Technology
Baidu Announces Second Quarter 2024 Results
Published
2 years agoon
By
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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Technology
Haloid Poll: Majority of Public Safety and Commercial Radio Administrators Would Consider Starlink Integration With LMR Two-Way Radio Networks, but Disruption Unlikely
Published
39 minutes agoon
October 26, 2026By
STONY BROOK, N.Y., Oct. 25, 2026 /PRNewswire/ — Following Starlink’s announced entry into the mobile communications space, Haloid’s consulting team polled government and business land mobile radio (LMR) administrators on whether Starlink could replace, or complement, their LMR systems. We found that most radio administrators were receptive to the nascent technology but did not see it as a replacement for their LMR networks.
Sixty-seven percent of radio administrators said they would be willing to integrate Starlink technology if it allowed them to expand coverage or lower infrastructure costs. When asked whether Starlink could completely replace their LMR networks, fewer than 15 percent said yes; the vast majority believed Starlink is not as reliable as the custom networks they have built. Among administrators who already use two-way radio over cellular (also known as push-to-talk over cellular, or PoC), however, nearly 80 percent said that Starlink’s satellite coverage, combined with its newly acquired cellular spectrum, would make it more desirable than the industry’s wireless incumbents because it could eliminate dead spots where cellular does not reach.
In the U.S., hundreds of thousands of radio users rely on traditional cellular carriers for push-to-talk communications, and that number grows each year. While the migration to two-way radio over cellular has affected the LMR industry, it has not replaced it. Many public safety agencies never made the switch, citing the risk that cellular networks could go down during weather events, power outages, or cyberattacks and jeopardize emergency communications.
In fact, during recent cellular outages, Starlink was used to provide emergency communications to affected areas, because its satellite connectivity does not depend on cell towers. But Starlink’s integration with the 800 MHz cellular spectrum — “Starlink 2.0,” as some experts are calling it — exposes it to some of the same vulnerabilities as traditional wireless carriers.
While Starlink’s satellite service might still function if local cell towers go down, a critical portion of an agency’s communications might rely on local towers using the 800 MHz spectrum, leaving the agency vulnerable in a storm or outage.
Expect evolution, not disruption
“Just like cellular didn’t replace LMR, we don’t see Starlink as an existential risk,” said Jeremy Alicandri, President of Haloid Solutions. He expects Starlink to accelerate the industry’s evolution toward shared communications infrastructure, also known as hybrid LMR. “We have public safety customers already using Starlink in their vehicles to extend the coverage of their radios. This trend will continue as Starlink devices become more ubiquitous.”
The stock prices of Verizon, T-Mobile, and AT&T were affected by Starlink’s recent announcement. LMR stocks such as L3Harris, JVCKENWOOD, and BK Technologies, maker of the Bendix King brand, have been unaffected, as Wall Street views Starlink as unlikely to replace LMR technology for the same reasons cellular did not. “But it may be too early to predict the industry’s winners and losers,” Alicandri added. “The cellular incumbents have many advantages, including low-cost devices, existing infrastructure, and their own satellite ambitions.”
About Haloid Solutions Research
Haloid’s Starlink poll drew on respondents to its LMR brand loyalty study, which measures radio administrators’ sentiment toward the ownership and after-sales experience. Haloid’s LMR research is sponsored by investors in the mission-critical communications space.
View original content to download multimedia:https://www.prnewswire.com/news-releases/haloid-poll-majority-of-public-safety-and-commercial-radio-administrators-would-consider-starlink-integration-with-lmr-two-way-radio-networks-but-disruption-unlikely-302918986.html
SOURCE HALOID SOLUTIONS
Technology
Newborn Town and Viggle Launch AI-Powered 3D Interactive Game, Bringing World Models to Social Gaming
Published
39 minutes agoon
October 26, 2026By
HONG KONG, Oct. 26, 2026 /PRNewswire/ — Recently, Newborn Town’s game-oriented social platform TopTop has launched “Slap Showdown”, an AI-powered 3D interactive mini-game developed in collaboration with Viggle, a company specializing in physics-native world models. The launch brings world model technology into social gaming, offering users a more personalized and engaging interactive experience.
Developed by TopTop and powered by Viggle’s self-developed Joint Space-Time (JST) world model, “Slap Showdown” lets users turn uploaded photos into customized 3D characters and take them straight into the game.
Launched in September, “Slap Showdown” has gained particular traction in Japan, among Spanish-speaking users in North America, and across the Middle East. It is now available in multiple countries and regions worldwide.
From Better Gameplay to a Richer Ecosystem: How World Models Could Redefine Social Gaming on TopTop
In terms of gameplay, “Slap Showdown” combines AI-generated 3D characters with multiplayer interaction. Players can simply upload a photo from their phone and generate a personalized 3D character in around 30 seconds, whether it’s an anime protagonist, a cyberpunk cyborg, or a LEGO minifigure. They can then bring their custom characters into the game and face off against other players in fun, interactive battles.
As players use controls such as press-and-hold, tap, and drag, the 3D characters respond with realistic, physics-based movements. This takes AI-generated characters beyond visual customization, integrating them directly into the gameplay experience.
According to TopTop’s operations team, “Slap Showdown” has attracted a growing base of highly engaged, high-spending-potential players in its first month since launch. The game has recorded a 97% match completion rate, while its game-start rate has also exceeded the platform-wide average.
The depth of user engagement is further illustrated by individual player activity. One player in Japan completed 1,041 matches over 22 days, reaching a daily peak of 151 matches and averaging one match every 9.5 minutes. Another particularly avid player in Eastern Europe completed 735 matches in just 11 days, averaging 66.8 matches per day and peaking at 126 matches in a single day.
For a UGC-driven social gaming platform such as TopTop, mini-games serve as entry points and traffic drivers, while social features underpin retention and monetization. Personalized 3D avatars add another dimension to that experience. Beyond their visual appeal, they give users new ways to express themselves, interact with friends and share memorable moments. In turn, richer gameplay and more meaningful social interactions can help improve retention, attract new users and strengthen engagement across the platform.
“Slap Showdown” marks a successful step in TopTop’s efforts to deepen its application of AI technology, as well as a starting point for using world models to enhance gaming and social experiences. TopTop’s operations team said future game releases could make greater use of AI-powered 3D generation, extending beyond avatars to include customized environments. Existing games could also be revitalized by the introduction of new gameplay features, potentially driving stronger retention and user acquisition.
Beyond enriching gameplay, world model capabilities could also reshape social interaction itself, enabling more immersive, face-to-face experiences in virtual spaces. “We’re constantly exploring how AI can transform gaming and social interaction, while bringing new energy and capabilities to our UGC ecosystem,” TopTop’s operations team said.
Viggle Unveils Physics-Native Model JST-2, Setting Its Sights on Becoming the Infrastructure Layer for Physical AI
The world model technology powering “Slap Showdown” is provided by Viggle.
Founded in 2022, Viggle has focused on developing physics-native world foundation models. Its self-developed JST model can generate 3D characters, motion and environments directly, providing a foundation for gaming and a growing range of AI applications.
Viggle previously attracted widespread attention with Meme Maker, its AI-powered video creation product. The tool enables users to animate static characters and generate videos by applying specified movements, making AI character animation and video creation more accessible. In August 2024, Viggle raised USD 19 million in a Series A funding round led by Silicon Valley venture capital firm Andreessen Horowitz (a16z).
However, video creation was an early application of this technology. Viggle’s longer-term ambition is to make JST a foundational technology for AI-powered experiences across gaming, social platforms and other applications.
Viggle is now further expanding its technological boundaries. On 19 October, Viggle launched JST-2 in full, likening its significance for world models to GPT-2’s role in the evolution of language models.
Unlike many world models that infer physical structure indirectly from pixels, JST-2 is built around a physics-native architecture designed to learn the structure and dynamics of the 3D world directly. Its underlying representation consists of units resembling digital “atoms.” Each has a defined position in three-dimensional space, along with physical properties such as material, color and mass, and information describing how it moves and responds to forces. This allows the model to do more than generate convincing images. It can represent and generate 3D characters, motion and scenes with an underlying understanding of their physical properties.
To support this approach, Viggle has developed an integrated technology stack spanning tokenization, model architecture, data engine, pre-training and post-training. After four years of research and development, JST-2 can generate characters, motion and scenes within a single unified architecture.
Compared with other approaches, JST-2 also demonstrates cost efficiency. JST-2 can generate a 3D scene in seconds, at an inference cost of less than one US cent. Once created, the content can be rendered locally without repeatedly running the foundation model to generate each frame.
It is noteworthy that world model technology remains at an early stage, but Viggle is already working toward more advanced capabilities.
Its next-generation model, JST-3, is intended to become a comprehensive world simulator. Such a system could underpin future game and graphics engines, while also serving as a virtual training environment for robotics and other forms of physical AI.
The longer-term goal is for JST-3 to learn the physical rules governing its simulated world directly from data, rather than relying on rules explicitly written by developers.
For Newborn Town, its investment in and partnership with Viggle represents an important step in exploring how advanced AI can reshape social gaming, promoting a deep integration of AI technology with its business operations.
As a leading global social entertainment company, Newborn Town has continued to deepen the use of AI across key areas in recent years, including product R&D, social recommendation systems, intelligent operations, safety and risk management, and marketing and user acquisition, supporting ongoing business growth.
Meanwhile, the company also continued to invest across the AI ecosystem, backing projects in areas including world models, AI companionship, AI Agents and AI interactive gaming. These investments have further enriched its AI application ecosystem, with Viggle among the AI companies previously backed by Newborn Town.
“Slap Showdown” represents an early step in bringing world models into social gaming. For Newborn Town and Viggle, the next challenge is to turn increasingly sophisticated AI capabilities into experiences that users find genuinely engaging — and compelling enough to keep coming back.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/newborn-town-and-viggle-launch-ai-powered-3d-interactive-game-bringing-world-models-to-social-gaming-302918961.html
SOURCE Newborn Town
Technology
HKICEC Launches First-Ever Global Mobile Exchange Pavilion at Mobile Electronics Show
Published
39 minutes agoon
October 26, 2026By
Charting a New Milestone with Outstanding Achievements
HONG KONG, Oct. 26, 2026 /PRNewswire/ — The Hong Kong International Communications Electronic Chamber (HKICEC) made a landmark debut at the Global Sources Mobile Electronics Show, held from October 18-21, 2026, with the inaugural launch of the HKICEC Global Mobile Exchange Pavilion. Spanning 600 square meters, the pavilion brought together nearly 60 industry leaders from mainland China, Hong Kong, India, Japan, the UAE, the US and the UK. As the largest themed pavilion in the mobile electronics sector and a premier highlight of the exhibition, this event marks a new developmental milestone for HKICEC. The pavilion underscores the chamber’s dedication to bridging global markets and serving the communications and electronics industry, injecting vital new momentum into the synergy between Hong Kong’s technology sector and international trade.
The grand opening ceremony on October 18 marked the official launch of the first B2B pavilion in Hong Kong and Asia dedicated exclusively to mobile communications equipment. The milestone event was officiated by a distinguished lineup of devices global business, including Dr. the Hon. Starry Lee Wai King, GBS, JP, Member of the Standing Committee of the National People’s Congress and President of the Legislative Council; Mr. Zhu Xiaodong, Director of the Kowloon Affairs Department of the Liaison Office of the Central People’s Government in the HKSAR; Dr. the Hon. Horace Cheung Kwok Kwan SBS JP, Deputy Secretary for Justice, HKSAR; Mr. Liu Maozhou, Level 1 Bureau Rank Official, the Economic and Financial Department II, Liaison Office of the Central People’s Government in the HKSAR; Mr. Ho Lap Ki, Denny, JP, District Officer (Kwun Tong), Home Affairs Department; Mr James Liu, CEO of Global Sources; and Mr. Jacky Tse, Chairman of HKICEC, alongside HKICEC Management team. Together, they witnessed the official launch of the first B2B pavilion in Hong Kong and Asia dedicated to mobile communications equipment. The ceremony drew over a hundred political and business leaders, industry representatives, international exhibitors, and major media outlets, reflecting the event’s importance and the industry’s green trading development. Following the inauguration, officials toured the pavilion for high-level discussions with global exhibitors, signaling robust institutional backing for the industry and HKICEC’s strategic expansion.
During the four-day exhibition, the pavilion experienced a continuous flow of visitors. Communications and electronics suppliers and global buyers from overseas visited specifically for business matchmaking and negotiations, unlocking numerous commercial opportunities. Notably, the pavilion also featured a retrospective exhibit of 16 classic mobile phones, tracing the industry’s evolution from early ‘brick’ devices to Mainland China’s first official Apple release, the iPhone 3GS. The historical display proved to be a standout attraction, gathering large crowds throughout the event.
Beyond the exhibition floor, the chamber partnered with Global Sources to co-host an international forum on October 19. Under the theme ” From New Devices to New Life: Building a Global Mobile Device Lifecycle Ecosystem”, the event gathered experts from ecoATM, PCS Wireless, Cenwood, Our Hong Kong Foundation, and the Global Mobile Association. They engaged in profound discussions on cutting-edge topics including the global economic landscape, inventory management, ESG development, the circular ecology of new and used devices, and AI technology. Attended by over 200 international representatives, the forum successfully catalyzed cross-border collaboration and established a new standard for sustainability discourse in the global mobile industry.
As a capstone to the comprehensive four-day events, HKICEC convened over 500 industry leaders, VIPs, and exhibitors for a high-profile networking banquet designed to accelerate cross-border business alliances. The gathering provided a premier platform for delegates to solidify collaborative ties and exchange strategic insights initiated from the pavilion. Ahead of the exhibition’s conclusion, a special ” Pearl Of The Orient • Victoria Harbour Cruise Party” was organized to showcase Hong Kong’s unique charm as a cosmopolitan city to global guests, providing a memorable networking experience against Hong Kong’s iconic skyline to formally cap off the week’s successes.
High-resolution images: https://bit.ly/3WqHMxu
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/hkicec-launches-first-ever-global-mobile-exchange-pavilion-at-mobile-electronics-show-302918996.html
SOURCE The Hong Kong International Communications Electronic Chamber (HKICEC)
Haloid Poll: Majority of Public Safety and Commercial Radio Administrators Would Consider Starlink Integration With LMR Two-Way Radio Networks, but Disruption Unlikely
Newborn Town and Viggle Launch AI-Powered 3D Interactive Game, Bringing World Models to Social Gaming
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