BEIJING, April 26, 2018 /PRNewswire/ -- Baidu, Inc.
(NASDAQ: BIDU) ("Baidu" or the "Company"), the leading Chinese
language Internet search provider, today announced its unaudited
financial results for the first quarter ended March 31, 2018[1].
"We had a strong start in 2018, with our core business
exhibiting robust growth, and we continue to execute on our
strategy to strengthen Baidu's mobile foundation and lead in AI.
Through innovation, search plus feed is powering strong
monetization, DuerOS is showing accelerated momentum with hardware
partners and Apollo has a great potential to become a world-class
technology platform," said Robin Li,
Chairman and CEO of Baidu. "I would also like to congratulate iQIYI
on a successful IPO and hope to incubate more businesses with large
market opportunities and strong synergies with Baidu."
"Baidu delivered another solid quarter with revenues up 31%[2]
year over year to RMB 20.9 billion
and operating income up 128% to RMB 4.6
billion," said Herman Yu, CFO
of Baidu. "We have never been more focused than we have in the past
year, by scaling down or exiting non-core businesses and doubling
down on investments in AI-powered businesses to generate
significant long-term return to our shareholders."
First Quarter 2018 Financial Highlights
- Total revenues were RMB 20.9
billion ($3.33 billion),
increasing 31% year over year. Mobile revenue represented 78% of
total net revenues, compared to 70% for the first quarter of 2017.
Total revenues of Baidu Core were RMB 16.1
billion ($2.57 billion),
increasing 26% year over year.
- Operating income was RMB 4.6
billion ($728 million),
increasing 128% year over year. Operating margin reached 22%,
compared to 13% for the first quarter of 2017.
- Non-GAAP operating income was RMB 5.3
billion ($852 million),
increasing 103% year over year. Non-GAAP operating margin reached
26%, compared to 17% for the first quarter of 2017. Non-GAAP
operating income of Baidu Core, excluding iQIYI, was RMB 6.4 billion, increasing 81% year over year.
Non-GAAP operating margin of Baidu Core, excluding iQIYI, was 39%,
compared to 27% for the first quarter of 2017.
- Net income attributable to Baidu was RMB
6.7 billion ($1.1 billion) and
diluted earnings attributable to Baidu per ADS was RMB 19 ($2.98).
Non-GAAP net income attributable to Baidu[3] was RMB 5.7 billion ($914
million) and non-GAAP diluted earnings per ADS[4] was
RMB 16 ($2.60).
- Adjusted EBITDA was RMB 6.1
billion ($979 million), or 29%
of total revenues, increasing 69% year over year.
Other Highlights
Corporate
- iQIYI, Baidu's online entertainment subsidiary, raised
US$2.25 billion through its initial
public offering of 125,000,000 American Depositary Shares ("ADS")
at US$18.00 per ADS. IQIYI's ADSs
trade on the NASDAQ Global Market under the symbol "IQ".
- Baidu raised US$1.5 billion
through a public bond offering consisting of US$1 billion of 3.875% notes due 2023 and
US$500 million of 4.375% notes due
2028, the proceeds from which will mostly be used to repay a
US$1.0 billion bond maturing in
August 2018.
- Baidu signed a cooperation memorandum with the Haidian
municipality of Beijing to jointly
develop smart government administration, smart transportation and
smart city management. The two parties will work together to
develop an AI-based "Smart City Brain" to handle traffic
management, environmental protection and public safety.
- Baidu established a Quantum Computing Research Lab in
Beijing to perform research and
development in quantum computing.
- TIME magazine featured Robin Li
as "The Innovator" on the cover page of its January 29, 2018 Asia edition.
Search and feed
- Baidu begins using reinforcement learning in its Phoenix Nest
online marketing system, which is the first time this branch of
machine learning has been implemented at Baidu.
- Official press agencies, including the People's Daily, Xinhua
News Agency and CCTV, have opened BJH accounts, Baidu's publisher
platform (a.k.a. Baijiahao), to share their content to the Baidu
app.
- Baidu removed 20.2 billion malicious webpages in 2017,
according to Baidu's 2017 Information Security Report.
Apollo
- Baidu received the first batch of licenses to conduct open road
test for autonomous vehicles in Beijing and Chongqing municipalities and Fujian province.
- Baidu held a successful Apollo 2.5 Launch Event in Beijing on April
19, which also marked Apollo's one year anniversary. At the
event, Baidu released Apollo 2.5, which supports high-speed road
conditions, improves cost efficiency, enhances developer support
and provides Apollo Scape open datasets.
- Baidu showcased its Level 4 autonomous driving technology
during the Chinese Spring Festival Gala on CCTV, one of the most
watched TV shows in China. More
than a dozen Apollo-powered vehicles drove across the Hong
Kong-Zhuhai-Macau Bridge in choreographed swerving formation,
depicting a "robotic parade."
- Baidu formed a strategic partnership with Great Wall Motor, the largest sport utility vehicle and
pick-up truck manufacturer in China, to collaborate on autonomous driving,
big data, mobility and networking solutions.
- Baidu formed a strategic partnership with BYD, one of the leading auto manufacturers
in China, on autonomous driving.
BYD plans commercial production of Level 3 autonomous vehicles
using Apollo around 2020.
- Baidu formed a strategic partnership with Sokon Group, an automobile manufacturer in
China, for commercial production
of Level 3 vehicles around 2020 and Level 4 vehicles around 2021.
Baidu and Sokon will collaborate on autonomous driving,
Internet-connected vehicles, cloud services and marketing.
- Baidu joined Berkeley DeepDrive, a research alliance that
studies state-of-the-art technologies in computer vision and
machine learning for automotive applications.
DuerOS
- Ainemo launched "Xiaodu @
Home" Touchscreen Smart Speaker
powered by DuerOS Assistant and 10,000 units were sold
within the first minute of launch online.
- Baidu formed a strategic partnership with Hong Kong Skyworth
Digital Holdings, a leading
television manufacturer in China.
DuerOS Assistant will be integrated into Skyworth's smart TVs to
provide users with a conversational AI service.
- TCL, a leading consumer electronics manufacturer, launched
three new television models (X5, C6 and P5) powered by DuerOS
Assistant.
- Baidu formed a strategic partnership with XGIMI, a leading smart projector
manufacturer, to integrate DuerOS Assistant in its products.
- Baidu formed a strategic partnership with BroadLink Electronic
Technology, a leading smart plug
and remote manufacturer, to integrate DuerOS Assistant in its home
electronics control devices.
- Baidu formed a strategic partnership with Xiaotiancai, a
manufacturer of wearables for kids, to integrate DuerOS Assistant
in its smart watches.
- Baidu formed a strategic partnership with Haier, a leading home electronics and
appliance manufacturer, to collaborate on DuerOS and Haier's U+
smarthome platform.
AI Technology
- MIT Technology Review named Baidu as a key player for
near-real-time translation, one of the top breakthrough
technologies of 2018.
- Baidu PyramidBox, a deep learning algorithm for face
recognition, reached the highest score of WIDER FACE, a highly challenging face detection
benchmark globally.
In the following section, comparison and analysis are provided
based on reported consolidated financial results.
First Quarter 2018 Results
Total revenues reached RMB 20.9
billion ($3.33 billion)[5],
representing a 31% increase year over year. Online marketing revenues were
RMB 17.2 billion ($2.74 billion), representing a 23% increase year
over year. Baidu had approximately 475,000 active online marketing
customers[6], representing a 5% increase year over year. Revenue
per online marketing customer was approximately RMB 36,100 ($5,800), a 19% increase year over year. Revenue
from Baidu Core reached RMB 16.1
billion, up 26% year over year, while revenue from iQIYI
reached RMB 4.9 billion, up 57% year
over year.
Content costs were RMB 4.2
billion ($669 million),
representing a 59% increase year over year. The year-over-year
increase was mainly due to iQIYI's increased content costs.
Traffic acquisition cost was RMB
2.3 billion ($360 million),
representing a 3% increase year over year.
Bandwidth costs were RMB 1.5
billion ($235 million),
representing a 10% increase year over year.
Other cost of revenues, which include depreciation costs,
operation costs, sales tax and surcharges and share-based
compensation expenses, was RMB 2.0
billion ($316 million),
decreasing 7% year over year.
Selling, general and administrative expenses were
RMB 3.1 billion ($501 million), increasing 12% year over year.
Research and development expenses were RMB 3.3 billion ($525
million), increasing 16% year over year, primarily due to
the growth of personnel-related cost.
Share-based compensation expenses, which were allocated
to related operating cost and expense line items, were RMB 778 million ($124
million), compared to RMB 631
million in the first quarter of 2017.
Operating income was RMB 4.6
billion ($728 million),
increasing 128% year over year. Non-GAAP operating income
was RMB 5.3 billion ($852 million), increasing 103% year over year.
Operating income from Baidu Core was RMB 5.6
billion ($897 million),
increasing 90% year over year. Non-GAAP operating income from Baidu
Core was RMB 6.4 billion
($1.0 billion), increasing 81% year
over year.
Other income, net was RMB1.9
billion ($296 million), which
mainly consisted of fair value gains of private company investments
in accordance with the new financial instruments accounting
standard (ASC 321) adopted on January 1,
2018.
Income tax expense was RMB 1.1
billion ($179 million),
compared to income tax expense of RMB 405
million in the first quarter of 2017. Effective tax rate was
17%, compared to 19% for the first quarter of 2017.
Net income attributable to Baidu was RMB 6.7 billion ($1.1
billion), increasing 277% year over year. Diluted earnings
per ADS amounted to RMB 19
($2.98). Non-GAAP net income
attributable to Baidu was RMB 5.7
billion ($914 million),
increasing 139% year over year. Non-GAAP diluted earnings per ADS
amounted to RMB 16 ($2.60).
As of March 31, 2018, the Company
had cash, cash equivalents, restricted cash and short-term
investments of RMB 110.5 billion
($17.6 billion). Net operating
cash inflow was RMB 8.5 billion
($1.36 billion) and capital
expenditures were RMB 2.0 billion
($314 million).
The Company is planning to dispose of a majority equity stake in
Baidu's financial service business. Total assets of RMB 47.0 billion ($7.5
billion) and total liabilities of RMB
41.2 billion ($6.6 billion)
associated with Baidu's financial service business were
reclassified to assets and liabilities held for sale on the
condensed consolidated balance sheet as of March 31, 2018. Any such transaction will be
subject to the approval by the board of directors of the Company,
and there can be no assurance that the transaction will be
completed, or the terms or timing therefore.
Financial Guidance
For the second quarter of 2018, Baidu expects revenues to be
between RMB 24.91 billion
($3.97 billion) and RMB 26.19 billion ($4.17
billion), representing a 26% to 33% increase year over year.
Excluding disposed businesses, such as mobile games and Baidu
Deliveries, the guidance represents a 28% to 34% increase year over
year. This forecast reflects Baidu's current and preliminary view,
which is subject to substantial uncertainty.
Conference Call Information
Baidu's management will hold an earnings conference call at
10:15 PM on April 26, 2018, U.S. Eastern Time (10:15 AM on April 27,
2018, Beijing/Hong Kong
Time). Dial-in details for the earnings conference call are as
follows:
International:
|
+65
67135090
|
China
|
4006208038
|
US:
|
+1
8456750437
|
UK:
|
+44
2036214779
|
Hong Kong:
|
+852
30186771
|
|
|
Passcode for all
regions:
|
3162748
|
A replay of the conference call may be accessed by phone at the
following number until May 4,
2018:
International:
|
+61 2 8199
0299
|
Passcode:
|
3162748
|
Additionally, a live and archived webcast of this conference
call will be available at http://ir.baidu.com.
About Baidu
Baidu, Inc. is the leading Chinese language Internet search
provider. Baidu aims to make a complex world simpler through
technology. Baidu's ADSs trade on the NASDAQ Global Select Market
under the symbol "BIDU." Currently, ten ADSs represent one Class A
ordinary share.
Contacts
Investors Relations, Baidu, Inc.
Tel: +86-10-5992-4958
Email: ir@baidu.com
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for the second quarter of 2018,
quotations from management in this announcement, as well as 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 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 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 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, Japan 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. 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 attributable to Baidu,
non-GAAP diluted earnings per ADS, adjusted EBITDA and adjusted
EBITDA margin. 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 not only non-cash charges, but also other
items that are infrequent or unusual 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.
Non-GAAP net income attributable to Baidu represents net income
attributable to Baidu excluding share-based compensation expenses,
the gain or loss associated with the issuance of shares by Baidu's
equity method investees at a price higher or lower than the
carrying value per share, disposal gain or loss, impairment of
long-term investments, fair value change of long-term investments,
as adjusted for related income tax effects. Non-GAAP diluted
earnings per ADS represents diluted earnings per ADS calculated
based on non-GAAP net income attributable to Baidu. Adjusted EBITDA
represents operating income excluding depreciation, amortization
(excluding the amortization of licensed copyrights and produced
content of iQIYI) 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 measures."
[1] This announcement contains translations of certain RMB
amounts into U.S. dollars at specified rates solely for the
convenience of the reader. Unless otherwise noted, all translations
from RMB to U.S. dollars are made at a rate of RMB6.2726 to US$1.00, the effective noon buying rate as of
March 30, 2018, in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank of
New York.
[2] Starting from January 1, 2018,
Baidu adopted a new revenue accounting standard (ASC 606), which
reclassifies value added tax from the cost of revenues to net
against revenues. To increase comparability of operating results
and help investors better understand our business performance and
operating trends, 2017 net revenues have been used to calculate all
percentage changes in revenues, percentage changes in revenues per
online marketing customer, operating margin, non-GAAP operating
margin, and adjusted EBITDA margin. 2017 net revenues are defined
as gross revenues under legacy GAAP after the deduction of value
added-taxes, which is presented on the same basis as 2018 and going
forward.
[3] Non-GAAP net income attributable to Baidu represents net
income attributable to Baidu excluding share-based compensation
expenses, the gain or loss associated with the issuance of the
shares by our equity method investees at a price higher or lower
than our carrying value per share, disposal gain or loss,
impairment of long-term investments and fair value change of
long-term investments, as adjusted for the tax effects on non-GAAP
adjustments.
[4] Non-GAAP diluted earnings per ADS represents diluted
earnings per ADS calculated based on non-GAAP net income
attributable to Baidu.
[5] Gross revenues under legacy GAAP reached RMB 22.2 billion ($3.53
billion).
[6] The number of active online marketing customers and revenue
per online active customer exclude our group-buying and delivery
related businesses for consistency with previous reporting.
Baidu,
Inc.
|
Condensed
Consolidated Statements of Income
|
|
|
Three Months
Ended
|
|
|
March
31,
|
December
31,
|
March
31,
|
(In RMB millions
except for share, per share (or ADS) information)
|
|
2017
|
2017
|
2018
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
Revenues:
|
|
|
|
|
Online
marketing services
|
|
14,738
|
20,418
|
17,169
|
Others
|
|
2,153
|
3,138
|
3,738
|
Total
revenues(note 1)
|
|
16,891
|
23,556
|
20,907
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
Content
costs
|
|
2,636
|
3,754
|
4,194
|
Traffic
acquisition costs
|
|
2,185
|
2,518
|
2,256
|
Bandwidth
costs
|
|
1,336
|
1,400
|
1,472
|
Others
|
|
3,076
|
3,774
|
1,981
|
Cost of
revenues (note 2)
|
|
9,233
|
11,446
|
9,903
|
Selling,
general and administrative (note 2)
|
|
2,817
|
3,632
|
3,142
|
Research and
development (note 2)
|
|
2,835
|
3,704
|
3,294
|
Total
operating costs and expenses
|
|
14,885
|
18,782
|
16,339
|
|
|
|
|
|
Operating
income
|
|
2,006
|
4,774
|
4,568
|
|
|
|
|
|
Other
income:
|
|
|
|
|
Interest
income
|
|
649
|
917
|
821
|
Interest
expense
|
|
(323)
|
(400)
|
(352)
|
Foreign
exchange loss, net
|
|
(101)
|
(113)
|
(48)
|
Income(loss)
from equity method investments
|
|
(76)
|
204
|
(177)
|
Other
income(loss), net
|
|
21
|
(294)
|
1,856
|
Total other
income
|
|
170
|
314
|
2,100
|
|
|
|
|
|
Income
before income taxes
|
|
2,176
|
5,088
|
6,668
|
|
|
|
|
|
Income
taxes
|
|
405
|
929
|
1,120
|
|
|
|
|
|
Net
income
|
|
1,771
|
4,159
|
5,548
|
Less: net
income (loss) attributable to noncontrolling
interests
|
|
(6)
|
0
|
(1,146)
|
Net income
attributable to Baidu
|
|
1,777
|
4,159
|
6,694
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B ordinary shares:
|
|
|
|
|
Net income
attributable to Baidu -Basic
|
|
46.47
|
125.02
|
188.60
|
Net income
attributable to Baidu -Diluted
|
|
46.29
|
123.81
|
186.76
|
|
|
|
|
|
Earnings per ADS (1
Class A ordinary share equals 10 ADSs ):
|
|
|
|
|
Net income
attributable to Baidu -Basic
|
|
4.65
|
12.50
|
18.86
|
Net income
attributable to Baidu -Diluted
|
|
4.63
|
12.38
|
18.68
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
Basic
|
|
34,734,019
|
34,783,969
|
34,838,392
|
Diluted
|
|
34,869,783
|
35,123,903
|
35,180,950
|
|
|
|
|
|
(1) Starting on
January 1, 2018, valued added tax has been reclassified from cost
of revenues to net against revenues.
|
To increase
comparability of operating results and help investors better
understand our business performance and
|
trends, 2017
net revenues have been presented. 2017 net revenues are defined as
gross revenues under legacy
|
GAAP after the
deduction of value added-taxes, which is presented on the same
basis as 2018 and going forward.
|
Gross
revenues
|
|
16,891
|
23,556
|
22,162
|
Less: value
added taxes
|
|
946
|
1,327
|
1,255
|
Net
revenues
|
|
15,945
|
22,229
|
20,907
|
|
|
|
|
|
(2) Includes
share-based compensation expenses as follows:
|
|
|
|
|
Cost of
revenues
|
|
36
|
46
|
35
|
Selling,
general and administrative
|
|
187
|
298
|
291
|
Research and
development
|
|
408
|
633
|
452
|
Total
share-based compensation expenses
|
|
631
|
977
|
778
|
Baidu,
Inc.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
December
31,
|
March
31,
|
(In RMB millions
except for number of shares and per share data)
|
|
2017
|
2018
|
|
|
Audited
|
Unaudited
|
|
|
|
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
|
11,084
|
21,025
|
Restricted
cash
|
|
252
|
0
|
Short-term
investments
|
|
89,381
|
89,433
|
Other invested
securities
|
|
18,350
|
0
|
Accounts
receivable, net
|
|
4,571
|
4,764
|
Loans and
interest receivable, net
|
|
23,938
|
0
|
Amounts due
from related parties
|
|
168
|
421
|
Other assets,
current
|
|
3,425
|
4,148
|
Assets held for
sale
|
|
0
|
46,993
|
Total current assets
|
|
151,169
|
166,784
|
|
|
|
|
Non-current assets:
|
|
|
|
Fixed assets,
net
|
|
12,475
|
13,666
|
Intangible
assets, net
|
|
5,467
|
5,998
|
Goodwill
|
|
15,806
|
15,806
|
Long-term
investments, net
|
|
56,283
|
59,488
|
Loans and
interest receivable, net
|
|
3,467
|
0
|
Amounts due
from related parties
|
|
9
|
61
|
Deferred tax
assets, net
|
|
1,532
|
1,312
|
Other assets,
non-current
|
|
5,520
|
6,352
|
Total non-current assets
|
|
100,559
|
102,683
|
|
|
|
|
Total
assets
|
|
251,728
|
269,467
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Short-term
loans
|
|
1,244
|
397
|
Amounts
due to the third-party investors
|
|
38,486
|
-
|
Accounts payable and
accrued liabilities
|
|
27,523
|
27,222
|
Customer advances and
deposits
|
|
6,785
|
6,801
|
Deferred
revenue
|
|
788
|
792
|
Deferred
income
|
|
568
|
569
|
Long-term loans,
current portion
|
|
10
|
10
|
Notes payable,current
portion
|
|
6,500
|
6,270
|
Amounts due to
related parties
|
|
153
|
179
|
Liabilities held for
sale
|
|
-
|
41,166
|
Total current liabilities
|
|
82,057
|
83,406
|
|
|
|
|
Non-current liabilities:
|
|
|
|
Deferred
income
|
|
73
|
75
|
Long-term
loans
|
|
6,701
|
6,473
|
Notes
payable
|
|
29,111
|
37,423
|
Deferred tax
liabilities
|
|
3,375
|
3,359
|
Other non-current
liabilities
|
|
39
|
55
|
Total non-current liabilities
|
|
39,299
|
47,385
|
|
|
|
|
Total
liabilities
|
|
121,356
|
130,791
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
11,022
|
11,146
|
|
|
|
|
Equity
|
|
|
|
Class A Ordinary
Shares, par value US$0.00005 per share, 825,000,000 shares
authorized, and 27,614,978 shares and 27,671,709 shares
issued and outstanding as at December 31, 2017 and March 31,
2018
|
|
-
|
-
|
Class B Ordinary
Shares, par value US$0.00005 per share, 35,400,000 shares
authorized, and 7,201,254 shares and 7,201,254 shares
issued and outstanding as at December 31, 2017 and March 31,
2018
|
|
-
|
-
|
Additional paid-in
capital
|
|
12,088
|
13,009
|
Retained
earnings
|
|
102,328
|
110,425
|
Accumulated other
comprehensive income
|
|
930
|
1,070
|
Total Baidu, Inc. shareholders' equity
|
|
115,346
|
124,504
|
Noncontrolling interests
|
|
4,004
|
3,026
|
Total
equity
|
|
119,350
|
127,530
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests, and equity
|
|
251,728
|
269,467
|
Reconciliations of
non-GAAP financial measures to the nearest comparable GAAP
measures (in RMB millions except for share and per ADS
information, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
March 31,
2017
|
|
December 31,
2017
|
|
March 31,
2018
|
Operating income -
Baidu Core
|
2,961
|
|
6,012
|
|
5,624
|
Add:
Share-based compensation expenses
|
553
|
|
925
|
|
731
|
Non-GAAP operating
income - Baidu Core
|
3,514
|
|
6,937
|
|
6,355
|
Add:
Depreciation of fixed assets
|
840
|
|
901
|
|
691
|
Add:
Amortization of intangible assets
|
49
|
|
32
|
|
26
|
Adjusted EBITDA -
Baidu Core
|
4,403
|
|
7,870
|
|
7,072
|
|
|
|
|
|
|
Operating loss -
iQIYI
|
(1,040)
|
|
(856)
|
|
(1,062)
|
Add:
Share-based compensation expenses
|
78
|
|
52
|
|
47
|
Non-GAAP operating
loss - iQIYI
|
(962)
|
|
(804)
|
|
(1,015)
|
Add:
Depreciation of fixed assets
|
82
|
|
92
|
|
64
|
Add:
Amortization of intangible assets
|
18
|
|
17
|
|
12
|
Adjusted EBITDA -
iQIYI
|
(862)
|
|
(695)
|
|
(939)
|
|
|
|
|
|
|
Operating income -
consolidated
|
2,006
|
|
4,774
|
|
4,568
|
Add:
Share-based compensation expenses
|
631
|
|
977
|
|
778
|
Non-GAAP operating
income - consolidated
|
2,637
|
|
5,751
|
|
5,346
|
Add:
Depreciation of fixed assets
|
922
|
|
993
|
|
755
|
Add:
Amortization of intangible assets
|
67
|
|
49
|
|
38
|
Adjusted
EBITDA-consolidated
|
3,626
|
|
6,793
|
|
6,139
|
|
|
|
|
|
|
|
Three months
ended
|
|
March 31,
2017
|
|
December 31,
2017
|
|
March 31,
2018
|
Net income
attributable to Baidu
|
1,777
|
|
4,159
|
|
6,694
|
Add: Share-based
compensation expenses
|
631
|
|
977
|
|
778
|
Add: (Gain)loss
associated with the dilution of equity method investees, net of
tax
|
(16)
|
|
87
|
|
53
|
Add: Disposal loss,
net of tax
|
3
|
|
5
|
|
489
|
Add: Impairment of
long-term investments, net of tax
|
0
|
|
338
|
|
83
|
Add: Fair value
change of long-term investments, net of tax
|
0
|
|
0
|
|
(2,363)
|
Non-GAAP net
income attributable to Baidu
|
2,395
|
|
5,566
|
|
5,734
|
|
|
|
|
|
|
Weighted average
number of ADS used in computing non-
GAAP diluted earnings per ADS
|
348,697,827
|
|
351,239,027
|
|
351,809,497
|
|
|
|
|
|
|
GAAP diluted
earnings per ADS
|
4.63
|
|
12.38
|
|
18.68
|
Add: Accretion
of the redeemable noncontrolling interests
|
0.47
|
|
(0.54)
|
|
0.35
|
Add: Non-GAAP
adjustments to earnings per ADS
|
1.76
|
|
4.00
|
|
(2.73)
|
Non-GAAP diluted
earnings per ADS
|
6.86
|
|
15.84
|
|
16.30
|
Reconciliations of
non-GAAP financial measures to the nearest comparable GAAP
measures (in RMB millions except for share and per ADS
information, unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
(In RMB millions
except for share, per share (or ADS) information)
|
|
2017
|
|
2017
|
|
2018
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Baidu
Core
|
|
13,603
|
|
19,109
|
|
16,127
|
iQIYI
|
|
3,284
|
|
4,817
|
|
4,877
|
Intersegment
eliminations & adjustments
|
|
4
|
|
(370)
|
|
(97)
|
Total
Revenues
|
|
16,891
|
|
23,556
|
|
20,907
|
|
|
|
|
|
|
|
Baidu
Core
|
|
2,961
|
|
6,012
|
|
5,624
|
iQIYI
|
|
(1,040)
|
|
(856)
|
|
(1,062)
|
Intersegment
eliminations & adjustments
|
|
85
|
|
(382)
|
|
6
|
Operating
income
|
|
2,006
|
|
4,774
|
|
4,568
|
Baidu
Core
|
|
23%
|
|
33%
|
|
35%
|
iQIYI
|
|
(34%)
|
|
(19%)
|
|
(22%)
|
Operating
margin
|
|
13%
|
|
21%
|
|
22%
|
|
|
|
|
|
|
|
Baidu
Core
|
|
3,514
|
|
6,937
|
|
6,355
|
iQIYI
|
|
(962)
|
|
(804)
|
|
(1,015)
|
Intersegment
eliminations & adjustments
|
|
85
|
|
(382)
|
|
6
|
Non-GAAP
operating income
|
|
2,637
|
|
5,751
|
|
5,346
|
Baidu
Core
|
|
27%
|
|
38%
|
|
39%
|
iQIYI
|
|
(31%)
|
|
(18%)
|
|
(21%)
|
Non-GAAP
operating margin
|
|
17%
|
|
26%
|
|
26%
|
|
|
|
|
|
|
|
Baidu
Core
|
|
4,403
|
|
7,870
|
|
7,072
|
iQIYI
|
|
(862)
|
|
(695)
|
|
(939)
|
Intersegment
eliminations & adjustments
|
|
85
|
|
(382)
|
|
6
|
Adjusted
EBITDA
|
|
3,626
|
|
6,793
|
|
6,139
|
Baidu
Core
|
|
34%
|
|
44%
|
|
44%
|
iQIYI
|
|
(28%)
|
|
(15%)
|
|
(19%)
|
Adjusted
EBITDA margin
|
|
23%
|
|
31%
|
|
29%
|
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SOURCE Baidu, Inc.