BEIJING, Feb. 25, 2016 /PRNewswire/ -- Baidu, Inc.
(NASDAQ: BIDU) ("Baidu" or the "Company"), the leading Chinese
language Internet search provider, today announced its unaudited
financial results for the fourth quarter and fiscal year ended
December 31, 2015[1].
"2015 was a touchstone year for Baidu: we made significant
progress in broadening our online marketing platform and further
extending our reach into transactions services," said Robin Li, chairman and CEO of Baidu. "Even as
China's overall growth slows,
services and domestic consumption are growing. Services and
domestic consumption-related verticals are supported by the
government's Internet+ initiative and hold tremendous potential.
Our top revenue verticals—retail/ecommerce, local services,
financial services, healthcare, and education—reflect Baidu's vital
role in connecting users with merchants in these growing sectors.
Looking ahead, we will continue to build the Next Baidu not only to
benefit from, but also drive, key secular trends of rising domestic
consumption, growth in services, and a rapidly evolving mobile
environment," Li said.
"We are very pleased to deliver a strong set of results in the
fourth quarter. In 2015, we further executed on our vision to
connect people with services and drove strong momentum in this
area," said Jennifer Li, CFO of
Baidu. "We look forward to continuing this journey in 2016 to
further build out Baidu's online marketing and transactions
services platform. As a reminder, as a result of Baidu's exchange
of Qunar shares with Ctrip, Baidu deconsolidated Qunar's financials
after October 26, 2015," she
said.
Fourth Quarter and Fiscal Year 2015 Operational
Highlights
- Mobile search monthly active users (MAUs) were 657
million for the month of December
2015, an increase of 21% year-over-year
- Mobile maps MAUs were 302 million for the month of
December 2015, an increase of 43%
year-over-year
- Gross merchandise value[1] (GMV) totaled RMB14.7 billion ($2.3
billion) for the fourth quarter of 2015, an increase of 397%
year-over-year
- Baidu Wallet activated accounts reached 53 million at
the end of December 2015, an increase
of 189% year-over-year
Fourth Quarter and Fiscal Year 2015 Financial
Highlights
- Total revenues in the fourth quarter of 2015 were
RMB18.699 billion ($2.887 billion), a 33.1% increase from the
corresponding period in 2014. Mobile revenue represented 56% of
total revenues for the fourth quarter of 2015, compared to 42% for
the corresponding period in 2014.
- Total revenues in fiscal year 2015 were RMB66.382 billion ($10.248
billion), a 35.3% increase from 2014. Mobile revenue
represented 53% of total revenues in 2015, compared to 37% in
2014.
- Operating profit in the fourth quarter of 2015 was
RMB3.535 billion ($545.7 million), a 19.7% increase from the
corresponding period in 2014. Transaction Services[2]
reduced non-GAAP operating margins by 24.9 percentage points and
iQiyi further reduced non-GAAP operating margins by 5.9
percentage points for the fourth quarter of 2015.
- Operating profit in fiscal year 2015 was RMB11.672 billion ($1.802
billion), an 8.8% decrease from 2014. Transaction
Services reduced non-GAAP operating margins by 25.1 percentage
points and iQiyi further reduced non-GAAP operating margins
by 5.5 percentage points for the fiscal year 2015.
- Net income attributable to Baidu in the fourth quarter
of 2015 was RMB24.712 billion
($3.815 billion), a 663.0% increase
from the corresponding period in 2014. Diluted earnings
attributable to Baidu per ADS for the fourth quarter of 2015
were RMB70.92 ($10.95); diluted earnings attributable to
Baidu per ADS excluding share-based compensation expenses
(non-GAAP) for the fourth quarter of 2015 were RMB71.90 ($11.10);
diluted earnings attributable to Baidu per ADS excluding net
gain recognized in Baidu's exchange of Qunar shares with Ctrip
for the fourth quarter of 2015 were RMB7.61 ($1.18).
- Net income attributable to Baidu in fiscal year 2015 was
RMB33.664 billion ($5.197 billion), a 155.1% increase from 2014.
Diluted earnings attributable to Baidu per ADS for the
fiscal year 2015 were RMB95.15
($14.69); diluted earnings
attributable to Baidu per ADS excluding share-based compensation
expenses (non-GAAP) in fiscal year 2015 were RMB99.11 ($15.30);
diluted earnings attributable to Baidu per ADS excluding net
gain recognized in Baidu's exchange of Qunar shares with Ctrip
in fiscal year 2015 were RMB32.49
($5.02).
Fourth Quarter 2015 Results
Baidu reported total revenues of RMB18.699 billion ($2.887
billion) for the fourth quarter of 2015, representing a
33.1% increase from the corresponding period in 2014.
Online marketing revenues for the fourth quarter of 2015
were RMB17.610 billion ($2.719 billion), representing a 27.2% increase
from the corresponding period in 2014. Baidu had about 555,000
active online marketing customers[3] in the fourth quarter
of 2015, representing a 6.1% increase from the corresponding period
in 2014 and a 10.9% decrease from the third quarter of 2015.
Revenue per online marketing customer for the fourth quarter
of 2015 was approximately RMB31,000
($4,786), a 17.4% increase from the
corresponding period in 2014 and a 9.5% increase compared to the
third quarter of 2015.
Traffic acquisition cost as a component of cost of
revenues was RMB2.616 billion
($403.9 million), representing 14.0%
of total revenues, as compared to 13.4% in the corresponding period
in 2014 and 13.1% in the third quarter of 2015.
Bandwidth costs as a component of cost of revenues were
RMB1.001 billion ($154.5 million), representing 5.4% of total
revenues, compared to 5.3% in the corresponding period in 2014.
Depreciation costs as a component of cost of revenues
were RMB692.0 million ($106.8 million), representing 3.7% of total
revenues, compared to 4.0% in the corresponding period in 2014.
Operational costs as a component of cost of revenues were
RMB1.182 billion ($182.4 million), representing 6.3% of total
revenues, compared to 4.4% in the corresponding period in 2014.
This increase was mainly due to Transaction Services and
iQiyi-related operating costs.
Content costs as a component of cost of revenues were
RMB1.382 billion ($213.3 million), representing 7.4% of total
revenues, compared to 4.2% in the corresponding period in 2014, and
5.0% in the third quarter of 2015. The year-over-year increase was
mainly due to iQiyi's increased content costs.
Selling, general and administrative expenses were
RMB4.528 billion ($699.0 million), representing an increase of
28.5% from the corresponding period in 2014, primarily due to an
increase in promotional spending for transaction services.
Research and development expenses were RMB2.487 billion ($383.9
million), a 16.4% increase from the corresponding period in
2014. The increase was primarily due to the growth of research and
development personnel-related cost.
Share-based compensation expenses, which were allocated
to related operating costs and expense line items, were
RMB341.0 million ($52.6 million) in the fourth quarter of 2015,
compared to RMB339.0 million in the
corresponding period in 2014.
Operating profit was RMB3.535
billion ($545.7 million),
representing a 19.7% increase from the corresponding period in
2014. Operating profit excluding share-based compensation
expenses (non-GAAP) was RMB3.876
billion ($598.3 million), a
17.8% increase from the corresponding period in 2014.
Other income, net was RMB24.294
billion (US$3.750 billion) in
the fourth quarter of 2015. The increase from RMB96.1 million of the corresponding period in
2014 was primarily attributable to the investment gain recognized
as a result of Baidu's exchange of Qunar shares with Ctrip.
Income tax expense was RMB3.580
billion ($552.6 million),
compared to income tax expense of RMB538.5
million in the corresponding period in 2014. The effective
tax rate for the fourth quarter of 2015 was 12.7% as compared to
15.6% for the corresponding period in 2014. There is a 10% tax
accrual on the gain associated with Baidu's exchange of Qunar
shares with Ctrip.
Net income attributable to Baidu was RMB24.712 billion ($3.815
billion), representing a 663.0% increase from the
corresponding period in 2014. Basic and diluted earnings per
ADS for the fourth quarter of 2015 amounted to RMB71.10 ($10.98)
and RMB70.92 ($10.95), respectively.
Net income attributable to Baidu excluding share-based
compensation expenses (non-GAAP) was RMB25.053 billion ($3.867
billion), a 600.2% increase from the corresponding period in
2014. Basic and diluted earnings per ADS excluding share-based
compensation expenses (non-GAAP) for the fourth quarter of 2015
amounted to RMB72.09 ($11.13) and RMB71.90 ($11.10),
respectively.
As of December 31, 2015, the
Company had cash, cash equivalents and short-term
investments of RMB67.929 billion
($10.486 billion). Net operating
cash inflow for the fourth quarter of 2015
was RMB6.070 billion ($937.1
million). Capital expenditures for the
fourth quarter of 2015 were RMB1.424 billion ($219.8 million).
Adjusted EBITDA (non-GAAP), defined in this announcement
as earnings before interest, taxes, depreciation, amortization,
other non-operating income and share-based compensation expenses,
was RMB4.815 billion ($743.3 million) for the fourth quarter of 2015,
representing a 16.7% increase from the corresponding period in
2014.
Fiscal Year 2015 Results
Total revenues in 2015 were RMB66.382 billion ($10.248
billion), representing a 35.3% increase from 2014.
Online marketing revenues in 2015 were RMB64.037 billion ($9.886
billion), representing a 32.0% increase from 2014. Baidu had
about 1,049,000 active online marketing customers in 2015,
representing a 29.0% increase from 2014. Revenue per online
marketing customer for 2015 was RMB60,500 ($9,340),
an increase of 1.9% from 2014.
Traffic acquisition costs in 2015 were RMB8.861 billion ($1.368
billion), representing 13.3% of total revenues, compared to
12.9% in 2014.
Bandwidth costs as a component of cost of revenues were
RMB3.717 billion ($573.8 million), representing 5.6% of total
revenues, compared to 5.8% in 2014.
Depreciation costs as a component of cost of revenues
were RMB2.560 billion ($395.1 million), representing 3.9% of total
revenues, compared to 4.1% in 2014.
Operational costs as a component of cost of revenues were
RMB3.882 billion ($599.2 million), representing 5.8% of total
revenues, compared to 4.6% in 2014.
Content costs as a component of cost of revenues were
RMB3.745 billion ($578.1 million), representing 5.6% of total
revenues, compared to 3.7% in 2014. The year-over-year increase was
mainly due to iQiyi's increased content costs.
Selling, general and administrative expenses in 2015 were
RMB17.076 billion ($2.636 billion), representing an increase of
64.5% from the previous year, primarily due to an increase in
promotional spending for transaction services.
Research and development expenses totaled RMB10.176 billion ($1.571
billion) in 2015, representing a 45.8% increase from 2014.
The increase was primarily due to an increase in the number of
research and development personnel.
Share-based compensation expenses, which were allocated
to related operating cost and expense line items, were RMB1.387 billion ($214.1
million) in 2015, compared to RMB962.7 million in 2014.
Operating profit in 2015 was RMB11.672 billion ($1.802
billion), an 8.8% decrease from 2014. Operating profit
excluding share-based compensation expenses (non-GAAP) in 2015
was RMB13.059 billion ($2.016 billion), representing a 5.1% decrease
from 2014.
Other income, net was RMB24.728
billion (US$3.817 billion) in
2015, compared to RMB260.6 million in
2014. The increase was primarily attributable to the investment
gain recognized as a result of Baidu's exchange of Qunar shares
with Ctrip.
Income tax expense was RMB5.474
billion ($845.1 million),
compared to an income tax expense of RMB2.231 billion in 2014. The effective tax rate
for 2015 was 14.4% as compared to 15.4% in 2014.
Net income attributable to Baidu in 2015 was
RMB33.664 billion ($5.197 billion), representing a 155.1% increase
from 2014. Basic and diluted earnings attributable to
Baidu per ADS for 2015 amounted to RMB95.46 ($14.74)
and RMB95.15 ($14.69), respectively.
Net income attributable to Baidu excluding
share-based compensation expenses (non-GAAP) in 2015 was
RMB35.051 billion ($5.411 billion), reflecting a 147.5% increase
from 2014. Basic and diluted earnings attributed to Baidu per
ADS excluding share-based compensation expenses (non-GAAP) in
2015 were RMB99.43 ($15.35) and RMB99.11 ($15.30),
respectively.
Net operating cash inflow in 2015 was RMB19.422
billion ($2.998 billion). Capital
expenditures in 2015 were RMB5.230 billion ($807.3 million).
Adjusted EBITDA (non-GAAP) was RMB16.660 billion ($2.572
billion) in 2015, representing a 0.6% decrease from
2014.
Outlook for First Quarter 2016
Baidu currently expects to generate total revenues in an amount
ranging from RMB15.410 billion
($2.379 billion) to RMB15.970 billion
($2.465 billion) for the first
quarter of 2016, representing a 21.1% to 25.5% year-over-year
increase. On an apples-to-apples basis, excluding Qunar from
Baidu's financials, the guidance represents a 27.8% to 32.5%
year-over-year increase. Following Baidu's exchange of Qunar shares
with Ctrip, Baidu deconsolidated Qunar's financials after
October 26, 2015. This forecast
reflects Baidu's current and preliminary view, which is subject to
change.
Conference Call Information
Baidu's management will hold an earnings conference call at
8:00 PM on February 25, 2016, U.S.
Eastern Time (9:00 AM on February 26, 2016, Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
International:
|
+65 67135090
|
China:
|
4006208038
|
|
|
US:
|
+1 8456750437
|
UK:
|
+44 2036214779
|
Hong Kong:
|
+852 30186771
|
|
|
Passcode for all
regions:
|
33561999
|
A replay of the conference call may be accessed by phone at the
following number until March 3, 2016:
International:
|
+61-2-8199-0299
|
|
|
Passcode:
|
33561999
|
Additionally, a live and archived webcast of this conference
call will be available at http://ir.baidu.com.
About Baidu
Baidu, Inc. is the leading Chinese language Internet search
provider. As a technology-based media company, Baidu aims to
provide the best and most equitable way for people to find what
they're looking for. In addition to serving individual Internet
search users, Baidu provides an effective platform for businesses
to reach potential customers. Baidu's ADSs trade on the NASDAQ
Global Select Market under the symbol "BIDU". Currently, ten ADSs
represent one Class A ordinary share.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for the first quarter 2016 and quotations
from management in this announcement, as well as Baidu's strategic
and operational plans, contain forward-looking statements. Baidu
may also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission, in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are
not historical facts, including 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: our growth strategies; our future
business development, including development of new products and
services; our ability to attract and retain users and customers;
competition in the Chinese and Japanese language Internet search
markets; competition for online marketing customers; changes in our
revenues and certain cost or expense items as a percentage of our
revenues; the outcome of ongoing, or any future, litigation or
arbitration, including those relating to intellectual property
rights; the expected growth of the Chinese language Internet search
market and the number of Internet and broadband users in
China; Chinese governmental
policies relating to the Internet and Internet search providers and
general economic conditions in China, Japan
and elsewhere. Further information regarding these and other risks
is included in our annual report on Form 20-F and other documents
filed with the Securities and Exchange Commission. Baidu does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information
provided in this press release and in the attachments is as of the
date of the press release, and Baidu undertakes no duty to update
such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Baidu's consolidated financial results presented
in accordance with GAAP, Baidu uses the following measures defined
as non-GAAP financial measures by the SEC: adjusted EBITDA,
operating profit excluding share-based compensation expenses, net
income excluding share-based compensation expenses, and basic and
diluted earnings per ADS excluding share-based compensation
expenses. 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. For more information on these non-GAAP financial measures,
please see the tables captioned "Reconciliations of non-GAAP
results of operations measures to the nearest comparable GAAP
measures" and "Reconciliation from net cash provided by operating
activities to adjusted EBITDA" set forth at the end of this
release.
Baidu believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance and
liquidity by excluding certain expenses, particularly share-based
compensation expenses, that may not be indicative of its operating
performance or financial condition from a cash perspective. We
believe that both management and investors benefit from referring
to these non-GAAP financial measures in assessing our 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. Baidu
has computed its non-GAAP financial measures using the same
consistent method from quarter to quarter since April 1, 2006. We believe 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 share-based compensation charge that has
been and will continue to be for the foreseeable future a
significant recurring expense in our results of operations. A
limitation of using non-GAAP adjusted EBITDA is that it does not
include all items that impact our net income for the period.
Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP
measure. The accompanying tables have more details on the
reconciliations between GAAP financial measures that are most
directly comparable to the non-GAAP financial measures.
For investor and media inquiries, please contact:
Sharon Ng
Baidu, Inc.
Tel: +86-10-5992-4958
Investor inquiries email: ir@baidu.com
Media inquiries email: intlcomm@baidu.com
[1]
|
This announcement
contains translations of certain RMB amounts into U.S. dollars at
specified rates solely for the convenience of the reader. Unless
otherwise noted, all translations from RMB to U.S. dollars are made
at a rate of RMB6.4778 to US$1.00, the effective noon buying rate
as of December 31, 2015, in The City of New York for cable
transfers of RMB as certified for customs purposes by the Federal
Reserve Bank of New York.
|
[2]
|
Gross merchandise
value (GMV) is defined as GMV generated by the Baidu platform,
through products such as Baidu Nuomi, Baidu Takeout Delivery and
Baidu Wallet. GMV is defined as the value of confirmed orders of
products and services, regardless of whether the service has been
consumed or delivered.
|
[3]
|
Transaction Services
includes Baidu Nuomi, Baidu Takeout Delivery, Baidu Maps, Baidu
Connect, Baidu Wallet and other products.
Margin drag incurred
by Qunar from October 1 to 26, 2015 has been included in
Transaction Services for the fourth quarter of 2015. From the first
quarter of 2016 onwards, Qunar will not be included in Transaction
Services due to the October 26, 2015 exchange of Qunar shares with
Ctrip.
|
[4]
|
The number of active
online marketing customers and revenue per online active customer
exclude customers from Qunar and group buying in the current
quarter.
|
Baidu,
Inc.
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
December
31,
|
September
30,
|
|
December
31,
|
December
31,
|
(In RMB thousands
except for share, per share (or ADS) information)
|
|
|
2015
|
2014
|
2015
|
|
2015
|
2014
|
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
Unaudited
|
Audited
|
Revenues:
|
|
|
|
|
|
|
|
|
Online
marketing services
|
|
|
17,610,379
|
13,844,607
|
17,680,374
|
|
64,037,006
|
48,495,215
|
Other
services
|
|
|
1,088,415
|
205,622
|
702,707
|
|
2,344,723
|
557,103
|
Total
revenues
|
|
|
18,698,794
|
14,050,229
|
18,383,081
|
|
66,381,729
|
49,052,318
|
|
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenues (note 1, 2)
|
|
|
(8,149,327)
|
(5,438,351)
|
(7,479,580)
|
|
(27,458,030)
|
(18,885,450)
|
Selling,
general and administrative (note 2)
|
|
|
(4,527,813)
|
(3,524,371)
|
(5,701,859)
|
|
(17,076,383)
|
(10,382,142)
|
Research and
development (note 2)
|
|
|
(2,486,778)
|
(2,135,506)
|
(2,689,970)
|
|
(10,175,762)
|
(6,980,962)
|
Total
operating costs and expenses
|
|
|
(15,163,918)
|
(11,098,228)
|
(15,871,409)
|
|
(54,710,175)
|
(36,248,554)
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
3,534,876
|
2,952,001
|
2,511,672
|
|
11,671,554
|
12,803,764
|
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
572,725
|
573,154
|
616,171
|
|
2,362,632
|
1,992,818
|
Interest
expense
|
|
|
(299,372)
|
(183,575)
|
(329,372)
|
|
(1,041,394)
|
(628,571)
|
Foreign
exchange income, net
|
|
|
106,007
|
22,873
|
61,407
|
|
181,802
|
75,780
|
Gain (loss)
from equity method investments
|
|
|
23,119
|
1,142
|
(8,856)
|
|
3,867
|
(19,943)
|
Other income,
net
|
|
|
24,294,280
|
96,054
|
200,625
|
|
24,728,162
|
260,558
|
Total other
income
|
|
|
24,696,759
|
509,648
|
539,975
|
|
26,235,069
|
1,680,642
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
28,231,635
|
3,461,649
|
3,051,647
|
|
37,906,623
|
14,484,406
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
(3,579,909)
|
(538,493)
|
(590,517)
|
|
(5,474,377)
|
(2,231,172)
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
24,651,726
|
2,923,156
|
2,461,130
|
|
32,432,246
|
12,253,234
|
Less: net
loss attributable to noncontrolling interests
|
|
|
(60,085)
|
(315,776)
|
(379,939)
|
|
(1,231,927)
|
(943,698)
|
Net income
attributable to Baidu, Inc.
|
|
|
24,711,811
|
3,238,932
|
2,841,069
|
|
33,664,173
|
13,196,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B ordinary shares:
|
|
|
|
|
|
|
|
|
Net income
attributable to Baidu, Inc.-Basic
|
|
|
711.02
|
90.79
|
79.38
|
|
954.56
|
374.88
|
Net income
attributable to Baidu, Inc.-Diluted
|
|
|
709.15
|
90.34
|
79.20
|
|
951.49
|
373.43
|
|
|
|
|
|
|
|
|
|
Earnings per ADS (1
Class A ordinary share equals 10 ADSs ):
|
|
|
|
|
|
|
|
|
Net income
attributable to Baidu, Inc.-Basic
|
|
|
71.10
|
9.08
|
7.94
|
|
95.46
|
37.49
|
Net income
attributable to Baidu, Inc.-Diluted
|
|
|
70.92
|
9.03
|
7.92
|
|
95.15
|
37.34
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
Basic
|
|
|
34,588,703
|
35,093,674
|
34,850,398
|
|
34,921,782
|
35,062,466
|
Diluted
|
|
|
34,679,673
|
35,269,030
|
34,928,787
|
|
35,034,470
|
35,198,474
|
|
|
|
|
|
|
|
|
|
(1) Cost of
revenues are detailed as follows:
|
|
|
|
|
|
|
|
|
Sales tax and
surcharges
|
|
|
(1,259,925)
|
(1,029,267)
|
(1,260,606)
|
|
(4,644,357)
|
(3,597,763)
|
Traffic
acquisition costs
|
|
|
(2,616,319)
|
(1,887,301)
|
(2,411,180)
|
|
(8,860,861)
|
(6,328,155)
|
Bandwidth
costs
|
|
|
(1,000,957)
|
(748,604)
|
(970,005)
|
|
(3,716,747)
|
(2,847,770)
|
Depreciation
costs
|
|
|
(692,046)
|
(553,572)
|
(657,325)
|
|
(2,559,623)
|
(1,958,754)
|
Operational
costs
|
|
|
(1,181,667)
|
(616,228)
|
(1,254,114)
|
|
(3,881,609)
|
(2,246,491)
|
Content
costs
|
|
|
(1,381,875)
|
(592,008)
|
(914,545)
|
|
(3,745,063)
|
(1,871,906)
|
Share-based
compensation expenses
|
|
|
(16,538)
|
(11,371)
|
(11,805)
|
|
(49,770)
|
(34,611)
|
Total cost of
revenues
|
|
|
(8,149,327)
|
(5,438,351)
|
(7,479,580)
|
|
(27,458,030)
|
(18,885,450)
|
|
|
|
|
|
|
|
|
|
(2) Includes
share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(16,538)
|
(11,371)
|
(11,805)
|
|
(49,770)
|
(34,611)
|
Selling,
general and administrative
|
|
|
(100,353)
|
(149,395)
|
(138,133)
|
|
(486,760)
|
(426,052)
|
Research and
development
|
|
|
(224,129)
|
(178,261)
|
(250,359)
|
|
(850,588)
|
(502,077)
|
Total
share-based compensation expenses
|
|
|
(341,020)
|
(339,027)
|
(400,297)
|
|
(1,387,118)
|
(962,740)
|
Baidu,
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
December
31
|
December
31
|
(In RMB thousands
except for number of shares and per share data)
|
|
2015
|
2014
|
|
|
Unaudited
|
Audited
|
|
|
|
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
|
9,959,932
|
13,852,725
|
Restricted
cash
|
|
95,997
|
413,010
|
Short-term
investments
|
|
57,969,242
|
42,698,831
|
Accounts
receivable, net
|
|
3,927,256
|
3,664,447
|
Amounts due
from related parties
|
|
1,940,559
|
50
|
Deferred tax
assets, net
|
|
-
|
-
|
Other assets,
current
|
|
4,340,677
|
3,407,427
|
Total current assets
|
|
78,233,663
|
64,036,490
|
|
|
|
|
Non-current assets:
|
|
|
|
Fixed assets,
net
|
|
10,627,127
|
8,705,364
|
Intangible
assets, net
|
|
3,334,619
|
3,574,359
|
Goodwill
|
|
15,395,573
|
17,418,895
|
Long-term
investments, net
|
|
37,958,591
|
3,544,923
|
Amounts due
from related parties
|
|
9,725
|
-
|
Deferred tax
assets, net
|
|
1,008,174
|
944,079
|
Other assets,
non-current
|
|
1,285,836
|
893,952
|
Total non-current assets
|
|
69,619,645
|
35,081,572
|
|
|
|
|
Total
assets
|
|
147,853,308
|
99,118,062
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Short-term
loans
|
|
100,000
|
93,000
|
Accounts payable and
accrued liabilities
|
|
17,636,216
|
12,964,893
|
Customer advances and
deposits
|
|
5,420,230
|
4,296,440
|
Deferred
revenue
|
|
375,672
|
164,809
|
Deferred
income
|
|
559,855
|
518,543
|
Long-term loans,
current portion
|
|
974,820
|
2,167,405
|
Capital lease
obligation
|
|
46,088
|
57,346
|
Due to related
parties, current
|
|
989,921
|
8,385
|
Total current liabilities
|
|
26,102,802
|
20,270,821
|
|
|
|
|
Non-current liabilities:
|
|
|
|
Deferred
income
|
|
17,413
|
39,626
|
Long-term
loans
|
|
3,239,676
|
1,860,000
|
Notes
payable
|
|
30,702,116
|
21,556,782
|
Amounts due to
related parties
|
|
-
|
8
|
Deferred tax
liabilities
|
|
3,441,290
|
1,143,821
|
Capital lease
obligation
|
|
8,435
|
50,079
|
Other non-current
liabilities
|
|
125,860
|
144,542
|
Total non-current liabilities
|
|
37,534,790
|
24,794,858
|
|
|
|
|
Total
liabilities
|
|
63,637,592
|
45,065,679
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
3,947,879
|
1,894,502
|
|
|
|
|
Equity
|
|
|
|
Class A Ordinary
Shares, par value US$0.00005 per share,
825,000,000 shares authorized, and 27,613,315 shares and
27,113, 541 shares issued and outstanding as at December 31,
2014 and December 31, 2015
|
|
12
|
12
|
Class B Ordinary
Shares, par value US$0.00005 per share,
35,400,000 shares authorized, and 7,492,921 shares
and
7,492,921 shares issued and outstanding as at December 31,
2014 and December 31, 2015
|
|
3
|
3
|
Additional paid-in
capital
|
|
6,402,349
|
3,650,601
|
Retained
earnings
|
|
74,659,355
|
47,701,326
|
Accumulated other
comprehensive income (loss)
|
|
(806,056)
|
(279,518)
|
Total Baidu, Inc. shareholders' equity
|
|
80,255,663
|
51,072,424
|
Noncontrolling interests
|
|
12,174
|
1,085,457
|
Total
equity
|
|
80,267,837
|
52,157,881
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests, and equity
|
|
147,853,308
|
99,118,062
|
Reconciliations of
non-GAAP results of operations measures to the nearest comparable
GAAP measures (*) (in RMB thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2014
|
Three months ended
September 30, 2015
|
Three months ended
December 31, 2015
|
Twelve months ended
December 31, 2014
|
Twelve months ended
December 31, 2015
|
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
Operating
profit
|
2,952,001
|
339,027
|
3,291,028
|
2,511,672
|
400,297
|
2,911,969
|
3,534,876
|
341,020
|
3,875,896
|
12,803,764
|
962,740
|
13,766,504
|
11,671,554
|
1,387,118
|
13,058,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2014
|
Three months ended
September 30, 2015
|
Three months ended
December 31, 2015
|
Twelve months ended
December 31, 2014
|
Twelve months ended
December 31, 2015
|
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
GAAP
Result
|
Adjustment
|
Non-GAAP
Result
|
Net income
attributable to Baidu, Inc.
|
3,238,932
|
339,027
|
3,577,959
|
2,841,069
|
400,297
|
3,241,366
|
24,711,811
|
341,020
|
25,052,831
|
13,196,932
|
962,740
|
14,159,672
|
33,664,173
|
1,387,118
|
35,051,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) The adjustment is
only for share-based compensation.
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
from net cash provided by operating activities to free cash flow
(in RMB thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
As a % of
|
Three months
ended
|
As a % of
|
Three months
ended
|
As a % of
|
|
Twelve months
ended
|
As a % of
|
|
Twelve months
ended
|
As a % of
|
|
December 31,
2014
|
total
revenues
|
September 30,
2015
|
total
revenues
|
December 31,
2015
|
total
revenues
|
|
December 31,
2014
|
total
revenues
|
|
December 31,
2015
|
total
revenues
|
Net cash provided
by operating activities
|
5,342,027
|
38%
|
4,785,393
|
26%
|
6,070,158
|
32%
|
|
17,937,175
|
37%
|
|
19,422,438
|
29%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Capital
expenditures
|
(1,540,483)
|
-11%
|
(1,861,602)
|
-10%
|
(1,423,527)
|
-8%
|
|
(4,827,163)
|
-10%
|
|
(5,229,616)
|
-8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
3,801,544
|
27%
|
2,923,791
|
16%
|
4,646,631
|
25%
|
|
13,110,012
|
27%
|
|
14,192,822
|
21%
|
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SOURCE Baidu, Inc.