Exhibit 99.1

Baidu Announces Second Quarter 2022 Results

BEIJING, China, August 30, 2022 –Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) (“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, 2022.

“Despite a challenging macro environment caused by Covid-19, Baidu Core generated RMB23.2 billion in revenues in the second quarter, while Baidu AI Cloud revenues maintained rapid growth momentum of 31% year over year and 10% quarter over quarter,” said Robin Li, Co-founder and CEO of Baidu. “Apollo Go further solidified its position as the world’s largest autonomous ride-hailing service provider. Apollo Go completed 287K rides in the second quarter, and accumulated one million rides on July 20, becoming an important alternative means of people’s everyday travel in the Yizhuang region of Beijing. Moreover, in a momentous landmark, Apollo Go became the first provider to offer fully driverless ride-hailing services – i.e. completely without human drivers present in the car - on open roads in Chongqing and Wuhan, allowing us to further scale up our operations at an accelerated pace.”

“Baidu Core delivered a non-GAAP operating margin of 22% in the second quarter, up from 17% in the first quarter of 2022, as we continued to optimize our costs and enhance operational efficiency,” said Rong Luo, CFO of Baidu. “Going forward, we remain committed to quality revenue growth and sustainable business models.”

Second Quarter 2022 Financial Highlights¹

	Baidu, Inc.
(In millions except per ADS, unaudited)	Q2 2021			Q1 2022			Q2 2022						YOY			QOQ
	RMB			RMB			RMB			US$
Total revenues		31,350			28,411			29,647			4,426			(5	%)		4	%
Operating income		3,463			2,601			3,400			508			(2	%)		31	%
Operating income (non-GAAP) 2		5,653			3,996			5,493			820			(3	%)		37	%
Net (loss) income to Baidu		(583	)		(885	)		3,637			543			—			—
Net income to Baidu (non-GAAP) 2		5,359			3,879			5,541			827			3	%		43	%
Diluted (loss) earnings per ADS		(1.70	)		(2.87	)		9.97			1.49			—			—
Diluted earnings per ADS (non-GAAP) 2		15.41			11.22			15.79			2.36			2	%		41	%
Adjusted EBITDA 2		7,295			5,499			7,054			1,053			(3	%)		28	%
Adjusted EBITDA margin		23	%		19	%		24	%		24	%

¹ Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.6981 as of June 30, 2022, 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).

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	Baidu Core
(In millions, unaudited)	Q2 2021			Q1 2022			Q2 2022						YOY			QOQ
	RMB			RMB			RMB			US$
Total revenues		24,041			21,378			23,160			3,458			(4	%)		8	%
Operating income		4,619			2,524			3,246			485			(30	%)		29	%
Operating income (non-GAAP) 2		6,467			3,686			5,121			765			(21	%)		39	%
Net income (loss) to Baidu Core		172			(963	)		3,716			555			2060	%		—
Net income to Baidu Core (non-GAAP) 2		5,942			3,804			5,449			814			(8	%)		43	%
Adjusted EBITDA2		7,991			5,106			6,597			985			(17	%)		29	%
Adjusted EBITDA margin		33	%		24	%		28	%		28	%

Operational Highlights

Corporate

• Forbes China placed Baidu on its 2022 China ESG 50 list.

AI Cloud

• Baidu AI Cloud was again ranked the No. 1 AI cloud provider, according to IDC’s second half of 2021 report on China’s public cloud market report, issued in June 2022.

• Baidu ACE smart transportation has been adopted by 51 cities, up from 20 cities a year ago, based on contract value of over RMB10 million, as of the end of the second quarter of 2022.

Intelligent Driving

• Apollo Go, Baidu’s autonomous ride-hailing service, continued its solid progress in scaling operations.

• Apollo Go provided 287K rides in the second quarter of 2022. On July 20, 2022, Apollo Go reached one million accumulated rides, serving passengers on open roads.

• Apollo Go started offering fully driverless ride-hailing services on open roads and received the permits to collect fees from the passengers in Chongqing and Wuhan on August 8, 2022. This has made Apollo Go the first and only of its kind in China to provide ride-hailing services completely without human drivers present in the car.

• Apollo Go was granted the permits to charge fees for the driverless ride-hailing services on public roads of the Yizhuang region of Beijing on July 20, 2022.

• Apollo Go expanded into Hefei (Anhui) on July 11, 2022 and Chengdu (Sichuan) on July 22, 2022, and is now available in more than ten cities in China, including all the tier-1 cities (Beijing, Shanghai, Guangzhou, Shenzhen) and other major cities.

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• Baidu unveiled its 6th generation robotaxi vehicle Apollo RT6 in July 2022. RT6 is the first steering wheel-free, all electric model designed for fully driverless autonomous driving. Apollo RT6 is distinct from the previous generations that had otherwise been retrofitted on conventional vehicles.

Other Growth Initiatives

• Xiaodu continued to be ranked No.1 in smart speaker shipments in China for 1Q22, according to IDC and Canalys.

Mobile Ecosystem

• In June, Baidu App’s MAUs reached 628 million, up 8% year over year, and daily logged in users reached 84%.

• Revenue from Managed Page grew by 10% year over year and reached 49% of Baidu Core’s online marketing revenue in the second quarter of 2022.

iQIYI

• iQIYI’s average daily number of total subscribing members for the quarter was 98 million, compared to 99 million for the second quarter of 2021 and 101 million for the first quarter of 2022.

Second Quarter 2022 Financial Results

Total revenues were RMB 29.6 billion ($4.43 billion), decreasing 5% year over year.

• Revenue from Baidu Core was RMB 23.2 billion ($3.46 billion), decreasing 4% year over year; online marketing revenue was RMB 17.1 billion ($2.55 billion), decreasing 10% year over year primarily due to the resurgence of Covid-19 in certain cities in China, and non-online marketing revenue was RMB 6.1 billion ($906 million), up 22% year over year, driven by cloud and other AI-powered businesses.

• Revenue from iQIYI was RMB 6.7 billion ($994 million), decreasing 13% year over year.

Cost of revenues was RMB 15.2 billion ($2.27 billion), decreasing 5% year over year, primarily due to the decrease in content costs, partially offset by the increase in personnel related expense and other costs related to new AI business.

Selling, general and administrative expenses were RMB 4.8 billion ($714 million), decreasing 16% year over year, primarily due to a decrease in channel spending and promotional marketing.

Research and development expense was RMB 6.3 billion ($939 million), which was basically flat from last year.

Operating income was RMB 3.4 billion ($508 million). Baidu Core operating income was RMB 3.2 billion ($485 million), and Baidu Core operating margin was 14%. Non-GAAP operating income was RMB 5.5 billion ($820 million). Non-GAAP Baidu Core operating income was RMB 5.1 billion ($765 million), and non-GAAP Baidu Core operating margin was 22%.

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Total other income, net was RMB 151 million ($23 million), compared to a total other loss of RMB 2.4 billion last year, which included a fair value loss of RMB 3.1 billion from long-term investments. In the second quarter of 2022, we recognized a fair value gain of RMB 536 million. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies, private equity funds and digital assets, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods.

Income tax expense was RMB 25 million ($4 million), decreasing 99% year over year, primarily due to the reversal of certain tax expenses accrued for 2021 based on the 2021 tax return filed in the second quarter of 2022 and an increase in deduction on certain expenses that were considered non-deductible in the second quarter of 2021.

Net income attributable to Baidu was RMB 3.6 billion ($543 million), and diluted earnings per ADS was RMB 9.97 ($1.49). Net income attributable to Baidu Core was RMB 3.7 billion ($555 million). Non-GAAP net income attributable to Baidu was RMB 5.5 billion ($827 million). Non-GAAP diluted earnings per ADS was RMB 15.79 ($2.36). Non-GAAP net income attributable to Baidu Core was RMB 5.4 billion ($814 million), and non-GAAP net margin for Baidu Core was 24%.

Adjusted EBITDA was RMB 7.1 billion ($1.05 billion) and adjusted EBITDA margin was 24%. Adjusted EBITDA for Baidu Core was RMB 6.6 billion ($985 million) and adjusted EBITDA margin for Baidu Core was 28%.

As of June 30, 2022, cash, cash equivalents, restricted cash and short-term investments were RMB 189.4 billion ($28.28 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 184.5 billion ($27.55 billion). Free cash flow was RMB 5.5 billion ($823 million), and free cash flow excluding iQIYI was RMB 5.5 billion ($826 million).

Conference Call Information

Baidu’s management will hold an earnings conference call at 8.00AM on August 30, 2022, U.S. Eastern Time (8.00PM on August 30, 2022, 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 2022 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/10024320-jfgv94.html

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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.

Contacts

Investors Relations, Baidu, Inc.

Tel: +86-10-5992-8888

Email: ir@baidu.com

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.

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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 (loss), 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, amortization and impairment of intangible assets resulting from business combinations and contingent loss pertaining to legal proceeding in relation to former advertising agencies and iQIYI’s non-recurring employee severance costs.

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, contingent loss pertaining to legal proceeding in relation to former advertising agencies, iQIYI’s non-recurring employee severance costs, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, charitable donation from Baidu, 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 shares, adjusted for related income tax effects, are also excluded.

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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, contingent loss pertaining to legal proceeding in relation to former advertising agencies, iQIYI’s non-recurring employee severance costs, 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”.

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Baidu, Inc.     

Condensed Consolidated Statements of (Loss) Income     

(In millions except for per share (or ADS) information, unaudited)    

	Three Months Ended												Six Months Ended
	June 30, 2021			March 31, 2022			June 30, 2022			June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2022
	RMB			RMB			RMB			US$(2)			RMB			RMB			US$(2)
Revenues:
Online marketing services		20,828			16,929			18,268			2,727			38,922			35,197			5,255
Others		10,522			11,482			11,379			1,699			20,562			22,861			3,413
Total revenues		31,350			28,411			29,647			4,426			59,484			58,058			8,668
Costs and expenses:
Cost of revenues(1)		15,897			15,546			15,171			2,265			30,899			30,717			4,586
Selling, general and administrative(1)		5,707			4,656			4,784			714			10,952			9,440			1,409
Research and development(1)		6,283			5,608			6,292			939			11,381			11,900			1,777
Total costs and expenses		27,887			25,810			26,247			3,918			53,232			52,057			7,772
Operating income		3,463			2,601			3,400			508			6,252			6,001			896
Other income (loss):
Interest income		1,342			1,454			1,525			228			2,575			2,979			445
Interest expense		(845	)		(710	)		(741	)		(111	)		(1,668	)		(1,451	)		(217	)
Foreign exchange (loss) gain, net		(36	)		(11	)		(329	)		(49	)		120			(340	)		(51	)
Share of losses from equity method investments		(4	)		(408	)		(603	)		(90	)		(155	)		(1,011	)		(151	)
Others, net		(2,887	)		(3,286	)		299			45			20,475			(2,987	)		(446	)
Total other (loss) income, net		(2,430	)		(2,961	)		151			23			21,347			(2,810	)		(420	)
Income (loss) before income taxes		1,033			(360	)		3,551			531			27,599			3,191			476
Income tax expense		2,197			391			25			4			3,731			416			62
Net (loss) income		(1,164	)		(751	)		3,526			527			23,868			2,775			414
Net (loss) income attributable to noncontrolling interests		(581	)		134			(111	)		(16	)		(1,202	)		23			3
Net (loss) income attributable to Baidu		(583	)		(885	)		3,637			543			25,070			2,752			411
(Loss) earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic		(1.70	)		(2.87	)		10.06			1.50			73.12			7.23			1.08
-Diluted		(1.70	)		(2.87	)		9.97			1.49			71.23			7.15			1.07
(Loss) earnings per share for Class A and Class B ordinary shares:
-Basic		(0.21	)		(0.36	)		1.26			0.19			9.14			0.91			0.14
-Diluted		(0.21	)		(0.36	)		1.25			0.19			8.90			0.89			0.13
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic		2,782			2,767			2,780			2,780			2,737			2,773			2,773
-Diluted		2,782			2,767			2,811			2,811			2,809			2,806			2,806
(1) Includes share-based compensation expenses as follows:
Cost of revenues		112			82			85			13			191			167			25
Selling, general and administrative		483			377			443			67			954			820			122
Research and development		1,521			864			1,493			222			2,470			2,357			352
Total share-based compensation expenses		2,116			1,323			2,021			302			3,615			3,344			499

(2) All translations from RMB to U.S. dollars are made at a rate of RMB 6.6981 to US$1.00, the exchange rate in effect as of June 30, 2022 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

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Baidu, Inc.     

Condensed Consolidated Balance Sheets    

(In millions, unaudited)    

	December 31,		June 30,		June 30,
	2021		2022		2022
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		36,850		42,533		6,350
Restricted cash		10,821		11,148		1,664
Short-term investments, net		143,243		135,753		20,267
Accounts receivable, net		9,981		10,034		1,498
Amounts due from related parties		1,368		1,009		151
Other current assets, net		11,052		9,035		1,350
Total current assets		213,315		209,512		31,280
Non-current assets:
Fixed assets, net		23,027		23,318		3,481
Licensed copyrights, net		7,258		6,783		1,013
Produced content, net		10,951		12,527		1,870
Intangible assets, net		1,689		1,510		225
Goodwill		22,605		22,602		3,374
Long-term investments, net		67,332		74,321		11,096
Amounts due from related parties		3,487		3,473		519
Deferred tax assets, net		2,372		2,998		448
Operating lease right-of-use assets		12,065		10,512		1,569
Other non-current assets		15,933		17,563		2,622
Total non-current assets		166,719		175,607		26,217
Total assets		380,034		385,119		57,497
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		4,168		4,100		612
Accounts payable and accrued liabilities		41,384		35,783		5,342
Customer deposits and deferred revenue		13,706		13,027		1,945
Deferred income		97		80		12
Long-term loans, current portion		2		—		—
Convertible notes, current		—		8,013		1,196
Notes payable, current portion		10,505		11,052		1,650
Amounts due to related parties		1,764		1,388		207
Operating lease liabilities		2,862		2,757		413
Total current liabilities		74,488		76,200		11,377
Non-current liabilities:
Deferred income		129		147		22
Deferred revenue		223		267		40
Amounts due to related parties		3,268		3,411		509
Long-term loans		12,629		13,291		1,984
Notes payable		43,120		45,353		6,771
Convertible senior notes		12,652		5,990		894
Deferred tax liabilities		3,286		2,950		440
Operating lease liabilities		5,569		4,957		740
Other non-current liabilities		718		1,816		272
Total non-current liabilities		81,594		78,182		11,672
Total liabilities		156,082		154,382		23,049
Redeemable noncontrolling interests		7,148		7,699		1,149
Equity
Total Baidu shareholders’ equity		211,459		217,113		32,414
Noncontrolling interests		5,345		5,925		885
Total equity		216,804		223,038		33,299
Total liabilities, redeemable noncontrolling interests, and equity		380,034		385,119		57,497

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Baidu, Inc.     

Selected Information    

(In millions, unaudited)    

	Three months ended June 30, 2021 (RMB)												Three months ended March 31, 2022 (RMB)												Three months ended June 30, 2022 (RMB)												Three months ended June 30, 2022 (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		24,041			7,608			(299	)		31,350			21,378			7,277			(244	)		28,411			23,160			6,657			(170	)		29,647			3,458			994			(26	)		4,426
YOY																										(4	%)		(13	%)					(5	%)
QOQ																										8	%		(9	%)					4	%
Costs and expenses:
Cost of revenues (1)		9,289			6,869			(261	)		15,897			9,807			5,964			(225	)		15,546			10,114			5,248			(191	)		15,171			1,511			784			(30	)		2,265
Selling, general and administrative (1)		4,526			1,185			(4	)		5,707			3,913			745			(2	)		4,656			3,990			801			(7	)		4,784			595			120			(1	)		714
Research and development (1)		5,607			676			—			6,283			5,134			474			—			5,608			5,810			482			—			6,292			867			72			—			939
Total costs and expenses		19,422			8,730			(265	)		27,887			18,854			7,183			(227	)		25,810			19,914			6,531			(198	)		26,247			2,973			976			(31	)		3,918
YOY
Cost of revenues																										9	%		(24	%)					(5	%)
Selling, general and administrative																										(12	%)		(32	%)					(16	%)
Research and development																										4	%		(29	%)					0	%
Cost and expenses																										3	%		(25	%)					(6	%)
Operating income (loss)		4,619			(1,122	)		(34	)		3,463			2,524			94			(17	)		2,601			3,246			126			28			3,400			485			18			5			508
YOY																										(30	%)		—						(2	%)
QOQ																										29	%		34	%					31	%
Operating margin		19	%		(15	%)					11	%		12	%		1	%					9	%		14	%		2	%					11	%
Add: total other (loss) income, net		(2,204	)		(226	)		—			(2,430	)		(3,058	)		97			—			(2,961	)		442			(291	)		—			151			66			(43	)		—			23
Less: income tax expense (benefit)		2,167			30			—			2,197			374			17			—			391			(11	)		36			—			25			(1	)		5			—			4
Less: net income (loss) attributable to NCI		76			19			(676	)(3)		(581	)		55			5			74	(3)		134			(17	)		13			(107	)(3)		(111	)		(3	)		2			(15	)(3)		(16	)
Net income (loss) attributable to Baidu		172			(1,397	)		642			(583	)		(963	)		169			(91	)		(885	)		3,716			(214	)		135			3,637			555			(32	)		20			543
YOY																										2060	%		(85	%)					—
QOQ																										—			—						—
Net margin		1	%		(18	%)					(2	%)		(5	%)		2	%					(3	%)		16	%		(3	%)					12	%
Non-GAAP financial measures:
Operating income (loss) (non-GAAP)		6,467			(780	)					5,653			3,686			327						3,996			5,121			344						5,493			765			50						820
YOY																										(21	%)		—						(3	%)
QOQ																										39	%		5	%					37	%
Operating margin (non-GAAP)		27	%		(10	%)					18	%		17	%		4	%					14	%		22	%		5	%					19	%
Net income (loss) attributable to Baidu (non-GAAP)		5,942			(1,065	)					5,359			3,804			162						3,879			5,449			79						5,541			814			11						827
YOY																										(8	%)		—						3	%
QOQ																										43	%		(51	%)					43	%
Net margin (non-GAAP)		25	%		(14	%)					17	%		18	%		2	%					14	%		24	%		1	%					19	%
Adjusted EBITDA		7,991			(662	)					7,295			5,106			410						5,499			6,597			429						7,054			985			63						1,053
YOY																										(17	%)		—						(3	%)
QOQ																										29	%		5	%					28	%
Adjusted EBITDA margin		33	%		(9	%)					23	%		24	%		6	%					19	%		28	%		6	%					24	%
(1)   Includes share-based compensation as follows:
Cost of revenues		69			43						112			45			37						82			49			36						85			8			5						13
Selling, general and administrative		274			209						483			257			120						377			339			104						443			51			16						67
Research and development		1,443			78						1,521			804			60						864			1,431			62						1,493			213			9						222
Total share-based compensation		1,786			330						2,116			1,106			217						1,323			1,819			202						2,021			272			30						302

(2) Relates to intersegment eliminations and adjustments     

(3) Relates to the net income/(loss) attributable to iQIYI noncontrolling interests     

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Baidu, Inc.     

Condensed Consolidated Statements of Cash Flows    

(In millions, unaudited)    

	Three months ended June 30, 2021 (RMB)									Three months ended March 31, 2022 (RMB)									Three months ended June 30, 2022 (RMB)									Three months ended June 30, 2022 (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 (used in) operating activities		9,362			(1,426	)		7,936			3,039			(1,167	)		1,872			7,658			48			7,706			1,143			7			1,150
Net cash (used in) provided by investing activities		(12,220	)		58			(12,162	)		(2,884	)		(67	)		(2,951	)		(3,027	)		(653	)		(3,680	)		(452	)		(97	)		(549	)
Net cash provided by (used in) financing activities		5,256			801			6,057			(644	)		2,046			1,402			877			(334	)		543			131			(50	)		81
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(342	)		(92	)		(434	)		(183	)		(4	)		(187	)		1,230			75			1,305			184			11			195
Net increase (decrease) in cash, cash equivalents and restricted cash		2,056			(659	)		1,397			(672	)		808			136			6,738			(864	)		5,874			1,006			(129	)		877
Cash, cash equivalents and restricted cash
At beginning of period		44,756			7,395			52,151			44,596			3,075			47,671			43,924			3,883			47,807			6,557			580			7,137
At end of period		46,812			6,736			53,548			43,924			3,883			47,807			50,662			3,019			53,681			7,563			451			8,014
Net cash provided by (used in) operating activities		9,362			(1,426	)		7,936			3,039			(1,167	)		1,872			7,658			48			7,706			1,143			7			1,150
Less: Capital expenditures		(2,435	)		(61	)		(2,496	)		(1,928	)		(51	)		(1,979	)		(2,124	)		(66	)		(2,190	)		(317	)		(10	)		(327	)
Free cash flow		6,927			(1,487	)		5,440			1,111			(1,218	)		(107	)		5,534			(18	)		5,516			826			(3	)		823

Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI’s consolidated cash flows.    

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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, 2021 (RMB)								March 31, 2022 (RMB)									June 30, 2022 (RMB)									June 30, 2022 (US$)
	Baidu Core		iQIYI			Baidu, Inc.			Baidu Core			iQIYI			Baidu, Inc.			Baidu Core			iQIYI			Baidu, Inc.			Baidu Core			iQIYI			Baidu, Inc.
Operating income (loss)		4,619		(1,122	)		3,463			2,524			94			2,601			3,246			126			3,400			485			18			508
Add: Share-based compensation expenses		1,786		330			2,116			1,106			217			1,323			1,819			202			2,021			272			30			302
Add: Amortization and impairment of intangible assets(1)		62		12			74			56			16			72			56			16			72			8			2			10
Operating income (loss) (non-GAAP)		6,467		(780	)		5,653			3,686			327			3,996			5,121			344			5,493			765			50			820
Add: Depreciation of fixed assets		1,524		118			1,642			1,420			83			1,503			1,476			85			1,561			220			13			233
Adjusted EBITDA		7,991		(662	)		7,295			5,106			410			5,499			6,597			429			7,054			985			63			1,053
Net income (loss) attributable to Baidu		172		(1,397	)		(583	)		(963	)		169			(885	)		3,716			(214	)		3,637			555			(32	)		543
Add: Share-based compensation expenses		1,777		330			1,947			1,101			217			1,210			1,815			202			1,916			271			30			286
Add: Amortization and impairment of intangible assets(1)		55		12			62			50			16			59			50			16			59			7			2			9
Add: Disposal (gain) loss		—		(45	)		(28	)		—			(430	)		(216	)		(25	)		—			(25	)		(4	)		—			(4	)
Add: Impairment of long-term investments		205		2			206			598			183			690			222			11			228			34			2			34
Add: Fair value loss (gain) of long-term investments		3,180		(9	)		3,175			3,037			(1	)		3,037			(547	)		2			(546	)		(82	)		—			(82	)
Add: Reconciling items on equity method investments(2)		190		32			207			456			11			462			403			60			455			61			9			69
Add: Charitable donation from Baidu(3)		—		—			—			—			—			—			136			—			136			20			—			20
Add: Tax effects on non-GAAP adjustments		363		10			373			(475	)		(3	)		(478	)		(321	)		2			(319	)		(48	)		—			(48	)
Net income (loss) attributable to Baidu (non-GAAP)		5,942		(1,065	)		5,359			3,804			162			3,879			5,449			79			5,541			814			11			827
Diluted (loss) earnings per ADS							(1.70	)								(2.87	)								9.97									1.49
Add: Accretion of the redeemable noncontrolling interests							0.02									0.31									0.39									0.06
Add: Non-GAAP adjustments to earnings per ADS							17.09									13.78									5.43									0.81
Diluted earnings per ADS (non-GAAP)							15.41									11.22									15.79									2.36

(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 shares.

(3) This represents non-recurring charitable donation to discrete events.    

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