EX-99.1 2 d789091dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Baidu Announces Fourth Quarter and Fiscal Year 2023 Results

BEIJING, China, February 28, 2024 — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)) (“Baidu” or the “Company”), a leading AI company with a strong Internet foundation, today announced its unaudited financial results for the quarter and fiscal year ended December 31, 2023.

“Baidu Core reported another solid quarter,” said Robin Li, Co-founder and CEO of Baidu. “Throughout 2023, we made significant strides in advancing ERNIE and ERNIE Bot, reinventing our products and services, and achieving breakthroughs in monetization. Concurrently, our core business remained resilient and healthy. Looking ahead, our commitment to Gen-AI and foundation models remains unwavering, paving the way for the gradual creation of a new growth engine.”

“In the fourth quarter, we maintained our focus on enhancing operational efficiencies,” said Rong Luo, CFO of Baidu. “As we look ahead into 2024, our goal is to persistently enhance operational efficiencies and achieve high-quality growth.”

Fourth Quarter and Fiscal Year 2023 Financial Highlights1

 

     Baidu, Inc.  
(In millions except per ADS, unaudited)    Q4     Q3                       FY                    
   2022     2023     Q4 2023     YOY     2022     FY 2023     YOY  
     RMB     RMB     RMB     US$           RMB     RMB     US$        

Total revenues

      33,077       34,447       34,951       4,923       6 %      123,675       134,598       18,958       9 % 

Operating income

      4,593       6,274       5,392       759       17 %      15,911       21,856       3,078       37 % 

Operating income (non-GAAP)2

     6,497       7,596       7,075       996       9 %      23,186       28,433       4,005       23 % 

Net income to Baidu

      4,953       6,681       2,599       366       (48 %)      7,559       20,315       2,861       169 % 

Net income to Baidu (non-GAAP)2

     5,371       7,267       7,755       1,092       44 %      20,680       28,747       4,049       39 % 

Diluted earnings per ADS

      13.59       18.22       6.77       0.95       (50 %)      19.85       55.08       7.76       177 % 

Diluted earnings per ADS (non-GAAP)2

     15.25       20.40       21.86       3.08       43 %      58.93       80.85       11.39       37 % 

Adjusted EBITDA2

     8,231       9,505       9,057       1,276       10 %      29,663       35,823       5,046       21 % 

Adjusted EBITDA margin

      25 %      28 %      26 %      26 %        24 %      27 %      27 %   

 

1

Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 7.0999 as of December 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).

 

1

     Baidu Core  
(In millions, unaudited)    Q4 2022     Q3 2023     Q4 2023     YOY     FY 2022     FY 2023     YOY  
     RMB     RMB     RMB     US$           RMB     RMB     US$        

Total revenues

      25,654       26,572       27,488       3,872       7 %      95,431       103,465       14,573       8 % 

Operating income

      3,782       5,498       4,668       657       23 %      14,534       18,825       2,651       30 % 

Operating income (non-GAAP)2

     5,491       6,672       6,197       873       13 %      20,948       24,748       3,486       18 % 

Net income to Baidu Core

      4,773       6,436       2,440       344       (49 %)      7,551       19,401       2,733       157 % 

Net income to Baidu Core (non-GAAP)2

     4,915       6,956       7,500       1,056       53 %      19,935       27,418       3,862       38 % 

Adjusted EBITDA2

     7,146       8,513       8,118       1,143       14 %      27,088       31,863       4,488       18 % 

Adjusted EBITDA margin

      28 %      32 %      30 %      30 %        28 %      31 %      31 %   

Operational Highlights

Corporate

 

  •  

Baidu returned US$318 million to shareholders since the beginning of Q4 2023, bringing the cumulative repurchase to US$669 million under the 2023 share repurchase program.

AI Cloud

 

  •  

PaddlePaddle developer community has grown to 10.7 million and has served 235,000 businesses, as of the end of 2023. Developers have created 860,000 models on PaddlePaddle by the end of 2023.

Intelligent Driving

 

  •  

Apollo Go, Baidu’s autonomous ride-hailing service, provided about 839K rides in the fourth quarter of 2023, up 49% year over year. As of January 2, 2024, accumulated rides provided by Apollo Go on public roads surpassed 5 million.

 

  •  

In the fourth quarter of 2023, the proportion of fully driverless orders within the overall order portfolio in Wuhan reached 45%, up from 40% in the third quarter of 2023.

 

2

Mobile Ecosystem

 

  •  

In December 2023, Baidu App’s MAUs reached 667 million, up 3% year over year.

 

  •  

Managed Page accounted for 51% of Baidu Core’s online marketing revenue in the fourth quarter of 2023.

iQIYI

 

  •  

iQIYI’s average daily number of total subscribing members for the quarter was 100.3 million, compared to 111.6 million for the fourth quarter of 2022 and 107.5 million for the third quarter of 2023. More importantly, iQIYI’s monthly average revenue per membership (ARM) for the quarter was RMB15.98, compared to RMB14.17 for the fourth quarter of 2022 and RMB15.54 for the third quarter of 2023.

Fourth Quarter 2023 Financial Results

Total revenues were RMB35.0 billion ($4.92 billion), increasing 6% year over year.

 

  •  

Revenue from Baidu Core was RMB27.5 billion ($3.87 billion), increasing 7% year over year; online marketing revenue was RMB19.2 billion ($2.70 billion), up 6% year over year, and non-online marketing revenue was RMB8.3 billion ($1.17 billion), up 9% year over year, mainly driven by AI Cloud business.

 

  •  

Revenue from iQIYI was RMB7.7 billion ($1.09 billion), increasing 2% year over year.

Cost of revenues was RMB17.4 billion ($2.45 billion), increasing 3% year over year, primarily due to an increase in costs related to AI Cloud business, partially offset by a decrease in content costs.

Selling, general and administrative expenses were RMB5.9 billion ($825 million), which remained flat compared to the same period last year.

Research and development expenses were RMB6.3 billion ($886 million), increasing 11% year over year, primarily due to an increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs.

Operating income was RMB5.4 billion ($759 million). Baidu Core operating income was RMB4.7 billion ($657 million), and Baidu Core operating margin was 17%. Non-GAAP operating income was RMB7.1 billion ($996 million). Non-GAAP Baidu Core operating income was RMB6.2 billion ($873 million), and non-GAAP Baidu Core operating margin was 23%.

Total other loss, net was RMB2.5 billion ($356 million), compared to total other income, net of RMB1.8 billion for the same period last year, mainly due to a pickup of losses from an equity method investment as a result of a modification of certain terms of the underlying preferred shares.

 

3

Income tax benefit was RMB96 million ($14 million), compared to income tax expense of RMB1.3 billion for the same period last year, mainly due to a change of certain subsidiaries’ amounts of valuation allowance for deferred tax assets.

Net income attributable to Baidu was RMB2.6 billion ($366 million), and diluted earnings per ADS was RMB6.77 ($0.95). Net income attributable to Baidu Core was RMB2.4 billion ($344 million), and net margin for Baidu Core was 9%. Non-GAAP net income attributable to Baidu was RMB7.8 billion ($1.09 billion). Non-GAAP diluted earnings per ADS was RMB21.86 ($3.08). Non-GAAP net income attributable to Baidu Core was RMB7.5 billion ($1.06 billion), and non-GAAP net margin for Baidu Core was 27%.

Adjusted EBITDA was RMB9.1 billion ($1.28 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB8.1 billion ($1.14 billion) and adjusted EBITDA margin for Baidu Core was 30%.

As of December 31, 2023, cash, cash equivalents, restricted cash and short-term investments were RMB205.4 billion ($28.93 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB200.0 billion ($28.17 billion). Free cash flow was RMB7.0 billion ($980 million), and free cash flow excluding iQIYI was RMB6.3 billion ($894 million).

Fiscal Year 2023 Results

Total revenues were RMB134.6 billion ($18.96 billion), increasing 9% year over year.

 

  •  

Revenue from Baidu Core was RMB103.5 billion ($14.57 billion), increasing 8% year over year; online marketing revenue was RMB75.1 billion ($10.58 billion), up 8% year over year, and non-online marketing revenue was RMB28.4 billion ($3.99 billion), up 9% year over year.

 

  •  

Revenue from iQIYI was RMB31.9 billion ($4.49 billion), increasing 10% year over year.

Cost of revenues was RMB65.0 billion ($9.16 billion), increasing 2% year over year, primarily due to an increase in traffic acquisition costs, partially offset by a decrease in content costs and costs related to AI Cloud business.

Selling, general and administrative expenses were RMB23.5 billion ($3.31 billion), increasing 15% year over year, primarily due to an increase in channel spending and promotional marketing expenses.

Research and development expenses were RMB24.2 billion ($3.41 billion), increasing 4% year over year, primarily due to an increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs.

 

4

Operating income was RMB21.9 billion ($3.08 billion). Baidu Core operating income was RMB18.8 billion ($2.65 billion), and Baidu Core operating margin was 18%. Non-GAAP operating income was RMB28.4 billion ($4.01 billion). Non-GAAP Baidu Core operating income was RMB24.7 billion ($3.49 billion), and non-GAAP Baidu Core operating margin was 24%.

Total other income, net was RMB3.3 billion ($472 million), compared to total other loss, net of RMB5.8 billion last year, mainly due to a fair value gain of RMB198 million from long-term investments this year, compared to a fair value loss of RMB3.9 billion last year; and a decrease of RMB2.2 billion in impairment of long-term investments.

Income tax expense was RMB3.6 billion ($514 million), increasing 42% year over year, primarily due to an increase in profit before tax.

Net income attributable to Baidu was RMB20.3 billion ($2.86 billion), and diluted earnings per ADS was RMB55.08 ($7.76). Net income attributable to Baidu Core was RMB19.4 billion ($2.73 billion), and net margin for Baidu Core was 19%. Non-GAAP net income attributable to Baidu was RMB28.7 billion ($4.05 billion). Non-GAAP diluted earnings per ADS was RMB80.85 ($11.39). Non-GAAP net income attributable to Baidu Core was RMB27.4 billion ($3.86 billion), and non-GAAP net margin for Baidu Core was 26%.

Adjusted EBITDA was RMB35.8 billion ($5.05 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB31.9 billion ($4.49 billion) and adjusted EBITDA margin for Baidu Core was 31%.

Free cash flow was RMB25.4 billion ($3.58 billion), and free cash flow excluding iQIYI was RMB22.1 billion ($3.11 billion).

 

5

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on February 28, 2024, U.S. Eastern Time (8.30 PM on February 28, 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 Q4 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/10036733-mjkcdg.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.

Contacts

Investors Relations, Baidu, Inc.

Tel: +86-10-5992-8888

Email: ir@baidu.com

 

6

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 (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.

 

7

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, 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 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, 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.

 

8

Baidu, Inc.

Condensed Consolidated Statements of Income

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

 

    Three Months Ended     Twelve Months Ended  
    December 31,     September 30,     December 31,     December 31,     December 31,     December 31,     December 31,  
    2022     2023     2023     2023     2022     2023     2023  
    RMB     RMB     RMB     US$(2)     RMB     RMB     US$(2)  

Revenues:

              

Online marketing services

     19,571       21,346       20,804       2,930       74,711       81,203       11,437  

Others

     13,506       13,101       14,147       1,993       48,964       53,395       7,521  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

     33,077       34,447       34,951       4,923       123,675       134,598       18,958  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Costs and expenses:

              

Cost of revenues(1)

    16,945       16,294       17,418       2,453       63,935       65,031       9,159  

Selling, general and administrative(1)

    5,881       5,778       5,854       825       20,514       23,519       3,314  

Research and development(1)

    5,658       6,101       6,287       886       23,315       24,192       3,407  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

     28,484       28,173       29,559       4,164       107,764       112,742       15,880  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

     4,593       6,274       5,392       759       15,911       21,856       3,078  

Other income (loss):

              

Interest income

     1,647       2,082       2,064       291       6,245       8,009       1,128  

Interest expense

     (738 )      (853 )      (774 )      (109 )      (2,913 )      (3,248 )      (457 ) 

Foreign exchange (loss) gain, net

     (338 )      (26 )      (449 )      (63 )      (1,484 )      595       84  

Share of losses from equity method investments

     (523 )      (398 )      (2,970 )      (418 )      (1,910 )      (3,799 )      (535 ) 

Others, net

     1,733       1,100       (398 )      (57 )      (5,737 )      1,785       252  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total other income (loss), net

     1,781       1,905       (2,527 )      (356 )      (5,799 )      3,342       472  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

     6,374       8,179       2,865       403       10,112       25,198       3,550  

Income tax expense (benefit)

     1,254       1,282       (96 )      (14 )      2,578       3,649       514  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

     5,120       6,897       2,961       417       7,534       21,549       3,036  

Net income (loss) attributable to noncontrolling interests

     167       216       362       51       (25 )      1,234       175  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Baidu

     4,953       6,681       2,599       366       7,559       20,315       2,861  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

9

    Three Months Ended     Twelve Months Ended  
    December 31,     September 30,     December 31,     December 31,     December 31,     December 31,     December 31,  
    2022     2023     2023     2023     2022     2023     2023  
    RMB     RMB     RMB     US$(2)     RMB     RMB     US$(2)  

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

              

— Basic

     13.73       18.45       6.85       0.96       20.02       55.83       7.86  

— Diluted

     13.59       18.22       6.77       0.95       19.85       55.08       7.76  

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

              

— Basic

     1.72       2.31       0.86       0.12       2.50       6.98       0.98  

— Diluted

     1.70       2.28       0.85       0.12       2.48       6.89       0.97  

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

              

— Basic

     2,789       2,814       2,812       2,812       2,782       2,807       2,807  

— Diluted

     2,801       2,846       2,830       2,830       2,809       2,837       2,837  

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

    

  

Cost of revenues

     158       139       159       23       409       590       83  

Selling, general and administrative

     450       358       411       58       1,750       1,678       236  

Research and development

     1,233       778       1,068       150       4,629       4,077       575  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total share-based compensation expenses

     1,841       1,275       1,638       231       6,788       6,345       894  

 

(2)

All translations from RMB to U.S. dollars are made at a rate of RMB 7.0999 to US$1.00, the exchange rate in effect as of December 29, 2023 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

 

10

Baidu, Inc.

Condensed Consolidated Balance Sheets

(In millions, unaudited)

 

     December 31,
2022		      December 31,
2023		      December 31,
2023		  
     RMB      RMB      US$  

ASSETS

         

Current assets:

         

Cash and cash equivalents

      53,156        25,231        3,554  

Restricted cash

      11,330        11,503        1,620  

Short-term investments, net

      120,839        168,670        23,757  

Accounts receivable, net

      11,733        10,848        1,528  

Amounts due from related parties

      5,432        1,424        201  

Other current assets, net

      10,360        12,579        1,772  
  

 

 

     

 

 

     

 

 

  

Total current assets

      212,850        230,255        32,432  
  

 

 

     

 

 

     

 

 

  

Non-current assets:

         

Fixed assets, net

      23,973        27,960        3,938  

Licensed copyrights, net

      6,841        6,967        981  

Produced content, net

      13,002        13,377        1,884  

Intangible assets, net

      1,254        881        124  

Goodwill

      22,477        22,586        3,181  

Long-term investments, net

      55,297        47,957        6,755  

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

      23,629        24,666        3,474  

Amounts due from related parties

      60        195        27  

Deferred tax assets, net

      2,129        2,100        296  

Operating lease right-of-use assets

      10,365        10,851        1,528  

Other non-current assets

      19,096        18,964        2,671  
  

 

 

     

 

 

     

 

 

  

Total non-current assets

      178,123        176,504        24,859  
  

 

 

     

 

 

     

 

 

  

Total assets

      390,973        406,759        57,291  
  

 

 

     

 

 

     

 

 

  

 

11

     December 31,
2022		      December 31,
2023		      December 31,
2023		  
     RMB      RMB      US$  

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

         

Current liabilities:

         

Short-term loans

      5,343        10,257        1,445  

Accounts payable and accrued liabilities

      38,014        37,717        5,312  

Customer deposits and deferred revenue

      13,116        14,627        2,060  

Deferred income

      72        306        43  

Long-term loans, current portion

      —         2        —   

Convertible senior notes, current portion

      8,305        2,802        395  

Notes payable, current portion

      6,904        6,029        849  

Amounts due to related parties

      5,067        1,603        226  

Operating lease liabilities

      2,809        3,108        438  
  

 

 

     

 

 

     

 

 

  

Total current liabilities

      79,630        76,451        10,768  
  

 

 

     

 

 

     

 

 

  

Non-current liabilities:

         

Deferred income

      159        200        28  

Deferred revenue

      331        481        68  

Amounts due to related parties

      99        77        11  

Long-term loans

      13,722        14,223        2,003  

Notes payable

      39,893        34,990        4,928  

Convertible senior notes

      9,568        8,144        1,147  

Deferred tax liabilities

      2,898        2,725        384  

Operating lease liabilities

      4,810        5,040        710  

Other non-current liabilities

      2,058        1,820        257  
  

 

 

     

 

 

     

 

 

  

Total non-current liabilities

      73,538        67,700        9,536  
  

 

 

     

 

 

     

 

 

  

Total liabilities

      153,168        144,151        20,304  
  

 

 

     

 

 

     

 

 

  

Redeemable noncontrolling interests

      8,393        9,465        1,333  

Equity

         

Total Baidu shareholders’ equity

      223,478        243,626        34,314  

Noncontrolling interests

      5,934        9,517        1,340  
  

 

 

     

 

 

     

 

 

  

Total equity

      229,412        253,143        35,654  
  

 

 

     

 

 

     

 

 

  

Total liabilities, redeemable noncontrolling interests, and equity

      390,973        406,759        57,291  
  

 

 

     

 

 

     

 

 

  

 

12

Baidu, Inc.

Selected Information

(In millions, unaudited)

 

    Three months ended
December 31, 2022
(RMB)		     Three months ended
September 30, 2023
(RMB)		     Three months ended
December 31, 2023
(RMB)		     Three months ended
December 31, 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

     25,654       7,593       (170 )      33,077       26,572       8,015       (140 )      34,447       27,488       7,707       (244 )      34,951       3,872       1,086       (35 )      4,923  

YOY

                     7 %      2 %        6 %         

QOQ

                     3 %      (4 %)        1 %         

Costs and expenses:

                                

Cost of revenues (1)

    11,712       5,405       (172 )      16,945       10,610       5,840       (156 )      16,294       12,050       5,533       (165 )      17,418       1,698       779       (24 )      2,453  

Selling, general and administrative (1)

    4,969       939       (27 )      5,881       4,810       981       (13 )      5,778       4,936       948       (30 )      5,854       695       134       (4 )      825  

Research and development (1)

    5,191       467       —        5,658       5,654       447       —        6,101       5,834       453       —        6,287       822       64       —        886  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

     21,872       6,811       (199 )      28,484       21,074       7,268       (169 )      28,173       22,820       6,934       (195 )      29,559       3,215       977       (28 )      4,164  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

YOY

                                

Cost of revenues

                     3 %      2 %        3 %         

Selling, general and administrative

                     (1 %)      1 %        (0 %)         

Research and development

                     12 %      (3 %)        11 %         

Costs and expenses

                     4 %      2 %        4 %         

Operating income (loss)

     3,782       782       29       4,593       5,498       747       29       6,274       4,668       773       (49 )      5,392       657       109       (7 )      759  

YOY

                     23 %      (1 %)        17 %         

QOQ

                     (15 %)      3 %        (14 %)         

Operating margin

     15 %      10 %        14 %      21 %      9 %        18 %      17 %      10 %        15 %         

Add: total other income (loss), net

     2,271       (490 )      —        1,781       2,159       (254 )      —        1,905       (2,267 )      (260 )      —        (2,527 )      (319 )      (37 )      —        (356 ) 

Less: income tax expense (benefit)

     1,265       (11 )      —        1,254       1,272       10       —        1,282       (134 )      38       —        (96 )      (19 )      5       —        (14 ) 

Less: net income (loss) attributable to NCI

     15       (1 )      153 (3)      167       (51 )      7       260 (3)      216       95       9       258 (3)      362       13       1       37 (3)      51  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Baidu

     4,773       304       (124 )      4,953       6,436       476       (231 )      6,681       2,440       466       (307 )      2,599       344       66       (44 )      366  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

YOY

                     (49 %)      53 %        (48 %)         

QOQ

                     (62 %)      (2 %)        (61 %)         

Net margin

     19 %      4 %        15 %      24 %      6 %        19 %      9 %      6 %        7 %         

 

13

    Three months ended
December 31, 2022
(RMB)		     Three months ended
September 30, 2023
(RMB)		     Three months ended
December 31, 2023
(RMB)		     Three months ended
December 31, 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)

     5,491       977         6,497       6,672       895         7,596       6,197       927         7,075       873       130         996  

YOY

                     13 %      (5 %)        9 %         

QOQ

                     (7 %)      4 %        (7 %)         

Operating margin (non-GAAP)

     21 %      13 %        20 %      25 %      11 %        22 %      23 %      12 %        20 %         

Net income attributable to Baidu (non-GAAP)

     4,915       856         5,371       6,956       622         7,267       7,500       681         7,755       1,056       96         1,092  

YOY

                     53 %      (20 %)        44 %         

QOQ

                     8 %      9 %        7 %         

Net margin (non-GAAP)

     19 %      11 %        16 %      26 %      8 %        21 %      27 %      9 %        22 %         

Adjusted EBITDA

     7,146       1,056         8,231       8,513       963         9,505       8,118       988         9,057       1,143       140         1,276  

YOY

                     14 %      (6 %)        10 %         

QOQ

                     (5 %)      3 %        (5 %)         

Adjusted EBITDA margin

     28 %      14 %        25 %      32 %      12 %        28 %      30 %      13 %        26 %         

(1)   Includes share-based compensation as follows:

    

Cost of revenues

     122       36         158       107       32         139       125       34         159       18       5         23  

Selling, general and administrative

     355       95         450       290       68         358       340       71         411       48       10         58  

Research and development

     1,177       56         1,233       732       46         778       1,020       48         1,068       144       6         150  
 

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

      

 

 

  

Total share-based compensation

     1,654       187         1,841       1,129       146         1,275       1,485       153         1,638       210       21         231  

 

(2)

Relates to intersegment eliminations and adjustments

(3)

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

 

14

Baidu, Inc.

Selected Information

(In millions except for per ADS information, unaudited)

 

     Twelve months ended
December 31, 2022 (RMB)		     Twelve months ended
December 31, 2023 (RMB)		     Twelve months ended
December 31, 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.

  

Total revenues

      95,431       28,998       (754 )      123,675       103,465       31,873       (740 )      134,598       14,573        4,489       (104 )      18,958  

YOY

              8 %      10 %        9 %          

Costs and expenses:

                          

Cost of revenues (1)

     42,378       22,321       (764 )      63,935       42,592       23,103       (664 )      65,031       5,999        3,254       (94 )      9,159  

Selling, general and administrative (1)

     17,103       3,466       (55 )      20,514       19,623       4,014       (118 )      23,519       2,765        565       (16 )      3,314  

Research and development (1)

     21,416       1,899       —        23,315       22,425       1,767       —        24,192       3,158        249       —        3,407  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total costs and expenses

      80,897       27,686       (819 )      107,764       84,640       28,884       (782 )      112,742       11,922        4,068       (110 )      15,880  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

YOY

                          

Cost of revenues

              1 %      4 %        2 %          

Selling, general and administrative

              15 %      16 %        15 %          

Research and development

              5 %      (7 %)        4 %          

Cost and expenses

              5 %      4 %        5 %          

Operating income

      14,534       1,312       65       15,911       18,825       2,989       42       21,856       2,651        421       6       3,078  

YOY

              30 %      128 %        37 %          

Operating margin

      15 %      5 %        13 %      18 %      9 %        16 %          

Add: total other (loss) income, net

      (4,453 )      (1,346 )      —        (5,799 )      4,298       (956 )      —        3,342       607        (135 )      —        472  

Less: income tax expense

      2,494       84       —        2,578       3,568       81       —        3,649       503        11       —        514  

Less: net income (loss) attributable to NCI

      36       18       (79 )(3)      (25 )      154       27       1,053 (3)      1,234       22        4       149 (3)      175  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Baidu

      7,551       (136 )      144       7,559       19,401       1,925       (1,011 )      20,315       2,733        271       (143 )      2,861  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

YOY

              157 %      (1,515 %)        169 %          

Net margin

      8 %      (0 %)        6 %      19 %      6 %        15 %          

 

15

     Twelve months ended
December 31, 2022 (RMB)		     Twelve months ended
December 31, 2023 (RMB)		     Twelve months ended
December 31, 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.

  

Non-GAAP financial measures:

                              

Operating income (non-GAAP)

      20,948       2,173          23,186       24,748       3,643          28,433       3,486        513           4,005  

YOY

               18 %      68 %         23 %            

Operating margin (non-GAAP)

      22 %      7 %         19 %      24 %      11 %         21 %            

Net income attributable to Baidu (non-GAAP)

      19,935       1,284          20,680       27,418       2,838          28,747       3,862        400           4,049  

YOY

               38 %      121 %         39 %            

Net margin (non-GAAP)

      21 %      4 %         17 %      26 %      9 %         21 %            

Adjusted EBITDA

      27,088       2,510          29,663       31,863       3,918          35,823       4,488        552           5,046  

YOY

               18 %      56 %         21 %            

Adjusted EBITDA margin

      28 %      9 %         24 %      31 %      12 %         27 %            

(1)   Includes share-based compensation as follows:

    

                    

Cost of revenues

      261       148          409       457       133          590       64        19           83  

Selling, general and administrative

      1,326       424          1,750       1,363       315          1,678       192        44           236  

Research and development

      4,390       239          4,629       3,888       189          4,077       548        27           575  
  

 

 

    

 

 

       

 

 

    

 

 

    

 

 

       

 

 

    

 

 

     

 

 

        

 

 

  

Total share-based compensation

      5,977       811          6,788       5,708       637          6,345       804        90           894  

 

(2)

Relates to intersegment eliminations and adjustments

(3)

Relates to the net loss attributable to iQIYI noncontrolling interests

 

16

Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)

 

    Three months ended     Three months ended     Three months ended     Three months ended  
    December 31, 2022     September 30, 2023     December 31, 2023     December 31, 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

     6,999       854       7,853       8,694       831       9,525       9,985       633       10,618       1,407       89       1,496  

Net cash (used in) provided by investing activities

     (5,902 )      579       (5,323 )      (11,345 )      (55 )      (11,400 )      (11,805 )      (1,431 )      (13,236 )      (1,662 )      (202 )      (1,864 ) 

Net cash (used in) provided by financing activities

     (5,124 )      2,862       (2,262 )      (5,253 )      269       (4,984 )      (7,586 )      (22 )      (7,608 )      (1,069 )      (3 )      (1,072 ) 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

     (1,420 )      (9 )      (1,429 )      153       5       158       (364 )      (31 )      (395 )      (52 )      (4 )      (56 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net (decrease) increase in cash, cash equivalents and restricted cash

     (5,447 )      4,286       (1,161 )      (7,751 )      1,050       (6,701 )      (9,770 )      (851 )      (10,621 )      (1,376 )      (120 )      (1,496 ) 

Cash, cash equivalents and restricted cash

                        

At beginning of period

     62,821       3,576       66,397       49,814       5,082       54,896       42,063       6,132       48,195       5,924       864       6,788  

At end of period

     57,374       7,862       65,236       42,063       6,132       48,195       32,293       5,281       37,574       4,548       744       5,292  

Net cash provided by operating activities

     6,999       854       7,853       8,694       831       9,525       9,985       633       10,618       1,407       89       1,496  

Less: Capital expenditures

     (1,920 )      (9 )      (1,929 )      (3,525 )      (4 )      (3,529 )      (3,641 )      (19 )      (3,660 )      (513 )      (3 )      (516 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Free cash flow

     5,079       845       5,924       5,169       827       5,996       6,344       614       6,958       894       86       980  

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

 

17

Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)

 

     Twelve months ended     Twelve months ended     Twelve months ended  
     December 31, 2022     December 31, 2023     December 31, 2023  
     (RMB)     (RMB)     (US$)  
     Baidu                 Baidu                 Baidu              
     excl.           Baidu,     excl.           Baidu,     excl.           Baidu,  
     iQIYI     iQIYI     Inc.     iQIYI     iQIYI     Inc.     iQIYI     iQIYI     Inc.  

Net cash provided by (used in) operating activities

      26,241       (71 )      26,170       33,263       3,352       36,615       4,685       472       5,157  

Net cash (used in) provided by investing activities

      (4,210 )      266       (3,944 )      (48,657 )      (1,740 )      (50,397 )      (6,853 )      (245 )      (7,098 ) 

Net cash (used in) provided by financing activities

      (10,859 )      4,469       (6,390 )      (9,876 )      (4,286 )      (14,162 )      (1,391 )      (604 )      (1,995 ) 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

      1,606       123       1,729       189       93       282       27       13       40  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in cash, cash equivalents and restricted cash

      12,778       4,787       17,565       (25,081 )      (2,581 )      (27,662 )      (3,532 )      (364 )      (3,896 ) 

Cash, cash equivalents and restricted cash

                   

At beginning of period

      44,596       3,075       47,671       57,374       7,862       65,236       8,080       1,108       9,188  

At end of period

      57,374       7,862       65,236       32,293       5,281       37,574       4,548       744       5,292  

Net cash provided by (used in) operating activities

      26,241       (71 )      26,170       33,263       3,352       36,615       4,685       472       5,157  

Less: Capital expenditures

      (8,112 )      (174 )      (8,286 )      (11,154 )      (36 )      (11,190 )      (1,571 )      (5 )      (1,576 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Free cash flow

      18,129       (245 )      17,884       22,109       3,316       25,425       3,114       467       3,581  

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

 

18

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  
     December 31, 2022     September 30, 2023     December 31, 2023     December 31, 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

      3,782       782       4,593       5,498       747       6,274       4,668       773       5,392       657       109        759  

Add: Share-based compensation expenses

      1,654       187       1,841       1,129       146       1,275       1,485       153       1,638       210       21        231  

Add: Amortization and impairment of intangible assets(1)

     55       8       63       45       2       47       44       1       45       6       —         6  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Operating income (non-GAAP)

      5,491       977       6,497       6,672       895       7,596       6,197       927       7,075       873       130        996  

Add: Depreciation of fixed assets

      1,655       79       1,734       1,841       68       1,909       1,921       61       1,982       270       10        280  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Adjusted EBITDA

      7,146       1,056       8,231       8,513       963       9,505       8,118       988       9,057       1,143       140        1,276  

Net income attributable to Baidu

      4,773       304       4,953       6,436       476       6,681       2,440       466       2,599       344       66        366  

Add: Share-based compensation expenses

      1,654       187       1,748       1,128       146       1,194       1,484       153       1,553       209       22        219  

Add: Amortization and impairment of intangible assets(1)

     50       8       55       43       2       44       42       1       42       6       —         6  

Add: Disposal (gain) loss

      (484 )      62       (453 )      (753 )      —        (753 )      (37 )      (1 )      (38 )      (5 )      —         (5 ) 

Add: Impairment of long-term investments

      318       271       453       46       —        46       132       62       160       19       8        23  

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

      (1,662 )      8       (1,658 )      (384 )      (2 )      (385 )      403       —        403       57       —         57  

Add: Reconciling items on equity method investments(2)

     377       18       386       572       —        572       3,172       —        3,172       447       —         447  

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

     (111 )      (2 )      (113 )      (132 )      —        (132 )      (136 )      —        (136 )      (21 )      —         (21 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net income attributable to Baidu (non-GAAP)

      4,915       856       5,371       6,956       622       7,267       7,500       681       7,755       1,056       96        1,092  

 

19

     Three months ended      Three months ended      Three months ended      Three months ended  
     December 31, 2022      September 30, 2023      December 31, 2023      December 31, 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

            13.59              18.22              6.77              0.95  

Add: Accretion of the redeemable noncontrolling interests

            0.46              0.53              0.53              0.07  

Add: Non-GAAP adjustments to earnings per ADS

            1.20              1.65              14.56              2.06  
        

 

 

           

 

 

           

 

 

           

 

 

  

Diluted earnings per ADS (non-GAAP)

            15.25              20.40              21.86              3.08  

 

(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.

 

20

Baidu, Inc.

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

(In millions except for ADS and per ADS information, unaudited)

 

     Twelve months ended     Twelve months ended     Twelve months ended  
     December 31, 2022     December 31, 2023     December 31, 2023  
     (RMB)     (RMB)     (US$)  
     Baidu           Baidu,     Baidu           Baidu,     Baidu           Baidu,  
     Core     iQIYI     Inc.     Core     iQIYI     Inc.     Core     iQIYI     Inc.  

Operating income

      14,534       1,312       15,911       18,825       2,989       21,856       2,651       421       3,078  

Add: Share-based compensation expenses

      5,977       811       6,788       5,708       637       6,345       804       90       894  

Add: Amortization and impairment of intangible assets(1)

     223       50       273       215       17       232       31       2       33  

Add: Contingent loss(2)

     214       —        214       —        —        —        —        —        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (non-GAAP)

      20,948       2,173       23,186       24,748       3,643       28,433       3,486       513       4,005  

Add: Depreciation of fixed assets

      6,140       337       6,477       7,115       275       7,390       1,002       39       1,041  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

      27,088       2,510       29,663       31,863       3,918       35,823       4,488       552       5,046  

Net income (loss) attributable to Baidu

      7,551       (136 )      7,559       19,401       1,925       20,315       2,733       271       2,861  

Add: Share-based compensation expenses

      5,964       811       6,371       5,704       637       5,993       803       90       844  

Add: Amortization and impairment of intangible assets(1)

     200       50       229       195       17       204       27       2       29  

Add: Disposal (gain)

      (515 )      (368 )      (700 )      (1,926 )      (90 )      (1,967 )      (271 )      (13 )      (277 ) 

Add: Impairment of long-term investments

      2,180       841       2,601       479       336       631       67       47       89  

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

      3,977       (18 )      3,968       (54 )      4       (52 )      (8 )      1       (7 ) 

Add: Reconciling items on equity method investments(3)

     1,473       105       1,548       3,918       9       3,922       552       2       551  

Add: Charitable donation from Baidu(4)

     136       —        136       —        —        —        —        —        —   

Add: Contingent loss(2)

     214       —        214       —        —        —        —        —        —   

Add: Tax effects on non-GAAP adjustments(5)

     (1,245 )      (1 )      (1,246 )      (299 )      —        (299 )      (41 )      —        (41 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Baidu (non-GAAP)

      19,935       1,284       20,680       27,418       2,838       28,747       3,862       400       4,049  

 

21

     Twelve months ended      Twelve months ended      Twelve months ended  
     December 31, 2022      December 31, 2023      December 31, 2023  
     (RMB)      (RMB)      (US$)  
     Baidu             Baidu,      Baidu             Baidu,      Baidu             Baidu,  
     Core      iQIYI      Inc.      Core      iQIYI      Inc.      Core      iQIYI      Inc.  

Diluted earnings per ADS

            19.85              55.08              7.76  

Add: Accretion of the redeemable noncontrolling interests

            1.68              2.02              0.28  

Add: Non-GAAP adjustments to earnings per ADS

            37.40              23.75              3.35  
        

 

 

           

 

 

           

 

 

  

Diluted earnings per ADS (non-GAAP)

            58.93              80.85              11.39  

 

(1)

This represents amortization and impairment of intangible assets resulting from business combinations.

(2)

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

(3)

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.

(4)

This represents non-recurring charitable donation to discrete events.

(5)

This represents tax impact of all non-GAAP adjustments.

 

22