BEIJING, Feb. 21, 2019 /PRNewswire/ -- Baidu, Inc.
(NASDAQ: BIDU) ("Baidu" or the "Company"), the leading Chinese
language Internet search provider, today announced its unaudited
financial results for the fourth quarter and fiscal year ended
December 31, 2018[1].
"We are excited to enter the new year on strong footing with
Baidu 2018 revenues reaching RMB 102
billion[2], up 28% annually. The growth rate of
Baidu App DAUs has been accelerating over the past year, up 24%
year over year to 161 million in December
2018, while Haokan short video app grew to 19 million DAUs
from 1 million a year ago," stated Robin
Li, CEO of Baidu. "2018 was a pivotal year for Baidu, as we
worked on deploying AI technologies beyond search to feed, voice
assistant, AI solutions and autonomous driving, to enable more
users, customers and partners to benefit from Baidu's AI."
"The diversification of Baidu's business from mobile internet
into the smart home, smart transportation, cloud and autonomous
driving markets will require heavy investments," said Herman Yu, CFO of Baidu. "Nevertheless, these
investments taken together give Baidu a balanced portfolio for
short-term, medium-term and long-term returns, and we hope to see
these investments bear fruit and accelerate Baidu's revenue growth
in the coming years."
Fourth Quarter 2018 Financial Highlights
- Total revenues were RMB 27.2
billion ($3.96 billion),
increasing 22% year over year, or 28% year over year excluding the
impact of announced divestures[3]. Total revenues of
Baidu Core were RMB 20.5 billion
($2.98 billion), increasing 14% year
over year, or 20% year over year excluding the impact of announced
divestures.
- Operating income was RMB 1.1
billion ($162 million),
decreasing 77% year over year, and operating margin was 4%,
compared to 21% in Q4 2017. Operating income of Baidu Core was
RMB 4.4 billion ($645 million), decreasing 26% year over year, and
operating margin was 22%, compared to 33% in Q4 2017.
- Non-GAAP operating income was RMB 2.7
billion ($386 million),
decreasing 54% year over year, and non-GAAP operating margin was
10%, compared to 26% in Q4 2017. Non-GAAP operating income of Baidu
Core was RMB 5.8 billion
($837 million), decreasing 17% year
over year, and non-GAAP operating margin of Baidu Core was 28%,
compared to 38% in Q4 2017.
- Net income attributable to Baidu was RMB
2.1 billion ($303 million),
decreasing 50% year over year, and diluted earnings attributable to
Baidu per ADS was RMB 6 ($0.86), decreasing 52% year over year. Net
income attributable to Baidu Core was RMB
4.1 billion ($589 million),
decreasing 22% year over year.
- Non-GAAP net income attributable to Baidu[4] was
RMB 4.6 billion ($672 million), decreasing 17% year over year, and
non-GAAP diluted earnings per ADS[5] was RMB 13 ($1.92),
decreasing 17% year over year. Non-GAAP net income attributable to
Baidu Core was RMB 6.5 billion
($939 million), decreasing 1% year
over year.
Fiscal Year 2018 Financial Highlights
- Total revenues were RMB 102.3
billion ($14.88 billion),
increasing 28% from 2017, or 31% year over year excluding the
impact of announced divestures. Total revenues of Baidu Core were
RMB 78.3 billion ($11.38 billion), increasing 22% from 2017, or 26%
year over year excluding the impact of announced divestures.
- Operating income was RMB 15.5
billion ($2.26 billion),
decreasing 1% from 2017. Operating margin was 15%, compared to 20%
in 2017.
- Non-GAAP operating income was RMB 20.2
billion ($2.94 billion),
increasing 7% from 2017. Non-GAAP operating margin was 20%,
compared to 24% in 2017. Non-GAAP operating income of Baidu Core
was RMB 27.9 billion ($4.06 billion), increasing 23% year over year,
and non-GAAP operating margin of Baidu Core was 36%, similar to
2017.
- Net income attributable to Baidu was RMB
27.6 billion ($4.01 billion),
increasing 51% from 2017, and diluted earnings attributable to
Baidu per ADS was RMB 78 ($11.35), increasing 49% from 2017. Net income
attributable to Baidu Core was RMB 33.6
billion ($4.89 billion),
increasing 52% year over year.
- Non-GAAP net income attributable to Baidu was RMB 23.3 billion ($3.39
billion), increasing 35% from 2017, and non-GAAP diluted
earnings per ADS was RMB 66
($9.64), increasing 34% from 2017.
Non-GAAP net income attributable to Baidu Core was RMB 28.5 billion ($4.14
billion), increasing 37% year over year.
Other Highlights
Corporate
- Baidu World was held in November
2018, with the conference theme "Yes, AI do" to highlight
Baidu's efforts in bringing AI to everyday life in markets, such as
smart home, smart transportation, cloud and autonomous
driving.
- Baidu was the exclusive red envelop giveaway sponsor of the
2019 CCTV Chinese New Year Gala, which drove traffic to new
highs for Baidu's family of apps, including Baidu App (flagship
search plus feed), Haokan (short video), Quanmin (flash video),
Baidu Maps and Baidu Drive.
- Baidu completed US$1.25 billion
in bond offerings in the fourth quarter, consisting of US$850 million of 4.375% notes due 2024 and
US$400 million of 4.875% notes due
2028, the proceeds from which will mostly be used to repay existing
indebtedness.
Search and Feed
- Baidu App daily active users ("DAUs") reached 161 million in
December 2018, increasing 24% year
over year.
- Baijiahao, or BJH accounts, Baidu feed's content network, grew
to 1.9 million publishers in December
2018, and includes People's Daily, Xinhua News Agency, CCTV
and multiple provincial media sources
- Baidu Smart Mini Program monthly active users ("MAUs") reached
147 million in December 2018, up 30%
sequentially. Also in December, Baidu Smart Mini Program was open
sourced to network partners.
- Haokan (short video) and Quanmin (flash video) DAUs reached 19
million and 4 million, respectively, in December 2018. According QuestMobile, Quanmin and
Haokan were the two fastest growing apps among the Top 10 short
video apps in China, across key
metrics of total daily time spent, DAUs and MAUs over the three
months ending December 2018.
DuerOS
- In December 2018, DuerOS voice
assistant installed base surpassed 200 million, up 45%
sequentially, and voice queries on DuerOS reached 1.6 billion,
representing a sequential CAGR of over 100% for the last seven
quarters.
- The DuerOS skills store has released over 1,000 skills in
wide-ranging genres, such as Douyu (live video), Dragonfly FM
(online radio) and CITIC Academy (online literature), and has a
community of 27,000 developers.
- DuerOS for Apollo now enables Smart Mini Programs for Baidu App
to operate in the DuerOS skills store in vehicles, positioning
DuerOS as the cross-platform voice assistant preferred by users and
software developers.
- Baidu released two smart devices powered by DuerOS in November
2018—Xiaodu Smart Speaker Pro
(MSRP US$45) and Xiaodu Smartphone
Car Mount (MSRP US$15), the
latter serves as a smartphone charger with far-field microphones
that allow users to operate DuerOS skills via conversational
AI.
- Xiaodu Smart Speaker and
Xiaodu Smart Display were the best-selling smart speakers on
JD.com, Pinduoduo and GOME.com (a leading electronics retailer in
China) during the 2018 Double
11 Shopping Festival.
- In the hospitality sector, DuerOS voice assistant is powering
Baidu's smart display to offer personal concierge in over 2,000
rooms across a score of hotels in China, particularly in 5-star hotels,
including the recently opened InterContinental Shanghai
Wonderland.
- In December 2018, DuerOS
and Xiaodu Smart Display received the prestigious 2018
China Red Star Design Award from the China Industrial Design
Association, recognizing the two for innovation in user interaction
and user design.
Apollo
- In January 2019, Baidu released
Apollo v3.5, which supports complex urban-road autonomous driving.
At CES, Baidu also introduced Apollo Open Platform, which is
available to the developer community, and Apollo Enterprise, which
encompasses solutions to support commercial production, including
DuerOS for Apollo, valet parking, assisted highway driving and
intelligent maps.
- Apollo has been granted over 50 licenses for open-road testing
for autonomous vehicles, including in Beijing, Tianjin, Chongqing, Changsha and Baoding municipalities, as well
as the Fujian province. The
Company believes Apollo has received the largest number of open
road testing licenses in China to
date.
- Apollo signed strategic partnerships with First Automotive
Works (FAW) and Volvo Car Corporation in November 2018 to support the commercial
production of autonomous L4 passenger vehicles.
- Apollo has garnered over 135 OEMs, Tier 1 parts suppliers and
other strategic partners to date, including recent additions of
Volkswagen Automobile, China Unicom, Kalray, Quanta Computer and
StarNeto Technology.
Cloud and Others
- On the eve of Chinese New Year, the day of the 2019 CCTV
Chinese New Year Gala, Baidu Cloud infrastructure smoothly
handled 20.8 billion user interactions, with peak volume reaching
10 million hits per second.
- Baidu launched OpenEdge, an open source edge computing
platform, which allows developers to build light, secure and
scalable edge applications, bringing AI processing to edge devices,
like smart home devices, wearables and other IoTs. Baidu also
unveiled two edge computing hardware solutions: BIE-AI-Box, a kit
for in-vehicle computer vision designed in partnership with Intel,
and BIE-AI-Board, a chipboard for mobile detection co-developed
with NXP Semiconductor.
- Over 1 million developers have used Baidu's AI Open Platform,
which provides developers with access to Baidu's comprehensive AI
capabilities, including speech recognition, natural language
processing and computer vision, from Baidu Cloud to build their
products and solutions.
- Baidu is working with the Hainan province to broaden the adoption of
blockchain by offering XuperChain, Baidu's blockchain technology,
to a wide range of industries. XuperChain helps multiple parties
execute transactions without the need for a trusted, central
authority, addressing challenges commonly faced in information
security, copyright verification, supply chain financing, online
trading and other areas. XuperChain currently processes more than
55,000 transactions per second, far exceeding the industry
average.
- Baidu is working with the Beijing Internet Court to develop an
electronic-evidence platform using XuperChain. As of December 2018, over 93 million patents were
stored and protected on XuperChain's copyright protection
system.
iQIYI
- iQIYI added 36.6 million subscribers in 2018 to reach 87.4
million at year end, further solidifying their leadership in
original entertainment blockbuster content.
- Baidu and iQIYI co-launched a hybrid OTT TV box with Sichuan
Cable TV, enhancing the home entertainment experience through AI.
This follows an earlier release of Gehua Little Fruit OTT TV
box.
- In December 2018, iQIYI completed
the offering of US$750 million of
3.75% convertible senior notes due 2023, the proceeds from which,
net of capped call fees, will be used to expand and enhance iQIYI's
content offerings and strengthen its technologies, as well as for
working capital and other general corporate purposes.
Fourth Quarter 2018 Results
Total revenues reached RMB 27.2
billion ($3.96 billion),
increasing 22% year over year, or 28% year over year excluding the
impact of announced divestures. Online marketing revenues
were RMB21.2 billion ($3.08 billion), increasing 10% year over year.
Baidu had approximately 529,000 active online marketing
customers[6], increasing
15% year over year. Revenue per online marketing customer was
approximately RMB 40,100 ($5,800), decreasing 4% year over year. Other
revenues were RMB 6.0 billion
($872 million), increasing 104% year
over year, which was mainly due to the robust growth in iQIYI
membership services, cloud and other businesses.
Revenue from Baidu Core reached RMB 20.5 billion ($2.98
billion), increasing 14% year over year, or 20% year over
year excluding the impact of announced divestures, while revenue
from iQIYI reached RMB 7.0
billion ($1.02 billion),
increasing 55% year over year.
Content costs were RMB 7.3
billion ($1.07 billion),
increasing 96% year over year, mainly due to increased investments
in iQIYI content and, to a lesser extent, in content for BJH
accounts, Baidu feeds' content network.
Traffic acquisition cost was RMB
3.4 billion ($491 million),
increasing 34% year over year, as a result of increasing TAC
revenue and revenue derived from online TV and offline digitalized
screens.
Bandwidth costs were RMB 1.8
billion ($258 million),
increasing 27% year over year, mainly due to increasing demand from
feed, video and cloud.
Other cost of revenues, which includes depreciation,
operational costs and share-based compensation, was RMB 3.1 billion ($453
million), increasing 27% year over year.
Selling, general and administrative expenses were
RMB 5.9 billion ($864 million), increasing 64% year over year,
primarily due to increased investment in channel and promotional
marketing, as well as in personnel related expenses.
Research and development expenses were RMB 4.5 billion ($659
million), increasing 22% year over year, primarily due to
the increase in personnel related expenses.
Operating income was RMB 1.1
billion ($162 million),
decreasing 77% year over year. Operating income of Baidu
Core was RMB 4.4 billion
($645 million), decreasing 26% year
over year. Non-GAAP operating income was RMB 2.7 billion ($386
million), decreasing 54% year over year. Non-GAAP
operating income of Baidu Core was RMB
5.8 billion ($837 million),
decreasing 17% year over year.
Total other loss was RMB 60
million ($9 million), compared
to total other income of RMB 314
million in Q4 2017, mainly due to the loss from equity
method investments.
Income tax expense was RMB 484
million ($70 million),
compared to RMB 929 million in Q4
2017. Effective tax rate was 46%, compared to 18% last year,
primarily due to iQIYI not being able to recognize tax benefit from
its losses in the current period.
Net loss attributable to noncontrolling interests was
RMB 1.5 billion ($220 million), which mainly consisted of losses
from iQIYI allocated to noncontrolling interests subsequent to its
IPO.
Net income attributable to Baidu was RMB 2.1 billion ($303
million), decreasing 50% year over year. Diluted earnings
per ADS amounted to RMB 6
($0.86). Net income attributable
to Baidu Core was RMB 4.1 billion
($589 million), decreasing 22% year
over year. Non-GAAP net income attributable to Baidu was
RMB 4.6 billion ($672 million), decreasing 17% year over year.
Non-GAAP diluted earnings per ADS amounted to RMB 13 ($1.92).
Non-GAAP net income attributable to Baidu Core was
RMB 6.5 billion ($939 million), decreasing 1% year over year.
Adjusted EBITDA was RMB 4.0
billion ($577 million) and
adjusted EBITDA margin was 15%. Adjusted EBITDA to Baidu
Core was RMB 6.9 billion
($1.00 billion) and adjusted
EBITDA margin to Baidu Core was 34%.
As of December 31, 2018, cash,
cash equivalents, restricted cash and short-term investments
were RMB 141.5 billion ($20.57 billion). Excluding iQIYI, cash, cash
equivalents, restricted cash and short-term investments were
RMB 128.7 billion ($18.71 billion), as of December 31, 2018. Free cash flow was
RMB 5.9 billion ($852 million). Excluding iQIYI, free cash
flow was RMB 5.5 billion
($801 million).
Fiscal Year 2018 Results
Total revenues reached RMB 102.3
billion ($14.88 billion),
increasing 28% year over year, or 31% year over year excluding the
impact of announced divestures. Online marketing revenues
were RMB 81.9 billion ($11.91 billion), increasing 19% year over year.
Baidu had approximately 856,000 active online marketing customers,
increasing 10% year over year. Revenue per online marketing
customer was approximately RMB 95,
800 ($13,900), an 8% increase from
2017. Other revenues reached RMB 20.4
billion ($2.96 billion),
increasing 86% year over year, which was mainly due to the robust
growth in iQIYI membership services , cloud and other
businesses.
Revenue from Baidu Core reached RMB 78.3 billion ($11.38
billion), increasing 22% year over year, or 26% year over
year excluding the impact of announced divestures, while revenue
from iQIYI reached RMB 25.0
billion ($3.63 billion),
increasing 52% from 2017.
Content costs were RMB 23.5
billion ($3.42 billion),
increasing 75% year over year, mainly due to increased investment
in iQIYI content and, to a lesser extent, in content for BJH
accounts, Baidu feeds' content network.
Traffic acquisition costs were RMB
11.4 billion ($1.66 billion),
increasing 18% year over year.
Bandwidth costs were RMB 6.5
billion ($944 million),
increasing 17% year over year.
Other cost of revenues, which includes depreciation,
operational costs and share-based compensation, was RMB 10.3 billion ($1.51
billion), increasing 7% year over year.
Selling, general and administrative expenses were
RMB 19.2 billion ($2.80 billion), increasing 46% year over year,
primarily due to increased investment in channel and promotional
spending.
Research and development expenses totaled RMB 15.8 billion ($2.29
billion), increasing 22% year over year, primarily due to
the increase in personnel related expenses.
Operating income was RMB 15.5
billion ($2.26 billion),
decreasing 1% from 2017. Operating income of Baidu Core was
RMB 23.8 billion ($3.46 billion), increasing 21% year over year.
Non-GAAP operating income was RMB
20.2 billion ($2.94 billion),
increasing 7% year over year. Non-GAAP operating income of Baidu
Core was RMB 27.9 billion
($4.06 billion), increasing 23% year
over year.
Total other income was RMB 11.8
billion ($1.72 billion), increasing 111% from 2017,
mainly due to gains from the disposal of Du Xiaoman, (financial
services), and fair value gains on private company investments in
accordance with ASC 321, adopted on January
1, 2018.
Income tax expense was RMB 4.7
billion ($690 million),
compared to RMB 3.0 billion in 2017.
Effective tax rate was 17%, compared to 14% in 2017, primarily due
to iQIYI not being able to recognize tax benefit from its losses in
the current period.
Net income attributable to Baidu was RMB 27.6 billion ($4.01
billion), increasing 51% year over year. Diluted earnings
attributable to Baidu per ADS amounted to RMB 78 ($11.35).
Net income attributable to Baidu Core was RMB 33.6 billion ($4.89
billion), increasing 52% year over year. Non-GAAP net
income attributable to Baidu was RMB
23.3 billion ($3.39 billion),
a 35% increase from 2017. Non-GAAP diluted earnings per ADS was
RMB 66 ($9.64). Non-GAAP net income attributable to
Baidu Core was RMB 28.5 billion
($4.14 billion), increasing 37% year
over year.
Adjusted EBITDA reached RMB 24.3
billion ($3.54 billion) and
adjusted EBITDA margin was 24%. Adjusted EBITDA to Baidu
Core reached RMB 31.5 billion
($4.58 billion) and adjusted
EBITDA margin to Baidu Core was 40%.
Free cash flow was RMB 27.2
billion ($3.96 billion).
Excluding iQIYI, free cash flow was RMB 24.9 billion ($3.62
billion).
Financial Guidance
For the first quarter of 2019, Baidu expects revenues to be
between RMB 23.5 billion
($3.42 billion) and RMB 24.7 billion ($3.60
billion), representing a 12% to 18% increase year over year,
or 18% to 24% excluding revenues from announced divestures.
Previously announced divestures together generated approximately
RMB 1.1 billion in Q1 2018, and no
revenue from announced divestures is expected in the Q1 2019, as
these transactions have been consummated. 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
8:15 PM on February 21, 2019, U.S. Eastern Time
(9:15 AM on February 22, 2019, 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:
|
5693149
|
A replay of the conference call may be accessed by phone at the
following number until March 1,
2019:
International:
|
+61 2 8199
0299
|
Passcode:
|
5693149
|
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 first quarter of 2019, 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 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, 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 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, accretion relating to equity method
investments, 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. Free cash
flow represents net cash provided by operating activities less
capital expenditures.
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 RMB6.8755 to US$1.00, the effective noon buying rate as of
December 31, 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 the 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] From 2017 through Q3 2018, certain non-core businesses were
divested, including Baidu Mobile Games, Baidu Deliveries, Global DU
businesses and Du Xiaoman (financial services), which together
generated approximately RMB 4.1
billion and RMB 3.1 billion in
revenues in 2017 and 2018, respectively.
[4] 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, accretion relating to equity
method investments, 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.
[5] Non-GAAP diluted earnings
per ADS represents diluted earnings per ADS calculated based on
non-GAAP net income attributable to
Baidu.
[6] The number of active online
marketing customers and revenue per online active customer exclude
group-buying and delivery related businesses, which is consistent
with prior reporting.
Baidu,
Inc.
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31,
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December
31,
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31,
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December
31,
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(In millions except
for share, per share (or ADS) information)
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2018
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2018
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2017
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|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online
marketing services
|
|
20,418
|
|
22,481
|
|
21,197
|
|
3,083
|
|
73,146
|
|
81,912
|
|
11,914
|
Others
|
|
3,138
|
|
5,722
|
|
5,998
|
|
872
|
|
11,663
|
|
20,365
|
|
2,962
|
Total revenues
(2017 revenues include VAT, see note 1 for
details)
|
|
23,556
|
|
28,203
|
|
27,195
|
|
3,955
|
|
84,809
|
|
102,277
|
|
14,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Content
costs
|
|
3,754
|
|
6,736
|
|
7,344
|
|
1,068
|
|
13,398
|
|
23,487
|
|
3,416
|
Traffic
acquisition costs
|
|
2,518
|
|
3,090
|
|
3,375
|
|
491
|
|
9,657
|
|
11,419
|
|
1,661
|
Bandwidth
costs
|
|
1,400
|
|
1,695
|
|
1,775
|
|
258
|
|
5,558
|
|
6,492
|
|
944
|
Others
|
|
3,774
|
|
2,697
|
|
3,117
|
|
453
|
|
14,449
|
|
10,346
|
|
1,505
|
Cost of
revenues (note 2)
|
|
11,446
|
|
14,218
|
|
15,611
|
|
2,270
|
|
43,062
|
|
51,744
|
|
7,526
|
Selling,
general and administrative (note 2)
|
|
3,632
|
|
5,641
|
|
5,943
|
|
864
|
|
13,128
|
|
19,231
|
|
2,797
|
Research and
development (note 2)
|
|
3,704
|
|
3,916
|
|
4,529
|
|
659
|
|
12,928
|
|
15,772
|
|
2,294
|
Total operating
costs and expenses
|
|
18,782
|
|
23,775
|
|
26,083
|
|
3,793
|
|
69,118
|
|
86,747
|
|
12,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
4,774
|
|
4,428
|
|
1,112
|
|
162
|
|
15,691
|
|
15,530
|
|
2,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
917
|
|
1,258
|
|
1,490
|
|
217
|
|
3,154
|
|
4,451
|
|
647
|
Interest
expense
|
|
(400)
|
|
(479)
|
|
(574)
|
|
(84)
|
|
(1,615)
|
|
(1,883)
|
|
(274)
|
Foreign
exchange income(loss), net
|
|
(113)
|
|
(54)
|
|
(50)
|
|
(7)
|
|
(482)
|
|
(122)
|
|
(18)
|
Income (loss)
from equity method investments
|
|
204
|
|
419
|
|
(390)
|
|
(57)
|
|
(63)
|
|
(79)
|
|
(11)
|
Other (loss)
income, net
|
|
(294)
|
|
7,877
|
|
(536)
|
|
(78)
|
|
4,598
|
|
9,428
|
|
1,371
|
Total other income
(loss)
|
|
314
|
|
9,021
|
|
(60)
|
|
(9)
|
|
5,592
|
|
11,795
|
|
1,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
5,088
|
|
13,449
|
|
1,052
|
|
153
|
|
21,283
|
|
27,325
|
|
3,974
|
Income
taxes
|
|
929
|
|
2,053
|
|
484
|
|
70
|
|
2,995
|
|
4,743
|
|
690
|
Net
income
|
|
4,159
|
|
11,396
|
|
568
|
|
83
|
|
18,288
|
|
22,582
|
|
3,284
|
Less: net income
(loss) attributable to noncontrolling interests
|
|
-
|
|
(1,000)
|
|
(1,513)
|
|
(220)
|
|
(13)
|
|
(4,991)
|
|
(726)
|
Net income
attributable to Baidu
|
|
4,159
|
|
12,396
|
|
2,081
|
|
303
|
|
18,301
|
|
27,573
|
|
4,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (1
Class A ordinary share equals 10 ADSs ):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
12.50
|
|
35.53
|
|
5.96
|
|
0.87
|
|
52.75
|
|
78.64
|
|
11.44
|
-Diluted
|
|
12.38
|
|
35.26
|
|
5.93
|
|
0.86
|
|
52.41
|
|
78.03
|
|
11.35
|
Earnings per share
for Class A and Class B ordinary shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
125.02
|
|
355.27
|
|
59.55
|
|
8.66
|
|
527.51
|
|
786.36
|
|
114.37
|
-Diluted
|
|
123.81
|
|
352.57
|
|
59.32
|
|
8.63
|
|
524.08
|
|
780.27
|
|
113.49
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
34,783,969
|
|
34,891,733
|
|
34,909,960
|
|
34,909,960
|
|
34,725,123
|
|
34,898,589
|
|
34,898,589
|
Diluted
|
|
35,123,903
|
|
35,158,747
|
|
35,044,338
|
|
35,044,338
|
|
34,952,391
|
|
35,171,043
|
|
35,171,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 as
follows. 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.
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
Gross
revenues
|
|
23,556
|
|
29,876
|
|
28,799
|
|
4,189
|
|
84,809
|
|
108,357
|
|
15,760
|
Less: value
added taxes
|
|
1,327
|
|
1,673
|
|
1,604
|
|
234
|
|
4,768
|
|
6,080
|
|
884
|
Net
revenues
|
|
22,229
|
|
28,203
|
|
27,195
|
|
3,955
|
|
80,041
|
|
102,277
|
|
14,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes
share-based compensation expenses as follows:
|
Cost of
revenues
|
|
46
|
|
58
|
|
71
|
|
10
|
|
183
|
|
224
|
|
33
|
Selling,
general and administrative
|
|
298
|
|
545
|
|
587
|
|
85
|
|
973
|
|
1,725
|
|
251
|
Research and
development
|
|
633
|
|
636
|
|
884
|
|
129
|
|
2,088
|
|
2,727
|
|
397
|
Total
share-based compensation expenses
|
|
977
|
|
1,239
|
|
1,542
|
|
224
|
|
3,244
|
|
4,676
|
|
681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) All
translations from RMB to U.S. dollars are made at a rate of
RMB6.8755 to US$1.00, the effective noon buying rate as of December
31, 2018, in The City of New York for cable transfers of RMB
as certified for customs purposes by the Federal
Reserve Bank of New York.
|
Baidu,
Inc.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
(In millions except
for share information)
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
11,084
|
|
27,638
|
|
4,020
|
Restricted cash
|
|
252
|
|
2,189
|
|
318
|
Short-term investments
|
|
89,381
|
|
111,626
|
|
16,235
|
Other invested securities
|
|
18,350
|
|
-
|
|
-
|
Accounts receivable, net
|
|
4,571
|
|
6,015
|
|
875
|
Loans and interest receivable, net
|
|
23,938
|
|
-
|
|
-
|
Amounts due from related parties
|
|
168
|
|
785
|
|
114
|
Other assets, current
|
|
3,425
|
|
6,841
|
|
995
|
Total current assets
|
|
151,169
|
|
155,094
|
|
22,557
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
Fixed assets, net
|
|
12,475
|
|
17,903
|
|
2,604
|
Intangible assets, net
|
|
5,467
|
|
9,181
|
|
1,335
|
Goodwill
|
|
15,806
|
|
18,536
|
|
2,696
|
Long-term investments, net
|
|
56,283
|
|
80,454
|
|
11,702
|
Loans and interest receivable, net
|
|
3,467
|
|
-
|
|
-
|
Amounts due from related parties
|
|
9
|
|
4,297
|
|
625
|
Deferred tax assets, net
|
|
1,532
|
|
2,324
|
|
338
|
Other assets, non-current
|
|
5,520
|
|
9,777
|
|
1,422
|
Total non-current assets
|
|
100,559
|
|
142,472
|
|
20,722
|
|
|
|
|
|
|
|
Total
assets
|
|
251,728
|
|
297,566
|
|
43,279
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Short-term
loans
|
|
1,244
|
|
3,046
|
|
443
|
Amounts
due to the third-party investors
|
|
38,486
|
|
-
|
|
-
|
Accounts
payable and accrued liabilities
|
|
27,523
|
|
35,381
|
|
5,147
|
Customer
advances and deposits
|
|
6,785
|
|
7,338
|
|
1,067
|
Deferred
revenue
|
|
788
|
|
1,883
|
|
274
|
Deferred
income
|
|
568
|
|
523
|
|
76
|
Long-term loans, current portion
|
|
10
|
|
84
|
|
12
|
Notes
payable, current portion
|
|
6,500
|
|
6,871
|
|
999
|
Amounts
due to related parties
|
|
153
|
|
1,727
|
|
251
|
Total current liabilities
|
|
82,057
|
|
56,853
|
|
8,269
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
Deferred
income
|
|
73
|
|
54
|
|
8
|
Deferred
revenue
|
|
-
|
|
1,309
|
|
190
|
Amounts
due to related parties
|
|
-
|
|
4,360
|
|
634
|
Long-term loans
|
|
6,701
|
|
7,456
|
|
1,084
|
Notes
payable
|
|
29,111
|
|
42,735
|
|
6,216
|
Convertible Notes, non-current
|
|
-
|
|
4,712
|
|
685
|
Deferred
tax liabilities
|
|
3,375
|
|
4,099
|
|
596
|
Other
non-current liabilities
|
|
39
|
|
236
|
|
34
|
Total non-current liabilities
|
|
39,299
|
|
64,961
|
|
9,447
|
|
|
|
|
|
|
|
Total
liabilities
|
|
121,356
|
|
121,814
|
|
17,716
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
11,022
|
|
716
|
|
104
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Class A
Ordinary Shares, par value US$0.00005 per share, 825,000,000 shares
authorized, and 27,614,978 shares and 27,733,692 shares issued and
outstanding as at December 31, 2017 and December 31,
2018
|
|
-
|
|
-
|
|
-
|
Class B
Ordinary Shares, par value US$0.00005 per share, 35,400,000 shares
authorized, and 7,201,254 shares and 7,201,254 shares issued and
outstanding as at December 31, 2017 and December 31,
2018
|
|
-
|
|
-
|
|
-
|
Additional paid-in capital
|
|
12,088
|
|
33,441
|
|
4,864
|
Retained
earnings
|
|
102,328
|
|
129,246
|
|
18,798
|
Accumulated other comprehensive income
|
|
930
|
|
210
|
|
31
|
Total Baidu, Inc. shareholders' equity
|
|
115,346
|
|
162,897
|
|
23,693
|
Noncontrolling interests
|
|
4,004
|
|
12,139
|
|
1,766
|
Total
equity
|
|
119,350
|
|
175,036
|
|
25,459
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests, and equity
|
|
251,728
|
|
297,566
|
|
43,279
|
Baidu,
Inc.
|
Selected
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
(In millions,
unaudited)
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
Baidu
Core
|
|
19,109
|
|
21,606
|
|
20,520
|
|
2,985
|
|
67,681
|
|
78,271
|
|
11,384
|
iQIYI
|
|
4,817
|
|
6,914
|
|
7,028
|
|
1,022
|
|
17,378
|
|
24,989
|
|
3,634
|
Intersegment
eliminations & adjustments
|
|
(370)
|
|
(317)
|
|
(353)
|
|
(52)
|
|
(250)
|
|
(983)
|
|
(142)
|
Total
revenues (Note 1)
|
|
23,556
|
|
28,203
|
|
27,195
|
|
3,955
|
|
84,809
|
|
102,277
|
|
14,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu
Core
|
|
18,043
|
|
21,606
|
|
20,520
|
|
2,985
|
|
63,903
|
|
78,271
|
|
11,384
|
iQIYI
|
|
4,545
|
|
6,914
|
|
7,028
|
|
1,022
|
|
16,396
|
|
24,989
|
|
3,634
|
Intersegment
eliminations & adjustments
|
|
(359)
|
|
(317)
|
|
(353)
|
|
(52)
|
|
(258)
|
|
(983)
|
|
(142)
|
Total net
revenues (Note 1)
|
|
22,229
|
|
28,203
|
|
27,195
|
|
3,955
|
|
80,041
|
|
102,277
|
|
14,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu
Core
|
|
6,012
|
|
7,015
|
|
4,433
|
|
645
|
|
19,715
|
|
23,808
|
|
3,463
|
iQIYI
|
|
(856)
|
|
(2,591)
|
|
(3,325)
|
|
(484)
|
|
(3,953)
|
|
(8,306)
|
|
(1,208)
|
Intersegment
eliminations & adjustments
|
|
(382)
|
|
4
|
|
4
|
|
1
|
|
(71)
|
|
28
|
|
4
|
Operating
income
|
|
4,774
|
|
4,428
|
|
1,112
|
|
162
|
|
15,691
|
|
15,530
|
|
2,259
|
Baidu
Core
|
|
33%
|
|
32%
|
|
22%
|
|
22%
|
|
31%
|
|
30%
|
|
30%
|
iQIYI
|
|
(19%)
|
|
(37%)
|
|
(47%)
|
|
(47%)
|
|
(24%)
|
|
(33%)
|
|
(33%)
|
Operating
margin (Note 1)
|
|
21%
|
|
16%
|
|
4%
|
|
4%
|
|
20%
|
|
15%
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu
Core
|
|
6,937
|
|
8,050
|
|
5,754
|
|
837
|
|
22,776
|
|
27,928
|
|
4,062
|
iQIYI
|
|
(804)
|
|
(2,387)
|
|
(3,104)
|
|
(452)
|
|
(3,719)
|
|
(7,750)
|
|
(1,126)
|
Intersegment
eliminations & adjustments
|
|
(382)
|
|
4
|
|
4
|
|
1
|
|
(122)
|
|
28
|
|
4
|
Non-GAAP
operating income
|
|
5,751
|
|
5,667
|
|
2,654
|
|
386
|
|
18,935
|
|
20,206
|
|
2,940
|
Baidu
Core
|
|
38%
|
|
37%
|
|
28%
|
|
28%
|
|
36%
|
|
36%
|
|
36%
|
iQIYI
|
|
(18%)
|
|
(35%)
|
|
(44%)
|
|
(44%)
|
|
(23%)
|
|
(31%)
|
|
(31%)
|
Non-GAAP
operating margin (Note 1)
|
|
26%
|
|
20%
|
|
10%
|
|
10%
|
|
24%
|
|
20%
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu
Core
|
|
5,190
|
|
14,309
|
|
4,050
|
|
589
|
|
22,108
|
|
33,605
|
|
4,888
|
iQIYI
|
|
(612)
|
|
(3,140)
|
|
(3,477)
|
|
(506)
|
|
(3,737)
|
|
(9,110)
|
|
(1,325)
|
Intersegment
eliminations & adjustments(Note 2)
|
(419)
|
|
1,227
|
|
1,508
|
|
220
|
|
(70)
|
|
3,078
|
|
447
|
Net income
attributable to Baidu
|
|
4,159
|
|
12,396
|
|
2,081
|
|
303
|
|
18,301
|
|
27,573
|
|
4,010
|
Baidu
Core
|
|
29%
|
|
66%
|
|
20%
|
|
20%
|
|
35%
|
|
43%
|
|
43%
|
iQIYI
|
|
(13%)
|
|
(45%)
|
|
(49%)
|
|
(49%)
|
|
(23%)
|
|
(36%)
|
|
(36%)
|
Net margin
(Note 1)
|
|
19%
|
|
44%
|
|
8%
|
|
8%
|
|
23%
|
|
27%
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu
Core
|
|
6,513
|
|
8,357
|
|
6,458
|
|
939
|
|
20,836
|
|
28,471
|
|
4,141
|
iQIYI
|
|
(560)
|
|
(2,939)
|
|
(3,243)
|
|
(472)
|
|
(3,470)
|
|
(8,703)
|
|
(1,265)
|
Intersegment
eliminations & adjustments (Note 2)
|
(387)
|
|
1,267
|
|
1,406
|
|
205
|
|
(122)
|
|
3,556
|
|
516
|
Non-GAAP net
income attributable to Baidu
|
|
5,566
|
|
6,685
|
|
4,621
|
|
672
|
|
17,244
|
|
23,324
|
|
3,392
|
Baidu
Core
|
|
36%
|
|
39%
|
|
31%
|
|
31%
|
|
33%
|
|
36%
|
|
36%
|
iQIYI
|
|
(12%)
|
|
(43%)
|
|
(46%)
|
|
(46%)
|
|
(21%)
|
|
(35%)
|
|
(35%)
|
Non-GAAP net
margin (Note 1)
|
|
25%
|
|
24%
|
|
17%
|
|
17%
|
|
22%
|
|
23%
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu
Core
|
|
7,870
|
|
8,982
|
|
6,887
|
|
1,002
|
|
26,695
|
|
31,503
|
|
4,582
|
iQIYI
|
|
(634)
|
|
(2,150)
|
|
(2,877)
|
|
(418)
|
|
(3,239)
|
|
(7,091)
|
|
(1,031)
|
Intersegment
eliminations & adjustments
|
|
(382)
|
|
(43)
|
|
(40)
|
|
(7)
|
|
(122)
|
|
(97)
|
|
(13)
|
Adjusted
EBITDA
|
|
6,854
|
|
6,789
|
|
3,970
|
|
577
|
|
23,334
|
|
24,315
|
|
3,538
|
Baidu
Core
|
|
44%
|
|
42%
|
|
34%
|
|
34%
|
|
42%
|
|
40%
|
|
40%
|
iQIYI
|
|
(14%)
|
|
(31%)
|
|
(41%)
|
|
(41%)
|
|
(20%)
|
|
(28%)
|
|
(28%)
|
Adjusted EBITDA
margin (Note 1)
|
|
31%
|
|
24%
|
|
15%
|
|
15%
|
|
29%
|
|
24%
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 the
Company's business performance and trends, 2017 net revenues were
used to calculate operating margin, non-GAAP operating margin,
non-GAAP net income margin and adjusted EBITDA margin. Net revenues
for 2017 are defined as gross revenues under legacy GAAP after the
deduction of value added taxes, consistent with 2018
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Primarily
related to net loss attributable to iQIYI noncontrolling
interests
|
Baidu,
Inc.
|
Reconciliations of
Non-GAAP Financial Measures to the Nearest Comparable GAAP
Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
(In millions except
for ADS and per ADS information, unaudited)
|
|
2017
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income -
Baidu Core
|
|
6,012
|
|
7,015
|
|
4,433
|
|
645
|
|
19,715
|
|
23,808
|
|
3,463
|
Add:
Share-based compensation expenses
|
|
925
|
|
1,035
|
|
1,321
|
|
192
|
|
3,061
|
|
4,120
|
|
599
|
Non-GAAP operating
income - Baidu Core
|
|
6,937
|
|
8,050
|
|
5,754
|
|
837
|
|
22,776
|
|
27,928
|
|
4,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
Depreciation of fixed assets
|
|
901
|
|
885
|
|
1,082
|
|
157
|
|
3,457
|
|
3,418
|
|
497
|
Add:
Amortization of intangible assets
|
|
32
|
|
47
|
|
51
|
|
8
|
|
462
|
|
157
|
|
23
|
Adjusted EBITDA -
Baidu Core
|
|
7,870
|
|
8,982
|
|
6,887
|
|
1,002
|
|
26,695
|
|
31,503
|
|
4,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss -
iQIYI
|
|
(856)
|
|
(2,591)
|
|
(3,325)
|
|
(484)
|
|
(3,953)
|
|
(8,306)
|
|
(1,208)
|
Add:
Share-based compensation expenses
|
|
52
|
|
204
|
|
221
|
|
32
|
|
234
|
|
556
|
|
82
|
Non-GAAP operating
loss - iQIYI
|
|
(804)
|
|
(2,387)
|
|
(3,104)
|
|
(452)
|
|
(3,719)
|
|
(7,750)
|
|
(1,126)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
Depreciation of fixed assets
|
|
92
|
|
81
|
|
93
|
|
14
|
|
348
|
|
312
|
|
46
|
Add:
Amortization of intangible assets
|
|
78
|
|
156
|
|
134
|
|
20
|
|
132
|
|
347
|
|
49
|
Adjusted EBITDA -
iQIYI
|
|
(634)
|
|
(2,150)
|
|
(2,877)
|
|
(418)
|
|
(3,239)
|
|
(7,091)
|
|
(1,031)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income -
Baidu
|
|
4,774
|
|
4,428
|
|
1,112
|
|
162
|
|
15,691
|
|
15,530
|
|
2,259
|
Add:
Share-based compensation expenses
|
|
977
|
|
1,239
|
|
1,542
|
|
224
|
|
3,244
|
|
4,676
|
|
681
|
Non-GAAP operating
income - Baidu
|
|
5,751
|
|
5,667
|
|
2,654
|
|
386
|
|
18,935
|
|
20,206
|
|
2,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
Depreciation of fixed assets
|
|
993
|
|
966
|
|
1,175
|
|
171
|
|
3,805
|
|
3,730
|
|
543
|
Add:
Amortization of intangible assets
|
|
110
|
|
156
|
|
141
|
|
20
|
|
594
|
|
379
|
|
55
|
Adjusted
EBITDA-Baidu
|
|
6,854
|
|
6,789
|
|
3,970
|
|
577
|
|
23,334
|
|
24,315
|
|
3,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Baidu core
|
|
5,190
|
|
14,309
|
|
4,050
|
|
589
|
|
22,108
|
|
33,605
|
|
4,888
|
Add: Share-based
compensation expenses
|
|
925
|
|
1,035
|
|
1,319
|
|
192
|
|
3,061
|
|
4,118
|
|
599
|
Add: Loss associated
with the dilution of or accretion relating to equity method
investments, net of tax
|
|
87
|
|
45
|
|
179
|
|
26
|
|
652
|
|
451
|
|
66
|
Add: Disposal
loss(gain), net of tax
|
|
5
|
|
(6,697)
|
|
282
|
|
41
|
|
(5,456)
|
|
(6,388)
|
|
(930)
|
Add: Impairment of
long-term investments, net of tax
|
|
306
|
|
298
|
|
185
|
|
27
|
|
471
|
|
566
|
|
82
|
Add: Fair value
change of long-term investments, net of tax
|
|
-
|
|
(633)
|
|
443
|
|
64
|
|
-
|
|
(3,881)
|
|
(564)
|
Non-GAAP net
income attributable to Baidu core
|
|
6,513
|
|
8,357
|
|
6,458
|
|
939
|
|
20,836
|
|
28,471
|
|
4,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to iQIYI
|
|
(612)
|
|
(3,140)
|
|
(3,477)
|
|
(506)
|
|
(3,737)
|
|
(9,110)
|
|
(1,325)
|
Add: Share-based
compensation expenses
|
|
52
|
|
204
|
|
221
|
|
32
|
|
234
|
|
556
|
|
82
|
Add: Loss associated
with the dilution of or accretion relating to equity method
investments, net of tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Add: Disposal
loss(gain), net of tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Add: Impairment of
long-term investments, net of tax
|
|
-
|
|
-
|
|
-
|
|
-
|
|
33
|
|
-
|
|
-
|
Add: Fair value
change of long-term investments, net of tax
|
|
-
|
|
(3)
|
|
13
|
|
2
|
|
-
|
|
(149)
|
|
(22)
|
Non-GAAP net loss
attributable to iQIYI
|
|
(560)
|
|
(2,939)
|
|
(3,243)
|
|
(472)
|
|
(3,470)
|
|
(8,703)
|
|
(1,265)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Baidu
|
|
4,159
|
|
12,396
|
|
2,081
|
|
303
|
|
18,301
|
|
27,573
|
|
4,010
|
Add: Share-based
compensation expenses
|
|
977
|
|
1,151
|
|
1,444
|
|
210
|
|
3,244
|
|
4,454
|
|
648
|
Add: Loss associated
with the dilution of or accretion relating to equity method
investments, net of tax
|
|
87
|
|
45
|
|
179
|
|
26
|
|
652
|
|
451
|
|
66
|
Add: Disposal
loss(gain), net of tax
|
|
5
|
|
(6,569)
|
|
282
|
|
41
|
|
(5,456)
|
|
(5,684)
|
|
(827)
|
Add: Impairment of
long-term investments, net of tax
|
|
338
|
|
298
|
|
185
|
|
27
|
|
503
|
|
566
|
|
82
|
Add: Fair value
change of long-term investments, net of tax
|
|
-
|
|
(636)
|
|
450
|
|
65
|
|
-
|
|
(4,036)
|
|
(587)
|
Non-GAAP net
income attributable to Baidu
|
|
5,566
|
|
6,685
|
|
4,621
|
|
672
|
|
17,244
|
|
23,324
|
|
3,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per ADS
|
|
12.38
|
|
35.26
|
|
5.93
|
|
0.86
|
|
52.41
|
|
78.03
|
|
11.35
|
Add: Accretion
of the redeemable noncontrolling interests
|
|
(0.54)
|
|
-
|
|
0.01
|
|
-
|
|
(0.05)
|
|
0.37
|
|
0.05
|
Add: Non-GAAP
adjustments to earnings per ADS
|
|
4.00
|
|
(16.25)
|
|
7.24
|
|
1.06
|
|
(3.02)
|
|
(12.09)
|
|
(1.76)
|
Non-GAAP diluted
earnings per ADS
|
|
15.84
|
|
19.01
|
|
13.18
|
|
1.92
|
|
49.34
|
|
66.31
|
|
9.64
|
Weighted average
number of ADS used in computing non-
GAAP diluted earnings per ADS
|
|
351,239,027
|
|
351,587,467
|
|
350,443,377
|
|
350,443,377
|
|
349,523,907
|
|
351,710,430
|
|
351,710,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities - Baidu Core
|
|
8,722
|
|
10,361
|
|
8,409
|
|
1,223
|
|
28,817
|
|
33,083
|
|
4,812
|
Less: Capital
expenditures
|
|
(1,011)
|
|
(2,026)
|
|
(2,900)
|
|
(422)
|
|
(3,757)
|
|
(8,160)
|
|
(1,187)
|
Free cash flow -
Baidu Core
|
|
7,711
|
|
8,335
|
|
5,509
|
|
801
|
|
25,060
|
|
24,923
|
|
3,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities - iQIYI
|
|
1,053
|
|
994
|
|
528
|
|
77
|
|
4,011
|
|
2,884
|
|
419
|
Less: Capital
expenditures
|
|
(177)
|
|
(193)
|
|
(178)
|
|
(26)
|
|
(1,022)
|
|
(612)
|
|
(89)
|
Free cash flow -
iQIYI
|
|
876
|
|
801
|
|
350
|
|
51
|
|
2,989
|
|
2,272
|
|
330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities - Baidu
|
|
9,775
|
|
11,355
|
|
8,937
|
|
1,300
|
|
32,828
|
|
35,967
|
|
5,231
|
Less: Capital
expenditures
|
|
(1,188)
|
|
(2,219)
|
|
(3,078)
|
|
(448)
|
|
(4,779)
|
|
(8,772)
|
|
(1,276)
|
Free cash flow -
Baidu
|
|
8,587
|
|
9,136
|
|
5,859
|
|
852
|
|
28,049
|
|
27,195
|
|
3,955
|
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SOURCE Baidu, Inc.