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Baidu Announces Second Quarter 2024 Results

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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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Haloid Poll: Majority of Public Safety and Commercial Radio Administrators Would Consider Starlink Integration With LMR Two-Way Radio Networks, but Disruption Unlikely

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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.

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SOURCE HALOID SOLUTIONS

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Newborn Town and Viggle Launch AI-Powered 3D Interactive Game, Bringing World Models to Social Gaming

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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

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HKICEC Launches First-Ever Global Mobile Exchange Pavilion at Mobile Electronics Show

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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

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SOURCE The Hong Kong International Communications Electronic Chamber (HKICEC)

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