BEIJING, Aug. 22, 2024 /PRNewswire/ — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), (“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, 2024.
“AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline growth for Baidu Core. Operationally, we fast-tracked the renovation of Baidu search, which we believe will drive long-term success despite the short-term impact on monetization. We also achieved new breakthroughs with Apollo Go, which now offers 100% fully driverless ride-hailing services in practically the entire Wuhan municipality, and has started scalable testing of the latest RT6 vehicles,” said Robin Li, Co-founder and CEO of Baidu. “Gradually, the transformative impact of Gen-AI and foundation models is becoming more tangible in business and everyday life. Throughout all layers of our AI technology stack and with the rapid adoption of applications built on top of ERNIE, we are scaling AI to address real-world problems and generate substantial value both for external customers and our own product portfolio.”
“As we speeded up the AI-native transformation of our products in the second quarter, we continued to optimize our operations and maintained a healthy margin,” said Rong Luo, CFO of Baidu. “For AI Cloud in particular, we expect growth to maintain a strong momentum.”
Second Quarter 2024 Financial Highlights[1]
Baidu, Inc.
(In millions except per
Q2
Q1
Q2
ADS, unaudited)
2023
2024
2024
YOY
QOQ
RMB
RMB
RMB
US$
Total revenues
34,056
31,513
33,931
4,669
(0 %)
8 %
Operating income
5,210
5,484
5,944
818
14 %
8 %
Operating income (non-GAAP) [2]
7,334
6,673
7,500
1,032
2 %
12 %
Net income to Baidu
5,210
5,448
5,488
755
5 %
1 %
Net income to Baidu (non-GAAP) [2]
7,998
7,011
7,396
1,018
(8 %)
5 %
Diluted earnings per ADS
14.17
14.91
15.01
2.07
6 %
1 %
Diluted earnings per ADS (non-GAAP) [2]
22.55
19.91
21.02
2.89
(7 %)
6 %
Adjusted EBITDA [2]
9,116
8,244
9,147
1,259
0 %
11 %
Adjusted EBITDA margin
27 %
26 %
27 %
27 %
Baidu Core
Q2
Q1
Q2
(In millions, unaudited)
2023
2024
2024
YOY
QOQ
RMB
RMB
RMB
US$
Total revenues
26,407
23,803
26,687
3,672
1 %
12 %
Operating income
4,568
4,538
5,608
772
23 %
24 %
Operating income (non-GAAP) [2]
6,516
5,586
7,005
964
8 %
25 %
Net income to Baidu Core
5,012
5,150
5,462
752
9 %
6 %
Net income to Baidu Core (non-GAAP) [2]
7,694
6,628
7,290
1,003
(5 %)
10 %
Adjusted EBITDA[2]
8,229
7,118
8,617
1,186
5 %
21 %
Adjusted EBITDA margin
31 %
30 %
32 %
32 %
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2672 as of June 28, 2024,
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 expanded the ERNIE family of models with the launch of ERNIE 4.0 Turbo in June 2024, offering superior capabilities for typical use cases, and designed to run faster and at lower cost compared to ERNIE 4.0.Baidu returned US$301 million to shareholders since the beginning of Q2 2024, bringing the cumulative repurchase to about US$1.2 billion under the 2023 share repurchase program.Baidu earned a position in the China edition of the S&P Global Sustainability Yearbook, in recognition of its exceptional ESG performance. The selection stems from a comprehensive evaluation of 1,700 Chinese companies as part of the S&P Global 2023 Corporate Sustainability Assessment, underscoring Baidu’s sustainability practices.
AI Cloud
PaddlePaddle and ERNIE developer community grew to 14.7 million in June 2024.
Intelligent Driving
Apollo Go, Baidu’s autonomous ride-hailing service, provided about 899K rides in the second quarter of 2024, up 26% year over year. As of July 28, 2024, the cumulative rides provided to the public by Apollo Go surpassed 7 million.On June 19, Apollo Go started offering 100% fully driverless operations in practically the entire Wuhan municipality, its largest operational city, marking a significant milestone.The sixth-generation of our autonomous vehicle, the RT6, is now undergoing scalable testing.
Mobile Ecosystem
In June 2024, Baidu App’s MAUs reached 703 million, up 4% year over year.Managed Page accounted for 51% of Baidu Core’s online marketing revenue in the second quarter of 2024.
Second Quarter 2024 Financial Results
Total revenues were RMB33.9 billion ($4.67 billion), which was basically flat from last year.
Revenue from Baidu Core was RMB26.7 billion ($3.67 billion), increasing 1% year over year; online marketing revenue was RMB19.2 billion ($2.64 billion), decreasing 2% year over year, and non-online marketing revenue was RMB7.5 billion ($1.03 billion), up 10% year over year, mainly driven by AI Cloud business.Revenue from iQIYI was RMB7.4 billion ($1.02 billion), decreasing 5% year over year.
Cost of revenues was RMB16.4 billion ($2.26 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business.
Selling, general and administrative expenses were RMB5.7 billion ($784 million), decreasing 9% year over year, primarily due to a decrease in expected credit losses, channel spending and promotional marketing expenses and personnel related expenses.
Research and development expenses were RMB5.9 billion ($810 million), decreasing 8% year over year, primarily due to a decrease in personnel related expenses.
Operating income was RMB5.9 billion ($818 million). Baidu Core operating income was RMB5.6 billion ($772 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.5 billion ($1.03 billion). Non-GAAP Baidu Core operating income was RMB7.0 billion ($964 million), and non-GAAP Baidu Core operating margin was 26%.
Total other income, net was RMB771 million ($106 million), decreasing 44% year over year, primarily due to a decrease in net foreign exchange gain and disposal gain, partially offset by the decrease in fair value loss and impairment loss from long-term investments.
Income tax expense was RMB1.1 billion ($156 million), compared to RMB1.3 billion in the same period last year.
Net income attributable to Baidu was RMB5.5 billion ($755 million), and diluted earnings per ADS was RMB15.01 ($2.07). Net income attributable to Baidu Core was RMB5.5 billion ($752 million), and net margin for Baidu Core was 20%. Non-GAAP net income attributable to Baidu was RMB7.4 billion ($1.02 billion). Non-GAAP diluted earnings per ADS was RMB21.02 ($2.89). Non-GAAP net income attributable to Baidu Core was RMB7.3 billion ($1.00 billion), and non-GAAP net margin for Baidu Core was 27%.
Adjusted EBITDA was RMB9.1 billion ($1.26 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB8.6 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 32%.
As of June 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB162.0 billion ($22.29 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB155.0 billion ($21.32 billion). Free cash flow was RMB6.3 billion ($862 million), and free cash flow excluding iQIYI was RMB5.9 billion ($810 million).
Conference Call Information
Baidu’s management will hold an earnings conference call at 8.00 AM on Aug 22, 2024, U.S. Eastern Time (8.00 PM on Aug 22, 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. Q2 2024 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/10040402-jgu7y6.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, 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, impairment of long-term investments, and fair value gain (loss) 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 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, 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 Income
(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,
2023
2024
2024
2024
2023
2024
2024
RMB
RMB
RMB
US$(2)
RMB
RMB
US$(2)
Revenues:
Online marketing services
21,081
18,490
20,625
2,838
39,053
39,115
5,382
Others
12,975
13,023
13,306
1,831
26,147
26,329
3,623
Total revenues
34,056
31,513
33,931
4,669
65,200
65,444
9,005
Costs and expenses:
Cost of revenues(1)
16,167
15,291
16,398
2,257
31,319
31,689
4,361
Selling, general and administrative(1)
6,298
5,375
5,700
784
11,887
11,075
1,524
Research and development(1)
6,381
5,363
5,889
810
11,804
11,252
1,548
Total costs and expenses
28,846
26,029
27,987
3,851
55,010
54,016
7,433
Operating income
5,210
5,484
5,944
818
10,190
11,428
1,572
Other income:
Interest income
1,948
2,091
1,993
274
3,863
4,084
562
Interest expense
(817)
(766)
(742)
(102)
(1,621)
(1,508)
(208)
Foreign exchange gain, net
1,176
401
93
13
1,070
494
68
Share of losses from equity method investments
(383)
(205)
(119)
(16)
(431)
(324)
(45)
Others, net
(555)
(275)
(454)
(63)
1,083
(729)
(100)
Total other income, net
1,369
1,246
771
106
3,964
2,017
277
Income before income taxes
6,579
6,730
6,715
924
14,154
13,445
1,849
Income tax expense
1,270
883
1,131
156
2,463
2,014
277
Net income
5,309
5,847
5,584
768
11,691
11,431
1,572
Net income attributable to noncontrolling interests
99
399
96
13
656
495
68
Net income attributable to Baidu
5,210
5,448
5,488
755
11,035
10,936
1,504
Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic
14.34
14.97
15.11
2.08
30.55
30.12
4.14
-Diluted
14.17
14.91
15.01
2.07
30.05
29.98
4.13
Earnings per share for Class A and Class B ordinary shares:
-Basic
1.79
1.87
1.89
0.26
3.82
3.77
0.52
-Diluted
1.77
1.86
1.88
0.26
3.76
3.74
0.51
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic
2,804
2,804
2,796
2,796
2,801
2,800
2,800
-Diluted
2,834
2,816
2,804
2,804
2,836
2,810
2,810
(1) Includes share-based compensation expenses as follows:
Cost of revenues
194
108
146
20
292
254
35
Selling, general and administrative
446
417
385
53
909
802
110
Research and development
1,403
618
981
135
2,231
1,599
220
Total share-based compensation expenses
2,043
1,143
1,512
208
3,432
2,655
365
(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the exchange rate in effect as of June 28, 2024 as set forth in the H.10 statistical release of The Board of Governors
of the Federal Reserve System.
Baidu, Inc.
Condensed Consolidated Balance Sheets
(In millions, unaudited)
December 31,
June 30,
June 30,
2023
2024
2024
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
25,231
43,534
5,990
Restricted cash
11,503
11,646
1,603
Short-term investments, net
168,670
106,821
14,699
Accounts receivable, net
10,848
11,112
1,529
Amounts due from related parties
1,424
1,396
192
Other current assets, net
12,579
12,757
1,756
Total current assets
230,255
187,266
25,769
Non-current assets:
Fixed assets, net
27,960
29,154
4,012
Licensed copyrights, net
6,967
6,914
951
Produced content, net
13,377
14,320
1,970
Intangible assets, net
881
812
112
Goodwill
22,586
22,586
3,108
Long-term investments, net
47,957
46,193
6,356
Long-term time deposits and held-to-maturity investments
24,666
72,497
9,976
Amounts due from related parties
195
212
29
Deferred tax assets, net
2,100
2,342
322
Operating lease right-of-use assets
10,851
10,919
1,503
Other non-current assets
18,964
22,312
3,071
Total non-current assets
176,504
228,261
31,410
Total assets
406,759
415,527
57,179
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans
10,257
12,514
1,722
Accounts payable and accrued liabilities
37,717
37,988
5,227
Customer deposits and deferred revenue
14,627
14,038
1,932
Deferred income
306
291
40
Long-term loans, current portion
2
29
4
Convertible senior notes, current portion
2,802
2,892
398
Notes payable, current portion
6,029
7,986
1,099
Amounts due to related parties
1,603
1,831
252
Operating lease liabilities
3,108
3,196
440
Total current liabilities
76,451
80,765
11,114
Non-current liabilities:
Deferred income
200
287
39
Deferred revenue
481
520
72
Amounts due to related parties
77
67
9
Long-term loans
14,223
14,859
2,045
Notes payable
34,990
27,860
3,834
Convertible senior notes
8,144
8,408
1,157
Deferred tax liabilities
2,725
2,940
405
Operating lease liabilities
5,040
5,056
696
Other non-current liabilities
1,820
1,827
250
Total non-current liabilities
67,700
61,824
8,507
Total liabilities
144,151
142,589
19,621
Redeemable noncontrolling interests
9,465
10,107
1,391
Equity
Total Baidu shareholders’ equity
243,626
252,769
34,782
Noncontrolling interests
9,517
10,062
1,385
Total equity
253,143
262,831
36,167
Total liabilities, redeemable noncontrolling interests, and equity
406,759
415,527
57,179
Baidu, Inc.
Selected Information
(In millions, unaudited)
Three months ended
June 30, 2023 (RMB)
Three months ended
March 31, 2024 (RMB)
Three months ended
June 30, 2024 (RMB)
Three months ended
June 30, 2024 (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
26,407
7,802
(153)
34,056
23,803
7,927
(217)
31,513
26,687
7,439
(195)
33,931
3,672
1,024
(27)
4,669
YOY
1 %
(5 %)
(0 %)
QOQ
12 %
(6 %)
8 %
Costs and expenses:
Cost of revenues (1)
10,553
5,774
(160)
16,167
9,839
5,631
(179)
15,291
10,888
5,678
(168)
16,398
1,498
781
(22)
2,257
Selling, general and administrative (1)
5,344
979
(25)
6,298
4,492
922
(39)
5,375
4,751
970
(21)
5,700
654
133
(3)
784
Research and development (1)
5,942
439
–
6,381
4,934
429
–
5,363
5,440
449
–
5,889
748
62
–
810
Total costs and expenses
21,839
7,192
(185)
28,846
19,265
6,982
(218)
26,029
21,079
7,097
(189)
27,987
2,900
976
(25)
3,851
YOY
Cost of revenues
3 %
(2 %)
1 %
Selling, general and administrative
(11 %)
(1 %)
(9 %)
Research and development
(8 %)
2 %
(8 %)
Costs and expenses
(3 %)
(1 %)
(3 %)
Operating income (loss)
4,568
610
32
5,210
4,538
945
1
5,484
5,608
342
(6)
5,944
772
48
(2)
818
YOY
23 %
(44 %)
14 %
QOQ
24 %
(64 %)
8 %
Operating margin
17 %
8 %
15 %
19 %
12 %
17 %
21 %
5 %
18 %
Add: total other income (loss), net
1,603
(234)
–
1,369
1,508
(262)
–
1,246
1,011
(240)
–
771
139
(33)
–
106
Less: income tax expense
1,262
8
–
1,270
866
17
–
883
1,105
26
–
1,131
152
4
–
156
Less: net (loss) income attributable to NCI
(103)
3
199
(3)
99
30
11
358
(3)
399
52
7
37
(3)
96
7
1
5
(3)
13
Net income (loss) attributable to Baidu
5,012
365
(167)
5,210
5,150
655
(357)
5,448
5,462
69
(43)
5,488
752
10
(7)
755
YOY
9 %
(81 %)
5 %
QOQ
6 %
(89 %)
1 %
Net margin
19 %
5 %
15 %
22 %
8 %
17 %
20 %
1 %
16 %
Non-GAAP financial measures:
Operating income (non-GAAP)
6,516
786
7,334
5,586
1,086
6,673
7,005
501
7,500
964
70
1,032
YOY
8 %
(36 %)
2 %
QOQ
25 %
(54 %)
12 %
Operating margin (non-GAAP)
25 %
10 %
22 %
23 %
14 %
21 %
26 %
7 %
22 %
Net income attributable to Baidu (non-GAAP)
7,694
595
7,998
6,628
844
7,011
7,290
247
7,396
1,003
34
1,018
YOY
(5 %)
(58 %)
(8 %)
QOQ
10 %
(71 %)
5 %
Net margin (non-GAAP)
29 %
8 %
23 %
28 %
11 %
22 %
27 %
3 %
22 %
Adjusted EBITDA
8,229
855
9,116
7,118
1,125
8,244
8,617
536
9,147
1,186
75
1,259
YOY
5 %
(37 %)
0 %
QOQ
21 %
(52 %)
11 %
Adjusted EBITDA margin
31 %
11 %
27 %
30 %
14 %
26 %
32 %
7 %
27 %
(1) Includes share-based compensation as follows:
Cost of revenues
160
34
194
76
32
108
117
29
146
16
4
20
Selling, general and administrative
356
90
446
353
64
417
292
93
385
40
13
53
Research and development
1,358
45
1,403
575
43
618
945
36
981
130
5
135
Total share-based compensation
1,874
169
2,043
1,004
139
1,143
1,354
158
1,512
186
22
208
(2) Relates to intersegment eliminations and adjustments
(3) Relates to the net income 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, 2023 (RMB)
March 31, 2024 (RMB)
June 30, 2024 (RMB)
June 30, 2024 (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 operating activities
9,746
886
10,632
5,284
936
6,220
7,970
409
8,379
1,097
56
1,153
Net cash provided by (used in) investing activities
7,309
(421)
6,888
(2,893)
(223)
(3,116)
13,824
337
14,161
1,903
46
1,949
Net cash provided by (used in) financing activities
1,908
(1,176)
732
2,126
261
2,387
(9,946)
869
(9,077)
(1,369)
120
(1,249)
Effect of exchange rate changes on cash, cash
equivalents and restricted cash
496
128
624
154
15
169
66
22
88
9
3
12
Net increase (decrease) in cash, cash equivalents and
restricted cash
19,459
(583)
18,876
4,671
989
5,660
11,914
1,637
13,551
1,640
225
1,865
Cash, cash equivalents and restricted cash
At beginning of period
30,355
5,665
36,020
32,293
5,281
37,574
36,964
6,270
43,234
5,086
863
5,949
At end of period
49,814
5,082
54,896
36,964
6,270
43,234
48,878
7,907
56,785
6,726
1,088
7,814
Net cash provided by operating activities
9,746
886
10,632
5,284
936
6,220
7,970
409
8,379
1,097
56
1,153
Less: Capital expenditures
(2,693)
(13)
(2,706)
(2,016)
(22)
(2,038)
(2,090)
(28)
(2,118)
(287)
(4)
(291)
Free cash flow
7,053
873
7,926
3,268
914
4,182
5,880
381
6,261
810
52
862
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, 2023 (RMB)
March 31, 2024 (RMB)
June 30, 2024 (RMB)
June 30, 2024 (US$)
Baidu
Core
iQIYI
Baidu,
Inc.
Baidu
Core
iQIYI
Baidu,
Inc.
Baidu
Core
iQIYI
Baidu,
Inc.
Baidu
Core
iQIYI
Baidu,
Inc.
Operating income
4,568
610
5,210
4,538
945
5,484
5,608
342
5,944
772
48
818
Add: Share-based compensation expenses
1,874
169
2,043
1,004
139
1,143
1,354
158
1,512
186
22
208
Add: Amortization and impairment of intangible assets(1)
74
7
81
44
2
46
43
1
44
6
–
6
Operating income (non-GAAP)
6,516
786
7,334
5,586
1,086
6,673
7,005
501
7,500
964
70
1,032
Add: Depreciation of fixed assets
1,713
69
1,782
1,532
39
1,571
1,612
35
1,647
222
5
227
Adjusted EBITDA
8,229
855
9,116
7,118
1,125
8,244
8,617
536
9,147
1,186
75
1,259
Net income attributable to Baidu
5,012
365
5,210
5,150
655
5,448
5,462
69
5,488
752
10
755
Add: Share-based compensation expenses
1,872
169
1,949
1,003
139
1,066
1,353
158
1,425
185
22
196
Add: Amortization and impairment of intangible assets(1)
61
7
65
42
2
43
41
1
41
6
–
6
Add: Disposal (gain)
(919)
(89)
(959)
(458)
–
(458)
(30)
–
(30)
(4)
–
(4)
Add: Impairment of long-term investments
270
155
340
36
71
68
26
17
34
4
2
5
Add: Fair value loss (gain) of long-term investments
1,239
(4)
1,237
725
(23)
714
531
2
531
73
–
73
Add: Reconciling items on equity method investments(2)
296
(9)
292
280
–
280
83
–
83
11
–
11
Add: Tax effects on non-GAAP adjustments(3)
(137)
1
(136)
(150)
–
(150)
(176)
–
(176)
(24)
–
(24)
Net income attributable to Baidu (non-GAAP)
7,694
595
7,998
6,628
844
7,011
7,290
247
7,396
1,003
34
1,018
Diluted earnings per ADS
14.17
14.91
15.01
2.07
Add: Accretion of the redeemable noncontrolling interests
0.50
0.55
0.57
0.08
Add: Non-GAAP adjustments to earnings per ADS
7.88
4.45
5.44
0.74
Diluted earnings per ADS (non-GAAP)
22.55
19.91
21.02
2.89
(1) This represents amortization and impairment of intangible assets resulting from business combinations.
(2) This represents Baidu’s share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable noncontrolling 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.
.
(3) This represents tax impact of all non-GAAP adjustments.
View original content:https://www.prnewswire.com/news-releases/baidu-announces-second-quarter-2024-results-302228460.html
SOURCE Baidu, Inc.
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