Exhibit 99.1

Baidu Announces Third Quarter 2023 Results

BEIJING, China, November 21, 2023 — 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, 2023.

“Baidu reported solid third-quarter financial results, demonstrating resilience in a challenging economic climate,” said Robin Li, Co-founder and CEO of Baidu. “I am particularly pleased with our continuous technological enhancements and product improvements against the backdrop of emerging opportunities in generative AI and foundation models. Notably, we launched ERNIE 4.0, our most powerful foundation model. We have also harnessed the power of ERNIE and ERNIE Bot to reinvent our consumer-facing and enterprise-facing products, as well as our own operations, providing AI-native experiences and driving efficiency gains. Meanwhile, we’ve fully opened ERNIE API to cloud enterprises, empowering them to develop their own AI-native applications and solutions. Our AI-centric business and product strategy should set the stage for sustained multi-year revenue and profit expansion within our ERNIE and ERNIE Bot ecosystem.”

“Baidu Core maintained stable margins in the quarter,” said Rong Luo, CFO of Baidu. “Our ongoing investments in AI have underpinned technological and product innovations. Moving forward, while we will continue prioritizing investments in AI, especially in generative AI and foundation models, we will do so with an unrelenting focus on efficiency and strategic resource allocation.”

Third Quarter 2023 Financial Highlights¹

	Baidu, Inc.
(In millions except per ADS, unaudited)	Q3 2022			Q2 2023			Q3 2023						YOY			QOQ
	RMB			RMB			RMB			US$
Total revenues		32,540			34,056			34,447			4,721			6	%		1	%
Operating income		5,317			5,210			6,274			860			18	%		20	%
Operating income (non-GAAP)2		7,200			7,334			7,596			1,041			6	%		4	%
Net (loss) income to Baidu		(146	)		5,210			6,681			916			—			28	%
Net income to Baidu (non-GAAP)2		5,889			7,998			7,267			996			23	%		(9	%)
Diluted (loss) earnings per ADS		(0.87	)		14.17			18.22			2.50			—			29	%
Diluted earnings per ADS (non-GAAP)2		16.87			22.55			20.40			2.80			21	%		(10	%)
Adjusted EBITDA2		8,879			9,116			9,505			1,303			7	%		4	%
Adjusted EBITDA margin		27	%		27	%		28	%		28	%

1 Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2960 as of September 29, 2023, 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)	Q3 2022			Q2 2023			Q3 2023						YOY			QOQ
	RMB			RMB			RMB			US$
Total revenues		25,239			26,407			26,572			3,642			5	%		1	%
Operating income		4,982			4,568			5,498			754			10	%		20	%
Operating income (non-GAAP)2		6,650			6,516			6,672			914			0	%		2	%
Net income to Baidu Core		25			5,012			6,436			882			25,644	%		28	%
Net income to Baidu Core (non-GAAP)2		5,767			7,694			6,956			953			21	%		(10	%)
Adjusted EBITDA2		8,239			8,229			8,513			1,167			3	%		3	%
Adjusted EBITDA margin		33	%		31	%		32	%		32	%

Operational Highlights

Corporate

• Baidu launched ERNIE 4.0 (EB4) in October 2023. EB4 is now accessible to users on ERNIE Bot. In addition, enterprise customers can use EB4 via our cloud API.

• Baidu returned US$126 million to shareholders since the beginning of Q3 2023, bringing the cumulative repurchase to US$351 million under the current share repurchase program.

• Baidu established the Technology Ethics Committee in October 2023 to guide the practices of technology professionals.

Intelligent Driving

• Apollo Go, Baidu’s autonomous ride-hailing service, provided 821K rides in the third quarter of 2023, up 73% year over year. As of September 30, 2023, the cumulative rides provided to the public by Apollo Go reached 4.1 million.

Mobile Ecosystem

• In September 2023, Baidu App’s MAUs reached 663 million, up 5% year over year.

• Managed Page accounted for 53% of Baidu Core’s online marketing revenue in the third quarter of 2023.

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iQIYI

• iQIYI’s average daily number of total subscribing members for the quarter was 107.5 million, compared to 101.0 million for the third quarter of 2022 and 111.2 million for the second quarter of 2023. More importantly, iQIYI’s monthly average revenue per membership (ARM³) for the quarter was RMB15.54, compared to RMB13.90 for the third quarter of 2022 and RMB14.82 for the second quarter of 2023, increasing 12% year over year.

Third Quarter 2023 Financial Results

Total revenues were RMB34.4 billion ($4.72 billion), increasing 6% year over year.

• Revenue from Baidu Core was RMB26.6 billion ($3.64 billion), increasing 5% year over year; online marketing revenue was RMB19.7 billion ($2.70 billion), up 5% year over year, and non-online marketing revenue was RMB6.9 billion ($943 million), up 6% year over year.

• Revenue from iQIYI was RMB8.0 billion ($1.10 billion), increasing 7% year over year.

Cost of revenues was RMB16.3 billion ($2.23 billion), which remained essentially unchanged compared to the same period last year.

Selling, general and administrative expenses were RMB5.8 billion ($792 million), increasing 11% year over year, primarily due to an increase in channel spending and promotional marketing expenses.

Research and development expenses were RMB6.1 billion ($836 million), increasing 6% year over year, primarily due to an increase in server depreciation expenses and server custody fees which support ERNIE Bot research inputs.

Operating income was RMB6.3 billion ($860 million). Baidu Core operating income was RMB5.5 billion ($754 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.6 billion ($1.04 billion). Non-GAAP Baidu Core operating income was RMB6.7 billion ($914 million), and non-GAAP Baidu Core operating margin was 25%.

Total other income, net was RMB1.9 billion ($261 million), compared to total other loss, net of RMB4.8 billion for the same period last year, mainly due to: (1) a recognition of RMB338 million gain versus RMB3.1 billion loss for the same period last year from fair value changes in long-term investments; and (2) a decrease in impairment of long-term investments by RMB1.4 billion.

Income tax expense was RMB1.3 billion ($175 million), increasing 41% year over year, primarily due to an increase in profit before tax.

3 The monthly ARM for the quarter is calculated by dividing iQIYI’s total revenues from membership services during a given quarter by the average daily number of total subscribing members for that quarter and the number of months in the quarter.

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Net income attributable to Baidu was RMB6.7 billion ($916 million), and diluted earnings per ADS was RMB18.22 ($2.50). Net income attributable to Baidu Core was RMB6.4 billion ($882 million), and net margin for Baidu Core was 24%. Non-GAAP net income attributable to Baidu was RMB7.3 billion ($996 million). Non-GAAP diluted earnings per ADS was RMB20.40 ($2.80). Non-GAAP net income attributable to Baidu Core was RMB7.0 billion ($953 million), and non-GAAP net margin for Baidu Core was 26%.

Adjusted EBITDA was RMB9.5 billion ($1.30 billion) and adjusted EBITDA margin was 28%. Adjusted EBITDA for Baidu Core was RMB8.5 billion ($1.17 billion) and adjusted EBITDA margin for Baidu Core was 32%.

As of September 30, 2023, cash, cash equivalents, restricted cash and short-term investments were RMB202.7 billion ($27.78 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB197.4 billion ($27.06 billion). Free cash flow was RMB6.0 billion ($822 million), and free cash flow excluding iQIYI was RMB5.2 billion ($709 million).

Recent Development

Baidu has appointed Ms. Sandy Ran Xu as an independent director of the Board of Directors of the Company (the “Board”), effective from January 1, 2024.

Ms. Xu has served as CEO and executive director of JD.com since May 2023. Prior to her current role, Ms. Xu served as CFO of JD.com from June 2020 to May 2023. Prior to joining JD.com, Ms. Xu was an audit partner and spent nearly 20 years with PricewaterhouseCoopers Zhong Tian LLP, Beijing office and PricewaterhouseCoopers, San Jose office. Ms. Xu currently also serves as a director of Yonghui Supermarket Co., Ltd. Ms. Xu was a Certified Public Accountant in both China and the United States. Ms. Xu received her bachelor’s degree with a double major in information science and economics from Peking University.

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on November 21, 2023, U.S. Eastern Time (8.30 PM on November 21, 2023, 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 2023 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/10034602-0jdhg4.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 (loss) 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.

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 or loss, impairment of long-term investments, fair value change of long-term investments, and contingent loss pertaining to legal proceeding in relation to former advertising agencies, 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.

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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, share-based compensation expenses, and contingent loss pertaining to legal proceeding in relation to former advertising agencies.

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 Income

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

	Three Months Ended
	September 30, 2022			June 30, 2023			September 30, 2023			September 30, 2023
	RMB			RMB			RMB			US$(2)
Revenues:
Online marketing services		19,943			21,081			21,346			2,926
Others		12,597			12,975			13,101			1,795
Total revenues		32,540			34,056			34,447			4,721
Costs and expenses:
Cost of revenues(1)		16,273			16,167			16,294			2,233
Selling, general and administrative(1)		5,193			6,298			5,778			792
Research and development(1)		5,757			6,381			6,101			836
Total costs and expenses		27,223			28,846			28,173			3,861
Operating income		5,317			5,210			6,274			860
Other (loss) income:
Interest income		1,619			1,948			2,082			285
Interest expense		(724	)		(817	)		(853	)		(117	)
Foreign exchange (loss) gain, net		(806	)		1,176			(26	)		(4	)
Share of losses from equity method investments		(376	)		(383	)		(398	)		(55	)
Others, net		(4,483	)		(555	)		1,100			152
Total other (loss) income, net		(4,770	)		1,369			1,905			261
Income before income taxes		547			6,579			8,179			1,121
Income tax expense		908			1,270			1,282			175
Net (loss) income		(361	)		5,309			6,897			946
Net (loss) income attributable to noncontrolling interests		(215	)		99			216			30
Net (loss) income attributable to Baidu		(146	)		5,210			6,681			916

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	Three Months Ended
	September 30, 2022			June 30, 2023		September 30, 2023		September 30, 2023
	RMB			RMB		RMB		US$(2)
(Loss) earnings per ADS (1 ADS representing 8 Class A ordinary shares):
— Basic		(0.87	)		14.34		18.45		2.53
— Diluted		(0.87	)		14.17		18.22		2.50
(Loss) earnings per share for Class A and Class B ordinary shares:
— Basic		(0.11	)		1.79		2.31		0.32
— Diluted		(0.11	)		1.77		2.28		0.31
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
— Basic		2,790			2,804		2,814		2,814
— Diluted		2,790			2,834		2,846		2,846
(1)   Includes share-based compensation expenses as follows:
Cost of revenues		84			194		139		19
Selling, general and administrative		480			446		358		49
Research and development		1,039			1,403		778		108
Total share-based compensation expenses		1,603			2,043		1,275		176

(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.2960 to US$1.00, the exchange rate in effect as of September 29, 2023 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, 2022		September 30, 2023		September 30, 2023
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		53,156		34,908		4,785
Restricted cash		11,330		11,392		1,561
Short-term investments, net		120,839		156,359		21,431
Accounts receivable, net		11,733		10,712		1,468
Amounts due from related parties		5,432		4,962		680
Other current assets, net		10,360		12,084		1,656
Total current assets		212,850		230,417		31,581
Non-current assets:
Fixed assets, net		23,973		26,481		3,630
Licensed copyrights, net		6,841		6,992		958
Produced content, net		13,002		12,626		1,731
Intangible assets, net		1,254		1,012		139
Goodwill		22,477		22,586		3,096
Long-term investments, net		55,297		52,553		7,203
Long-term time deposits and held-to-maturity investments		23,629		25,260		3,462
Amounts due from related parties		60		147		20
Deferred tax assets, net		2,129		1,783		244
Operating lease right-of-use assets		10,365		10,512		1,441
Other non-current assets		19,096		20,665		2,832
Total non-current assets		178,123		180,617		24,756
Total assets		390,973		411,034		56,337

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	December 31, 2022		September 30, 2023		September 30, 2023
	RMB		RMB		US$
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		5,343		11,735		1,608
Accounts payable and accrued liabilities		38,014		37,184		5,096
Customer deposits and deferred revenue		13,116		15,043		2,062
Deferred income		72		151		21
Long-term loans, current portion		—		1		—
Convertible senior notes, current portion		8,305		3,114		427
Notes payable, current portion		6,904		6,179		847
Amounts due to related parties		5,067		5,241		718
Operating lease liabilities		2,809		2,953		405
Total current liabilities		79,630		81,601		11,184
Non-current liabilities:
Deferred income		159		119		16
Deferred revenue		331		421		58
Amounts due to related parties		99		83		11
Long-term loans		13,722		14,472		1,984
Notes payable		39,893		35,861		4,915
Convertible senior notes		9,568		8,349		1,144
Deferred tax liabilities		2,898		2,750		377
Operating lease liabilities		4,810		4,830		662
Other non-current liabilities		2,058		1,838		253
Total non-current liabilities		73,538		68,723		9,420
Total liabilities		153,168		150,324		20,604
Redeemable noncontrolling interests		8,393		9,276		1,271
Equity
Total Baidu shareholders’ equity		223,478		242,427		33,227
Noncontrolling interests		5,934		9,007		1,235
Total equity		229,412		251,434		34,462
Total liabilities, redeemable noncontrolling interests, and equity		390,973		411,034		56,337

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Baidu, Inc.

Selected Information

(In millions, unaudited)

	Three months ended September 30, 2022 (RMB)										Three months ended June 30, 2023 (RMB)												Three months ended September 30, 2023 (RMB)												Three months ended September 30, 2023 (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	25,239		7,471			(170	)		32,540			26,407			7,802			(153	)		34,056			26,572			8,015			(140	)		34,447			3,642			1,098			(19	)		4,721
YOY																								5	%		7	%					6	%
QOQ																								1	%		3	%					1	%
Costs and expenses: Cost of revenues(1)	10,745		5,705			(177	)		16,273			10,553			5,774			(160	)		16,167			10,610			5,840			(156	)		16,294			1,454			800			(21	)		2,233
Selling, general and administrative(1)	4,231		980			(18	)		5,193			5,344			979			(25	)		6,298			4,810			981			(13	)		5,778			659			135			(2	)		792
Research and development(1)	5,281		476			—			5,757			5,942			439			—			6,381			5,654			447			—			6,101			775			61			—			836
Total costs and expenses	20,257		7,161			(195	)		27,223			21,839			7,192			(185	)		28,846			21,074			7,268			(169	)		28,173			2,888			996			(23	)		3,861
YOY
Cost of revenues																								(1	%)		2	%					0	%
Selling, general and administrative																								14	%		0	%					11	%
Research and development																								7	%		(6	%)					6	%
Costs and expenses																								4	%		1	%					3	%
Operating income	4,982		310			25			5,317			4,568			610			32			5,210			5,498			747			29			6,274			754			102			4			860
YOY																								10	%		141	%					18	%
QOQ																								20	%		22	%					20	%
Operating margin	20%		4	%					16	%		17	%		8	%					15	%		21	%		9	%					18	%
Add: total other
(loss) income, net	(4,108)		(662	)		—			(4,770	)		1,603			(234	)		—			1,369			2,159			(254	)		—			1,905			296			(35	)		—			261
Less: income tax expense	866		42			—			908			1,262			8			—			1,270			1,272			10			—			1,282			174			1			—			175
Less: net (loss) income attributable to NCI	(17)		1			(199	)(3)		(215	)		(103	)		3			199	(3)		99			(51	)		7			260	(3)		216			(6	)		1			35	(3)		30
Net income (loss) attributable to Baidu	25		(395	)		224			(146	)		5,012			365			(167	)		5,210			6,436			476			(231	)		6,681			882			65			(31	)		916
YOY																								25,644	%		—						—
QOQ																								28	%		30	%					28	%
Net margin	0%		(5	%)					(0	%)		19	%		5	%					15	%		24	%		6	%					19	%

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	Three months ended September 30, 2022 (RMB)								Three months ended June 30, 2023 (RMB)										Three months ended September 30, 2023 (RMB)										Three months ended September 30, 2023 (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.
Non-GAAP financial measures:
Operating income (non-GAAP)	6,650		525				7,200			6,516			786				7,334			6,672			895				7,596			914		123			1,041
YOY																				0	%		70	%			6	%
QOQ																				2	%		14	%			4	%
Operating margin (non-GAAP)	26%		7	%			22	%		25	%		10	%			22	%		25	%		11	%			22	%
Net income attributable to Baidu (non-GAAP)	5,767		187				5,889			7,694			595				7,998			6,956			622				7,267			953		85			996
YOY																				21	%		233	%			23	%
QOQ																				(10	%)		5	%			(9	%)
Net margin (non-GAAP)	23%		3	%			18	%		29	%		8	%			23	%		26	%		8	%			21	%
Adjusted EBITDA	8,239		615				8,879			8,229			855				9,116			8,513			963				9,505			1,167		132			1,303
YOY																				3	%		57	%			7	%
QOQ																				3	%		13	%			4	%
Adjusted EBITDA margin	33%		8	%			27	%		31	%		11	%			27	%		32	%		12	%			28	%
(1)   Includes share-based compensation as follows:
Cost of revenues	45		39				84			160			34				194			107			32				139			15		4			19
Selling general and administrative	375		105				480			356			90				446			290			68				358			40		9			49
Research and development	978		61				1,039			1,358			45				1,403			732			46				778			100		8			108
Total share-based compensation	1,398		205				1,603			1,874			169				2,043			1,129			146				1,275			155		21			176

(2) Relates to intersegment eliminations and adjustments

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

13

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, 2022									June 30, 2023									September 30, 2023									September 30, 2023
	(RMB)									(RMB)									(RMB)									(US$)
	Baidu									Baidu									Baidu									Baidu
	excl.						Baidu,			excl.						Baidu,			excl.						Baidu,			excl.						Baidu,
	iQIYI			iQIYI			Inc.			iQIYI			iQIYI			Inc.			iQIYI			iQIYI			Inc.			iQIYI			iQIYI			Inc.
Net cash provided by operating activities		8,543			196			8,739			9,746			886			10,632			8,694			831			9,525			1,192			114			1,306
Net cash provided by (used in) investing activities		7,603			407			8,010			7,309			(421	)		6,888			(11,345	)		(55	)		(11,400	)		(1,555	)		(8	)		(1,563	)
Net cash (used in) provided by financing activities		(5,967	)		(106	)		(6,073	)		1,908			(1,176	)		732			(5,253	)		269			(4,984	)		(720	)		37			(683	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		1,980			60			2,040			496			128			624			153			5			158			21			1			22
Net increase (decrease) in cash, cash equivalents and restricted cash		12,159			557			12,716			19,459			(583	)		18,876			(7,751	)		1,050			(6,701	)		(1,062	)		144			(918	)
Cash, cash equivalents and restricted cash At beginning of period		50,662			3,019			53,681			30,355			5,665			36,020			49,814			5,082			54,896			6,828			697			7,525
At end of period		62,821			3,576			66,397			49,814			5,082			54,896			42,063			6,132			48,195			5,766			841			6,607
Net cash provided by operating activities		8,543			196			8,739			9,746			886			10,632			8,694			831			9,525			1,192			114			1,306
Less: Capital expenditures		(2,140	)		(48	)		(2,188	)		(2,693	)		(13	)		(2,706	)		(3,525	)		(4	)		(3,529	)		(483	)		(1	)		(484	)
Free cash flow		6,403			148			6,551			7,053			873			7,926			5,169			827			5,996			709			113			822

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

14

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, 2022									June 30, 2023									September 30, 2023									September 30, 2023
	(RMB)									(RMB)									(RMB)									(US$)
	Baidu						Baidu,			Baidu						Baidu,			Baidu						Baidu,			Baidu					Baidu,
	Core			iQIYI			Inc.			Core			iQIYI			Inc.			Core			iQIYI			Inc.			Core			iQIYI		Inc.
Operating income		4,982			310			5,317			4,568			610			5,210			5,498			747			6,274			754			102		860
Add: Share-based compensation expenses		1,398			205			1,603			1,874			169			2,043			1,129			146			1,275			155			21		176
Add: Amortization and impairment of intangible assets(1)		56			10			66			74			7			81			45			2			47			5			—		5
Add: Contingent loss(4)		214			—			214			—			—			—			—			—			—			—			—		—
Operating income (non-GAAP)		6,650			525			7,200			6,516			786			7,334			6,672			895			7,596			914			123		1,041
Add: Depreciation of fixed assets		1,589			90			1,679			1,713			69			1,782			1,841			68			1,909			253			9		262
Adjusted EBITDA		8,239			615			8,879			8,229			855			9,116			8,513			963			9,505			1,167			132		1,303
Net income (loss) attributable to Baidu		25			(395	)		(146	)		5,012			365			5,210			6,436			476			6,681			882			65		916
Add: Share-based compensation expenses		1,394			205			1,497			1,872			169			1,949			1,128			146			1,194			155			20		164
Add: Amortization and impairment of intangible assets(1)		50			10			56			61			7			65			43			2			44			6			—		6
Add: Disposal (gain)		(6	)		—			(6	)		(919	)		(89	)		(959	)		(753	)		—			(753	)		(103	)		—		(103	)
Add: Impairment of long-term investments		1,042			376			1,230			270			155			340			46			—			46			6			—		6
Add: Fair value loss (gain) of long-term investments		3,149			(27	)		3,135			1,239			(4	)		1,237			(384	)		(2	)		(385	)		(53	)		—		(53	)
Add: Reconciling items on equity method investments(2)		237			16			245			296			(9	)		292			572			—			572			78			—		78
Add: Contingent loss(4)		214			—			214			—			—			—			—			—			—			—			—		—
Add: Tax effects on non-GAAP adjustments(3)		(338	)		2			(336	)		(137	)		1			(136	)		(132	)		—			(132	)		(18	)		—		(18	)
Net income attributable to Baidu (non-GAAP)		5,767			187			5,889			7,694			595			7,998			6,956			622			7,267			953			85		996

15

Three months ended

Three months ended

Three months ended

Three months ended

September 30, 2022

June 30, 2023

September 30, 2023

September 30, 2023

(RMB)

(RMB)

(RMB)

(US$)

Baidu

Baidu,

Baidu

Baidu,

Baidu

Baidu,

Baidu

Baidu,

Core

iQIYI

Inc.

Core

iQIYI

Inc.

Core

iQIYI

Inc.

Core

iQIYI

Inc.

Diluted earnings per ADS

(0.87

)

14.17

18.22

2.50

Add: Accretion of the redeemable noncontrolling interests

0.45

0.50

0.53

0.07

Add: Non-GAAP adjustments to earnings per ADS

17.29

7.88

1.65

0.23

Diluted earnings per ADS (non-GAAP)

16.87

22.55

20.40

2.80

(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.

(4) This represents contingent loss pertaining to legal proceeding involving former advertising agency.

16