Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2024

Commission File Number: 000-51469

BAIDU, INC.

Baidu Campus

No. 10 Shangdi 10th Street

Haidian District, Beijing 100085

The People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Exhibit 99.1 — Press Release

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


BAIDU, INC.

By	:	/s/ Rong Luo
Name	:	Rong Luo
Title	:	Chief Financial Officer

Date: February 28, 2024

Exhibit 99.1

Baidu Announces Fourth Quarter and Fiscal Year 2023 Results

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

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

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

Fourth Quarter and Fiscal Year 2023 Financial Highlights¹


	Baidu, Inc.
(In millions except per ADS, unaudited)	Q4			Q3												FY
(In millions except per ADS, unaudited)	2022			2023			Q4 2023						YOY			2022			FY 2023						YOY
	RMB			RMB			RMB			US$						RMB			RMB			US$
Total revenues		33,077			34,447			34,951			4,923			6	%		123,675			134,598			18,958			9	%
Operating income		4,593			6,274			5,392			759			17	%		15,911			21,856			3,078			37	%
Operating income (non-GAAP)²		6,497			7,596			7,075			996			9	%		23,186			28,433			4,005			23	%
Net income to Baidu		4,953			6,681			2,599			366			(48	%)		7,559			20,315			2,861			169	%
Net income to Baidu (non-GAAP)²		5,371			7,267			7,755			1,092			44	%		20,680			28,747			4,049			39	%
Diluted earnings per ADS		13.59			18.22			6.77			0.95			(50	%)		19.85			55.08			7.76			177	%
Diluted earnings per ADS (non-GAAP)²		15.25			20.40			21.86			3.08			43	%		58.93			80.85			11.39			37	%
Adjusted EBITDA²		8,231			9,505			9,057			1,276			10	%		29,663			35,823			5,046			21	%
Adjusted EBITDA margin		25	%		28	%		26	%		26	%					24	%		27	%		27	%

1	Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 7.0999 as of December 29, 2023, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.

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

1


	Baidu Core
(In millions, unaudited)	Q4 2022			Q3 2023			Q4 2023						YOY			FY 2022			FY 2023						YOY
	RMB			RMB			RMB			US$						RMB			RMB			US$
Total revenues		25,654			26,572			27,488			3,872			7	%		95,431			103,465			14,573			8	%
Operating income		3,782			5,498			4,668			657			23	%		14,534			18,825			2,651			30	%
Operating income (non-GAAP)²		5,491			6,672			6,197			873			13	%		20,948			24,748			3,486			18	%
Net income to Baidu Core		4,773			6,436			2,440			344			(49	%)		7,551			19,401			2,733			157	%
Net income to Baidu Core (non-GAAP)²		4,915			6,956			7,500			1,056			53	%		19,935			27,418			3,862			38	%
Adjusted EBITDA²		7,146			8,513			8,118			1,143			14	%		27,088			31,863			4,488			18	%
Adjusted EBITDA margin		28	%		32	%		30	%		30	%					28	%		31	%		31	%

Operational Highlights

Corporate

•

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

AI Cloud

•

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

Intelligent Driving

•

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

•

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

2

Mobile Ecosystem

•

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

•

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

iQIYI

•

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

Fourth Quarter 2023 Financial Results

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

•

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

•

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

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

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

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

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

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

3

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

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

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

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

Fiscal Year 2023 Results

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

•

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

•

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

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

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

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

4

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

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

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

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

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

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

5

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on February 28, 2024, U.S. Eastern Time (8.30 PM on February 28, 2024, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of “Baidu Inc Q4 2023 Earnings Conference Call”. Please follow the steps to enter your registration details, then click “Register”. Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click:

https://s1.c-conf.com/diamondpass/10036733-mjkcdg.html

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

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

About Baidu

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

Contacts

Investors Relations, Baidu, Inc.

Tel: +86-10-5992-8888

Email: ir@baidu.com

6

Safe Harbor Statement

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

Non-GAAP Financial Measures

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

7

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

Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, and contingent loss pertaining to legal proceeding in relation to former advertising agencies.

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

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

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

8

Baidu, Inc.

Condensed Consolidated Statements of Income

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


	Three Months Ended												Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,			December 31,			December 31,
	2022			2023			2023			2023			2022			2023			2023
	RMB			RMB			RMB			US$⁽²⁾			RMB			RMB			US$⁽²⁾
Revenues:
Online marketing services		19,571			21,346			20,804			2,930			74,711			81,203			11,437
Others		13,506			13,101			14,147			1,993			48,964			53,395			7,521

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

Costs and expenses:
Cost of revenues⁽¹⁾		16,945			16,294			17,418			2,453			63,935			65,031			9,159
Selling, general and administrative⁽¹⁾		5,881			5,778			5,854			825			20,514			23,519			3,314
Research and development⁽¹⁾		5,658			6,101			6,287			886			23,315			24,192			3,407

Total costs and expenses		28,484			28,173			29,559			4,164			107,764			112,742			15,880

Operating income		4,593			6,274			5,392			759			15,911			21,856			3,078
Other income (loss):
Interest income		1,647			2,082			2,064			291			6,245			8,009			1,128
Interest expense		(738	)		(853	)		(774	)		(109	)		(2,913	)		(3,248	)		(457	)
Foreign exchange (loss) gain, net		(338	)		(26	)		(449	)		(63	)		(1,484	)		595			84
Share of losses from equity method investments		(523	)		(398	)		(2,970	)		(418	)		(1,910	)		(3,799	)		(535	)
Others, net		1,733			1,100			(398	)		(57	)		(5,737	)		1,785			252

Total other income (loss), net		1,781			1,905			(2,527	)		(356	)		(5,799	)		3,342			472

Income before income taxes		6,374			8,179			2,865			403			10,112			25,198			3,550
Income tax expense (benefit)		1,254			1,282			(96	)		(14	)		2,578			3,649			514

Net income		5,120			6,897			2,961			417			7,534			21,549			3,036
Net income (loss) attributable to noncontrolling interests		167			216			362			51			(25	)		1,234			175

Net income attributable to Baidu		4,953			6,681			2,599			366			7,559			20,315			2,861

9


	Three Months Ended								Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,		December 31,		December 31,
	2022		2023		2023		2023		2022		2023		2023
	RMB		RMB		RMB		US$⁽²⁾		RMB		RMB		US$⁽²⁾
Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
— Basic		13.73		18.45		6.85		0.96		20.02		55.83		7.86
— Diluted		13.59		18.22		6.77		0.95		19.85		55.08		7.76
Earnings per share for Class A and Class B ordinary shares:
— Basic		1.72		2.31		0.86		0.12		2.50		6.98		0.98
— Diluted		1.70		2.28		0.85		0.12		2.48		6.89		0.97
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
— Basic		2,789		2,814		2,812		2,812		2,782		2,807		2,807
— Diluted		2,801		2,846		2,830		2,830		2,809		2,837		2,837

(1) Includes share-based compensation expenses as follows:
Cost of revenues		158		139		159		23		409		590		83
Selling, general and administrative		450		358		411		58		1,750		1,678		236
Research and development		1,233		778		1,068		150		4,629		4,077		575

Total share-based compensation expenses		1,841		1,275		1,638		231		6,788		6,345		894

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

10

Baidu, Inc.

Condensed Consolidated Balance Sheets

(In millions, unaudited)


	December 31, 2022		December 31, 2023		December 31, 2023
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		53,156		25,231		3,554
Restricted cash		11,330		11,503		1,620
Short-term investments, net		120,839		168,670		23,757
Accounts receivable, net		11,733		10,848		1,528
Amounts due from related parties		5,432		1,424		201
Other current assets, net		10,360		12,579		1,772

Total current assets		212,850		230,255		32,432

Non-current assets:
Fixed assets, net		23,973		27,960		3,938
Licensed copyrights, net		6,841		6,967		981
Produced content, net		13,002		13,377		1,884
Intangible assets, net		1,254		881		124
Goodwill		22,477		22,586		3,181
Long-term investments, net		55,297		47,957		6,755
Long-term time deposits and held-to-maturity investments		23,629		24,666		3,474
Amounts due from related parties		60		195		27
Deferred tax assets, net		2,129		2,100		296
Operating lease right-of-use assets		10,365		10,851		1,528
Other non-current assets		19,096		18,964		2,671

Total non-current assets		178,123		176,504		24,859

Total assets		390,973		406,759		57,291

11


	December 31, 2022		December 31, 2023		December 31, 2023
	RMB		RMB		US$
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		5,343		10,257		1,445
Accounts payable and accrued liabilities		38,014		37,717		5,312
Customer deposits and deferred revenue		13,116		14,627		2,060
Deferred income		72		306		43
Long-term loans, current portion		—		2		—
Convertible senior notes, current portion		8,305		2,802		395
Notes payable, current portion		6,904		6,029		849
Amounts due to related parties		5,067		1,603		226
Operating lease liabilities		2,809		3,108		438

Total current liabilities		79,630		76,451		10,768

Non-current liabilities:
Deferred income		159		200		28
Deferred revenue		331		481		68
Amounts due to related parties		99		77		11
Long-term loans		13,722		14,223		2,003
Notes payable		39,893		34,990		4,928
Convertible senior notes		9,568		8,144		1,147
Deferred tax liabilities		2,898		2,725		384
Operating lease liabilities		4,810		5,040		710
Other non-current liabilities		2,058		1,820		257

Total non-current liabilities		73,538		67,700		9,536

Total liabilities		153,168		144,151		20,304

Redeemable noncontrolling interests		8,393		9,465		1,333
Equity
Total Baidu shareholders’ equity		223,478		243,626		34,314
Noncontrolling interests		5,934		9,517		1,340

Total equity		229,412		253,143		35,654

Total liabilities, redeemable noncontrolling interests, and equity		390,973		406,759		57,291

12

Baidu, Inc.

Selected Information

(In millions, unaudited)


	Three months ended December 31, 2022 (RMB)												Three months ended September 30, 2023 (RMB)												Three months ended December 31, 2023 (RMB)												Three months ended December 31, 2023 (US$)
	Baidu Core			iQIYI			Elim & adj⁽²⁾			Baidu, Inc.			Baidu Core			iQIYI			Elim & adj⁽²⁾			Baidu, Inc.			Baidu Core			iQIYI			Elim & adj⁽²⁾			Baidu, Inc.			Baidu Core			iQIYI			Elim & adj⁽²⁾			Baidu, Inc.
Total revenues		25,654			7,593			(170	)		33,077			26,572			8,015			(140	)		34,447			27,488			7,707			(244	)		34,951			3,872			1,086			(35	)		4,923
YOY																										7	%		2	%					6	%
QOQ																										3	%		(4	%)					1	%
Costs and expenses:
Cost of revenues ⁽¹⁾		11,712			5,405			(172	)		16,945			10,610			5,840			(156	)		16,294			12,050			5,533			(165	)		17,418			1,698			779			(24	)		2,453
Selling, general and administrative ⁽¹⁾		4,969			939			(27	)		5,881			4,810			981			(13	)		5,778			4,936			948			(30	)		5,854			695			134			(4	)		825
Research and development ⁽¹⁾		5,191			467			—			5,658			5,654			447			—			6,101			5,834			453			—			6,287			822			64			—			886

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

YOY
Cost of revenues																										3	%		2	%					3	%
Selling, general and administrative																										(1	%)		1	%					(0	%)
Research and development																										12	%		(3	%)					11	%
Costs and expenses																										4	%		2	%					4	%
Operating income (loss)		3,782			782			29			4,593			5,498			747			29			6,274			4,668			773			(49	)		5,392			657			109			(7	)		759
YOY																										23	%		(1	%)					17	%
QOQ																										(15	%)		3	%					(14	%)
Operating margin		15	%		10	%					14	%		21	%		9	%					18	%		17	%		10	%					15	%
Add: total other income (loss), net		2,271			(490	)		—			1,781			2,159			(254	)		—			1,905			(2,267	)		(260	)		—			(2,527	)		(319	)		(37	)		—			(356	)
Less: income tax expense (benefit)		1,265			(11	)		—			1,254			1,272			10			—			1,282			(134	)		38			—			(96	)		(19	)		5			—			(14	)
Less: net income (loss) attributable to NCI		15			(1	)		153	⁽³⁾		167			(51	)		7			260	⁽³⁾		216			95			9			258	⁽³⁾		362			13			1			37	⁽³⁾		51

Net income (loss) attributable to Baidu		4,773			304			(124	)		4,953			6,436			476			(231	)		6,681			2,440			466			(307	)		2,599			344			66			(44	)		366

YOY																										(49	%)		53	%					(48	%)
QOQ																										(62	%)		(2	%)					(61	%)
Net margin		19	%		4	%					15	%		24	%		6	%					19	%		9	%		6	%					7	%

13


	Three months ended December 31, 2022 (RMB)										Three months ended September 30, 2023 (RMB)										Three months ended December 31, 2023 (RMB)										Three months ended December 31, 2023 (US$)
	Baidu Core			iQIYI			Elim & adj⁽²⁾	Baidu, Inc.			Baidu Core			iQIYI			Elim & adj⁽²⁾	Baidu, Inc.			Baidu Core			iQIYI			Elim & adj⁽²⁾	Baidu, Inc.			Baidu Core		iQIYI		Elim & adj⁽²⁾	Baidu, Inc.
Non-GAAP financial measures:
Operating income (non-GAAP)		5,491			977				6,497			6,672			895				7,596			6,197			927				7,075			873		130			996
YOY																						13	%		(5	%)			9	%
QOQ																						(7	%)		4	%			(7	%)
Operating margin (non-GAAP)		21	%		13	%			20	%		25	%		11	%			22	%		23	%		12	%			20	%
Net income attributable to Baidu (non-GAAP)		4,915			856				5,371			6,956			622				7,267			7,500			681				7,755			1,056		96			1,092
YOY																						53	%		(20	%)			44	%
QOQ																						8	%		9	%			7	%
Net margin (non-GAAP)		19	%		11	%			16	%		26	%		8	%			21	%		27	%		9	%			22	%
Adjusted EBITDA		7,146			1,056				8,231			8,513			963				9,505			8,118			988				9,057			1,143		140			1,276
YOY																						14	%		(6	%)			10	%
QOQ																						(5	%)		3	%			(5	%)
Adjusted EBITDA margin		28	%		14	%			25	%		32	%		12	%			28	%		30	%		13	%			26	%

(1) Includes share-based compensation as follows:
Cost of revenues		122			36				158			107			32				139			125			34				159			18		5			23
Selling, general and administrative		355			95				450			290			68				358			340			71				411			48		10			58
Research and development		1,177			56				1,233			732			46				778			1,020			48				1,068			144		6			150

Total share-based compensation		1,654			187				1,841			1,129			146				1,275			1,485			153				1,638			210		21			231

(2)	Relates to intersegment eliminations and adjustments

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

14

Baidu, Inc.

Selected Information

(In millions except for per ADS information, unaudited)


	Twelve months ended December 31, 2022 (RMB)												Twelve months ended December 31, 2023 (RMB)												Twelve months ended December 31, 2023 (US$)
	Baidu Core			iQIYI			Elim & adj⁽²⁾			Baidu, Inc.			Baidu Core			iQIYI			Elim & adj⁽²⁾			Baidu, Inc.			Baidu Core		iQIYI			Elim & adj⁽²⁾			Baidu, Inc.
Total revenues		95,431			28,998			(754	)		123,675			103,465			31,873			(740	)		134,598			14,573		4,489			(104	)		18,958
YOY														8	%		10	%					9	%
Costs and expenses:
Cost of revenues ⁽¹⁾		42,378			22,321			(764	)		63,935			42,592			23,103			(664	)		65,031			5,999		3,254			(94	)		9,159
Selling, general and administrative ⁽¹⁾		17,103			3,466			(55	)		20,514			19,623			4,014			(118	)		23,519			2,765		565			(16	)		3,314
Research and development ⁽¹⁾		21,416			1,899			—			23,315			22,425			1,767			—			24,192			3,158		249			—			3,407

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

YOY
Cost of revenues														1	%		4	%					2	%
Selling, general and administrative														15	%		16	%					15	%
Research and development														5	%		(7	%)					4	%
Cost and expenses														5	%		4	%					5	%
Operating income		14,534			1,312			65			15,911			18,825			2,989			42			21,856			2,651		421			6			3,078
YOY														30	%		128	%					37	%
Operating margin		15	%		5	%					13	%		18	%		9	%					16	%
Add: total other (loss) income, net		(4,453	)		(1,346	)		—			(5,799	)		4,298			(956	)		—			3,342			607		(135	)		—			472
Less: income tax expense		2,494			84			—			2,578			3,568			81			—			3,649			503		11			—			514
Less: net income (loss) attributable to NCI		36			18			(79	)⁽³⁾		(25	)		154			27			1,053	⁽³⁾		1,234			22		4			149	⁽³⁾		175

Net income (loss) attributable to Baidu		7,551			(136	)		144			7,559			19,401			1,925			(1,011	)		20,315			2,733		271			(143	)		2,861

YOY														157	%		(1,515	%)					169	%
Net margin		8	%		(0	%)					6	%		19	%		6	%					15	%

15


	Twelve months ended December 31, 2022 (RMB)										Twelve months ended December 31, 2023 (RMB)										Twelve months ended December 31, 2023 (US$)
	Baidu Core			iQIYI			Elim & adj⁽²⁾	Baidu, Inc.			Baidu Core			iQIYI			Elim & adj⁽²⁾	Baidu, Inc.			Baidu Core		iQIYI		Elim & adj⁽²⁾	Baidu, Inc.
Non-GAAP financial measures:
Operating income (non-GAAP)		20,948			2,173				23,186			24,748			3,643				28,433			3,486		513			4,005
YOY												18	%		68	%			23	%
Operating margin (non-GAAP)		22	%		7	%			19	%		24	%		11	%			21	%
Net income attributable to Baidu (non-GAAP)		19,935			1,284				20,680			27,418			2,838				28,747			3,862		400			4,049
YOY												38	%		121	%			39	%
Net margin (non-GAAP)		21	%		4	%			17	%		26	%		9	%			21	%
Adjusted EBITDA		27,088			2,510				29,663			31,863			3,918				35,823			4,488		552			5,046
YOY												18	%		56	%			21	%
Adjusted EBITDA margin		28	%		9	%			24	%		31	%		12	%			27	%

(1) Includes share-based compensation as follows:
Cost of revenues		261			148				409			457			133				590			64		19			83
Selling, general and administrative		1,326			424				1,750			1,363			315				1,678			192		44			236
Research and development		4,390			239				4,629			3,888			189				4,077			548		27			575

Total share-based compensation		5,977			811				6,788			5,708			637				6,345			804		90			894

(2)	Relates to intersegment eliminations and adjustments

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

16

Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)


	Three months ended									Three months ended									Three months ended									Three months ended
	December 31, 2022									September 30, 2023									December 31, 2023									December 31, 2023
	(RMB)									(RMB)									(RMB)									(US$)
	Baidu									Baidu									Baidu									Baidu
	excl.						Baidu,			excl.						Baidu,			excl.						Baidu,			excl.						Baidu,
	iQIYI			iQIYI			Inc.			iQIYI			iQIYI			Inc.			iQIYI			iQIYI			Inc.			iQIYI			iQIYI			Inc.
Net cash provided by operating activities		6,999			854			7,853			8,694			831			9,525			9,985			633			10,618			1,407			89			1,496
Net cash (used in) provided by investing activities		(5,902	)		579			(5,323	)		(11,345	)		(55	)		(11,400	)		(11,805	)		(1,431	)		(13,236	)		(1,662	)		(202	)		(1,864	)
Net cash (used in) provided by financing activities		(5,124	)		2,862			(2,262	)		(5,253	)		269			(4,984	)		(7,586	)		(22	)		(7,608	)		(1,069	)		(3	)		(1,072	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(1,420	)		(9	)		(1,429	)		153			5			158			(364	)		(31	)		(395	)		(52	)		(4	)		(56	)

Net (decrease) increase in cash, cash equivalents and restricted cash		(5,447	)		4,286			(1,161	)		(7,751	)		1,050			(6,701	)		(9,770	)		(851	)		(10,621	)		(1,376	)		(120	)		(1,496	)
Cash, cash equivalents and restricted cash
At beginning of period		62,821			3,576			66,397			49,814			5,082			54,896			42,063			6,132			48,195			5,924			864			6,788
At end of period		57,374			7,862			65,236			42,063			6,132			48,195			32,293			5,281			37,574			4,548			744			5,292
Net cash provided by operating activities		6,999			854			7,853			8,694			831			9,525			9,985			633			10,618			1,407			89			1,496
Less: Capital expenditures		(1,920	)		(9	)		(1,929	)		(3,525	)		(4	)		(3,529	)		(3,641	)		(19	)		(3,660	)		(513	)		(3	)		(516	)

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

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

17

Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)


	Twelve months ended									Twelve months ended									Twelve months ended
	December 31, 2022									December 31, 2023									December 31, 2023
	(RMB)									(RMB)									(US$)
	Baidu									Baidu									Baidu
	excl.						Baidu,			excl.						Baidu,			excl.						Baidu,
	iQIYI			iQIYI			Inc.			iQIYI			iQIYI			Inc.			iQIYI			iQIYI			Inc.
Net cash provided by (used in) operating activities		26,241			(71	)		26,170			33,263			3,352			36,615			4,685			472			5,157
Net cash (used in) provided by investing activities		(4,210	)		266			(3,944	)		(48,657	)		(1,740	)		(50,397	)		(6,853	)		(245	)		(7,098	)
Net cash (used in) provided by financing activities		(10,859	)		4,469			(6,390	)		(9,876	)		(4,286	)		(14,162	)		(1,391	)		(604	)		(1,995	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		1,606			123			1,729			189			93			282			27			13			40

Net increase (decrease) in cash, cash equivalents and restricted cash		12,778			4,787			17,565			(25,081	)		(2,581	)		(27,662	)		(3,532	)		(364	)		(3,896	)
Cash, cash equivalents and restricted cash
At beginning of period		44,596			3,075			47,671			57,374			7,862			65,236			8,080			1,108			9,188
At end of period		57,374			7,862			65,236			32,293			5,281			37,574			4,548			744			5,292
Net cash provided by (used in) operating activities		26,241			(71	)		26,170			33,263			3,352			36,615			4,685			472			5,157
Less: Capital expenditures		(8,112	)		(174	)		(8,286	)		(11,154	)		(36	)		(11,190	)		(1,571	)		(5	)		(1,576	)

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

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

18

Baidu, Inc.

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

(In millions except for per ADS information, unaudited)


	Three months ended									Three months ended									Three months ended									Three months ended
	December 31, 2022									September 30, 2023									December 31, 2023									December 31, 2023
	(RMB)									(RMB)									(RMB)									(US$)
	Baidu						Baidu,			Baidu						Baidu,			Baidu						Baidu,			Baidu					Baidu,
	Core			iQIYI			Inc.			Core			iQIYI			Inc.			Core			iQIYI			Inc.			Core			iQIYI		Inc.
Operating income		3,782			782			4,593			5,498			747			6,274			4,668			773			5,392			657			109		759
Add: Share-based compensation expenses		1,654			187			1,841			1,129			146			1,275			1,485			153			1,638			210			21		231
Add: Amortization and impairment of intangible assets⁽¹⁾		55			8			63			45			2			47			44			1			45			6			—		6

Operating income (non-GAAP)		5,491			977			6,497			6,672			895			7,596			6,197			927			7,075			873			130		996
Add: Depreciation of fixed assets		1,655			79			1,734			1,841			68			1,909			1,921			61			1,982			270			10		280

Adjusted EBITDA		7,146			1,056			8,231			8,513			963			9,505			8,118			988			9,057			1,143			140		1,276
Net income attributable to Baidu		4,773			304			4,953			6,436			476			6,681			2,440			466			2,599			344			66		366
Add: Share-based compensation expenses		1,654			187			1,748			1,128			146			1,194			1,484			153			1,553			209			22		219
Add: Amortization and impairment of intangible assets⁽¹⁾		50			8			55			43			2			44			42			1			42			6			—		6
Add: Disposal (gain) loss		(484	)		62			(453	)		(753	)		—			(753	)		(37	)		(1	)		(38	)		(5	)		—		(5	)
Add: Impairment of long-term investments		318			271			453			46			—			46			132			62			160			19			8		23
Add: Fair value (gain) loss of long-term investments		(1,662	)		8			(1,658	)		(384	)		(2	)		(385	)		403			—			403			57			—		57
Add: Reconciling items on equity method investments⁽²⁾		377			18			386			572			—			572			3,172			—			3,172			447			—		447
Add: Tax effects on non-GAAP adjustments⁽³⁾		(111	)		(2	)		(113	)		(132	)		—			(132	)		(136	)		—			(136	)		(21	)		—		(21	)

Net income attributable to Baidu (non-GAAP)		4,915			856			5,371			6,956			622			7,267			7,500			681			7,755			1,056			96		1,092

19

Three months ended

December 31, 2022

September 30, 2023

December 31, 2023

(RMB)

(US$)

Baidu

Baidu,

Baidu

Baidu,

Baidu

Baidu,

Baidu

Baidu,

Core

iQIYI

Inc.

Core

iQIYI

Inc.

Core

iQIYI

Inc.

Core

iQIYI

Inc.

Diluted earnings per ADS

13.59

18.22

6.77

0.95

Add: Accretion of the redeemable noncontrolling interests

0.46

0.53

0.07

Add: Non-GAAP adjustments to earnings per ADS

1.20

1.65

14.56

2.06

Diluted earnings per ADS (non-GAAP)

15.25

20.40

21.86

3.08

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

(2)

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

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

20

Baidu, Inc.

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

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


	Twelve months ended									Twelve months ended									Twelve months ended
	December 31, 2022									December 31, 2023									December 31, 2023
	(RMB)									(RMB)									(US$)
	Baidu						Baidu,			Baidu						Baidu,			Baidu						Baidu,
	Core			iQIYI			Inc.			Core			iQIYI			Inc.			Core			iQIYI			Inc.
Operating income		14,534			1,312			15,911			18,825			2,989			21,856			2,651			421			3,078
Add: Share-based compensation expenses		5,977			811			6,788			5,708			637			6,345			804			90			894
Add: Amortization and impairment of intangible assets⁽¹⁾		223			50			273			215			17			232			31			2			33
Add: Contingent loss⁽²⁾		214			—			214			—			—			—			—			—			—

Operating income (non-GAAP)		20,948			2,173			23,186			24,748			3,643			28,433			3,486			513			4,005
Add: Depreciation of fixed assets		6,140			337			6,477			7,115			275			7,390			1,002			39			1,041

Adjusted EBITDA		27,088			2,510			29,663			31,863			3,918			35,823			4,488			552			5,046
Net income (loss) attributable to Baidu		7,551			(136	)		7,559			19,401			1,925			20,315			2,733			271			2,861
Add: Share-based compensation expenses		5,964			811			6,371			5,704			637			5,993			803			90			844
Add: Amortization and impairment of intangible assets⁽¹⁾		200			50			229			195			17			204			27			2			29
Add: Disposal (gain)		(515	)		(368	)		(700	)		(1,926	)		(90	)		(1,967	)		(271	)		(13	)		(277	)
Add: Impairment of long-term investments		2,180			841			2,601			479			336			631			67			47			89
Add: Fair value loss (gain) of long-term investments		3,977			(18	)		3,968			(54	)		4			(52	)		(8	)		1			(7	)
Add: Reconciling items on equity method investments⁽³⁾		1,473			105			1,548			3,918			9			3,922			552			2			551
Add: Charitable donation from Baidu⁽⁴⁾		136			—			136			—			—			—			—			—			—
Add: Contingent loss⁽²⁾		214			—			214			—			—			—			—			—			—
Add: Tax effects on non-GAAP adjustments⁽⁵⁾		(1,245	)		(1	)		(1,246	)		(299	)		—			(299	)		(41	)		—			(41	)

Net income attributable to Baidu (non-GAAP)		19,935			1,284			20,680			27,418			2,838			28,747			3,862			400			4,049

21

Twelve months ended

December 31, 2022

December 31, 2023

(RMB)

(US$)

Baidu

Baidu,

Baidu

Baidu,

Baidu

Baidu,

Core

iQIYI

Inc.

Core

iQIYI

Inc.

Core

iQIYI

Inc.

Diluted earnings per ADS

19.85

55.08

7.76

Add: Accretion of the redeemable noncontrolling interests

1.68

2.02

0.28

Add: Non-GAAP adjustments to earnings per ADS

37.40

23.75

3.35

Diluted earnings per ADS (non-GAAP)

58.93

80.85

11.39

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

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

(3)

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