 

95,431

28,998

(754)

 

123,675

 

103,465

31,873

(740)

 

134,598

 

14,573

4,489

(104)

 

18,958

  YOY

             

8 %

10 %

   

9 %