Baidu Announces First Quarter 2023 Results
BEIJING,May 16,2023 -- Baidu,Inc. (NASDAQ: BIDU and HKEX: 9888) ("Baidu" or the "Company"),a leading AI company with strong Internet foundation,today announced its unaudited financial results for the first quarter ended March 31,2023.
"In the first quarter of 2023,Baidu Core delivered a solid performance,with year-on-year revenue growth accelerating from previous quarters,supporting operating margin improvement through operating leverage," said Robin Li,Co-founder and CEO of Baidu. "We believe the emergence of generative AI and large language model presents a transformative potential of AI in various industries,to help people and organizations to achieve more and to place a positive impact on society. In light of this trend,Baidu has introduced its ERNIE Bot in China,which we plan to steadily incorporate into all our businesses. This will empower our products and offerings,drawing in a larger user and customer base,while allowing us to establish a new ecosystem around the ERNIE Bot for the new era. It will also enable us to drive long-term,sustainable growth."
"Non-GAAP operating margin of Baidu Core expanded to 23% in the quarter,up from 17% in the same period last year and 21% in the previous quarter,driven by our ability to leverage our operations effectively," said Rong Luo,CFO of Baidu. "Generative AI represents a new paradigm shift in the AI,and Baidu is poised to take advantage of this massive market opportunity. Baidu will continue to invest unwaveringly in this area in the coming quarters."
First Quarter 2023 Financial Highlights[1]
Baidu,Inc.
(In millions except per
Q1
Q4
Q1
ADS,unaudited)
2022
2022
2023
YOY
QOQ
RMB
RMB
RMB
US$
Total revenues
28,411
33,077
31,144
4,535
10%
(6%)
Operating income
2,601
4,593
4,980
725
91%
8%
Operating income (non-GAAP) [2]
3,996
6,497
6,428
936
61%
(1%)
Net (loss) income to Baidu
(885)
4,953
5,825
848
-
18%
Net income to Baidu (non-GAAP) [2]
3,879
5,371
5,727
834
48%
7%
Diluted (loss) earnings per ADS
(2.87)
13.59
15.92
2.32
-
17%
Diluted earnings per ADS (non-GAAP) [2]
11.22
15.25
16.10
2.34
43%
6%
Adjusted EBITDA [2]
5,499
8,231
8,145
1,186
48%
(1%)
Adjusted EBITDA margin
19%
25%
26%
26%
Baidu Core
Q1
Q4
Q1
(In millions,unaudited)
2022
2022
2023
YOY
QOQ
RMB
RMB
RMB
US$
Total revenues
21,378
25,654
22,998
3,349
8%
(10%)
Operating income
2,524
3,782
4,091
596
62%
8%
Operating income (non-GAAP) [2]
3,686
5,491
5,363
781
45%
(2%)
Net (loss) income to Baidu Core
(963)
4,773
5,513
803
-
16%
Net income to Baidu Core (non-GAAP) [2]
3,804
4,915
5,268
767
38%
7%
Adjusted EBITDA[2]
5,106
7,146
7,003
1,020
37%
(2%)
Adjusted EBITDA margin
24%
28%
30%
30%
[1] Unless otherwise noted,RMB to USD was converted at an exchange rate of RMB 6.8676 as of March 31,2023,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).
Operational Highlights
Corporate
Baidu returned US$195 million to shareholders in Q1 2023.
Baidu released its annual ESG Report on May 12,which details Baidu's latest ESG policies and sustainability initiatives (https://esg.baidu.com/ESG/Baidu_2022_ESG_Report.pdf).
Intelligent Driving
Apollo Go,Baidu's autonomous ride-hailing service,provided around 660K rides in the first quarter of 2023,up 236% year over year and 18% quarter over quarter.
Apollo Go received Beijing's first permits to operate ride-hailing services with no driver or safety operator in the vehicles,on March 17,2023.
Other Growth Initiatives
Xiaodu ranked No.1 in smart display shipments and smart speaker shipments in China for 2022,according to IDC and Canalys.
Mobile Ecosystem
In March,Baidu App's MAUs reached 657 million,up 4% year over year.
Managed Page accounted for 49% of Baidu Core's online marketing revenue in the first quarter of 2023.
iQIYI
iQIYI's average daily number of total subscribing members for the quarter was 129 million,compared to 101 million for the first quarter of 2022 and 112 million for the fourth quarter of 2022.
First Quarter 2023 Financial Results
Total revenueswere RMB 31.1 billion ($4.54 billion),increasing 10% year over year.
Revenue from Baidu Corewas RMB23.0 billion ($3.35 billion),increasing 8% year over year; online marketing revenue was RMB 16.6 billion ($2.42 billion),up 6% year over year,and non-online marketing revenue was RMB 6.4 billion ($928 million),up 11% year over year.
Revenue from iQIYIwas RMB 8.3 billion ($1.22 billion),increasing 15% year over year.
Cost of revenueswas RMB 15.2 billion ($2.21 billion),decreasing 3% year over year,primarily due to a decrease in content costs,bandwidth costs and cost of goods sold,partially offset by the increase of traffic acquisition costs.
Selling,general and administrative expenseswere RMB 5.6 billion ($814 million),increasing 20% year over year,primarily due to an increase in channel spending and promotional marketing expenses.
Research and development expense was RMB 5.4 billion ($790 million),primarily due to a decrease in personnel related expense.
Operating incomewas RMB 5.0 billion ($725 million). Baidu Core operating income was RMB 4.1 billion ($596 million),and Baidu Core operating margin was 18%. Non-GAAP operating income was RMB 6.4 billion ($936 million). Non-GAAP Baidu Core operating income was RMB 5.4 billion ($781 million),and non-GAAP Baidu Core operating margin was 23%.
Total other income,net was RMB 2.6 billion ($378 million),which mainly included a fair value gain of RMB 1.5 billion from long-term investments. Total other loss,net was RMB 3.0 billion for the same period last year,which mainly included a fair value loss of RMB 3.0 billion from long-term investments. A significant portion of long-term investments,including but not limited to investments in equity securities of public and private companies,private equity funds,is subject to quarterly fair value adjustments,which may contribute to net income volatility in future periods.
Income tax expensewas RMB 1.2 billion ($174 million),increasing 205% year over year,primarily due to an increase in profit before tax.
Net income attributable to Baidu was RMB 5.8 billion ($848 million),and diluted earnings per ADS was RMB 15.92 ($2.32). Net income attributable to Baidu Core was RMB 5.5 billion ($803 million),and net margin for Baidu Core was 24%. Non-GAAP net income attributable to Baidu was RMB 5.7 billion ($834 million). Non-GAAP diluted earnings per ADS was RMB 16.10 ($2.34). Non-GAAP net income attributable to Baidu Core was RMB 5.3 billion ($767 million),and non-GAAP net margin for Baidu Core was 23%.
Adjusted EBITDAwas RMB 8.1 billion ($1.19 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB 7.0 billion ($1.02 billion) and adjusted EBITDA margin for Baidu Core was 30%.
As of March 31,cash,cash equivalents,restricted cash and short-term investments were RMB 194.0 billion ($28.25 billion),and cash,restricted cash and short-term investments excluding iQIYI were RMB 188.8 billion ($27.49 billion). Free cash flow was RMB 4.5 billion ($661 million),and free cash flow excluding iQIYI was RMB 3.5 billion ($515 million).
Conference Call Information
Baidu'smanagementwill hold an earnings conference call at 8 AM on May 16,U.S. Eastern Time (8 PM on May 16,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 Q1 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/10030497-jz1rwg.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 (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.
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,adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items,amortization and impairment of intangible assets not on the investees' books,accretion of their redeemable non-controlling interests,and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares,adjusted for related income tax effects,are also excluded.
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,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 (Loss) Income
(In millions except for per share (or ADS) information,unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2022
2022
2023
2023
RMB
RMB
RMB
US$(2)
Revenues:
Online marketing services
16,929
19,571
17,972
2,617
Others
11,482
13,506
13,172
1,918
Total revenues
28,411
33,077
31,144
4,535
Costs and expenses:
Cost of revenues(1)
15,546
16,945
15,152
2,206
Selling,general and administrative(1)
4,656
5,881
5,589
814
Research and development(1)
5,608
5,658
5,423
790
Total costs and expenses
25,810
28,484
26,164
3,810
Operating income
2,601
4,593
4,980
725
Other (loss) income:
Interest income
1,454
1,647
1,915
279
Interest expense
(710)
(738)
(804)
(117)
Foreign exchange loss,net
(11)
(338)
(106)
(15)
Share of losses from equity method investments
(408)
(523)
(48)
(7)
Others,net
(3,286)
1,733
1,638
238
Total other (loss) income,net
(2,961)
1,781
2,595
378
(Loss) income before income taxes
(360)
6,374
7,575
1,103
Income tax expense
391
1,254
1,193
174
Net (loss) income
(751)
5,120
6,382
929
Net income attributable to noncontrolling interests
134
167
557
81
Net (loss) income attributable to Baidu
(885)
4,953
5,825
848
(Loss) earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic
(2.87)
13.73
16.17
2.35
-Diluted
(2.87)
13.59
15.92
2.32
(Loss) earnings per share for Class A and Class B ordinary shares:
-Basic
(0.36)
1.72
2.02
0.29
-Diluted
(0.36)
1.70
1.99
0.29
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic
2,767
2,789
2,798
2,798
-Diluted
2,801
2,837
2,837
(1) Includes share-based compensation expenses as follows:
Cost of revenues
82
158
98
14
Selling,general and administrative
377
450
463
68
Research and development
864
1,233
828
120
Total share-based compensation expenses
1,323
1,841
1,389
202
(2) All translations from RMB to U.S. dollars are made at a rate of RMB 6.8676 to US$1.00,the exchange rate in effect as of March 31,2023 as set
forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.
Baidu,Inc.
Condensed Consolidated Balance Sheets
(In millions,unaudited)
December 31,
2022
2023
2023
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
53,156
23,638
3,442
Restricted cash
11,330
11,252
1,638
Short-term investments,net
120,839
159,127
23,171
Accounts receivable,net
11,733
10,798
1,572
Amounts due from related parties
5,432
5,211
759
Other current assets,net(1)
10,360
19,179
2,793
Total current assets
212,850
229,205
33,375
Non-current assets:
Fixed assets,net
23,973
22,975
3,345
Licensed copyrights,net
6,841
6,701
976
Produced content,net
13,002
12,603
1,835
Intangible assets,net
1,183
172
Goodwill
22,477
22,589
3,289
Long-term investments,net
55,297
55,463
8,076
Long-term time deposits and held-to-maturity investments
23,629
18,676
2,719
Amounts due from related parties
60
96
14
Deferred tax assets,net
2,129
2,091
304
Operating lease right-of-use assets
10,365
10,183
1,483
Other non-current assets
19,096
19,214
2,798
Total non-current assets
178,123
171,774
25,011
Total assets
390,973
400,979
58,386
LIABILITIES,REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans
5,343
6,833
995
Accounts payable and accrued liabilities
38,014
34,043
4,957
Customer deposits and deferred revenue
13,116
13,913
2,026
Deferred income
72
142
21
Long-term loans,current portion
-
1
-
Convertible senior notes,current portion
8,305
8,265
1,203
Notes payable,current portion
6,904
6,865
1,000
Amounts due to related parties
5,067
5,211
759
Operating lease liabilities
2,809
2,797
407
Total current liabilities
79,630
78,070
11,368
Non-current liabilities:
Deferred income
159
116
17
Deferred revenue
331
375
55
Amounts due to related parties
99
94
14
Long-term loans
13,722
13,678
1,992
Notes payable
39,893
39,670
5,776
Convertible senior notes
9,568
11,668
1,699
Deferred tax liabilities
2,898
3,014
439
Operating lease liabilities
4,810
4,650
677
Other non-current liabilities
2,058
2,068
300
Total non-current liabilities
73,538
75,333
10,969
Total liabilities
153,168
153,403
22,337
Redeemable noncontrolling interests
8,393
8,709
1,268
Equity
Total Baidu shareholders' equity
223,478
230,095
33,504
Noncontrolling interests
5,934
8,772
1,277
Total equity
229,412
238,867
34,781
Total liabilities,redeemable noncontrolling interests,and equity
390,386
(1) This includes payment of US$1,198 million to the paying agent to meet the iQIYI's repurchase obligation of the 2.00%
Convertible Senior Notes due 2025. The repurchase was completed in April 2023.
Baidu,Inc.
Selected Information
(In millions,unaudited)
Three months ended
March 31,2022 (RMB)
Three months ended
December 31,2022 (RMB)
Three months ended
March 31,2023 (RMB)
Three months ended
March 31,2023 (US$)
Baidu
Core
iQIYI
Elim &
adj(2)
Baidu,
Inc.
Baidu
Core
iQIYI
Elim &
adj(2)
Baidu,
Inc.
Total revenues
21,378
7,277
(244)
28,411
25,654
7,593
(170)
33,077
22,998
8,349
(203)
31,144
3,349
1,216
(30)
4,535
YOY
8%
15%
10%
QOQ
(10%)
10%
(6%)
Costs and expenses:
Cost of revenues(1)
9,807
5,964
(225)
15,546
11,712
5,405
(172)
16,945
9,379
5,956
(183)
15,152
1,365
867
(26)
2,206
Selling,general and administrative(1)
3,913
745
(2)
4,656
4,969
939
(27)
5,881
4,533
1,106
(50)
5,589
660
161
(7)
814
Research and development(1)
5,134
474
-
5,191
467
-
5,658
4,995
428
-
5,423
728
62
-
790
Total costs and expenses
18,854
7,183
(227)
25,810
21,872
6,811
(199)
28,484
18,907
7,490
(233)
26,164
2,753
1,090
(33)
3,810
YOY
Cost of revenues
(4%)
(0%)
(3%)
Selling,general and administrative
16%
48%
20%
Research and development
(3%)
(10%)
(3%)
Cost and expenses
0%
4%
1%
Operating income (loss)
2,524
94
(17)
2,601
3,782
782
29
4,091
859
30
4,980
596
126
3
725
YOY
62%
814%
91%
QOQ
8%
10%
8%
Operating margin
12%
1%
9%
15%
10%
14%
18%
10%
16%
Add: total other (loss) income,058)
97
-
(2,961)
2,271
(490)
-
1,781
2,803
(208)
-
2,595
408
(30)
-
378
Less: income tax expense (benefit)
374
17
-
391
1,265
(11)
-
1,168
25
-
1,193
170
4
-
174
Less: net income (loss) attributable to NCI
55
5
74
(3)
134
15
(1)
153
(3)
167
213
8
336
(3)
557
31
1
49
(3)
81
Net (loss) income attributable to Baidu
(963)
169
(91)
(885)
4,773
304
(124)
4,513
618
(306)
5,825
803
91
(46)
848
YOY
-
266%
-
QOQ
16%
103%
18%
Net margin
(5%)
2%
(3%)
19%
4%
15%
24%
7%
19%
Non-GAAP financial measures:
Operating income (non-GAAP)
3,686
327
3,996
5,491
977
6,497
5,363
1,035
6,428
781
152
936
YOY
45%
217%
61%
QOQ
(2%)
6%
(1%)
Operating margin (non-GAAP)
17%
4%
14%
21%
13%
20%
23%
12%
21%
Net income attributable to Baidu (non-GAAP)
3,804
162
3,879
4,915
856
5,371
5,268
940
5,727
767
138
834
YOY
38%
480%
48%
QOQ
7%
10%
7%
Net margin (non-GAAP)
18%
2%
14%
19%
11%
16%
23%
11%
18%
Adjusted EBITDA
5,106
410
5,499
7,146
1,056
8,231
7,003
1,112
8,145
1,020
163
1,186
YOY
37%
171%
48%
QOQ
(2%)
5%
(1%)
Adjusted EBITDA margin
24%
6%
19%
28%
14%
25%
30%
13%
26%
(1) Includes share-based compensation as follows:
Cost of revenues
45
37
82
122
36
158
65
33
98
9
5
14
Selling,general and administrative
257
120
377
355
95
450
377
86
463
55
13
68
Research and development
804
60
864
1,177
56
1,233
778
50
828
113
7
120
Total share-based compensation
1,106
217
1,654
187
1,220
169
1,389
177
25
202
(2) Relates to intersegment eliminations and adjustments
(3) Relates to the net income/(loss) 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
March 31,2022 (RMB)
December 31,2022 (RMB)
March 31,2023 (RMB)
March 31,2023 (US$)
Baidu
excl.
iQIYI
iQIYI
Baidu,
Inc.
Baidu
excl.
iQIYI
iQIYI
Baidu,
Inc.
Net cash provided by (used in) operating activities
3,039
(1,167)
1,872
6,999
854
7,853
4,838
1,002
5,840
704
146
850
Net cash (used in) provided by investing activities
(2,884)
(67)
(2,951)
(5,902)
579
(5,323)
(32,816)
167
(32,649)
(4,778)
24
(4,754)
Net cash (used in) provided by financing activities
(644)
2,046
1,402
(5,124)
2,862
(2,262)
1,055
(3,357)
(2,302)
154
(489)
(335)
Effect of exchange rate changes on cash,cash equivalents
and restricted cash
(183)
(4)
(187)
(1,420)
(9)
(1,429)
(96)
(9)
(105)
(14)
(1)
(15)
Net (decrease) increase in cash,cash equivalents and
restricted cash
(672)
808
136
(5,447)
4,286
(1,161)
(27,019)
(2,197)
(29,216)
(3,934)
(320)
(4,254)
Cash,cash equivalents and restricted cash
At beginning of period
44,596
3,075
47,671
62,821
3,576
66,397
57,374
7,862
65,236
8,354
1,145
9,499
At end of period
43,924
3,883
47,807
57,236
30,355
5,665
36,020
4,420
825
5,245
Net cash provided by (used in) operating activities
3,840
704
146
850
Less: Capital expenditures
(1,928)
(51)
(1,979)
(1,920)
(9)
(1,929)
(1,295)
-
(1,295)
(189)
-
(189)
Free cash flow
1,111
(1,218)
(107)
5,079
845
5,924
3,543
1,002
4,545
515
146
661
Note: Baidu excl. iQIYI represents Baidu,Inc. minus iQIYI's consolidated cash flows.
Baidu,Inc.
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures
(In millions except for per ADS information,2023 (US$)
Baidu
Core
iQIYI
Baidu,Inc.
Baidu
Core
iQIYI
Baidu,Inc.
Operating income
2,524
94
2,782
782
4,091
859
4,980
596
126
725
Add: Share-based compensation expenses
1,106
217
1,654
187
1,220
169
1,389
177
25
202
Add: Amortization and impairment of intangible assets(1)
56
16
72
55
8
63
52
7
59
8
1
9
Operating income (non-GAAP)
3,686
327
3,491
977
6,035
6,428
781
152
936
Add: Depreciation of fixed assets
1,420
83
1,503
1,655
79
1,734
1,640
77
1,717
239
11
250
Adjusted EBITDA
5,106
410
5,056
8,112
8,020
163
1,186
Net (loss) income attributable to Baidu
(963)
169
(885)
4,773
304
4,513
618
5,825
803
91
848
Add: Share-based compensation expenses
1,101
217
1,210
1,748
1,297
177
25
189
Add: Amortization and impairment of intangible assets(1)
50
16
59
50
8
55
49
7
53
7
1
8
Add: Disposal (gain) loss
-
(430)
(216)
(484)
62
(453)
(217)
-
(217)
(32)
-
(32)
Add: Impairment of long-term investments
598
183
690
318
271
453
31
119
85
5
17
12
Add: Fair value loss (gain) of long-term investments
3,037
(1)
3,037
(1,662)
8
(1,658)
(1,312)
10
(1,307)
(191)
1
(190)
Add: Reconciling items on equity method investments(2)
456
11
462
377
18
386
(122)
18
(114)
(17)
3
(16)
Add: Tax effects on non-GAAP adjustments(3)
(475)
(3)
(478)
(111)
(2)
(113)
106
(1)
105
15
-
15
Net income attributable to Baidu (non-GAAP)
3,804
162
3,915
856
5,268
940
5,727
767
138
834
Diluted (loss) earnings per ADS
(2.87)
13.59
15.92
2.32
Add: Accretion of the redeemable noncontrolling interests
0.31
0.46
0.46
0.07
Add: Non-GAAP adjustments to (loss) earnings per ADS
13.78
1.20
(0.28)
(0.05)
Diluted earnings per ADS (non-GAAP)
11.22
15.25
16.10
2.34
(1) This represents amortization and impairment of intangible assets resulting from business combinations.
(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items,amortization and impairment of intangible assets not on the investee's books,accretion of their redeemable noncontrolling interests,and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares.
(3) This represents tax impact of all non-GAAP adjustments.
