Baidu Announces Third Quarter 2024 Results
BEIJING, Nov. 21, 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 third quarter ended September 30, 2024.
"Baidu Core's flattish third quarter top line reflected the ongoing weakness in our online marketing business, offset by the growth of our AI Cloud business. Our strong AI capabilities are gaining broader market recognition, as evidenced by increasing adoption of ERNIE. In intelligent driving, Apollo Go continues to lead the global autonomous ride-hailing market, hitting another milestone with our sixth-generation autonomous vehicle now operating on public roads across multiple cities in China," said Robin Li, Co-founder and CEO of Baidu. "Despite the near-term pressures, we remain steadfast in our AI-focused strategy and are confident in our long-term trajectory. As we further scale AI, we are emboldened to find how it can drive innovations and create value for consumers, enterprises and society at large."
"Our relentless focus on cost control helped support our third quarter results. Baidu Core's operating margins remained stable as we managed to further optimize costs and realize more cost efficiencies between business units," said Junjie He, Interim CFO of Baidu. "AI Cloud continued to show healthy and sustainable development in the third quarter. Meanwhile, Apollo Go continued to make operational strides, underpinning our confidence in the validity of the fully autonomous ride hailing business model."
Third Quarter 2024 Financial Highlights [1]
Baidu, Inc.
(In millions except per ADS, unaudited) Q3 Q2 Q3
2023 2024 2024 YOY QOQ
RMB RMB RMB US$
Total revenues 34,447 33,931 33,557 4,782 (3 %) (1 %)
Operating income 6,274 5,944 5,925 844 (6 %) (0 %)
Operating income (non-GAAP) [2] 7,596 7,500 7,014 999 (8 %) (6 %)
Net income to Baidu 6,681 5,488 7,632 1,088 14 % 39 %
Net income to Baidu (non-GAAP) [2] 7,267 7,396 5,886 839 (19 %) (20 %)
Diluted earnings per ADS 18.22 15.01 21.60 3.08 19 % 44 %
Diluted earnings per ADS (non-GAAP) [2] 20.40 21.02 16.60 2.37 (19 %) (21 %)
Adjusted EBITDA [2] 9,505 9,147 8,733 1,244 (8 %) (5 %)
Adjusted EBITDA margin 28 % 27 % 26 % 26 %
Baidu Core
(In millions, unaudited) Q3 Q2 Q3
2023 2024 2024 YOY QOQ
RMB RMB RMB US$
Total revenues 26,572 26,687 26,524 3,780 (0 %) (1 %)
Operating income 5,498 5,608 5,694 811 4 % 2 %
Operating income (non-GAAP)
[2] 6,672 7,005 6,652 948 (0 %) (5 %)
Net income to Baidu Core 6,436 5,462 7,536 1,074 17 % 38 %
Net income to Baidu Core (non-GAAP)
[2] 6,956 7,290 5,676 809 (18 %) (22 %)
Adjusted EBITDA
[2] 8,513 8,617 8,336 1,188 (2 %) (3 %)
Adjusted EBITDA margin 32 % 32 % 31 % 31 %
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.0176 as of September 30, 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
-- In October 2024, Baidu was upgraded from the prior 'BBB' rating to an
'A' rating by MSCI ESG Research.
-- Baidu returned US$161 million to shareholders since early Q3 2024,
bringing the cumulative repurchase to US$1.4 billion under the 2023
share repurchase program.
AI Cloud
-- PaddlePaddle and ERNIE developer community grew to 18.1 million in
November 2024.
-- In November 2024, ERNIE handled approximately 1.5 billion API calls
daily, a significant jump from 600 million in August.
-- In the third quarter of 2024, Baidu expanded the ERNIE family with two
enhanced lightweight models, Speed Pro and Lite Pro.
-- Baidu AI Cloud was ranked the No.1 AI cloud provider for the fifth
consecutive year, according to IDC's 2023 report on China's AI public
cloud market, issued in August 2024.
Intelligent Driving
-- Apollo Go, Baidu's autonomous ride-hailing service, provided 988K rides
in the third quarter of 2024, up 20% year over year. As of October 28,
2024, the cumulative rides provided to the public by Apollo Go surpassed
8 million.
-- During the third quarter of 2024, rides provided by Apollo Go's fully
driverless vehicles accounted for over 70% of total rides nationwide.
The proportion of fully driverless rides further increased to 80% in
October 2024.
-- Our sixth generation autonomous vehicle, the RT6, is now operating on
public roads in multiple cities in China.
Mobile Ecosystem
-- In September 2024, Baidu App's MAUs reached 704 million, up 6% year over
year.
-- Managed Page accounted for 51% of Baidu Core's online marketing revenue
in the third quarter of 2024.
Third Quarter 2024 Financial Results
Total revenues were RMB33.6 billion ($4.78 billion), decreasing 3% year over year.
-- Revenue from Baidu Core was RMB26.5 billion ($3.78 billion), which was
basically flat from last year; online marketing revenue was RMB18.8
billion ($2.68 billion), decreasing 4% year over year, and non-online
marketing revenue was RMB7.7 billion ($1.10 billion), up 12% year over
year, mainly driven by AI Cloud business.
-- Revenue from iQIYI was RMB7.2 billion ($1.03 billion), decreasing 10%
year over year.
Cost of revenues was RMB16.4 billion ($2.34 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business, partially offset by a decrease in personnel-related expenses and cost of goods sold.
Selling, general and administrative expenses were RMB5.9 billion ($836 million), increasing 2% year over year, primarily due to an increase in channel spending and promotional marketing expenses, partially offset by a decrease in personnel-related expenses.
Research and development expenses were RMB5.4 billion ($765 million), decreasing 12% year over year, primarily due to a decrease in personnel-related expenses.
Operating income was RMB5.9 billion ($844 million). Baidu Core operating income was RMB5.7 billion ($811 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.0 billion ($999 million). Non-GAAP Baidu Core operating income was RMB6.7 billion ($948 million), and non-GAAP Baidu Core operating margin was 25%.
Total other income, net was RMB2.7 billion ($381 million), increasing 40% year over year, primarily due to an increase in fair value gain from long-term investments and disposal gain, partially offset by an increase in net foreign exchange loss arising from exchange rate fluctuation between Renminbi and U.S. dollar.
Income tax expense was RMB814 million ($116 million), compared to RMB1.3 billion in the same period last year.
Net income attributable to Baidu was RMB7.6 billion ($1.09 billion), and diluted earnings per ADS was RMB21.60 ($3.08). Net income attributable to Baidu Core was RMB7.5 billion ($1.07 billion), and net margin for Baidu Core was 28%. Non-GAAP net income attributable to Baidu was RMB5.9 billion ($839 million). Non-GAAP diluted earnings per ADS was RMB16.60 ($2.37). Non-GAAP net income attributable to Baidu Core was RMB5.7 billion ($809 million), and non-GAAP net margin for Baidu Core was 21%.
Adjusted EBITDA was RMB8.7 billion ($1.24 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB8.3 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 31%.
As of September 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB144.5 billion ($20.59 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB140.3 billion ($19.99 billion). Free cash flow was RMB2.6 billion ($376 million), and free cash flow excluding iQIYI was RMB2.4 billion ($342 million).
Conference Call Information
Baidu's management will hold an earnings conference call at 7.30 AM on November 21, 2024, U.S. Eastern Time (8.30 PM on November 21, 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. Q3 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/10043066-56ncpy.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 (loss), 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
September 30, June 30, September 30, September 30,
2023 2024 2024 2024
RMB RMB RMB US$
(2)
Revenues:
Online marketing services 21,346 20,625 20,108 2,865
Others 13,101 13,306 13,449 1,917
Total revenues 34,447 33,931 33,557 4,782
Costs and expenses:
Cost of revenues(1) 16,294 16,398 16,399 2,337
Selling, general and administrative(1) 5,778 5,700 5,867 836
Research and development(1) 6,101 5,889 5,366 765
Total costs and expenses 28,173 27,987 27,632 3,938
Operating income 6,274 5,944 5,925 844
Other income:
Interest income 2,082 1,993 1,877 267
Interest expense (853) (742) (673) (96)
Foreign exchange (loss) gain, net (26) 93 (1,096) (156)
Share of (losses) earnings from equity method investments (398) (119) 32 5
Others, net 1,100 (454) 2,535 361
Total other income, net 1,905 771 2,675 381
Income before income taxes 8,179 6,715 8,600 1,225
Income tax expense 1,282 1,131 814 116
Net income 6,897 5,584 7,786 1,109
Net income attributable to noncontrolling interests 216 96 154 21
Net income attributable to Baidu 6,681 5,488 7,632 1,088
Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic 18.45 15.11 21.93 3.13
-Diluted 18.22 15.01 21.60 3.08
Earnings per share for Class A and Class B ordinary shares:
-Basic 2.31 1.89 2.74 0.39
-Diluted 2.28 1.88 2.70 0.38
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic 2,814 2,796 2,785 2,785
-Diluted 2,846 2,804 2,789 2,789
(1) Includes share-based compensation expenses as follows:
Cost of revenues 139 146 104 15
Selling, general and administrative 358 385 328 47
Research and development 778 981 612 87
Total share-based compensation expenses 1,275 1,512 1,044 149
(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate in effect as of
September 30, 2024 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.
Baidu, Inc.
Condensed Consolidated Balance Sheets
(In millions, unaudited)
December 31, September 30, September 30,
2023 2024 2024
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 25,231 28,682 4,087
Restricted cash 11,503 11,665 1,662
Short-term investments, net 168,670 104,129 14,838
Accounts receivable, net 10,848 9,848 1,403
Amounts due from related parties 1,424 1,379 197
Other current assets, net 12,579 16,415 2,339
Total current assets 230,255 172,118 24,526
Non-current assets:
Fixed assets, net 27,960 29,696 4,232
Licensed copyrights, net 6,967 6,862 978
Produced content, net 13,377 14,313 2,040
Intangible assets, net 881 749 107
Goodwill 22,586 22,586 3,218
Long-term investments, net 47,957 44,637 6,361
Long-term time deposits and held-to-maturity investments 24,666 88,547 12,618
Amounts due from related parties 195 120 17
Deferred tax assets, net 2,100 2,852 406
Operating lease right-of-use assets 10,851 10,693 1,524
Other non-current assets 18,964 24,143 3,440
Total non-current assets 176,504 245,198 34,941
Total assets 406,759 417,316 59,467
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans 10,257 11,969 1,706
Accounts payable and accrued liabilities 37,717 39,000 5,557
Customer deposits and deferred revenue 14,627 14,310 2,039
Deferred income 306 300 43
Long-term loans, current portion 2 37 5
Convertible senior notes, current portion 2,802 17 2
Notes payable, current portion 6,029 7,714 1,099
Amounts due to related parties 1,603 1,959 279
Operating lease liabilities 3,108 3,123 445
Total current liabilities 76,451 78,429 11,175
Non-current liabilities:
Deferred income 200 265 38
Deferred revenue 481 532 76
Amounts due to related parties 77 61 9
Long-term loans 14,223 14,487 2,064
Notes payable 34,990 26,911 3,835
Convertible senior notes 8,144 8,187 1,167
Deferred tax liabilities 2,725 2,885 411
Operating lease liabilities 5,040 4,911 700
Other non-current liabilities 1,820 1,457 208
Total non-current liabilities 67,700 59,696 8,508
Total liabilities 144,151 138,125 19,683
Redeemable noncontrolling interests 9,465 9,312 1,327
Equity
Total Baidu shareholders' equity 243,626 259,649 36,999
Noncontrolling interests 9,517 10,230 1,458
Total equity 253,143 269,879 38,457
Total liabilities, redeemable noncontrolling interests, and equity 406,759 417,316 59,467
Baidu, Inc.
Selected Information
(In millions, unaudited)
Three months ended Three months ended Three months ended Three months ended
September 30, 2023 (RMB)
June 30, 2024 (RMB) September 30, 2024 (RMB) September 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 26,572 8,015 (140) 34,447 26,687 7,439 (195) 33,931 26,524 7,246 (213) 33,557 3,780 1,032 (30) 4,782
YOY (0 %) (10 %) (3 %)
QOQ (1 %) (3 %) (1 %)
Costs and expenses:
Cost of revenues (1) 10,610 5,840 (156) 16,294 10,888 5,678 (168) 16,398 10,923 5,650 (174) 16,399 1,557 805 (25) 2,337
Selling, general and administrative (1) 4,810 981 (13) 5,778 4,751 970 (21) 5,700 4,990 908 (31) 5,867 711 129 (4) 836
Research and development (1) 5,654 447 6,101 5,440 449 5,889 4,917 449 5,366 701 64 765
Total costs and expenses 21,074 7,268 (169) 28,173 21,079 7,097 (189) 27,987 20,830 7,007 (205) 27,632 2,969 998 (29) 3,938
YOY
Cost of revenues 3 % (3 %) 1 %
Selling, general and administrative 4 % (7 %) 2 %
Research and development (13 %) 0 % (12 %)
Costs and expenses (1 %) (4 %) (2 %)
Operating income (loss) 5,498 747 29 6,274 5,608 342 (6) 5,944 5,694 239 (8) 5,925 811 34 (1) 844
YOY 4 % (68 %) (6 %)
QOQ 2 % (30 %) (0 %)
Operating margin 21 % 9 % 18 % 21 % 5 % 18 % 21 % 3 % 18 %
Add: total other income (loss), net 2,159 (254) 1,905 1,011 (240) 771 2,667 8 2,675 380 1 381
Less: income tax expense 1,272 10 1,282 1,105 26 1,131 803 11 814 114 2 116
Less: net (loss) income attributable to NCI (51) 7 260(3) 216 52 7 37(3) 96 22 7 125(3) 154 3 18(3) 21
Net income (loss) attributable to Baidu 6,436 476 (231) 6,681 5,462 69 (43) 5,488 7,536 229 (133) 7,632 1,074 33 (19) 1,088
YOY 17 % (52 %) 14 %
QOQ 38 % 232 % 39 %
Net margin 24 % 6 % 19 % 20 % 1 % 16 % 28 % 3 % 23 %
Non-GAAP financial measures:
Operating income (non-GAAP) 6,672 895 7,596 7,005 501 7,500 6,652 370 7,014 948 52 999
YOY (0 %) (59 %) (8 %)
QOQ (5 %) (26 %) (6 %)
Operating margin (non-GAAP) 25 % 11 % 22 % 26 % 7 % 22 % 25 % 5 % 21 %
Net income attributable to Baidu (non- 6,956 622 7,267 7,290 247 7,396 5,676 480 5,886 809 68 839
GAAP)
YOY (18 %) (23 %) (19 %)
QOQ (22 %) 94 % (20 %)
Net margin (non-GAAP) 26 % 8 % 21 % 27 % 3 % 22 % 21 % 7 % 18 %
Adjusted EBITDA 8,513 963 9,505 8,617 536 9,147 8,336 405 8,733 1,188 57 1,244
YOY (2 %) (58 %) (8 %)
QOQ (3 %) (24 %) (5 %)
Adjusted EBITDA margin 32 % 12 % 28 % 32 % 7 % 27 % 31 % 6 % 26 %
(1) Includes share-based compensation as follows:
Cost of revenues 107 32 139 117 29 146 73 31 104 11 4 15
Selling, general and administrative 290 68 358 292 93 385 268 60 328 38 9 47
Research and development 732 46 778 945 36 981 574 38 612 82 5 87
Total share-based compensation 1,129 146 1,275 1,354 158 1,512 915 129 1,044 131 18 149
(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
September 30, 2023 (RMB) June 30, 2024 (RMB) September 30, 2024 (RMB) September 30, 2024
(US$)
Baidu iQIYI Baidu, Baidu iQIYI Baidu, Baidu iQIYI Baidu, Baidu iQIYI Baidu,
excl. Inc. excl. Inc. excl.
iQIYI iQIYI Inc. excl. Inc.
iQIYI iQIYI
Net cash provided by operating activities 8,694 831 9,525 7,970 409 8,379 4,036 243 4,279 575 35 610
Net cash (used in) provided by investing activities (11,345) (55) (11,400) 13,824 337 14,161 (12,300) (1,663) (13,963) (1,753) (237) (1,990)
Net cash (used in) provided by financing activities (5,253) 269 (4,984) (9,946) 869 (9,077) (2,787) (2,612) (5,399) (397) (372) (769)
Effect of exchange rate changes on cash, cash 153 5 158 66 22 88 (721) (84) (805) (103) (12) (115)
equivalents and restricted cash
Net (decrease) increase in cash, cash (7,751) 1,050 (6,701) 11,914 1,637 13,551 (11,772) (4,116) (15,888) (1,678) (586) (2,264)
equivalents and restricted cash
Cash, cash equivalents and restricted cash
At beginning of period 49,814 5,082 54,896 36,964 6,270 43,234 48,878 7,907 56,785 6,965 1,127 8,092
At end of period 42,063 6,132 48,195 48,878 7,907 56,785 37,106 3,791 40,897 5,287 541 5,828
Net cash provided by operating activities 8,694 831 9,525 7,970 409 8,379 4,036 243 4,279 575 35 610
Less: Capital expenditures (3,525) (4) (3,529) (2,090) (28) (2,118) (1,637) (8) (1,645) (233) (1) (234)
Free cash flow 5,169 827 5,996 5,880 381 6,261 2,399 235 2,634 342 34 376
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, 2023 (RMB) June 30, 2024 (RMB) September 30, 2024 (RMB) September 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 5,498 747 6,274 5,608 342 5,944 5,694 239 5,925 811 34 844
Add: Share-based compensation expenses 1,129 146 1,275 1,354 158 1,512 915 129 1,044 131 18 149
Add: Amortization and impairment of intangible assets(1) 45 2 47 43 1 44 43 2 45 6 6
Operating income (non-GAAP) 6,672 895 7,596 7,005 501 7,500 6,652 370 7,014 948 52 999
Add: Depreciation of fixed assets 1,841 68 1,909 1,612 35 1,647 1,684 35 1,719 240 5 245
Adjusted EBITDA 8,513 963 9,505 8,617 536 9,147 8,336 405 8,733 1,188 57 1,244
Net income attributable to Baidu 6,436 476 6,681 5,462 69 5,488 7,536 229 7,632 1,074 33 1,088
Add: Share-based compensation expenses 1,128 146 1,194 1,353 158 1,425 914 129 972 130 18 138
Add: Amortization and impairment of intangible assets(1) 43 2 44 41 1 41 41 2 42 6 6
Add: Disposal (gain) loss (753) (753) (30) (30) (1,501) 22 (1,491) (214) 3 (212)
Add: Impairment of long-term investments 46 46 26 17 34 26 91 68 4 13 10
Add: Fair value (gain) loss of long-term investments (384) (2) (385) 531 2 531 (1,361) 7 (1,358) (194) 1 (194)
Add: Reconciling items on equity method investments(2) 572 572 83 83 8 8 1 1
Add: Tax effects on non-GAAP adjustments(3) (132) (132) (176) (176) 13 13 2 2
Net income attributable to Baidu (non-GAAP) 6,956 622 7,267 7,290 247 7,396 5,676 480 5,886 809 68 839
Diluted earnings per ADS 18.22 15.01 21.60 3.08
Add: Accretion of the redeemable noncontrolling 0.53 0.57 0.01
interests
Add: Non-GAAP adjustments to earnings per ADS 1.65 5.44 (5.01) (0.71)
Diluted earnings per ADS (non-GAAP) 20.40 21.02 16.60 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 share.
(3) This represents tax impact of all non-GAAP adjustments
View original content:https://www.prnewswire.com/news-releases/baidu-announces-third-quarter-2024-results-302312583.html
SOURCE Baidu, Inc.
