BEIJING, Nov. 22, 2022 /PRNewswire/ -- Baidu, Inc.
(NASDAQ: BIDU and HKEX: 9888) ("Baidu" or the "Company"), a leading
AI company with strong Internet foundation, today announced its
unaudited financial results for the third quarter ended
September 30, 2022.
"Baidu Core delivered a solid set of financial and operational
results in the third quarter, despite the continued challenges
posed by the COVID-19 resurgence. Baidu Core's revenue resumed
positive growth, driven by a gradual recovery of our online
marketing business and the steady growth of our AI Cloud revenue.
Notably, we continued to make significant progress in intelligent
driving. On the one hand, Baidu Apollo's auto solutions continued
gaining popularity amongst leading automakers. On the other hand,
Apollo Go continued scaling up its operation, completing more than
474,000 rides in the quarter, further strengthening its leading
position in the global autonomous ride-hailing market," said
Robin Li, Co-founder and CEO of
Baidu. "Looking ahead, we expect our mobile ecosystem to continue
generating strong cash flow and fund our investment in AI Cloud and
intelligent driving, which will help maintain our leadership in the
new AI business and drive long term business growth."
"In the third quarter of 2022, Baidu Core's non-GAAP operating
profit increased by 14% year over year to RMB6.7 billion despite that the resurgence of
COVID-19 pressured revenue performance. This achievement is
attributable to our relentless efforts in cost optimization and
operational efficiency." said Rong Luo, CFO of Baidu. "Going
forward, we will continue to focus on quality revenue growth. At
the same time, we will keep investing in technology and talents to
propel our future development."
Third Quarter 2022 Financial Highlights[1]
|
Baidu,
Inc.
|
(In millions except
per
|
Q3
|
|
Q2
|
|
Q3
|
|
|
|
|
|
ADS,
unaudited)
|
2021
|
|
2022
|
|
2022
|
|
|
YOY
|
|
QOQ
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
Total
revenues
|
31,921
|
|
29,647
|
|
32,540
|
4,574
|
|
2 %
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
2,308
|
|
3,400
|
|
5,317
|
747
|
|
130 %
|
|
56 %
|
Operating income
(non-GAAP) [2]
|
4,708
|
|
5,493
|
|
7,200
|
1,012
|
|
53 %
|
|
31 %
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income to
Baidu
|
(16,559)
|
|
3,637
|
|
(146)
|
(21)
|
|
(99 %)
|
|
-
|
Net income to Baidu
(non-GAAP) [2]
|
5,090
|
|
5,541
|
|
5,889
|
828
|
|
16 %
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per ADS
|
(48.18)
|
|
9.97
|
|
(0.87)
|
(0.12)
|
|
(98 %)
|
|
-
|
Diluted earnings per
ADS (non-GAAP) [2]
|
14.66
|
|
15.79
|
|
16.87
|
2.37
|
|
15 %
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
[2]
|
5,962
|
|
7,054
|
|
8,879
|
1,248
|
|
49 %
|
|
26 %
|
Adjusted EBITDA
margin
|
19 %
|
|
24 %
|
|
27 %
|
27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Unless
otherwise noted, RMB to USD was converted at an exchange rate of
RMB7.1135 as of September 30,
2022, 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).
|
|
Baidu
Core
|
|
Q3
|
|
Q2
|
|
Q3
|
|
|
|
|
|
(In millions,
unaudited)
|
2021
|
|
2022
|
|
2022
|
|
|
YOY
|
|
QOQ
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
Total
revenues
|
24,661
|
|
23,160
|
|
25,239
|
3,548
|
|
2 %
|
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
3,718
|
|
3,246
|
|
4,982
|
700
|
|
34 %
|
|
53 %
|
Operating income
(non-GAAP) [2]
|
5,823
|
|
5,121
|
|
6,650
|
935
|
|
14 %
|
|
30 %
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income to
Baidu Core
|
(15,625)
|
|
3,716
|
|
25
|
4
|
|
-
|
|
(99 %)
|
Net income to Baidu
Core (non-GAAP) [2]
|
5,855
|
|
5,449
|
|
5,767
|
811
|
|
(2 %)
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
[2]
|
6,994
|
|
6,597
|
|
8,239
|
1,158
|
|
18 %
|
|
25 %
|
Adjusted EBITDA
margin
|
28 %
|
|
28 %
|
|
33 %
|
33 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational Highlights
Corporate
- Baidu returned US$272 million to
shareholders since Q3 2022, bringing the cumulative repurchase to
$3.2 billion under the 2020 Share
Repurchase Program.
AI Cloud
- As of the end of the third quarter of 2022, Baidu ACE smart
transportation solutions have been adopted by 63 cities, up from 24
cities a year ago, based on the contract value of over RMB10 million for each city.
Intelligent Driving
- Baidu Apollo's auto solutions continued to gain traction among
leading automakers:
– One of China's largest automotive and technology
companies intended to use ANP (Apollo Navigation Pilot), AVP
(Automated Valet Parking) and HD Maps for another popular car
model. The partnership is an extension of existing collaboration,
validating an increasing appetite for ASD (Apollo Self Driving)
solutions from automakers.
- Apollo Go continued to progress rapidly and remained the
largest autonomous ride-hailing service provider worldwide:
– Apollo Go provided more than 474K rides in the third quarter of 2022, up 311%
year over year and 65% quarter over quarter. The accumulated rides
provided to the public by Apollo Go reached 1.4 million by the
third quarter of 2022.
Other Growth Initiatives
- Xiaodu ranked No.1 in smart display shipments and smart speaker
shipments in China for 2Q22,
according to IDC, Strategy Analytics and Canalys.
Mobile Ecosystem
- In September, Baidu App's MAUs reached 634 million, up 5% year
over year.
- Revenue from Managed Page grew by 13% year over year and
reached 51% of Baidu Core's online marketing revenue in the third
quarter of 2022.
iQIYI
iQIYI's average daily number of total subscribing members for
the quarter was 101.0 million, compared to 104.7 million for the
third quarter of 2021 and 98.3 million for the second quarter of
2022.
Third Quarter 2022 Financial Results
Total revenues were RMB 32.5
billion ($4.57 billion),
increasing 2% year over year.
- Revenue from Baidu Core was RMB 25.2 billion
($3.55 billion), increasing 2% year
over year; online marketing revenue was RMB 18.7 billion ($2.63
billion), decreasing 4% year over year but improved 10% from
the second quarter as macro has improved gradually since June, and
non-online marketing revenue was RMB
6.5 billion ($916 million), up
25% year over year, driven by AI Cloud and other AI-powered
businesses.
- Revenue from iQIYI was RMB
7.5 billion ($1.05 billion),
decreasing 2% year over year.
Cost of revenues was RMB 16.3
billion ($2.29 billion),
increasing 1% year over year.
Selling, general and administrative expenses were
RMB 5.2 billion ($730 million), decreasing 29% year over year,
primarily due to a decrease in channel spending and promotional
marketing.
Research and development expense was RMB 5.8 billion ($809
million), decreasing 7% year over year, primarily due to a
decrease in staff related expenses.
Operating income was RMB 5.3
billion ($747 million).
Baidu Core operating income was RMB
5.0 billion ($700 million),
and Baidu Core operating margin was 20%. Non-GAAP operating
income was RMB 7.2 billion
($1.01 billion). Non-GAAP Baidu
Core operating income was RMB 6.7
billion ($935 million), and
non-GAAP Baidu Core operating margin was 26%.
Total other loss, net was RMB
4.8 billion ($670 million),
decreasing 78% year over year, which mainly includes a fair value
loss of RMB 3.1 billion and an
impairment of long-term investments of RMB
1.4 billion. In the third quarter of 2021, we recognized a
fair value loss of RMB 18.9 billion.
A significant portion of long-term investments, including but not
limited to investments in equity securities of public and private
companies, private equity funds and digital assets, is subject to
quarterly fair value adjustments, which may contribute to net
income volatility in future periods.
Income tax expense was RMB
908 million ($128 million),
compared to an income tax benefit of RMB 1.8
billion for Q3' 21, primarily due to an increase in deferred
tax benefit recognized on fair value loss of long-term investments
and deduction on certain expenses that were previously considered
non-deductible in the third quarter of 2021.
Net loss attributable to Baidu was RMB 146 million ($21
million), and diluted loss per ADS was RMB 0.87 ($0.12).
Net income attributable to Baidu Core was RMB 25 million ($4
million). Non-GAAP net income attributable to Baidu
was RMB 5.9 billion ($828 million). Non-GAAP diluted earnings per ADS
was RMB 16.87 ($2.37). Non-GAAP net income attributable to
Baidu Core was RMB 5.8 billion
($811 million), and non-GAAP net
margin for Baidu Core was 23%.
Adjusted EBITDA was RMB 8.9
billion ($1.25 billion) and
adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu
Core was RMB 8.2 billion
($1.16 billion) and adjusted EBITDA
margin for Baidu Core was 33%.
As of September 30, 2022, cash,
cash equivalents, restricted cash and short-term investments
were RMB 184.5 billion ($25.94 billion), and cash, cash equivalents,
restricted cash and short-term investments excluding iQIYI were
RMB 179.5 billion ($25.23 billion). Free cash flow was
RMB 6.6 billion ($921 million), and free cash flow excluding
iQIYI was RMB 6.4 billion
($900 million).
Conference Call Information
Baidu's management will hold an earnings conference
call at 7:30AM on November 22, 2022, U.S. Eastern Time
(8:30PM on November 22, 2022, 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 Q3 2022 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/10026844-g6c9hw.html
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial-in number(s), the
passcode and unique access PIN) provided in the calendar invite
that you have received following your pre-registration.
Additionally, a live and archived webcast of this conference
call will be available at https://ir.baidu.com.
About Baidu
Founded in 2000, Baidu's mission is to make the complicated
world simpler through technology. Baidu is a leading AI company
with strong Internet foundation, trading on NASDAQ under "BIDU" and
HKEX under "9888". One Baidu ADS represents eight Class A ordinary
shares.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, Baidu's and other parties' strategic and operational
plans, contain forward-looking statements. Baidu may also make
written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission, in announcements
made on the website of The Stock Exchange of Hong Kong Limited (the
"Hong Kong Stock Exchange"), in its annual report to shareholders,
in press releases and other written materials and in oral
statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including but
not limited to statements about Baidu's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: Baidu's growth strategies; its future business
development, including development of new products and services;
its ability to attract and retain users and customers; competition
in the Chinese Internet search and newsfeed market; competition for
online marketing customers; changes in the Company's revenues and
certain cost or expense items as a percentage of its revenues; the
liquidity condition of Baidu and/its subsidiaries and consolidated affiliated entities and their
respective ability to fulfill payment obligations when due; 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 attributable to Baidu,
non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted
EBITDA, adjusted EBITDA margin and free cash flow. The presentation
of these non-GAAP financial measures is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
Baidu believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance and
liquidity by excluding certain items that may not be indicative of
its recurring core business operating results, such as operating
performance excluding non-cash charges or non-operating in nature.
The Company believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
its performance and when planning and forecasting future periods.
These non-GAAP financial measures also facilitate management's
internal comparisons to Baidu's historical performance and
liquidity. The Company believes these non-GAAP financial measures
are useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision making. A limitation of using
these non-GAAP financial measures is that these non-GAAP measures
exclude certain items that have been and will continue to be for
the foreseeable future a significant component in the Company's
results of operations. These non-GAAP financial measures
presented here may not be comparable to similarly titled measures
presented by other companies. Other companies may calculate
similarly titled measures differently, limiting their usefulness as
comparative measures to the Company's data.
Non-GAAP operating income represents operating income excluding
share-based compensation expenses, amortization and impairment of
intangible assets resulting from business combinations and
contingent loss pertaining to legal proceeding in relation to
former advertising agencies and iQIYI's non-recurring employee
severance costs.
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, contingent loss pertaining to legal
proceeding in relation to former advertising agencies, iQIYI's
non-recurring employee severance costs, disposal gain or loss,
impairment of long-term investments, fair value change of long-term
investments, 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 shares, adjusted for
related income tax effects, are also excluded.
Non-GAAP diluted earnings per ADS represents diluted earnings
per ADS calculated by dividing non-GAAP net income attributable to
Baidu, by the weighted average number of ordinary shares expressed
in ADS. Adjusted EBITDA represents operating income excluding
depreciation, amortization and impairment of intangible assets
resulting from business combinations, contingent loss pertaining to
legal proceeding in relation to former advertising agencies,
iQIYI's non-recurring employee severance costs, and share-based
compensation expenses.
For more information on non-GAAP financial measures, please see
the tables captioned "Reconciliations of non-GAAP financial
measures to the nearest comparable GAAP measure".
Baidu,
Inc.
|
Condensed
Consolidated Statements of (Loss) Income
|
(In millions except for
per share (or ADS) information, unaudited)
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
2021
|
|
2022
|
|
2022
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$(2)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Online marketing
services
|
|
21,050
|
|
18,268
|
|
19,943
|
|
2,803
|
|
Others
|
|
10,871
|
|
11,379
|
|
12,597
|
|
1,771
|
|
Total
revenues
|
|
31,921
|
|
29,647
|
|
32,540
|
|
4,574
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenues(1)
|
|
16,126
|
|
15,171
|
|
16,273
|
|
2,288
|
|
Selling, general and
administrative(1)
|
|
7,320
|
|
4,784
|
|
5,193
|
|
730
|
|
Research and
development(1)
|
|
6,167
|
|
6,292
|
|
5,757
|
|
809
|
|
Total costs
and expenses
|
|
29,613
|
|
26,247
|
|
27,223
|
|
3,827
|
|
Operating
income
|
|
2,308
|
|
3,400
|
|
5,317
|
|
747
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,462
|
|
1,525
|
|
1,619
|
|
228
|
|
Interest
expense
|
|
(880)
|
|
(741)
|
|
(724)
|
|
(102)
|
|
Foreign exchange
gain (loss), net
|
|
7
|
|
(329)
|
|
(806)
|
|
(113)
|
|
Share of losses
from equity method investments
|
|
(4)
|
|
(603)
|
|
(376)
|
|
(53)
|
|
Others,
net
|
|
(22,079)
|
|
299
|
|
(4,483)
|
|
(630)
|
|
Total other
(loss) income, net
|
|
(21,494)
|
|
151
|
|
(4,770)
|
|
(670)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes
|
|
(19,186)
|
|
3,551
|
|
547
|
|
77
|
|
Income tax
(benefit) expense
|
|
(1,839)
|
|
25
|
|
908
|
|
128
|
|
Net (loss)
income
|
|
(17,347)
|
|
3,526
|
|
(361)
|
|
(51)
|
|
Net (loss) income
attributable to noncontrolling interests
|
|
(788)
|
|
(111)
|
|
(215)
|
|
(30)
|
|
Net (loss)
income attributable to Baidu
|
|
(16,559)
|
|
3,637
|
|
(146)
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per ADS
(1 ADS representing 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
-Basic
|
|
(48.18)
|
|
10.06
|
|
(0.87)
|
|
(0.12)
|
|
-Diluted
|
|
(48.18)
|
|
9.97
|
|
(0.87)
|
|
(0.12)
|
|
(Loss) earnings per
share for Class A and Class B ordinary shares:
|
|
|
|
|
|
|
|
-Basic
|
|
(6.02)
|
|
1.26
|
|
(0.11)
|
|
(0.02)
|
|
-Diluted
|
|
(6.02)
|
|
1.25
|
|
(0.11)
|
|
(0.02)
|
|
Weighted average number
of Class A and Class B ordinary shares outstanding (in
millions):
|
|
|
|
|
|
-Basic
|
|
2,778
|
|
2,780
|
|
2,790
|
|
2,790
|
|
-Diluted
|
|
2,778
|
|
2,811
|
|
2,790
|
|
2,790
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
74
|
|
85
|
|
84
|
|
12
|
|
Selling, general
and administrative
|
|
353
|
|
443
|
|
480
|
|
68
|
|
Research and
development
|
|
921
|
|
1,493
|
|
1,039
|
|
145
|
|
Total share-based
compensation expenses
|
|
1,348
|
|
2,021
|
|
1,603
|
|
225
|
|
|
|
|
|
|
|
|
|
|
|
(2) All
translations from RMB to U.S. dollars are made at a rate of RMB
7.1135 to US$1.00, the exchange rate in effect as of September
30,
2022 as set forth in the H.10 statistical release of The Board of
Governors of the Federal Reserve System.
|
Baidu,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
September
30,
|
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
36,850
|
|
55,164
|
|
7,755
|
Restricted
cash
|
|
10,821
|
|
11,233
|
|
1,579
|
Short-term
investments, net
|
|
143,243
|
|
118,148
|
|
16,609
|
Accounts
receivable, net
|
|
9,981
|
|
10,677
|
|
1,501
|
Amounts due from
related parties
|
|
1,368
|
|
3,880
|
|
545
|
Other current
assets, net
|
|
11,052
|
|
9,818
|
|
1,380
|
Total current assets
|
|
213,315
|
|
208,920
|
|
29,369
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
Fixed assets,
net
|
|
23,027
|
|
24,251
|
|
3,409
|
Licensed
copyrights, net
|
|
7,258
|
|
7,147
|
|
1,005
|
Produced content,
net
|
|
10,951
|
|
12,712
|
|
1,787
|
Intangible
assets, net
|
|
1,689
|
|
1,453
|
|
204
|
Goodwill
|
|
22,605
|
|
22,602
|
|
3,177
|
Long-term
investments, net
|
|
59,417
|
|
55,527
|
|
7,806
|
Long-term time
deposits and held-to-maturity investments
|
7,915
|
|
22,149
|
|
3,114
|
Amounts due from
related parties
|
|
3,487
|
|
1,521
|
|
214
|
Deferred tax
assets, net
|
|
2,372
|
|
3,209
|
|
451
|
Operating lease
right-of-use assets
|
|
12,065
|
|
10,778
|
|
1,515
|
Other non-current
assets
|
|
15,933
|
|
18,764
|
|
2,639
|
Total non-current assets
|
|
166,719
|
|
180,113
|
|
25,321
|
|
|
|
|
|
|
|
Total
assets
|
|
380,034
|
|
389,033
|
|
54,690
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
loans
|
|
4,168
|
|
4,977
|
|
700
|
Accounts payable and
accrued liabilities
|
|
41,384
|
|
38,689
|
|
5,439
|
Customer deposits and
deferred revenue
|
|
13,706
|
|
13,984
|
|
1,966
|
Deferred
income
|
|
97
|
|
70
|
|
10
|
Long-term loans,
current portion
|
|
2
|
|
-
|
|
-
|
Convertible notes,
current
|
|
-
|
|
8,521
|
|
1,198
|
Notes payable, current
portion
|
|
10,505
|
|
12,444
|
|
1,749
|
Amounts due to related
parties
|
|
1,764
|
|
3,482
|
|
489
|
Operating lease
liabilities
|
|
2,862
|
|
2,811
|
|
395
|
Total current liabilities
|
|
74,488
|
|
84,978
|
|
11,946
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
Deferred
income
|
|
129
|
|
175
|
|
25
|
Deferred
revenue
|
|
223
|
|
285
|
|
40
|
Amounts due to related
parties
|
|
3,268
|
|
1,521
|
|
214
|
Long-term
loans
|
|
12,629
|
|
14,124
|
|
1,986
|
Notes
payable
|
|
43,120
|
|
41,077
|
|
5,775
|
Convertible senior
notes
|
|
12,652
|
|
6,370
|
|
895
|
Deferred tax
liabilities
|
|
3,286
|
|
2,854
|
|
401
|
Operating lease
liabilities
|
|
5,569
|
|
5,165
|
|
726
|
Other non-current
liabilities
|
|
718
|
|
1,692
|
|
237
|
Total non-current liabilities
|
|
81,594
|
|
73,263
|
|
10,299
|
|
|
|
|
|
|
|
Total
liabilities
|
|
156,082
|
|
158,241
|
|
22,245
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
7,148
|
|
8,100
|
|
1,139
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Total Baidu shareholders' equity
|
|
211,459
|
|
217,236
|
|
30,539
|
Noncontrolling interests
|
|
5,345
|
|
5,456
|
|
767
|
Total
equity
|
|
216,804
|
|
222,692
|
|
31,306
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests, and equity
|
|
380,034
|
|
389,033
|
|
54,690
|
|
|
|
|
|
|
|
Baidu,
Inc.
|
Selected
Information
|
(In millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30, 2021 (RMB)
|
|
Three months
ended
June 30, 2022 (RMB)
|
|
Three months
ended
September 30, 2022 (RMB)
|
|
Three months
ended
September 30, 2022 (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
|
|
24,661
|
7,589
|
(329)
|
|
31,921
|
|
23,160
|
6,657
|
(170)
|
|
29,647
|
|
25,239
|
7,471
|
(170)
|
|
32,540
|
|
3,548
|
1,050
|
(24)
|
|
4,574
|
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 %
|
(2 %)
|
|
|
2 %
|
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 %
|
12 %
|
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(1)
|
|
9,370
|
7,028
|
(272)
|
|
16,126
|
|
10,114
|
5,248
|
(191)
|
|
15,171
|
|
10,745
|
5,705
|
(177)
|
|
16,273
|
|
1,511
|
802
|
(25)
|
|
2,288
|
|
Selling, general
and administrative (1)
|
|
6,089
|
1,246
|
(15)
|
|
7,320
|
|
3,990
|
801
|
(7)
|
|
4,784
|
|
4,231
|
980
|
(18)
|
|
5,193
|
|
595
|
138
|
(3)
|
|
730
|
|
Research and
development (1)
|
|
5,484
|
683
|
-
|
|
6,167
|
|
5,810
|
482
|
-
|
|
6,292
|
|
5,281
|
476
|
-
|
|
5,757
|
|
742
|
67
|
-
|
|
809
|
|
Total costs and
expenses
|
|
20,943
|
8,957
|
(287)
|
|
29,613
|
|
19,914
|
6,531
|
(198)
|
|
26,247
|
|
20,257
|
7,161
|
(195)
|
|
27,223
|
|
2,848
|
1,007
|
(28)
|
|
3,827
|
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15 %
|
(19 %)
|
|
|
1 %
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(31 %)
|
(21 %)
|
|
|
(29 %)
|
|
|
|
|
|
|
|
Research and
development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4 %)
|
(30 %)
|
|
|
(7 %)
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3 %)
|
(20 %)
|
|
|
(8 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
3,718
|
(1,368)
|
(42)
|
|
2,308
|
|
3,246
|
126
|
28
|
|
3,400
|
|
4,982
|
310
|
25
|
|
5,317
|
|
700
|
43
|
4
|
|
747
|
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34 %
|
-
|
|
|
130 %
|
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53 %
|
146 %
|
|
|
56 %
|
|
|
|
|
|
|
|
Operating
margin
|
|
15 %
|
(18 %)
|
|
|
7 %
|
|
14 %
|
2 %
|
|
|
11 %
|
|
20 %
|
4 %
|
|
|
16 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: total other
(loss) income, net
|
|
(21,163)
|
(331)
|
-
|
|
(21,494)
|
|
442
|
(291)
|
-
|
|
151
|
|
(4,108)
|
(662)
|
-
|
|
(4,770)
|
|
(577)
|
(93)
|
-
|
|
(670)
|
|
Less: income tax
(benefit) expense
|
|
(1,848)
|
9
|
-
|
|
(1,839)
|
|
(11)
|
36
|
-
|
|
25
|
|
866
|
42
|
-
|
|
908
|
|
122
|
6
|
-
|
|
128
|
|
Less: net income
(loss) attributable to NCI
|
|
28
|
22
|
(838)(3)
|
|
(788)
|
|
(17)
|
13
|
(107)(3)
|
|
(111)
|
|
(17)
|
1
|
(199)(3)
|
|
(215)(3)
|
|
|
-
|
(27)(3)
|
|
(30)
|
|
Net (loss) income
attributable to Baidu
|
|
(15,625)
|
(1,730)
|
796
|
|
(16,559)
|
|
3,716
|
(214)
|
135
|
|
3,637
|
|
25
|
(395)
|
224
|
|
(146)
|
|
4
|
(56)
|
31
|
|
(21)
|
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
(77 %)
|
|
|
(99 %)
|
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(99 %)
|
85 %
|
|
|
-
|
|
|
|
|
|
|
|
Net
margin
|
|
(63 %)
|
(23 %)
|
|
|
(52 %)
|
|
16 %
|
(3 %)
|
|
|
12 %
|
|
0 %
|
(5 %)
|
|
|
(0 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (non-GAAP)
|
|
5,823
|
(1,073)
|
|
|
4,708
|
|
5,121
|
344
|
|
|
5,493
|
|
6,650
|
525
|
|
|
7,200
|
|
935
|
73
|
|
|
1,012
|
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 %
|
-
|
|
|
53 %
|
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 %
|
53 %
|
|
|
31 %
|
|
|
|
|
|
|
|
Operating margin
(non-GAAP)
|
|
24 %
|
(14 %)
|
|
|
15 %
|
|
22 %
|
5 %
|
|
|
19 %
|
|
26 %
|
7 %
|
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Baidu (non-GAAP)
|
|
5,855
|
(1,400)
|
|
|
5,090
|
|
5,449
|
79
|
|
|
5,541
|
|
5,767
|
187
|
|
|
5,889
|
|
811
|
25
|
|
|
828
|
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 %)
|
-
|
|
|
16 %
|
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 %
|
137 %
|
|
|
6 %
|
|
|
|
|
|
|
|
Net margin
(non-GAAP)
|
|
24 %
|
(18 %)
|
|
|
16 %
|
|
24 %
|
1 %
|
|
|
19 %
|
|
23 %
|
3 %
|
|
|
18 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
6,994
|
(990)
|
|
|
5,962
|
|
6,597
|
429
|
|
|
7,054
|
|
8,239
|
615
|
|
|
8,879
|
|
1,158
|
86
|
|
|
1,248
|
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18 %
|
-
|
|
|
49 %
|
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25 %
|
43 %
|
|
|
26 %
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
28 %
|
(13 %)
|
|
|
19 %
|
|
28 %
|
6 %
|
|
|
24 %
|
|
33 %
|
8 %
|
|
|
27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
34
|
40
|
|
|
74
|
|
49
|
36
|
|
|
85
|
|
45
|
39
|
|
|
84
|
|
7
|
5
|
|
|
12
|
|
Selling, general
and administrative
|
|
196
|
157
|
|
|
353
|
|
339
|
104
|
|
|
443
|
|
375
|
105
|
|
|
480
|
|
53
|
15
|
|
|
68
|
|
Research and
development
|
|
837
|
84
|
|
|
921
|
|
1,431
|
62
|
|
|
1,493
|
|
978
|
61
|
|
|
1,039
|
|
136
|
9
|
|
|
145
|
|
Total share-based
compensation
|
|
1,067
|
281
|
|
|
1,348
|
|
1,819
|
202
|
|
|
2,021
|
|
1,398
|
205
|
|
|
1,603
|
|
196
|
29
|
|
|
225
|
|
(2) Relates to
intersegment eliminations and adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Relates to
the net income/(loss) attributable to iQIYI noncontrolling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
millions,unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
September 30, 2021
(RMB)
|
|
June 30, 2022
(RMB)
|
|
September 30, 2022
(RMB)
|
|
September 30, 2022
(US$)
|
|
|
Baidu excl.
iQIYI
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu excl.
iQIYI
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu excl.
iQIYI
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu excl.
iQIYI
|
iQIYI
|
Baidu,
Inc.
|
Net cash provided by
(used in) operating activities
|
|
5,436
|
(2,081)
|
3,355
|
|
7,658
|
48
|
7,706
|
|
8,543
|
196
|
8,739
|
|
1,201
|
28
|
1,229
|
Net cash (used in)
provided by investing activities
|
|
(15,857)
|
1,885
|
(13,972)
|
|
(3,027)
|
(653)
|
(3,680)
|
|
7,603
|
407
|
8,010
|
|
1,069
|
57
|
1,126
|
Net cash provided by
(used in) financing activities
|
|
7,744
|
867
|
8,611
|
|
877
|
(334)
|
543
|
|
(5,967)
|
(106)
|
(6,073)
|
|
(839)
|
(15)
|
(854)
|
Effect of exchange rate
changes on cash, cash
equivalents and restricted cash
|
|
(47)
|
(21)
|
(68)
|
|
1,230
|
75
|
1,305
|
|
1,980
|
60
|
2,040
|
|
279
|
8
|
287
|
Net (decrease)
increase in cash, cash equivalents
and restricted cash
|
|
(2,724)
|
650
|
(2,074)
|
|
6,738
|
(864)
|
5,874
|
|
12,159
|
557
|
12,716
|
|
1,710
|
78
|
1,788
|
Cash, cash equivalents
and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of
period
|
|
46,812
|
6,736
|
53,548
|
|
43,924
|
3,883
|
47,807
|
|
50,662
|
3,019
|
53,681
|
|
7,122
|
424
|
7,546
|
At end of
period
|
|
44,088
|
7,386
|
51,474
|
|
50,662
|
3,019
|
53,681
|
|
62,821
|
3,576
|
66,397
|
|
8,832
|
502
|
9,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
5,436
|
(2,081)
|
3,355
|
|
7,658
|
48
|
7,706
|
|
8,543
|
196
|
8,739
|
|
1,201
|
28
|
1,229
|
Less: Capital
expenditures
|
|
(2,548)
|
(116)
|
(2,664)
|
|
(2,124)
|
(66)
|
(2,190)
|
|
(2,140)
|
(48)
|
(2,188)
|
|
(301)
|
(7)
|
(308)
|
Free cash
flow
|
|
2,888
|
(2,197)
|
691
|
|
5,534
|
(18)
|
5,516
|
|
6,403
|
148
|
6,551
|
|
900
|
21
|
921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Baidu excl. iQIYI
represents Baidu, Inc. minus iQIYI's consolidated cash
flows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu,
Inc.
|
Reconciliations of
Non-GAAP Financial Measures to the Nearest Comparable GAAP
Measures
|
(In millions except for
per ADS information, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
September 30, 2021
(RMB)
|
|
June 30, 2022
(RMB)
|
|
September 30, 2022
(RMB)
|
|
September 30, 2022
(US$)
|
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
Operating income
(loss)
|
|
3,718
|
(1,368)
|
2,308
|
|
3,246
|
126
|
3,400
|
|
4,982
|
310
|
5,317
|
|
700
|
43
|
747
|
Add: Share-based
compensation expenses
|
|
1,067
|
281
|
1,348
|
|
1,819
|
202
|
2,021
|
|
1,398
|
205
|
1,603
|
|
196
|
29
|
225
|
Add: Amortization and
impairment of intangible assets(1)
|
|
62
|
14
|
76
|
|
56
|
16
|
72
|
|
56
|
10
|
66
|
|
8
|
1
|
9
|
Add: Contingent
loss(4)
|
|
976
|
-
|
976
|
|
-
|
-
|
-
|
|
214
|
-
|
214
|
|
31
|
-
|
31
|
Operating income
(loss) (non-GAAP)
|
|
5,823
|
(1,073)
|
4,708
|
|
5,121
|
344
|
5,493
|
|
6,650
|
525
|
7,200
|
|
935
|
73
|
1,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation
of fixed assets
|
|
1,171
|
83
|
1,254
|
|
1,476
|
85
|
1,561
|
|
1,589
|
90
|
1,679
|
|
223
|
13
|
236
|
Adjusted
EBITDA
|
|
6,994
|
(990)
|
5,962
|
|
6,597
|
429
|
7,054
|
|
8,239
|
615
|
8,879
|
|
1,158
|
86
|
1,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Baidu
|
|
(15,625)
|
(1,730)
|
(16,559)
|
|
3,716
|
(214)
|
3,637
|
|
25
|
(395)
|
(146)
|
|
4
|
(56)
|
(21)
|
Add: Share-based
compensation expenses
|
|
1,086
|
281
|
1,231
|
|
1,815
|
202
|
1,916
|
|
1,394
|
205
|
1,497
|
|
196
|
29
|
210
|
Add: Amortization and
impairment of intangible assets(1)
|
|
55
|
14
|
63
|
|
50
|
16
|
59
|
|
50
|
10
|
56
|
|
7
|
1
|
8
|
Add: Disposal (gain)
loss
|
|
-
|
-
|
-
|
|
(25)
|
-
|
(25)
|
|
(6)
|
-
|
(6)
|
|
(1)
|
-
|
(1)
|
Add: Impairment of
long-term investments
|
|
3,187
|
29
|
3,202
|
|
222
|
11
|
228
|
|
1,042
|
376
|
1,230
|
|
146
|
53
|
173
|
Add: Fair value loss
(gain) of long-term investments
|
|
18,970
|
8
|
18,974
|
|
(547)
|
2
|
(546)
|
|
3,149
|
(27)
|
3,135
|
|
443
|
(4)
|
442
|
Add: Reconciling items
on equity method investments(2)
|
|
36
|
3
|
38
|
|
403
|
60
|
455
|
|
237
|
16
|
245
|
|
34
|
2
|
35
|
Add: Charitable
donation from Baidu(3)
|
|
90
|
-
|
90
|
|
136
|
-
|
136
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Add: Contingent
loss(4)
|
|
976
|
-
|
976
|
|
-
|
-
|
-
|
|
214
|
-
|
214
|
|
30
|
-
|
30
|
Add: Tax effects on
non-GAAP adjustments
|
|
(2,920)
|
(5)
|
(2,925)
|
|
(321)
|
2
|
(319)
|
|
(338)
|
2
|
(336)
|
|
(48)
|
-
|
(48)
|
Net income (loss)
attributable to Baidu (non-GAAP)
|
|
5,855
|
(1,400)
|
5,090
|
|
5,449
|
79
|
5,541
|
|
5,767
|
187
|
5,889
|
|
811
|
25
|
828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per ADS
|
|
|
|
(48.18)
|
|
|
|
9.97
|
|
|
|
(0.87)
|
|
|
|
(0.12)
|
Add: Accretion of
the redeemable noncontrolling interests
|
|
|
|
0.49
|
|
|
|
0.39
|
|
|
|
0.45
|
|
|
|
0.06
|
Add: Non-GAAP
adjustments to earnings per ADS
|
|
|
|
62.35
|
|
|
|
5.43
|
|
|
|
17.29
|
|
|
|
2.43
|
Diluted earnings per
ADS (non-GAAP)
|
|
|
|
14.66
|
|
|
|
15.79
|
|
|
|
16.87
|
|
|
|
2.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This represents
amortization and impairment of intangible assets resulting from
business combinations.
|
(2) This represents
Baidu's share of equity method investments for other non-GAAP
reconciling items, amortization and impairment of intangible assets
not on the investee's books, accretion of their redeemable
noncontrolling interests, and the gain or loss associated with the
issuance of shares by the investees at a price higher or lower than
the carrying value per shares.
|
(3) This represents
non-recurring charitable donation to discrete events.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) This represents
contingent loss pertaining to legal proceeding involving former
advertising agency.
|
View original
content:https://www.prnewswire.com/news-releases/baidu-announces-third-quarter-2022-results-301684869.html
SOURCE Baidu, Inc.