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Baidu Announces Second Quarter 2024 Results

Baidu Announces Second Quarter 2024 Results

BEIJING, Aug. 22, 2024 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2024.

"AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline growth for Baidu Core. Operationally, we fast-tracked the renovation of Baidu search, which we believe will drive long-term success despite the short-term impact on monetization. We also achieved new breakthroughs with Apollo Go, which now offers 100% fully driverless ride-hailing services in practically the entire Wuhan municipality, and has started scalable testing of the latest RT6 vehicles," said Robin Li, Co-founder and CEO of Baidu. "Gradually, the transformative impact of Gen-AI and foundation models is becoming more tangible in business and everyday life. Throughout all layers of our AI technology stack and with the rapid adoption of applications built on top of ERNIE, we are scaling AI to address real-world problems and generate substantial value both for external customers and our own product portfolio."

"As we speeded up the AI-native transformation of our products in the second quarter, we continued to optimize our operations and maintained a healthy margin," said Rong Luo, CFO of Baidu. "For AI Cloud in particular, we expect growth to maintain a strong momentum."

Second Quarter 2024 Financial Highlights[1]


Baidu, Inc.

(In millions except per 

   Q2


   Q1


   Q2






ADS, unaudited)

2023


2024


2024



YOY


QOQ


  RMB


  RMB


  RMB

US$





Total revenues

34,056


31,513


33,931

4,669


(0 %)


8 %












Operating income 

5,210


5,484


5,944

818


14 %


8 %

Operating income (non-GAAP) [2]

7,334


6,673


7,500

1,032


2 %


12 %












Net income to Baidu

5,210


5,448


5,488

755


5 %


1 %

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

7,998


7,011


7,396

1,018


(8 %)


5 %












Diluted earnings per ADS

14.17


14.91


15.01

2.07


6 %


1 %

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

22.55


19.91


21.02

2.89


(7 %)


6 %












Adjusted EBITDA [2]

9,116


8,244


9,147

1,259


0 %


11 %

Adjusted EBITDA margin 

27 %


26 %


27 %

27 %





 

 


Baidu Core


Q2


Q1


Q2






(In millions, unaudited)

2023


2024


2024



YOY


QOQ


 RMB


RMB


RMB

US$





Total revenues

26,407


23,803


26,687

3,672


1 %


12 %












Operating income

4,568


4,538


5,608

772


23 %


24 %

Operating income (non-GAAP) [2]

6,516


5,586


7,005

964


8 %


25 %












Net income to Baidu Core

5,012


5,150


5,462

752


9 %


6 %

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

7,694


6,628


7,290

1,003


(5 %)


10 %












Adjusted EBITDA[2]

8,229


7,118


8,617

1,186


5 %


21 %

Adjusted EBITDA margin

31 %


30 %


32 %

32 %






[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2672 as of June 28, 2024,
as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations
are provided solely for the convenience of the reader.

[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of
Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details).

Operational Highlights 

Corporate

  • Baidu expanded the ERNIE family of models with the launch of ERNIE 4.0 Turbo in June 2024, offering superior capabilities for typical use cases, and designed to run faster and at lower cost compared to ERNIE 4.0.
  • Baidu returned US$301 million to shareholders since the beginning of Q2 2024, bringing the cumulative repurchase to about US$1.2 billion under the 2023 share repurchase program.
  • Baidu earned a position in the China edition of the S&P Global Sustainability Yearbook, in recognition of its exceptional ESG performance. The selection stems from a comprehensive evaluation of 1,700 Chinese companies as part of the S&P Global 2023 Corporate Sustainability Assessment, underscoring Baidu's sustainability practices.

AI Cloud

  • PaddlePaddle and ERNIE developer community grew to 14.7 million in June 2024.

Intelligent Driving

  • Apollo Go, Baidu's autonomous ride-hailing service, provided about 899K rides in the second quarter of 2024, up 26% year over year. As of July 28, 2024, the cumulative rides provided to the public by Apollo Go surpassed 7 million.
  • On June 19, Apollo Go started offering 100% fully driverless operations in practically the entire Wuhan municipality, its largest operational city, marking a significant milestone.
  • The sixth-generation of our autonomous vehicle, the RT6, is now undergoing scalable testing.

Mobile Ecosystem

  • In June 2024, Baidu App's MAUs reached 703 million, up 4% year over year.
  • Managed Page accounted for 51% of Baidu Core's online marketing revenue in the second quarter of 2024.

Second Quarter 2024 Financial Results 

Total revenues were RMB33.9 billion ($4.67 billion), which was basically flat from last year.

  • Revenue from Baidu Core was RMB26.7 billion ($3.67 billion), increasing 1% year over year; online marketing revenue was RMB19.2 billion ($2.64 billion), decreasing 2% year over year, and non-online marketing revenue was RMB7.5 billion ($1.03 billion), up 10% year over year, mainly driven by AI Cloud business.
  • Revenue from iQIYI was RMB7.4 billion ($1.02 billion), decreasing 5% year over year.

Cost of revenues was RMB16.4 billion ($2.26 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business.

Selling, general and administrative expenses were RMB5.7 billion ($784 million), decreasing 9% year over year, primarily due to a decrease in expected credit losses, channel spending and promotional marketing expenses and personnel related expenses.

Research and development expenses were RMB5.9 billion ($810 million), decreasing 8% year over year, primarily due to a decrease in personnel related expenses.

Operating income was RMB5.9 billion ($818 million). Baidu Core operating income was RMB5.6 billion ($772 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.5 billion ($1.03 billion). Non-GAAP Baidu Core operating income was RMB7.0 billion ($964 million), and non-GAAP Baidu Core operating margin was 26%.

Total other income, net was RMB771 million ($106 million), decreasing 44% year over year, primarily due to a decrease in net foreign exchange gain and disposal gain, partially offset by the decrease in fair value loss and impairment loss from long-term investments.

Income tax expense was RMB1.1 billion ($156 million), compared to RMB1.3 billion in the same period last year.

Net income attributable to Baidu was RMB5.5 billion ($755 million), and diluted earnings per ADS was RMB15.01 ($2.07). Net income attributable to Baidu Core was RMB5.5 billion ($752 million), and net margin for Baidu Core was 20%. Non-GAAP net income attributable to Baidu was RMB7.4 billion ($1.02 billion). Non-GAAP diluted earnings per ADS was RMB21.02 ($2.89). Non-GAAP net income attributable to Baidu Core was RMB7.3 billion ($1.00 billion), and non-GAAP net margin for Baidu Core was 27%.

Adjusted EBITDA was RMB9.1 billion ($1.26 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB8.6 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 32%.

As of June 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB162.0 billion ($22.29 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB155.0 billion ($21.32 billion). Free cash flow was RMB6.3 billion ($862 million), and free cash flow excluding iQIYI was RMB5.9 billion ($810 million).

Conference Call Information

Baidu's management will hold an earnings conference call at 8.00 AM on Aug 22, 2024, U.S. Eastern Time (8.00 PM on Aug 22, 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. Q2 2024 Earnings Conference Call". Please follow the steps to enter your registration details, then click "Register". Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click:
https://s1.c-conf.com/diamondpass/10040402-jgu7y6.html

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.

About Baidu

Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, and amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain, impairment of long-term investments, and fair value gain (loss) of long-term investments, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share-based compensation expenses.

For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure."

 

 

Baidu, Inc. 
















Condensed Consolidated Statements of  Income 
















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

















Three Months Ended


Six Months Ended




June 30,


March 31,


June 30,


June 30,


June 30,


June 30,


June 30,




2023


2024


2024


2024


2023


2024


2024




RMB


RMB


RMB


US$(2)


RMB


RMB


US$(2)


Revenues:
















Online marketing services


21,081


18,490


20,625


2,838


39,053


39,115


5,382


Others


12,975


13,023


13,306


1,831


26,147


26,329


3,623


Total revenues 


34,056


31,513


33,931


4,669


65,200


65,444


9,005


















Costs and expenses:
















Cost of revenues(1)


16,167


15,291


16,398


2,257


31,319


31,689


4,361


Selling, general and administrative(1)


6,298


5,375


5,700


784


11,887


11,075


1,524


Research and development(1)


6,381


5,363


5,889


810


11,804


11,252


1,548


Total costs and expenses


28,846


26,029


27,987


3,851


55,010


54,016


7,433


Operating income


5,210


5,484


5,944


818


10,190


11,428


1,572


















Other income:
















Interest income


1,948


2,091


1,993


274


3,863


4,084


562


Interest expense


(817)


(766)


(742)


(102)


(1,621)


(1,508)


(208)


Foreign exchange gain, net


1,176


401


93


13


1,070


494


68


Share of losses from equity method investments


(383)


(205)


(119)


(16)


(431)


(324)


(45)


Others, net


(555)


(275)


(454)


(63)


1,083


(729)


(100)


Total other income, net


1,369


1,246


771


106


3,964


2,017


277


















Income before income taxes


6,579


6,730


6,715


924


14,154


13,445


1,849


Income tax expense


1,270


883


1,131


156


2,463


2,014


277


Net income 


5,309


5,847


5,584


768


11,691


11,431


1,572


Net income attributable to noncontrolling interests


99


399


96


13


656


495


68


Net income attributable to Baidu


5,210


5,448


5,488


755


11,035


10,936


1,504


































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
















 -Basic


14.34


14.97


15.11


2.08


30.55


30.12


4.14


 -Diluted


14.17


14.91


15.01


2.07


30.05


29.98


4.13


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
















 -Basic


1.79


1.87


1.89


0.26


3.82


3.77


0.52


 -Diluted


1.77


1.86


1.88


0.26


3.76


3.74


0.51


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












 -Basic 


2,804


2,804


2,796


2,796


2,801


2,800


2,800


 -Diluted


2,834


2,816


2,804


2,804


2,836


2,810


2,810


















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
















 Cost of revenues 


194


108


146


20


292


254


35


 Selling, general and administrative 


446


417


385


53


909


802


110


 Research and development 


1,403


618


981


135


2,231


1,599


220


 Total share-based compensation expenses 


2,043


1,143


1,512


208


3,432


2,655


365


















(2)  All translations from RMB to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the exchange rate in effect as of June 28, 2024 as set forth in the H.10 statistical release of The Board of Governors
of the Federal Reserve System.

 

 

 

Baidu, Inc. 







Condensed Consolidated Balance Sheets







(In millions, unaudited)
















December 31,


June 30,


June 30,



2023


2024


2024



RMB


RMB


US$

ASSETS







Current assets:







Cash and cash equivalents


25,231


43,534


5,990

Restricted cash


11,503


11,646


1,603

Short-term investments, net


168,670


106,821


14,699

Accounts receivable, net


10,848


11,112


1,529

Amounts due from related parties


1,424


1,396


192

Other current assets, net


12,579


12,757


1,756

Total current assets


230,255


187,266


25,769








Non-current assets:







Fixed assets, net


27,960


29,154


4,012

Licensed copyrights, net


6,967


6,914


951

Produced content, net


13,377


14,320


1,970

Intangible assets, net


881


812


112

Goodwill


22,586


22,586


3,108

Long-term investments, net


47,957


46,193


6,356

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


24,666


72,497


9,976

Amounts due from related parties


195


212


29

Deferred tax assets, net


2,100


2,342


322

Operating lease right-of-use assets


10,851


10,919


1,503

Other non-current assets


18,964


22,312


3,071

Total non-current assets


176,504


228,261


31,410








Total assets


406,759


415,527


57,179








LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY





Current liabilities:







Short-term loans


10,257


12,514


1,722

Accounts payable and accrued liabilities


37,717


37,988


5,227

Customer deposits and deferred revenue


14,627


14,038


1,932

Deferred income


306


291


40

Long-term loans, current portion


2


29


4

Convertible senior notes, current portion


2,802


2,892


398

Notes payable, current portion


6,029


7,986


1,099

Amounts due to related parties


1,603


1,831


252

Operating lease liabilities


3,108


3,196


440

Total current liabilities


76,451


80,765


11,114








Non-current liabilities:







Deferred income


200


287


39

Deferred revenue


481


520


72

Amounts due to related parties


77


67


9

Long-term loans


14,223


14,859


2,045

Notes payable


34,990


27,860


3,834

Convertible senior notes


8,144


8,408


1,157

Deferred tax liabilities


2,725


2,940


405

Operating lease liabilities


5,040


5,056


696

Other non-current liabilities


1,820


1,827


250

Total non-current liabilities


67,700


61,824


8,507








Total liabilities


144,151


142,589


19,621








Redeemable noncontrolling interests


9,465


10,107


1,391








Equity







Total Baidu shareholders' equity


243,626


252,769


34,782

Noncontrolling interests


9,517


10,062


1,385

Total equity


253,143


262,831


36,167








Total liabilities, redeemable noncontrolling interests, and equity


406,759


415,527


57,179








 

 

 

Baidu, Inc. 


























Selected Information


























(In millions, unaudited)






















































Three months ended
June 30, 2023 (RMB)


Three months ended
March 31, 2024 (RMB)


Three months ended
June 30, 2024 (RMB)


Three months ended
June 30, 2024 (US$)




Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Total revenues 


26,407

7,802

(153)


34,056


23,803

7,927

(217)


31,513


26,687

7,439

(195)


33,931


3,672

1,024

(27)


4,669


  YOY














1 %

(5 %)



(0 %)








  QOQ














12 %

(6 %)



8 %


































Costs and expenses: 


























  Cost of revenues (1)


10,553

5,774

(160)


16,167


9,839

5,631

(179)


15,291


10,888

5,678

(168)


16,398


1,498

781

(22)


2,257


  Selling, general and administrative (1)


5,344

979

(25)


6,298


4,492

922

(39)


5,375


4,751

970

(21)


5,700


654

133

(3)


784


  Research and development (1)


5,942

439

-


6,381


4,934

429

-


5,363


5,440

449

-


5,889


748

62

-


810


Total costs and expenses 


21,839

7,192

(185)


28,846


19,265

6,982

(218)


26,029


21,079

7,097

(189)


27,987


2,900

976

(25)


3,851


  YOY 


























  Cost of revenues 














3 %

(2 %)



1 %








  Selling, general and administrative 














(11 %)

(1 %)



(9 %)








  Research and development 














(8 %)

2 %



(8 %)








  Costs and expenses














(3 %)

(1 %)



(3 %)


































Operating income (loss)


4,568

610

32


5,210


4,538

945

1


5,484


5,608

342

(6)


5,944


772

48

(2)


818


  YOY














23 %

(44 %)



14 %








  QOQ














24 %

(64 %)



8 %








Operating margin 


17 %

8 %



15 %


19 %

12 %



17 %


21 %

5 %



18 %


































  Add: total other income (loss), net


1,603

(234)

-


1,369


1,508

(262)

-


1,246


1,011

(240)

-


771


139

(33)

-


106


  Less: income tax expense


1,262

8

-


1,270


866

17

-


883


1,105

26

-


1,131


152

4

-


156


  Less: net (loss) income attributable to NCI


(103)

3

199

(3)

99


30

11

358

(3)

399


52

7

37

(3)

96


7

1

5

(3)

13


Net income (loss) attributable to Baidu


5,012

365

(167)


5,210


5,150

655

(357)


5,448


5,462

69

(43)


5,488


752

10

(7)


755


  YOY














9 %

(81 %)



5 %








  QOQ














6 %

(89 %)



1 %








Net margin 


19 %

5 %



15 %


22 %

8 %



17 %


20 %

1 %



16 %


































Non-GAAP financial measures:


























Operating income (non-GAAP)


6,516

786



7,334


5,586

1,086



6,673


7,005

501



7,500


964

70



1,032


  YOY














8 %

(36 %)



2 %








  QOQ














25 %

(54 %)



12 %








Operating margin (non-GAAP)


25 %

10 %



22 %


23 %

14 %



21 %


26 %

7 %



22 %


































Net income attributable to Baidu (non-GAAP)


7,694

595



7,998


6,628

844



7,011


7,290

247



7,396


1,003

34



1,018


  YOY














(5 %)

(58 %)



(8 %)








  QOQ














10 %

(71 %)



5 %








Net margin (non-GAAP)


29 %

8 %



23 %


28 %

11 %



22 %


27 %

3 %



22 %


































Adjusted EBITDA


8,229

855



9,116


7,118

1,125



8,244


8,617

536



9,147


1,186

75



1,259


  YOY














5 %

(37 %)



0 %








  QOQ














21 %

(52 %)



11 %








Adjusted EBITDA margin 


31 %

11 %



27 %


30 %

14 %



26 %


32 %

7 %



27 %


































(1)  Includes share-based compensation as follows:


























 Cost of revenues 


160

34



194


76

32



108


117

29



146


16

4



20


 Selling, general and administrative 


356

90



446


353

64



417


292

93



385


40

13



53


 Research and development 


1,358

45



1,403


575

43



618


945

36



981


130

5



135


 Total share-based compensation 


1,874

169



2,043


1,004

139



1,143


1,354

158



1,512


186

22



208


 (2) Relates to intersegment eliminations and adjustments 

























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























 

 

 

Baidu, Inc. 

















Condensed Consolidated Statements of Cash Flows

















(In millions,unaudited)




































Three months ended 


Three months ended 


Three months ended 


Three months ended 



June 30, 2023 (RMB)


March 31, 2024 (RMB)


June 30, 2024 (RMB)


June 30, 2024 (US$)



 Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.


 Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.


 Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.


 Baidu
excl.
iQIYI

iQIYI

Baidu,
Inc.

Net cash provided by operating activities


9,746

886

10,632


5,284

936

6,220


7,970

409

8,379


1,097

56

1,153

Net cash provided by (used in) investing activities 


7,309

(421)

6,888


(2,893)

(223)

(3,116)


13,824

337

14,161


1,903

46

1,949

Net cash provided by (used in) financing activities


1,908

(1,176)

732


2,126

261

2,387


(9,946)

869

(9,077)


(1,369)

120

(1,249)

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


496

128

624


154

15

169


66

22

88


9

3

12

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


19,459

(583)

18,876


4,671

989

5,660


11,914

1,637

13,551


1,640

225

1,865

Cash, cash equivalents and restricted cash

















  At beginning of period


30,355

5,665

36,020


32,293

5,281

37,574


36,964

6,270

43,234


5,086

863

5,949

  At end of period


49,814

5,082

54,896


36,964

6,270

43,234


48,878

7,907

56,785


6,726

1,088

7,814


















Net cash provided by operating activities


9,746

886

10,632


5,284

936

6,220


7,970

409

8,379


1,097

56

1,153

Less: Capital expenditures


(2,693)

(13)

(2,706)


(2,016)

(22)

(2,038)


(2,090)

(28)

(2,118)


(287)

(4)

(291)

Free cash flow


7,053

873

7,926


3,268

914

4,182


5,880

381

6,261


810

52

862


















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














 

 

 

Baidu, Inc. 


































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





























(In millions except for per ADS information, unaudited)






































































Three months ended 


Three months ended 


Three months ended 


Three months ended 




















June 30, 2023 (RMB)


March 31, 2024 (RMB)


June 30, 2024 (RMB)


June 30, 2024 (US$)




















Baidu
Core

iQIYI

Baidu,
Inc.


Baidu
Core

iQIYI

Baidu,
Inc.


Baidu
Core

iQIYI

Baidu,
Inc.


Baidu
Core

iQIYI

Baidu,
Inc.


















Operating income


4,568

610

5,210


4,538

945

5,484


5,608

342

5,944


772

48

818


















Add: Share-based compensation expenses


1,874

169

2,043


1,004

139

1,143


1,354

158

1,512


186

22

208


















Add: Amortization and impairment of intangible assets(1)


74

7

81


44

2

46


43

1

44


6

-

6


















Operating income (non-GAAP)


6,516

786

7,334


5,586

1,086

6,673


7,005

501

7,500


964

70

1,032




















































Add:  Depreciation of fixed assets


1,713

69

1,782


1,532

39

1,571


1,612

35

1,647


222

5

227


















Adjusted EBITDA


8,229

855

9,116


7,118

1,125

8,244


8,617

536

9,147


1,186

75

1,259




















































Net income attributable to Baidu


5,012

365

5,210


5,150

655

5,448


5,462

69

5,488


752

10

755


















Add: Share-based compensation expenses


1,872

169

1,949


1,003

139

1,066


1,353

158

1,425


185

22

196


















Add: Amortization and impairment of intangible assets(1)


61

7

65


42

2

43


41

1

41


6

-

6


















Add: Disposal (gain)


(919)

(89)

(959)


(458)

-

(458)


(30)

-

(30)


(4)

-

(4)


















Add: Impairment of long-term investments


270

155

340


36

71

68


26

17

34


4

2

5


















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


1,239

(4)

1,237


725

(23)

714


531

2

531


73

-

73


















Add: Reconciling items on equity method investments(2)


296

(9)

292


280

-

280


83

-

83


11

-

11


















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


(137)

1

(136)


(150)

-

(150)


(176)

-

(176)


(24)

-

(24)


















Net income attributable to Baidu (non-GAAP)


7,694

595

7,998


6,628

844

7,011


7,290

247

7,396


1,003

34

1,018




















































Diluted earnings per ADS




14.17




14.91




15.01




2.07


















Add:  Accretion of the redeemable noncontrolling interests




0.50




0.55




0.57




0.08


















Add:  Non-GAAP adjustments to earnings per ADS




7.88




4.45




5.44




0.74


















Diluted earnings per ADS (non-GAAP)




22.55




19.91




21.02




2.89




















































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


















(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or loss
associated with the issuance of shares by the investees at a price higher or lower than the carrying value per share.


















.

(3) This represents tax impact of all non-GAAP adjustments.


















 

 

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