Baidu Announces Second Quarter 2024 Results
BEIJING, Aug. 22, 2024 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2024.
"AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline growth for Baidu Core. Operationally, we fast-tracked the renovation of Baidu search, which we believe will drive long-term success despite the short-term impact on monetization. We also achieved new breakthroughs with Apollo Go, which now offers 100% fully driverless ride-hailing services in practically the entire Wuhan municipality, and has started scalable testing of the latest RT6 vehicles," said Robin Li, Co-founder and CEO of Baidu. "Gradually, the transformative impact of Gen-AI and foundation models is becoming more tangible in business and everyday life. Throughout all layers of our AI technology stack and with the rapid adoption of applications built on top of ERNIE, we are scaling AI to address real-world problems and generate substantial value both for external customers and our own product portfolio."
"As we speeded up the AI-native transformation of our products in the second quarter, we continued to optimize our operations and maintained a healthy margin," said Rong Luo, CFO of Baidu. "For AI Cloud in particular, we expect growth to maintain a strong momentum."
Second Quarter 2024 Financial Highlights
[1]
Baidu, Inc.
(In millions except per Q2 Q1 Q2
ADS, unaudited) 2023 2024 2024 YOY QOQ
RMB RMB RMB US$
Total revenues 34,056 31,513 33,931 4,669 (0 %) 8 %
Operating income 5,210 5,484 5,944 818 14 % 8 %
Operating income (non-GAAP)
[2] 7,334 6,673 7,500 1,032 2 % 12 %
Net income to Baidu 5,210 5,448 5,488 755 5 % 1 %
Net income to Baidu (non-GAAP)
[2] 7,998 7,011 7,396 1,018 (8 %) 5 %
Diluted earnings per ADS 14.17 14.91 15.01 2.07 6 % 1 %
Diluted earnings per ADS (non-GAAP)
[2] 22.55 19.91 21.02 2.89 (7 %) 6 %
Adjusted EBITDA
[2] 9,116 8,244 9,147 1,259 0 % 11 %
Adjusted EBITDA margin 27 % 26 % 27 % 27 %
Baidu Core
Q2 Q1 Q2
(In millions, unaudited) 2023 2024 2024 YOY QOQ
RMB RMB RMB US$
Total revenues 26,407 23,803 26,687 3,672 1 % 12 %
Operating income 4,568 4,538 5,608 772 23 % 24 %
Operating income (non-GAAP)
[2] 6,516 5,586 7,005 964 8 % 25 %
Net income to Baidu Core 5,012 5,150 5,462 752 9 % 6 %
Net income to Baidu Core (non-GAAP) [2] 7,694 6,628 7,290 1,003 (5 %) 10 %
Adjusted EBITDA[
2] 8,229 7,118 8,617 1,186 5 % 21 %
Adjusted EBITDA margin 31 % 30 % 32 % 32 %
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2672 as of June 28, 2024,
as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations
are provided solely for the convenience of the reader.
[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of
Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details).
Operational Highlights
Corporate
-- Baidu expanded the ERNIE family of models with the launch of ERNIE 4.0
Turbo in June 2024, offering superior capabilities for typical use
cases, and designed to run faster and at lower cost compared to ERNIE
4.0.
-- Baidu returned US$301 million to shareholders since the beginning of Q2
2024, bringing the cumulative repurchase to about US$1.2 billion under
the 2023 share repurchase program.
-- Baidu earned a position in the China edition of the S&P Global
Sustainability Yearbook, in recognition of its exceptional ESG
performance. The selection stems from a comprehensive evaluation of
1,700 Chinese companies as part of the S&P Global 2023 Corporate
Sustainability Assessment, underscoring Baidu's sustainability
practices.
AI Cloud
-- PaddlePaddle and ERNIE developer community grew to 14.7 million in June
2024.
Intelligent Driving
-- Apollo Go, Baidu's autonomous ride-hailing service, provided about 899K
rides in the second quarter of 2024, up 26% year over year. As of July
28, 2024, the cumulative rides provided to the public by Apollo Go
surpassed 7 million.
-- On June 19, Apollo Go started offering 100% fully driverless operations
in practically the entire Wuhan municipality, its largest operational
city, marking a significant milestone.
-- The sixth-generation of our autonomous vehicle, the RT6, is now
undergoing scalable testing.
Mobile Ecosystem
-- In June 2024, Baidu App's MAUs reached 703 million, up 4% year over
year.
-- Managed Page accounted for 51% of Baidu Core's online marketing revenue
in the second quarter of 2024.
Second Quarter 2024 Financial Results
Total revenues were RMB33.9 billion ($4.67 billion), which was basically flat from last year.
-- Revenue from Baidu Core was RMB26.7 billion ($3.67 billion), increasing
1% year over year; online marketing revenue was RMB19.2 billion ($2.64
billion), decreasing 2% year over year, and non-online marketing revenue
was RMB7.5 billion ($1.03 billion), up 10% year over year, mainly driven
by AI Cloud business.
-- Revenue from iQIYI was RMB7.4 billion ($1.02 billion), decreasing 5%
year over year.
Cost of revenues was RMB16.4 billion ($2.26 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business.
Selling, general and administrative expenses were RMB5.7 billion ($784 million), decreasing 9% year over year, primarily due to a decrease in expected credit losses, channel spending and promotional marketing expenses and personnel related expenses.
Research and development expenses were RMB5.9 billion ($810 million), decreasing 8% year over year, primarily due to a decrease in personnel related expenses.
Operating income was RMB5.9 billion ($818 million). Baidu Core operating income was RMB5.6 billion ($772 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.5 billion ($1.03 billion). Non-GAAP Baidu Core operating income was RMB7.0 billion ($964 million), and non-GAAP Baidu Core operating margin was 26%.
Total other income, net was RMB771 million ($106 million), decreasing 44% year over year, primarily due to a decrease in net foreign exchange gain and disposal gain, partially offset by the decrease in fair value loss and impairment loss from long-term investments.
Income tax expense was RMB1.1 billion ($156 million), compared to RMB1.3 billion in the same period last year.
Net income attributable to Baidu was RMB5.5 billion ($755 million), and diluted earnings per ADS was RMB15.01 ($2.07). Net income attributable to Baidu Core was RMB5.5 billion ($752 million), and net margin for Baidu Core was 20%. Non-GAAP net income attributable to Baidu was RMB7.4 billion ($1.02 billion). Non-GAAP diluted earnings per ADS was RMB21.02 ($2.89). Non-GAAP net income attributable to Baidu Core was RMB7.3 billion ($1.00 billion), and non-GAAP net margin for Baidu Core was 27%.
Adjusted EBITDA was RMB9.1 billion ($1.26 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB8.6 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 32%.
As of June 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB162.0 billion ($22.29 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB155.0 billion ($21.32 billion). Free cash flow was RMB6.3 billion ($862 million), and free cash flow excluding iQIYI was RMB5.9 billion ($810 million).
Conference Call Information
Baidu's management will hold an earnings conference call at 8.00 AM on Aug 22, 2024, U.S. Eastern Time (8.00 PM on Aug 22, 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. Q2 2024 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/10040402-jgu7y6.html
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.
Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.
About Baidu
Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.
Non-GAAP Financial Measures
To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income, 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, and amortization and impairment of intangible assets resulting from business combinations.
Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain, impairment of long-term investments, and fair value gain (loss) of long-term investments, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per 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, 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 Income
(In millions except for per share (or ADS) information, unaudited)
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30, June 30, June 30,
2023 2024 2024 2024 2023 2024 2024
RMB RMB RMB US$ RMB RMB US$
(2) (2)
Revenues:
Online marketing services 21,081 18,490 20,625 2,838 39,053 39,115 5,382
Others 12,975 13,023 13,306 1,831 26,147 26,329 3,623
Total revenues 34,056 31,513 33,931 4,669 65,200 65,444 9,005
Costs and expenses:
Cost of revenues(1) 16,167 15,291 16,398 2,257 31,319 31,689 4,361
Selling, general and administrative(1) 6,298 5,375 5,700 784 11,887 11,075 1,524
Research and development(1) 6,381 5,363 5,889 810 11,804 11,252 1,548
Total costs and expenses 28,846 26,029 27,987 3,851 55,010 54,016 7,433
Operating income 5,210 5,484 5,944 818 10,190 11,428 1,572
Other income:
Interest income 1,948 2,091 1,993 274 3,863 4,084 562
Interest expense (817) (766) (742) (102) (1,621) (1,508) (208)
Foreign exchange gain, net 1,176 401 93 13 1,070 494 68
Share of losses from equity method investments (383) (205) (119) (16) (431) (324) (45)
Others, net (555) (275) (454) (63) 1,083 (729) (100)
Total other income, net 1,369 1,246 771 106 3,964 2,017 277
Income before income taxes 6,579 6,730 6,715 924 14,154 13,445 1,849
Income tax expense 1,270 883 1,131 156 2,463 2,014 277
Net income 5,309 5,847 5,584 768 11,691 11,431 1,572
Net income attributable to noncontrolling interests 99 399 96 13 656 495 68
Net income attributable to Baidu 5,210 5,448 5,488 755 11,035 10,936 1,504
Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic 14.34 14.97 15.11 2.08 30.55 30.12 4.14
-Diluted 14.17 14.91 15.01 2.07 30.05 29.98 4.13
Earnings per share for Class A and Class B ordinary shares:
-Basic 1.79 1.87 1.89 0.26 3.82 3.77 0.52
-Diluted 1.77 1.86 1.88 0.26 3.76 3.74 0.51
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic 2,804 2,804 2,796 2,796 2,801 2,800 2,800
-Diluted 2,834 2,816 2,804 2,804 2,836 2,810 2,810
(1) Includes share-based compensation expenses as follows:
Cost of revenues 194 108 146 20 292 254 35
Selling, general and administrative 446 417 385 53 909 802 110
Research and development 1,403 618 981 135 2,231 1,599 220
Total share-based compensation expenses 2,043 1,143 1,512 208 3,432 2,655 365
(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the exchange rate in effect as of June 28, 2024 as set forth in the H.10 statistical release of The Board of Governors
of the Federal Reserve System.
Baidu, Inc.
Condensed Consolidated Balance Sheets
(In millions, unaudited)
December 31, June 30, June 30,
2023 2024 2024
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 25,231 43,534 5,990
Restricted cash 11,503 11,646 1,603
Short-term investments, net 168,670 106,821 14,699
Accounts receivable, net 10,848 11,112 1,529
Amounts due from related parties 1,424 1,396 192
Other current assets, net 12,579 12,757 1,756
Total current assets 230,255 187,266 25,769
Non-current assets:
Fixed assets, net 27,960 29,154 4,012
Licensed copyrights, net 6,967 6,914 951
Produced content, net 13,377 14,320 1,970
Intangible assets, net 881 812 112
Goodwill 22,586 22,586 3,108
Long-term investments, net 47,957 46,193 6,356
Long-term time deposits and held-to-maturity investments 24,666 72,497 9,976
Amounts due from related parties 195 212 29
Deferred tax assets, net 2,100 2,342 322
Operating lease right-of-use assets 10,851 10,919 1,503
Other non-current assets 18,964 22,312 3,071
Total non-current assets 176,504 228,261 31,410
Total assets 406,759 415,527 57,179
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans 10,257 12,514 1,722
Accounts payable and accrued liabilities 37,717 37,988 5,227
Customer deposits and deferred revenue 14,627 14,038 1,932
Deferred income 306 291 40
Long-term loans, current portion 2 29 4
Convertible senior notes, current portion 2,802 2,892 398
Notes payable, current portion 6,029 7,986 1,099
Amounts due to related parties 1,603 1,831 252
Operating lease liabilities 3,108 3,196 440
Total current liabilities 76,451 80,765 11,114
Non-current liabilities:
Deferred income 200 287 39
Deferred revenue 481 520 72
Amounts due to related parties 77 67 9
Long-term loans 14,223 14,859 2,045
Notes payable 34,990 27,860 3,834
Convertible senior notes 8,144 8,408 1,157
Deferred tax liabilities 2,725 2,940 405
Operating lease liabilities 5,040 5,056 696
Other non-current liabilities 1,820 1,827 250
Total non-current liabilities 67,700 61,824 8,507
Total liabilities 144,151 142,589 19,621
Redeemable noncontrolling interests 9,465 10,107 1,391
Equity
Total Baidu shareholders' equity 243,626 252,769 34,782
Noncontrolling interests 9,517 10,062 1,385
Total equity 253,143 262,831 36,167
Total liabilities, redeemable noncontrolling interests, and equity 406,759 415,527 57,179
Baidu, Inc.
Selected Information
(In millions, unaudited)
Three months ended Three months ended Three months ended Three months ended
June 30, 2023 (RMB)
March 31, 2024 (RMB)
June 30, 2024 (RMB) June 30, 2024 (US$)
Baidu iQIYI Elim & Baidu, Baidu iQIYI Elim & Baidu, Baidu iQIYI Elim & Baidu, Baidu iQIYI Elim & Baidu,
Core adj(2) Inc. Core adj(2) Inc. Core adj(2) Inc. Core adj(2) Inc.
Total revenues 26,407 7,802 (153) 34,056 23,803 7,927 (217) 31,513 26,687 7,439 (195) 33,931 3,672 1,024 (27) 4,669
YOY 1 % (5 %) (0 %)
QOQ 12 % (6 %) 8 %
Costs and expenses:
Cost of revenues (1) 10,553 5,774 (160) 16,167 9,839 5,631 (179) 15,291 10,888 5,678 (168) 16,398 1,498 781 (22) 2,257
Selling, general and administrative (1) 5,344 979 (25) 6,298 4,492 922 (39) 5,375 4,751 970 (21) 5,700 654 133 (3) 784
Research and development (1) 5,942 439 6,381 4,934 429 5,363 5,440 449 5,889 748 62 810
Total costs and expenses 21,839 7,192 (185) 28,846 19,265 6,982 (218) 26,029 21,079 7,097 (189) 27,987 2,900 976 (25) 3,851
YOY
Cost of revenues 3 % (2 %) 1 %
Selling, general and administrative (11 %) (1 %) (9 %)
Research and development (8 %) 2 % (8 %)
Costs and expenses (3 %) (1 %) (3 %)
Operating income (loss) 4,568 610 32 5,210 4,538 945 1 5,484 5,608 342 (6) 5,944 772 48 (2) 818
YOY 23 % (44 %) 14 %
QOQ 24 % (64 %) 8 %
Operating margin 17 % 8 % 15 % 19 % 12 % 17 % 21 % 5 % 18 %
Add: total other income (loss), net 1,603 (234) 1,369 1,508 (262) 1,246 1,011 (240) 771 139 (33) 106
Less: income tax expense 1,262 8 1,270 866 17 883 1,105 26 1,131 152 4 156
Less: net (loss) income attributable to NCI (103) 3 199 (3) 99 30 11 358 (3) 399 52 7 37 (3) 96 7 1 5 (3) 13
Net income (loss) attributable to Baidu 5,012 365 (167) 5,210 5,150 655 (357) 5,448 5,462 69 (43) 5,488 752 10 (7) 755
YOY 9 % (81 %) 5 %
QOQ 6 % (89 %) 1 %
Net margin 19 % 5 % 15 % 22 % 8 % 17 % 20 % 1 % 16 %
Non-GAAP financial measures:
Operating income (non-GAAP) 6,516 786 7,334 5,586 1,086 6,673 7,005 501 7,500 964 70 1,032
YOY 8 % (36 %) 2 %
QOQ 25 % (54 %) 12 %
Operating margin (non-GAAP) 25 % 10 % 22 % 23 % 14 % 21 % 26 % 7 % 22 %
Net income attributable to Baidu (non-GAAP) 7,694 595 7,998 6,628 844 7,011 7,290 247 7,396 1,003 34 1,018
YOY (5 %) (58 %) (8 %)
QOQ 10 % (71 %) 5 %
Net margin (non-GAAP) 29 % 8 % 23 % 28 % 11 % 22 % 27 % 3 % 22 %
Adjusted EBITDA 8,229 855 9,116 7,118 1,125 8,244 8,617 536 9,147 1,186 75 1,259
YOY 5 % (37 %) 0 %
QOQ 21 % (52 %) 11 %
Adjusted EBITDA margin 31 % 11 % 27 % 30 % 14 % 26 % 32 % 7 % 27 %
(1) Includes share-based compensation as follows:
Cost of revenues 160 34 194 76 32 108 117 29 146 16 4 20
Selling, general and administrative 356 90 446 353 64 417 292 93 385 40 13 53
Research and development 1,358 45 1,403 575 43 618 945 36 981 130 5 135
Total share-based compensation 1,874 169 2,043 1,004 139 1,143 1,354 158 1,512 186 22 208
(2) Relates to intersegment eliminations and adjustments
(3) Relates to the net income 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
June 30, 2023 (RMB) March 31, 2024 (RMB) June 30, 2024 (RMB) June 30, 2024 (US$)
Baidu iQIYI Baidu, Baidu iQIYI Baidu, Baidu iQIYI Baidu, Baidu iQIYI Baidu,
excl. Inc. excl. Inc. excl. Inc. excl. Inc.
iQIYI iQIYI iQIYI iQIYI
Net cash provided by operating activities 9,746 886 10,632 5,284 936 6,220 7,970 409 8,379 1,097 56 1,153
Net cash provided by (used in) investing activities 7,309 (421) 6,888 (2,893) (223) (3,116) 13,824 337 14,161 1,903 46 1,949
Net cash provided by (used in) financing activities 1,908 (1,176) 732 2,126 261 2,387 (9,946) 869 (9,077) (1,369) 120 (1,249)
Effect of exchange rate changes on cash, cash 496 128 624 154 15 169 66 22 88 9 3 12
equivalents and restricted cash
Net increase (decrease) in cash, cash equivalents and 19,459 (583) 18,876 4,671 989 5,660 11,914 1,637 13,551 1,640 225 1,865
restricted cash
Cash, cash equivalents and restricted cash
At beginning of period 30,355 5,665 36,020 32,293 5,281 37,574 36,964 6,270 43,234 5,086 863 5,949
At end of period 49,814 5,082 54,896 36,964 6,270 43,234 48,878 7,907 56,785 6,726 1,088 7,814
Net cash provided by operating activities 9,746 886 10,632 5,284 936 6,220 7,970 409 8,379 1,097 56 1,153
Less: Capital expenditures (2,693) (13) (2,706) (2,016) (22) (2,038) (2,090) (28) (2,118) (287) (4) (291)
Free cash flow 7,053 873 7,926 3,268 914 4,182 5,880 381 6,261 810 52 862
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
June 30, 2023 (RMB) March 31, 2024 (RMB) June 30, 2024 (RMB) June 30, 2024 (US$)
Baidu iQIYI Baidu, Baidu iQIYI Baidu, Baidu iQIYI Baidu, Baidu iQIYI Baidu,
Core Inc. Core Inc. Core Inc. Core Inc.
Operating income 4,568 610 5,210 4,538 945 5,484 5,608 342 5,944 772 48 818
Add: Share-based compensation expenses 1,874 169 2,043 1,004 139 1,143 1,354 158 1,512 186 22 208
Add: Amortization and impairment of intangible assets(1) 74 7 81 44 2 46 43 1 44 6 6
Operating income (non-GAAP) 6,516 786 7,334 5,586 1,086 6,673 7,005 501 7,500 964 70 1,032
Add: Depreciation of fixed assets 1,713 69 1,782 1,532 39 1,571 1,612 35 1,647 222 5 227
Adjusted EBITDA 8,229 855 9,116 7,118 1,125 8,244 8,617 536 9,147 1,186 75 1,259
Net income attributable to Baidu 5,012 365 5,210 5,150 655 5,448 5,462 69 5,488 752 10 755
Add: Share-based compensation expenses 1,872 169 1,949 1,003 139 1,066 1,353 158 1,425 185 22 196
Add: Amortization and impairment of intangible assets(1) 61 7 65 42 2 43 41 1 41 6 6
Add: Disposal (gain) (919) (89) (959) (458) (458) (30) (30) (4) (4)
Add: Impairment of long-term investments 270 155 340 36 71 68 26 17 34 4 2 5
Add: Fair value loss (gain) of long-term investments 1,239 (4) 1,237 725 (23) 714 531 2 531 73 73
Add: Reconciling items on equity method investments(2) 296 (9) 292 280 280 83 83 11 11
Add: Tax effects on non-GAAP adjustments(3) (137) 1 (136) (150) (150) (176) (176) (24) (24)
Net income attributable to Baidu (non-GAAP) 7,694 595 7,998 6,628 844 7,011 7,290 247 7,396 1,003 34 1,018
Diluted earnings per ADS 14.17 14.91 15.01 2.07
Add: Accretion of the redeemable noncontrolling interests 0.50 0.55 0.57 0.08
Add: Non-GAAP adjustments to earnings per ADS 7.88 4.45 5.44 0.74
Diluted earnings per ADS (non-GAAP) 22.55 19.91 21.02 2.89
(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.
View original content:https://www.prnewswire.com/news-releases/baidu-announces-second-quarter-2024-results-302228460.html
SOURCE Baidu, Inc.
