Technology
Baidu Announces Third Quarter 2024 Results
Published
2 years agoon
By
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)
Q3
Q2
Q3
2023
2024
2024
YOY
QOQ
RMB
RMB
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 %
26 %
Baidu Core
(In millions, unaudited)
Q3
Q2
Q3
2023
2024
2024
YOY
QOQ
RMB
RMB
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 %
32 %
31 %
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,
September 30,
2023
2024
2024
2024
RMB
RMB
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)
93
(1,096)
(156)
Share of (losses) earnings from equity method investments
(398)
(119)
32
5
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
96
154
21
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
2,785
-Diluted
2,846
2,804
2,789
2,789
(1) Includes share-based compensation expenses as follows:
Cost of revenues
139
146
104
15
Selling, general and administrative
358
385
328
47
Research and development
778
981
612
87
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$1.00, the exchange rate in effect as of
September 30, 2024 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.
Baidu, Inc.
Condensed Consolidated Balance Sheets
(In millions, unaudited)
December 31,
September 30,
September 30,
2023
2024
2024
RMB
RMB
US$
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
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
17
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
43
Long-term loans, current portion
2
37
5
Convertible senior notes, current portion
2,802
17
2
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
38
Deferred revenue
481
532
76
Amounts due to related parties
77
61
9
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
64
–
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
29
6,274
5,608
342
(6)
5,944
5,694
239
(8)
5,925
811
34
(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
8
–
2,675
380
1
–
381
Less: income tax expense
1,272
10
–
1,282
1,105
26
–
1,131
803
11
–
814
114
2
–
116
Less: net (loss) income attributable to NCI
(51)
7
260(3)
216
52
7
37(3)
96
22
7
125(3)
154
3
–
18(3)
21
Net income (loss) attributable to Baidu
6,436
476
(231)
6,681
5,462
69
(43)
5,488
7,536
229
(133)
7,632
1,074
33
(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
52
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
68
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
57
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
32
139
117
29
146
73
31
104
11
4
15
Selling, general and administrative
290
68
358
292
93
385
268
60
328
38
9
47
Research and development
732
46
778
945
36
981
574
38
612
82
5
87
Total share-based compensation
1,129
146
1,275
1,354
158
1,512
915
129
1,044
131
18
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
Three months ended
Three months ended
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
iQIYI
Baidu,
Inc.
Baidu
excl. iQIYI
iQIYI
Baidu,
Inc.
Baidu
excl.
iQIYI
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
35
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
5
158
66
22
88
(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
35
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
34
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
Three months ended
Three months ended
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
34
844
Add: Share-based compensation expenses
1,129
146
1,275
1,354
158
1,512
915
129
1,044
131
18
149
Add: Amortization and impairment of intangible assets(1)
45
2
47
43
1
44
43
2
45
6
–
6
Operating income (non-GAAP)
6,672
895
7,596
7,005
501
7,500
6,652
370
7,014
948
52
999
Add: Depreciation of fixed assets
1,841
68
1,909
1,612
35
1,647
1,684
35
1,719
240
5
245
Adjusted EBITDA
8,513
963
9,505
8,617
536
9,147
8,336
405
8,733
1,188
57
1,244
Net income attributable to Baidu
6,436
476
6,681
5,462
69
5,488
7,536
229
7,632
1,074
33
1,088
Add: Share-based compensation expenses
1,128
146
1,194
1,353
158
1,425
914
129
972
130
18
138
Add: Amortization and impairment of intangible assets(1)
43
2
44
41
1
41
41
2
42
6
–
6
Add: Disposal (gain) loss
(753)
–
(753)
(30)
–
(30)
(1,501)
22
(1,491)
(214)
3
(212)
Add: Impairment of long-term investments
46
–
46
26
17
34
26
91
68
4
13
10
Add: Fair value (gain) loss of long-term investments
(384)
(2)
(385)
531
2
531
(1,361)
7
(1,358)
(194)
1
(194)
Add: Reconciling items on equity method investments(2)
572
–
572
83
–
83
8
–
8
1
–
1
Add: Tax effects on non-GAAP adjustments(3)
(132)
–
(132)
(176)
–
(176)
13
–
13
2
–
2
Net income attributable to Baidu (non-GAAP)
6,956
622
7,267
7,290
247
7,396
5,676
480
5,886
809
68
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
View original content:https://www.prnewswire.com/news-releases/baidu-announces-third-quarter-2024-results-302312583.html
SOURCE Baidu, Inc.
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NEW YORK, Oct. 27, 2026 /PRNewswire/ — AvePoint Inc. (NASD: AVPT) will replace LXP Industrial Trust (NYSE: LXP) in the S&P SmallCap 600 effective prior to the opening of trading on Monday, November 2. Brookfield Asset Management Ltd. and Canada Pension Plan Investment Board are acquiring LXP Industrial Trust in a deal expected to close soon, pending final closing conditions.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date
Index Name
Action
Company Name
Ticker
GICS Sector
Nov 2, 2026
S&P SmallCap 600
Addition
AvePoint
AVPT
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Nov 2, 2026
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Deletion
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Real Estate
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View original content:https://www.prnewswire.com/news-releases/avepoint-set-to-join-sp-smallcap-600-302921327.html
SOURCE S&P Dow Jones Indices
Technology
Archera Surpasses $5.6 Billion in Cloud and AI Spend Under Management, Closes Series C Led by Pivot Investment Partners, and Expands Insurance-Backed Cloud Commitments
Published
50 minutes agoon
October 27, 2026By
The round will help Archera expand its guaranteed cloud commitments, bringing insurance-backed financial protection to companies navigating unpredictable AI and cloud spending. The company has delivered more than $700 million in customer savings and now manages approximately $5.6 billion in annual cloud and AI spend.
BELLEVUE, Wash., Oct. 27, 2026 /PRNewswire/ — As artificial intelligence makes cloud spending harder to predict, companies face an increasingly expensive choice: commit to long-term cloud and AI contracts to unlock significant discounts or preserve flexibility and leave savings on the table. Archera has raised a $15 million Series C to expand its Guaranteed Commitments and change that equation.
The cloud economics company today announced it closed its Series C funding round, led by Pivot Investment Partners, with participation from existing investors including HighSage Ventures. The financing brings Archera’s total funding to $38.3 million. It will support the expansion of Archera’s Guaranteed Commitments and its suite of free cloud cost tools, including its FinOps Agent and MCP.
Insurance-backed financial protection is central to Archera’s next phase of growth. Archera purchased a policy on a surplus lines basis from Crum & Forster Specialty Insurance Company to back its guarantee. This model helps businesses pursue cloud commitment savings while managing the financial risk of usage changes.
The company has delivered more than $700 million in savings to over 2,200 organizations, including PubNub, Art.com, and Astronomer. The thesis behind Archera is simple: companies shouldn’t have to predict AI’s future to commit and save money on today’s infrastructure.
Why Cloud and AI Commitments Need to Change
Cloud providers reward customers who commit to spending over one- to three-year periods with substantial discounts and access to capacity. Historically, those commitments have helped businesses reduce infrastructure costs. But AI is changing the risk and economics of that decision.
A new model launch can multiply GPU spending in months. A more efficient model, a shift in architecture, or a move to a different service can reduce it just as quickly. Long-term commitments that once looked financially sound can become expensive liabilities.
Companies are left choosing between overcommitting and risking unused spend, or undercommitting and missing out on available discounts. Many choose the latter, sacrificing potential savings to preserve flexibility.
Archera believes that the trade-off is unnecessary. Its Guaranteed Commitments provide resource-level cloud and AI discounts with terms as short as 30 days. If usage declines and a covered commitment goes unused, Archera covers the cost under the terms of its guarantee.
The result is a different way to approach cloud purchasing. Businesses can pursue deeper discounts and unlock capacity otherwise gated behind a commitment, without bearing the entire financial consequence when actual usage diverges from forecasts.
Turning Cloud Optimization Into a Financial Product
Traditional cloud cost management tools provide visibility, recommendations, automation, and forecasting, but they can’t eliminate the financial risk of unused commitments. Archera combines its free FinOps platform and Agent with a financial guarantee that addresses inaccurate forecasts.
“Every tool in this market is trying to forecast your cloud usage a little better. We think that’s the wrong bet,” said Aran Khanna, co-founder and CEO of Archera. “Nobody can forecast AI demand, not the customer, not the cloud provider. So instead of predicting it, we guarantee it, and we have purchased an insurance policy to back that guarantee. If covered usage drops, we address the unused commitment cost under the terms of our guarantee. That’s a new way to purchase cloud, not another dashboard, and it’s why we’ve been able to return $700 million to our customers.”
The approach positions cloud commitments as a financial risk decision, helping finance and engineering leaders manage budgets while adapting to changing technology.
Built for CFOs, CTOs, and the Teams Managing AI Costs
The approach addresses a growing challenge across finance and engineering: how to control infrastructure costs without constraining the business.
For CFOs: Capture commitment-level discounts while reducing exposure to eligible unused spend under the guarantee.For CTOs and engineering leaders: Preserve flexibility to adopt new AI models, change architectures, and scale workloads without letting past commitments dictate future decisions.For FinOps teams: Increase commitment coverage with a financial backstop when usage changes, without more back-and-forth with engineering teams to get perfect forecasts.For cloud partners and resellers: Give customers a differentiated way to pursue cloud savings that can be reinvested in new cloud services while managing commitment risk.
Archera’s platform connects to AWS, Microsoft Azure, or Google Cloud billing data in read-only mode and analyzes actual usage. It then recommends and automates the purchasing of both native commitments and Archera Guaranteed Commitments.
Customers can evaluate their potential savings before making any purchasing decision. Commitments remain in the customer’s own cloud account, preserving end-to-end control over cloud purchasing strategy.
Archera earns when customers save through its guaranteed commitments, aligning its commercial model with the outcomes customers seek.
Customers Are Rethinking the Commitment Model
For organizations accustomed to treating cloud commitments as a single, high-stakes decision, Archera offers a more flexible approach.
“Working with Archera meant rethinking commitments as a spectrum rather than a single, high-stakes decision,” said James Hamilton, VP of Operations and Controller at PubNub. “This was a big mind shift for us. We needed to think about how our commitments could be broken up into a spectrum of purchases versus a single one-time buy.”
That flexibility is particularly valuable as companies adopt AI workloads, where technology choices and resource requirements can shift faster than traditional budgeting cycles.
Instead of making one large bet on future usage, businesses can take a more measured approach while still securing meaningful discounts.
A Series C to Expand Insurance-Backed Cloud Purchasing
Archera has been operating profitably at scale. It raised a Series C to support larger guarantees, expand its reach, serve more customers, and upgrade the insurance policies backing its guarantee to serve larger global clients.
The company plans to use the capital in three ways:
Accelerate go-to-market efforts.Expand its global partner network across North America, Europe, the Middle East, Japan, and Latin America.Serve more teams focused on AI-driven workloads.
“Archera has built a capital-efficient and differentiated business at the intersection of cloud infrastructure and risk management,” said Dinkar Jetley, co-founder and managing partner at Pivot Investment Partners. “The team pairs a deep understanding of the cloud ecosystem with a rigorous approach to underwriting, and the result is a compelling value proposition that a fast-growing roster of customers relies on as their cloud spend scales. We are privileged to have led this Series C round and look forward to working closely with Aran and the management team in the years ahead.”
Built by People Who Understand Cloud Infrastructure
Aran and Nikhil Khanna founded Archera in 2019. Aran previously planned capacity for Azure’s core compute and database services at Microsoft and was a founding member of AWS’s deep learning team leading launches, including SageMaker, DeepLens, and the Neuron SDK, behind Amazon’s Trainium and Inferentia AI chips.
His research on deep learning model efficiency has been cited more than 1,900 times, and he serves on the FinOps Foundation governing board.
As AI transforms infrastructure economics, Archera aims to make cloud savings more accessible without forcing businesses to assume unnecessary financial risk.
To explore potential savings, request a free assessment at Archera.ai.
Free savings assessment: https://app.archera.ai/savings-estimate?utm_source=forbes&utm_medium=referral&utm_campaign=series-c-2026
Name: Sarah
Email Address: shiara@archera.ai
Phone Number: +13018255007
View original content to download multimedia:https://www.prnewswire.com/news-releases/archera-surpasses-5-6-billion-in-cloud-and-ai-spend-under-management-closes-series-c-led-by-pivot-investment-partners-and-expands-insurance-backed-cloud-commitments-302921341.html
SOURCE Archera
Technology
Creative Technology Releases Creative XF1, a Hi-Res Extreme Fidelity Speaker that Elevates Every Listening Experience
Published
50 minutes agoon
October 27, 2026By
SYDNEY, Oct. 28, 2026 /PRNewswire/ — Creative Technology Ltd launches Creative XF1, a new Hi-Res speaker system designed for users who care about both sound quality and aesthetics, and want more vivid music, more cinematic movies, and more engaging listening. Creative XF1 offers sleek design, bi-amplified architecture, 72W RMS output, dual Hi-Res Audio certification, next-gen connectivity, and personalisation with the Creative Nexus app.
Creative XF1 brings out details in music that many compact 2.0 speakers in this price range do not reproduce, from the rasp in a voice to the rumbling bass under a game soundtrack. With a bespoke FEA-optimised 3-inch woofer, Creative XF1 adds extra punch and close-range clarity. The 72W RMS bi-amplified design delivers a clear, powerful sound that is easy on the ear.
“For many of us, the desktop has become the centre of work, entertainment and creation,” said Ernest Sim, CEO and Executive Chairman, Creative Technology Ltd. “Creative XF1 is built to deliver room-filling power with richer depth and clarity, so every note, voice and effect sounds closer, more vivid and more real at your desk.”
Besides advanced connectivity via Bluetooth® 6.0, USB audio, and AUX input, users can also connect a subwoofer for richer bass and an easy 2.1 upgrade.
Crafted by in-house audio specialists, the Creative Nexus app offers a 10-band parametric EQ and 120+ presets for different music genres and games. Users can personalise their sound for focused work, movie nights, gaming sessions, or unwinding, all from one intuitive interface.
Pricing and availability
Creative XF1 is priced at A$339.95, and is available at creative.com.
About Creative
Since its founding in 1981, Creative Technology has been driven by a singular mission: to reimagine the way the world experiences sound. Creative introduced the groundbreaking Sound Blaster®, the invention that gave personal computers the gift of sound — and forever changed the landscape of PC multimedia.
Guided by a legacy of bold ideas and breakthrough technologies, Creative continues to lead at the intersection of engineering and imagination.
At its core, Creative remains committed to pushing the boundaries of what audio can achieve — enriching lives, elevating experiences, and defining what’s next in sound.
This announcement relates to products launched in Australia. Availability is subject to change without notice and may differ elsewhere in the world according to local factors and requirements. Creative, and the Creative logo, are trademarks or registered trademarks of Creative Technology Ltd in the United States and/or other countries. The Bluetooth® word mark and logo are registered trademarks owned by Bluetooth SIG, Inc. and any use of such marks by Creative Technology Ltd is under license. All other trademarks are the property of their respective owners. All rights reserved.
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/creative-technology-releases-creative-xf1-a-hi-res-extreme-fidelity-speaker-that-elevates-every-listening-experience-302920706.html
SOURCE Creative Technology Ltd
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