Technology

Baidu Announces Third Quarter 2024 Results

Published

2 years ago

November 21, 2024

BEIJING, Nov. 21, 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 third quarter ended September 30, 2024.

“Baidu Core’s flattish third quarter top line reflected the ongoing weakness in our online marketing business, offset by the growth of our AI Cloud business. Our strong AI capabilities are gaining broader market recognition, as evidenced by increasing adoption of ERNIE. In intelligent driving, Apollo Go continues to lead the global autonomous ride-hailing market, hitting another milestone with our sixth-generation autonomous vehicle now operating on public roads across multiple cities in China,” said Robin Li, Co-founder and CEO of Baidu. “Despite the near-term pressures, we remain steadfast in our AI-focused strategy and are confident in our long-term trajectory. As we further scale AI, we are emboldened to find how it can drive innovations and create value for consumers, enterprises and society at large.”

“Our relentless focus on cost control helped support our third quarter results. Baidu Core’s operating margins remained stable as we managed to further optimize costs and realize more cost efficiencies between business units,” said Junjie He, Interim CFO of Baidu. “AI Cloud continued to show healthy and sustainable development in the third quarter. Meanwhile, Apollo Go continued to make operational strides, underpinning our confidence in the validity of the fully autonomous ride hailing business model.”

Third Quarter 2024 Financial Highlights [1]

Baidu, Inc.

(In millions except per ADS, unaudited)

2023

2024

YOY

QOQ

RMB

US$

Total revenues

34,447

33,931

33,557

4,782

(3 %)

(1 %)

Operating income

6,274

5,944

5,925

844

(6 %)

(0 %)

Operating income (non-GAAP) [2]

7,596

7,500

7,014

999

(8 %)

(6 %)

Net income to Baidu

6,681

5,488

7,632

1,088

14 %

39 %

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

7,267

7,396

5,886

839

(19 %)

(20 %)

Diluted earnings per ADS

18.22

15.01

21.60

3.08

19 %

44 %

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

20.40

21.02

16.60

2.37

(19 %)

(21 %)

Adjusted EBITDA [2]

9,505

9,147

8,733

1,244

(8 %)

(5 %)

Adjusted EBITDA margin

28 %

27 %

26 %

Baidu Core

(In millions, unaudited)

2023

2024

YOY

QOQ

RMB

US$

Total revenues

26,572

26,687

26,524

3,780

(0 %)

(1 %)

Operating income

5,498

5,608

5,694

811

4 %

2 %

Operating income (non-GAAP) [2]

6,672

7,005

6,652

948

(0 %)

(5 %)

Net income to Baidu Core

6,436

5,462

7,536

1,074

17 %

38 %

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

6,956

7,290

5,676

809

(18 %)

(22 %)

Adjusted EBITDA [2]

8,513

8,617

8,336

1,188

(2 %)

(3 %)

Adjusted EBITDA margin

32 %

31 %

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.0176 as of September 30, 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

In October 2024, Baidu was upgraded from the prior ‘BBB’ rating to an ‘A’ rating by MSCI ESG Research.Baidu returned US$161 million to shareholders since early Q3 2024, bringing the cumulative repurchase to US$1.4 billion under the 2023 share repurchase program.

AI Cloud

PaddlePaddle and ERNIE developer community grew to 18.1 million in November 2024.In November 2024, ERNIE handled approximately 1.5 billion API calls daily, a significant jump from 600 million in August.In the third quarter of 2024, Baidu expanded the ERNIE family with two enhanced lightweight models, Speed Pro and Lite Pro.Baidu AI Cloud was ranked the No.1 AI cloud provider for the fifth consecutive year, according to IDC’s 2023 report on China’s AI public cloud market, issued in August 2024.

Intelligent Driving

Apollo Go, Baidu’s autonomous ride-hailing service, provided 988K rides in the third quarter of 2024, up 20% year over year. As of October 28, 2024, the cumulative rides provided to the public by Apollo Go surpassed 8 million.During the third quarter of 2024, rides provided by Apollo Go’s fully driverless vehicles accounted for over 70% of total rides nationwide. The proportion of fully driverless rides further increased to 80% in October 2024.Our sixth generation autonomous vehicle, the RT6, is now operating on public roads in multiple cities in China.

Mobile Ecosystem

In September 2024, Baidu App’s MAUs reached 704 million, up 6% year over year.Managed Page accounted for 51% of Baidu Core’s online marketing revenue in the third quarter of 2024.

Third Quarter 2024 Financial Results

Total revenues were RMB33.6 billion ($4.78 billion), decreasing 3% year over year.

Revenue from Baidu Core was RMB26.5 billion ($3.78 billion), which was basically flat from last year; online marketing revenue was RMB18.8 billion ($2.68 billion), decreasing 4% year over year, and non-online marketing revenue was RMB7.7 billion ($1.10 billion), up 12% year over year, mainly driven by AI Cloud business.Revenue from iQIYI was RMB7.2 billion ($1.03 billion), decreasing 10% year over year.

Cost of revenues was RMB16.4 billion ($2.34 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business, partially offset by a decrease in personnel-related expenses and cost of goods sold.

Selling, general and administrative expenses were RMB5.9 billion ($836 million), increasing 2% year over year, primarily due to an increase in channel spending and promotional marketing expenses, partially offset by a decrease in personnel-related expenses.

Research and development expenses were RMB5.4 billion ($765 million), decreasing 12% year over year, primarily due to a decrease in personnel-related expenses.

Operating income was RMB5.9 billion ($844 million). Baidu Core operating income was RMB5.7 billion ($811 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.0 billion ($999 million). Non-GAAP Baidu Core operating income was RMB6.7 billion ($948 million), and non-GAAP Baidu Core operating margin was 25%.

Total other income, net was RMB2.7 billion ($381 million), increasing 40% year over year, primarily due to an increase in fair value gain from long-term investments and disposal gain, partially offset by an increase in net foreign exchange loss arising from exchange rate fluctuation between Renminbi and U.S. dollar.

Income tax expense was RMB814 million ($116 million), compared to RMB1.3 billion in the same period last year.

Net income attributable to Baidu was RMB7.6 billion ($1.09 billion), and diluted earnings per ADS was RMB21.60 ($3.08). Net income attributable to Baidu Core was RMB7.5 billion ($1.07 billion), and net margin for Baidu Core was 28%. Non-GAAP net income attributable to Baidu was RMB5.9 billion ($839 million). Non-GAAP diluted earnings per ADS was RMB16.60 ($2.37). Non-GAAP net income attributable to Baidu Core was RMB5.7 billion ($809 million), and non-GAAP net margin for Baidu Core was 21%.

Adjusted EBITDA was RMB8.7 billion ($1.24 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB8.3 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 31%.

As of September 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB144.5 billion ($20.59 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB140.3 billion ($19.99 billion). Free cash flow was RMB2.6 billion ($376 million), and free cash flow excluding iQIYI was RMB2.4 billion ($342 million).

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on November 21, 2024, U.S. Eastern Time (8.30 PM on November 21, 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. Q3 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/10043066-56ncpy.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 (loss), 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

September 30,

June 30,

September 30,

2023

2024

RMB

US$(2)

Revenues:

Online marketing services

21,346

20,625

20,108

2,865

Others

13,101

13,306

13,449

1,917

Total revenues

34,447

33,931

33,557

4,782

Costs and expenses:

Cost of revenues(1)

16,294

16,398

16,399

2,337

Selling, general and administrative(1)

5,778

5,700

5,867

836

Research and development(1)

6,101

5,889

5,366

765

Total costs and expenses

28,173

27,987

27,632

3,938

Operating income

6,274

5,944

5,925

844

Other income:

Interest income

2,082

1,993

1,877

267

Interest expense

(853)

(742)

(673)

(96)

Foreign exchange (loss) gain, net

(26)

(1,096)

(156)

Share of (losses) earnings from equity method investments

(398)

(119)

Others, net

1,100

(454)

2,535

361

Total other income, net

1,905

771

2,675

381

Income before income taxes

8,179

6,715

8,600

1,225

Income tax expense

1,282

1,131

814

116

Net income

6,897

5,584

7,786

1,109

Net income attributable to noncontrolling interests

216

154

Net income attributable to Baidu

6,681

5,488

7,632

1,088

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

-Basic

18.45

15.11

21.93

3.13

-Diluted

18.22

15.01

21.60

3.08

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

-Basic

2.31

1.89

2.74

0.39

-Diluted

2.28

1.88

2.70

0.38

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

-Basic

2,814

2,796

2,785

-Diluted

2,846

2,804

2,789

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

Cost of revenues

139

146

104

Selling, general and administrative

358

385

328

Research and development

778

981

612

Total share-based compensation expenses

1,275

1,512

1,044

149

(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate in effect as of

September 30, 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,

September 30,

2023

2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

25,231

28,682

4,087

Restricted cash

11,503

11,665

1,662

Short-term investments, net

168,670

104,129

14,838

Accounts receivable, net

10,848

9,848

1,403

Amounts due from related parties

1,424

1,379

197

Other current assets, net

12,579

16,415

2,339

Total current assets

230,255

172,118

24,526

Non-current assets:

Fixed assets, net

27,960

29,696

4,232

Licensed copyrights, net

6,967

6,862

978

Produced content, net

13,377

14,313

2,040

Intangible assets, net

881

749

107

Goodwill

22,586

3,218

Long-term investments, net

47,957

44,637

6,361

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

24,666

88,547

12,618

Amounts due from related parties

195

120

Deferred tax assets, net

2,100

2,852

406

Operating lease right-of-use assets

10,851

10,693

1,524

Other non-current assets

18,964

24,143

3,440

Total non-current assets

176,504

245,198

34,941

Total assets

406,759

417,316

59,467

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

Current liabilities:

Short-term loans

10,257

11,969

1,706

Accounts payable and accrued liabilities

37,717

39,000

5,557

Customer deposits and deferred revenue

14,627

14,310

2,039

Deferred income

306

300

Long-term loans, current portion

Convertible senior notes, current portion

2,802

Notes payable, current portion

6,029

7,714

1,099

Amounts due to related parties

1,603

1,959

279

Operating lease liabilities

3,108

3,123

445

Total current liabilities

76,451

78,429

11,175

Non-current liabilities:

Deferred income

200

265

Deferred revenue

481

532

Amounts due to related parties

Long-term loans

14,223

14,487

2,064

Notes payable

34,990

26,911

3,835

Convertible senior notes

8,144

8,187

1,167

Deferred tax liabilities

2,725

2,885

411

Operating lease liabilities

5,040

4,911

700

Other non-current liabilities

1,820

1,457

208

Total non-current liabilities

67,700

59,696

8,508

Total liabilities

144,151

138,125

19,683

Redeemable noncontrolling interests

9,465

9,312

1,327

Equity

Total Baidu shareholders’ equity

243,626

259,649

36,999

Noncontrolling interests

9,517

10,230

1,458

Total equity

253,143

269,879

38,457

Total liabilities, redeemable noncontrolling interests, and equity

406,759

417,316

59,467

Baidu, Inc.

Selected Information

(In millions, unaudited)

Three months ended
September 30, 2023 (RMB)

Three months ended
June 30, 2024 (RMB)

Three months ended
September 30, 2024 (RMB)

Three months ended
September 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

26,572

8,015

(140)

34,447

26,687

7,439

(195)

33,931

26,524

7,246

(213)

33,557

3,780

1,032

(30)

4,782

YOY

(0 %)

(10 %)

(3 %)

QOQ

(1 %)

(3 %)

(1 %)

Costs and expenses:

Cost of revenues (1)

10,610

5,840

(156)

16,294

10,888

5,678

(168)

16,398

10,923

5,650

(174)

16,399

1,557

805

(25)

2,337

Selling, general and administrative (1)

4,810

981

(13)

5,778

4,751

970

(21)

5,700

4,990

908

(31)

5,867

711

129

(4)

836

Research and development (1)

5,654

447

–

6,101

5,440

449

–

5,889

4,917

449

–

5,366

701

–

765

Total costs and expenses

21,074

7,268

(169)

28,173

21,079

7,097

(189)

27,987

20,830

7,007

(205)

27,632

2,969

998

(29)

3,938

YOY

Cost of revenues

3 %

(3 %)

1 %

Selling, general and administrative

4 %

(7 %)

2 %

Research and development

(13 %)

0 %

(12 %)

Costs and expenses

(1 %)

(4 %)

(2 %)

Operating income (loss)

5,498

747

6,274

5,608

342

(6)

5,944

5,694

239

(8)

5,925

811

(1)

844

YOY

4 %

(68 %)

(6 %)

QOQ

2 %

(30 %)

(0 %)

Operating margin

21 %

9 %

18 %

21 %

5 %

18 %

21 %

3 %

18 %

Add: total other income (loss), net

2,159

(254)

–

1,905

1,011

(240)

–

771

2,667

–

2,675

380

–

381

Less: income tax expense

1,272

–

1,282

1,105

–

1,131

803

–

814

114

–

116

Less: net (loss) income attributable to NCI

(51)

260(3)

216

37(3)

125(3)

154

–

18(3)

Net income (loss) attributable to Baidu

6,436

476

(231)

6,681

5,462

(43)

5,488

7,536

229

(133)

7,632

1,074

(19)

1,088

YOY

17 %

(52 %)

14 %

QOQ

38 %

232 %

39 %

Net margin

24 %

6 %

19 %

20 %

1 %

16 %

28 %

3 %

23 %

Non-GAAP financial measures:

Operating income (non-GAAP)

6,672

895

7,596

7,005

501

7,500

6,652

370

7,014

948

999

YOY

(0 %)

(59 %)

(8 %)

QOQ

(5 %)

(26 %)

(6 %)

Operating margin (non-GAAP)

25 %

11 %

22 %

26 %

7 %

22 %

25 %

5 %

21 %

Net income attributable to Baidu (non-

GAAP)

6,956

622

7,267

7,290

247

7,396

5,676

480

5,886

809

839

YOY

(18 %)

(23 %)

(19 %)

QOQ

(22 %)

94 %

(20 %)

Net margin (non-GAAP)

26 %

8 %

21 %

27 %

3 %

22 %

21 %

7 %

18 %

Adjusted EBITDA

8,513

963

9,505

8,617

536

9,147

8,336

405

8,733

1,188

1,244

YOY

(2 %)

(58 %)

(8 %)

QOQ

(3 %)

(24 %)

(5 %)

Adjusted EBITDA margin

32 %

12 %

28 %

32 %

7 %

27 %

31 %

6 %

26 %

(1) Includes share-based compensation as follows:

Cost of revenues

107

139

117

146

104

Selling, general and administrative

290

358

292

385

268

328

Research and development

732

778

945

981

574

612

Total share-based compensation

1,129

146

1,275

1,354

158

1,512

915

129

1,044

131

149

(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

September 30, 2023 (RMB)

June 30, 2024 (RMB)

September 30, 2024 (RMB)

September 30, 2024 (US$)

Baidu

excl. iQIYI

iQIYI

Baidu,

Inc.

Baidu

excl.

iQIYI

Baidu,

Inc.

Baidu

excl. iQIYI

iQIYI

Baidu,

Inc.

Baidu

excl.

iQIYI

Baidu,

Inc.

Net cash provided by operating activities

8,694

831

9,525

7,970

409

8,379

4,036

243

4,279

575

610

Net cash (used in) provided by investing activities

(11,345)

(55)

(11,400)

13,824

337

14,161

(12,300)

(1,663)

(13,963)

(1,753)

(237)

(1,990)

Net cash (used in) provided by financing activities

(5,253)

269

(4,984)

(9,946)

869

(9,077)

(2,787)

(2,612)

(5,399)

(397)

(372)

(769)

Effect of exchange rate changes on cash, cash

equivalents and restricted cash

153

158

(721)

(84)

(805)

(103)

(12)

(115)

Net (decrease) increase in cash, cash

equivalents and restricted cash

(7,751)

1,050

(6,701)

11,914

1,637

13,551

(11,772)

(4,116)

(15,888)

(1,678)

(586)

(2,264)

Cash, cash equivalents and restricted cash

At beginning of period

49,814

5,082

54,896

36,964

6,270

43,234

48,878

7,907

56,785

6,965

1,127

8,092

At end of period

42,063

6,132

48,195

48,878

7,907

56,785

37,106

3,791

40,897

5,287

541

5,828

Net cash provided by operating activities

8,694

831

9,525

7,970

409

8,379

4,036

243

4,279

575

610

Less: Capital expenditures

(3,525)

(4)

(3,529)

(2,090)

(28)

(2,118)

(1,637)

(8)

(1,645)

(233)

(1)

(234)

Free cash flow

5,169

827

5,996

5,880

381

6,261

2,399

235

2,634

342

376

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

September 30, 2023 (RMB)

June 30, 2024 (RMB)

September 30, 2024 (RMB)

September 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

5,498

747

6,274

5,608

342

5,944

5,694

239

5,925

811

844

Add: Share-based compensation expenses

1,129

146

1,275

1,354

158

1,512

915

129

1,044

131

149

Add: Amortization and impairment of intangible assets(1)

–

Operating income (non-GAAP)

6,672

895

7,596

7,005

501

7,500

6,652

370

7,014

948

999

Add: Depreciation of fixed assets

1,841

1,909

1,612

1,647

1,684

1,719

240

245

Adjusted EBITDA

8,513

963

9,505

8,617

536

9,147

8,336

405

8,733

1,188

1,244

Net income attributable to Baidu

6,436

476

6,681

5,462

5,488

7,536

229

7,632

1,074

1,088

Add: Share-based compensation expenses

1,128

146

1,194

1,353

158

1,425

914

129

972

130

138

Add: Amortization and impairment of intangible assets(1)

–

Add: Disposal (gain) loss

(753)

–

(753)

(30)

–

(30)

(1,501)

(1,491)

(214)

(212)

Add: Impairment of long-term investments

–

Add: Fair value (gain) loss of long-term investments

(384)

(2)

(385)

531

(1,361)

(1,358)

(194)

Add: Reconciling items on equity method investments(2)

572

–

572

–

Add: Tax effects on non-GAAP adjustments(3)

(132)

–

(132)

(176)

–

(176)

–

Net income attributable to Baidu (non-GAAP)

6,956

622

7,267

7,290

247

7,396

5,676

480

5,886

809

839

Diluted earnings per ADS

18.22

15.01

21.60

3.08

Add: Accretion of the redeemable noncontrolling

interests

0.53

0.57

0.01

–

Add: Non-GAAP adjustments to earnings per ADS

1.65

5.44

(5.01)

(0.71)

Diluted earnings per ADS (non-GAAP)

20.40

21.02

16.60

2.37

(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

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SOURCE Baidu, Inc.

Technology

ASUS Accelerates Enterprise AI at Scale with 6th-Gen AMD EPYC Server CPUs

Published

13 minutes ago

July 24, 2026

ASUS leverages 6th-gen AMD EPYC Server CPUs to deliver scalable, efficient compute for enterprise AI, cloud, virtualization and business-critical workloads

SAN FRANCISCO, July 24, 2026 /PRNewswire/ — ASUS today announced its groundbreaking new server lineup powered by the AMD EPYC™ 9006 processors, engineered to deliver unmatched performance for the most demanding intensive enterprise workloads. This advanced portfolio introduces two highly optimized series with efficiency-optimized AMD EPYC SP8 server CPU, the flagship dual-socket ASUS RS700A/720A for extreme compute density and the single-socket ASUS RS500A/520A for superior space efficiency and deployment flexibility.

Both series integrate full PCIe® 6.0, leading memory support, and high-density E3.S storage, all underpinned by proprietary ASUS innovations for superior thermal management and operational efficiency to meet and exceed the rigorous demands of enterprise AI, virtualization, storage and cloud environments.

“The new ASUS server series, powered by 6th-gen AMD EPYC server CPUs, is engineered to power every enterprise workload with flexible, scalable infrastructure,” Paul Ju, Senior Vice President of ASUS, commented, “This launch marks a significant milestone for ASUS and our clients. The new series empowers businesses with a resilient foundation to achieve unprecedented computing efficiency and accelerating AI innovation with inference.”

ASUS expands 6th-gen AMD EPYC server portfolio with dual optimized series

ASUS has introduced a new server lineup segmented into two distinct series, each precisely engineered to meet diverse enterprise demands.

The flagship RS700A/720A series (dual-socket) delivers extreme compute density, making it ideal for AI inferencing, and complex simulations. It offers exceptional bandwidth with PCIe 6.0, memory leadership via 32 DIMM slots supporting ultrafast MRDIMM, and high-density storage with up to 32 E3.S bays in a compact 2U form factor.

Complementing this is the RS500A/520A series (single-socket), a highly efficient and space-optimized solution with depth under 800mm, perfect for mainstream enterprise workloads and rack-constrained environments. Featuring full PCIe 6.0 capabilities, E3.S storage support, and modular scalability through shared components with the RS700A and RS720A series, it provides uncompromised performance in a streamlined, deployment-friendly design.

ASUS elevates the AMD EPYC platform with cutting-edge proprietary innovations

ASUS has significantly advanced the AMD EPYC 9006 platform with a series of proprietary engineering breakthroughs focused on superior reliability, thermal management, and operational efficiency.

The DC-MHS modular architecture features a zone-partitioned chassis that separates I/O, HPM, fan, and storage modules to accelerate development, reduce capital costs, and enable rapid serviceability. The patented ASUS DIMM.2 Innovation repositions M.2 storage to the cooler DIMM region, eliminating thermal throttling without extra heatsinks and unlocking greater scalability. Thermal Radar 3.0 with PID Control delivers precise real-time fan regulation via advanced algorithms, reducing energy use and maintaining peak performance under heavy enterprise-level workload.

Completing the suite is the optimized tool-less operational-velocity design, which boosts maintenance efficiency, maximizing uptime and lowering TCO and sustaining peak performance even under volatile, high-load AI/HPC workloads.

AVAILABILITY & PRICING

ASUS RS700A/720A series and RS500A/520A series servers will be available soon. Please contact your local ASUS representative for further information.

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Technology

Fractal posts 20% revenue growth and 92% net income growth in Q1 FY27

Published

13 minutes ago

July 24, 2026

Adjusted EBITDA Grows at 35% YoYGross Margin up 29 bps1 to 46%; Adjusted EBITDA Margin up 189 bps to 17%

NEW YORK, July 24, 2026 /PRNewswire/ — Fractal Analytics Ltd (BSE: 544700) (NSE: FRACTAL) announced its consolidated financial results for Q1 FY27, ending June 30, 2026.

In Q1 FY27, the Company reported consolidated operating revenue of INR 9,125 m, a growth of 20% year on year (YoY). Revenue growth was led by the company’s Healthcare and Life Sciences (HLS) industry, which clocked 69% growth YoY. Strong sustained growth in HLS over the last several quarters has resulted in it becoming the second largest industry in the portfolio. Banking, Financial Services and Insurance (BFSI) also performed very well, growing 36% YoY in Q1. Fractal’s largest industry, Consumer Packaged Goods and Retail (CPGR), continued to gather momentum, growing 19% YoY. On the other hand, TMT declined 22% YoY.

Fractal’s focus on deepening customer relationships continues to yield good outcomes. Its clients collectively increased their spending with the company, as reflected in the Net Revenue Retention2 of 117% in Q1. Further, its Net Promoter Score (NPS) during the period stood at 77.

The company reported improved profit margins at all levels. Gross Margin in Q1 was at 46%, while Adjusted EBITDA Margin expanded by 189 bps YoY to 17%. Net Income grew 92% YoY to INR 723 m.

Commenting on the performance, Srikanth Velamakanni, Group CEO and Executive Vice-Chairman, said:

“Enterprises are putting real transformation budgets behind AI now and we’re seeing it directly in the size of the deals coming to us. TMT was the drag on our headline growth this quarter. Excluding TMT, our business grew 35% year on year, which is a better read on the underlying demand we’re seeing.

As data sovereignty becomes a bigger priority for governments and enterprises, and as open-weight models keep improving, clients need a partner who can work across models and infrastructure. We have invested heavily in our people, our research, and our own intellectual property to be that partner.”

1 Basis points = 1/100th of 1%
2 Net Revenue Retention in our Fractal.ai segment measures how effectively we retain and expand revenue from our existing clients over a defined period and is calculated by comparing the current period’s revenue from the clients who existed at the start of the period, with their revenue in the previous period – including the effects of upsells, cross-sells and contractions

About Fractal

Fractal Analytics Ltd (BSE: 544700) (NSE: FRACTAL) is a globally recognized pure-play enterprise AI company trusted by Fortune 500®-sized enterprises to power decision-making through AI services, solutions, and products, anchored by Cogentiq, its flagship agentic AI platform. With over 6,000 professionals across North America, EMEA, and Asia-Pacific, Fractal partners with business leaders to drive competitive differentiation for their organizations by embedding AI into critical decisions across business functions and industry verticals.

Fractal invests more than 6% of its revenue in AI R&D, supporting foundational AI research, product development, and IP creation that address both immediate client needs and long-term technological advancement. Fractal’s track record includes developing proprietary models and products such as Cogentiq Health – Vaidya.ai and Cogentiq Data Science – PiEvolve, as well as incubating and spinning out Qure.ai, a global healthcare AI leader focused on the rapid identification and management of tuberculosis, lung cancer, and stroke (or critical health conditions). Fractal’s suite of businesses consists of Asper.ai (a Revenue Growth Management product for CPG companies) and Analytics Vidhya (an Ed-tech platform).

For more information, go to www.fractal.ai.

Logo: https://mma.prnewswire.com/media/2931510/5858548/Fractal_Logo.jpg

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SOURCE Fractal Analytics Limited

Technology

Xryma Plc : Pre-Listing Liquidity Facility and Price Discovery Process

Published

14 minutes ago

July 24, 2026

NICOSIA, Cyprus, July 24, 2026 /PRNewswire/ — Xryma Plc (“Xryma”) announces its intention to reapply within the next twelve months for admission to list on Euronext Paris (“Euronext”), with such admission being subject to Euronext’s approval. Before submitting its application, Xryma intends to launch a pre-listing liquidity facility and price discovery process, comprising a private placement to institutional and qualified investors alongside a secondary market offer to Xryma existing shareholders (“shareholders”) wishing to exit prior to listing.

The admission referred to above that is subject to the approval of Euronext may also be subject to approval by relevant regulatory authorities, and no assurance can be given that approval will be granted or as to the timing of any admission.

The pre-listing liquidity facility and price discovery process is designed to:

Enable shareholders seeking an exit to participate without the need to open an EU brokerage account,Provide a clear and orderly opportunity for existing shareholders to sell all or part of their holdings ahead of any potential admission to trading on Euronext Paris,Enable shareholders to sell all or part of their holdings at the same price at which qualified and institutional investors subscribe for shares in the Company,Establish, through a bookbuild with qualified and institutional investors, a market-validated referenced price for Xryma shares ahead of any potential admission on Euronext Paris (the “Primary Market Placement Price”),Support orderly trading upon potential admission.

Individual shareholder mailouts explaining the details of the pre-listing liquidity facility scheme with instructions and necessary documentation will be conducted during August 2026.

As the Primary Market Placement Price is to be determined by the subsequent bookbuild, shareholders will be given the opportunity to set a floor price which will result in the sale of their shares if the Primary Market Placement Price is higher. Shareholders will receive the Primary Market Placement Price minus applicable fees.

Shareholders and Investors may be scaled back to match corresponding demand from the other party, with partial fulfilment a possibility if the Company cannot match supply to demand.

Completion of the process is subject to achieving a level of institutional and qualified investor demand that the Board considers appropriate to support an orderly market should Xryma subsequently be admitted to trading on Euronext Paris.

Participation is entirely voluntary. Shareholders who do not wish to sell will simply retain their shares. Shareholders that do not intend to participate should continue to onboard with a Euronext participating broker, or a Euroclear ESES custodian, per previous communications.

The major shareholders, SCP Select All Enterprise (Monaco) and SCP Red 5 Solutions (Monaco) will not participate in the offer and will be subject to lock up arrangements.

Mr Nikogiannis (John) Karantzis, CEO of Xryma Plc comments: “Our shareholders have told us they would value a straightforward way to realise their holdings without the time and cost of opening an EU brokerage account. This process is our response to that feedback. We are structuring the placement to be large enough to establish a credible reference price whilst limiting dilution, with demand directed first towards meeting shareholder sell interest. We look forward to updating the market on the revised timetable in due course.”

Shareholders seeking a more detailed explanation of the pre-listing liquidity facility and price discovery process, should refer to the guide available at https://www.xryma.com/investors

Important Information & Disclaimers

This press release may contain inside information within the meaning of Article 7(1) of Regulation (EU) 596/2014 (Market Abuse Regulation).

This publication is not for publication or distribution or release, directly or indirectly, in or into the United States of America (including its territories and possessions, any state of the United States and the District of Columbia), Canada, Australia, South Africa, Japan or any other jurisdiction where such an announcement would be unlawful. The distribution of this publication may be restricted by law in certain jurisdictions and persons into whose possession this document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. No action has been taken that would permit an offering of the treasury shares or possession or distribution of this publication in any jurisdiction where action for that purpose is required.

This publication does not constitute or form part of an offer for sale or solicitation of an offer to purchase or subscribe for securities in the United States, Canada, Australia, South Africa, Japan or any other jurisdiction and the securities referred to herein have not been registered under the securities laws of any such jurisdiction. Any New Shares (if such are issued) will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any State or any other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of, the Securities Act and in compliance with all applicable securities laws of any State or any other jurisdiction of the United States. No public offering of securities is being made in the United States or in any other jurisdiction.

The information set forth herein must not be distributed in any jurisdiction where such distribution is unlawful, and any recipients are requested to inform themselves about and to observe such restrictions.

The Offering referred to herein by Xryma Plc will only be made in accordance with all applicable corporate and securities laws. Any shares referred to herein will exclusively be offered or sold in reliance on any applicable exemptions from prospectus or registration requirements in any jurisdiction. In member states of the European Economic Area, this publication is only addressed to and directed at persons who are ‘qualified investors’ within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (as amended and including any relevant delegated regulations, the “Prospectus Regulation”) or in any other circumstances falling within exemptions available in the relevant member state under Article 1(4) and/or 1(5) of the Prospectus Regulation. In the United Kingdom, this publication is only addressed to and directed at qualified investors within the meaning of the Prospectus Regulation, as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended (“EUWA”), who are persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”), (ii) falling within article 49(2)(a) to (d) (high net worth companies, incorporated associations, etc.) of the Order, or (iii) to whom it may otherwise be lawfully communicated; any other persons in the United Kingdom should not take any action on the basis of this publication and should not act on or rely on it.

This publication does not constitute a recommendation concerning the prospective Offering. This announcement does not constitute an Offer or invitation to subscribe.

This announcement includes statements that are, or may be deemed to be, ‘forward looking statements’. These forward-looking statements can be identified by the use of forward looking terminology, including the terms ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘intends’, ‘may’, ‘will’, or ‘should’ or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. By their nature, forward looking statements involve risk and uncertainty because they relate to future events and circumstances which may or may not occur. Many of these factors are beyond the control of the Company. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results and circumstances may vary materially from those described in this announcement as anticipated, believed, estimated or expected.

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