BEIJING, Aug. 19, 2019 /PRNewswire/ -- Baidu, Inc.
(NASDAQ: BIDU) ("Baidu" or the "Company"), the leading Chinese
language Internet search provider, today announced its unaudited
financial results for the second quarter ended June 30, 2019[1].
"Our focus on strengthening Baidu's mobile ecosystem through
knowledge-based content, BJH accounts, smart mini programs and
managed pages on Baidu's platform is translating into better user
experience, stronger traffic growth, and, we believe, ultimately
higher conversion for our customers. In June, Baidu App DAUs
reached 188 million, up 27% year over year, in-app search queries
grew over 20% year over year and smart mini program MAUs reached
270 million, up 49% sequentially," said Robin Li, Baidu co-founder and CEO. "On Baidu's
AI businesses, DuerOS voice assistant continues to experience
strong momentum with installed base surpassing 400 million devices,
up 4.5 fold year over year, and monthly voice queries surpassing
3.6 billion, up 7.5 fold year over year, in June. As mobile
internet penetration in China
slows, we are excited about the huge opportunity to provide content
and service providers a cross-platform distribution channel beyond
mobile, into smart homes and automobiles."
"Baidu delivered a solid second quarter with revenues reaching
RMB 26.3 billion, growing 9%
sequentially, and Baidu Core revenues growing 12% sequentially,
despite the weak macro environment, our self-directed healthcare
initiative, industry-specific policy changes and large influx of ad
inventory." said Herman Yu, Baidu
CFO. "With Baidu traffic growing robustly and our mobile ecosystem
continuing to expand, we are in a good position to focus on
capitalizing monetization and ROI improvement opportunities to
deliver shareholder value."
Second Quarter 2019 Financial Highlights
|
Baidu
Inc.
|
(in millions, except
for per ADS information,
|
For the
three-month ended
|
unaudited)
|
June 30,
2018
|
|
March 31,
2019
|
|
June 30,
2019
|
|
YOY
|
|
YOY[2]
|
|
QOQ
|
|
June 30,
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
US$
|
Total
revenues
|
25,972
|
|
24,123
|
|
26,326
|
|
1%
|
|
6%
|
|
9%
|
|
3,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
5,422
|
|
(936)
|
|
233
|
|
(96%)
|
|
|
|
-
|
|
34
|
Operating
margin
|
21%
|
|
(4%)
|
|
1%
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
6,563
|
|
401
|
|
1,955
|
|
(70%)
|
|
|
|
388%
|
|
285
|
Non-GAAP operating
margin
|
25%
|
|
2%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Baidu
|
6,402
|
|
(327)
|
|
2,412
|
|
(62%)
|
|
|
|
-
|
|
351
|
Net
margin
|
25%
|
|
(1%)
|
|
9%
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to Baidu
|
7,705
|
|
967
|
|
3,635
|
|
(53%)
|
|
|
|
276%
|
|
529
|
Non-GAAP net
margin
|
30%
|
|
4%
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per ADS
|
18.14
|
|
(0.98)
|
|
6.57
|
|
(64%)
|
|
|
|
-
|
|
0.96
|
Non-GAAP diluted
earnings per ADS
|
21.83
|
|
2.77
|
|
10.11
|
|
(54%)
|
|
|
|
265%
|
|
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baidu
Core
|
(in millions, except
for per ADS information,
|
For the
three-month ended
|
unaudited)
|
June 30,
2018
|
|
March 31,
2019
|
|
June 30,
2019
|
|
YOY
|
|
YOY[2]
|
|
QOQ
|
|
June 30,
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
|
|
|
|
|
US$
|
Total
revenues
|
20,018
|
|
17,450
|
|
19,540
|
|
(2%)
|
|
3%
|
|
12%
|
|
2,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
6,736
|
|
1,091
|
|
2,109
|
|
(69%)
|
|
|
|
93%
|
|
307
|
Operating
margin
|
34%
|
|
6%
|
|
11%
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
7,784
|
|
2,110
|
|
3,485
|
|
(55%)
|
|
|
|
65%
|
|
508
|
Non-GAAP operating
margin
|
39%
|
|
12%
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Baidu
|
8,158
|
|
703
|
|
3,731
|
|
(54%)
|
|
|
|
431%
|
|
543
|
Net
margin
|
41%
|
|
4%
|
|
19%
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to Baidu
|
8,831
|
|
1,824
|
|
4,740
|
|
(46%)
|
|
|
|
160%
|
|
690
|
Non-GAAP net
margin
|
44%
|
|
10%
|
|
24%
|
|
|
|
|
|
|
|
|
Other Highlights
Corporate
- Forbes named Baidu one of the "50 Most Innovative
Companies" in China, recognizing
Baidu Apollo for its leadership and innovation in autonomous
driving, in its July 2019 China
edition. Forbes also recognized iQIYI in the same issue
for its leadership and innovation in online entertainment in
China.
- Baidu Create, Baidu's annual AI developer conference,
was held in July 2019 in Beijing, where Baidu announced the
synchronized v5.0 releases of Baidu Brain, DuerOS and Apollo. The
Company also announced the development of Baidu Honghu, an
energy-efficient AI chipset to power voice interactions in smart
devices for homes and autos.
- Over 240 million Baidu users have used Baidu Maps voice
features as of June 2019, up more
than 2.5 fold from last year.
- In the second quarter of 2019, Baidu returned $291 million to its shareholders, increasing its
accumulated return to US$778 million,
under the 2018 Share Repurchase Program. In May 2019, Baidu's Board approved an additional
US$1 billion repurchase under the
2019 Share Repurchase Program.
Mobile Ecosystem
- Baidu App daily active users ("DAUs") in June 2019 reached 188 million, growing 27% year
over year. In-app search is providing better user experience
through native-app like experiences with newsfeed, smart mini
programs and managed pages.
- Baidu Smart Mini Program monthly active users ("MAUs") reached
270 million in June 2019, up 49% in
three months, continuing the strong momentum since its launch a
year ago. Smart Mini Program allows Baidu to connect users to a
broad range of services and information with native-app like
experience.
- Baijiahao ("BJH accounts"), Baidu's feed content network, grew
to 2.2 million publisher accounts in June
2019, enabling influencers and media firms to not only share
their information on Baidu's newsfeed and short video apps but also
make their information fully searchable.
- Baidu continues to improve the user experience on its platform
with Baidu AI, to identify and filter out low-quality, offensive
and inappropriate ads and other content. In the first half of 2019,
Baidu's AI filtered over one billion misleading, low-quality ad
materials and tens of billions of offensive, inappropriate images,
texts, videos and web links.
DuerOS
- DuerOS is a leading voice assistant for the Chinese language
with installed base surpassing 400 million, up 4.5 fold year over
year, and monthly voice queries surpassing 3.6 billion, up 7.5 fold
year over year in June.
- DuerOS skills store has released over 2,400 skills in
wide-ranging genres, including Xueersi (education), YY (live
streaming), Meituan (local services) and China Construction Bank
(financial services), and the DuerOS developer community has
expanded to over 33,000 members.
- Baidu released DuerOS v5.0, enabling capabilities of
full-duplex continued conversation, routines, home feed, home
communication system and DLNA casting, which enables video
streaming from Xiaodu smart speaker to TV through voice
command.
- Baidu recently released the following first-party DuerOS smart
devices: 1) Xiaodu Smart Speaker Metal (MSRP $28) with enhanced infrared-enabled voice
control; 2) Xiaodu Smart Speaker Play (MSRP $18, for kids); and 3) Xiaodu Smart
Display 1C 4G (MSRP $100),
supporting both Wi-Fi and cellular connectivity with a rechargeable
lithium battery.
- Both Canalys and Strategy Analytics, leading global technology
market analytics firms, ranked Xiaodu smart speakers first in smart
speaker shipments in China and
third globally for the first quarter of 2019.
- Geely Auto signed a strategic partnership with Baidu to
pre-install DuerOS powered infotainment in Geely cars.
Apollo
- In June 2019, First Automotive
Works (FAW) began production of autonomous passenger vehicles
powered by Apollo for the robotaxi pilot program in Changsha, Hunan province.
- Baidu jointly published with BMW, Daimler, Volkswagen, Aptiv,
Continental, Intel and other top-tier industry players the first
autonomous-driving safety report in the world, Safety First for
Automated Driving Report, in July
2019.
- Apollo's test fleet reached over 2 million test kilometers on
the road in June 2019, spanning
across 13 cities, including Beijing, Changsha, Xiong'an and Xiamen.
- As of July 2019, Baidu received
almost half of the 204 autonomous driving pilot licenses granted in
China, five times that of the next
industry player. Baidu was also the only company in China to receive T4 licenses, the highest
level of autonomous driving test license issued by the Beijing
Municipal Commission of Transport, which permits autonomous
vehicles to operate in complex driving conditions, including urban
roads, tunnels, school zones and other scenarios.
Cloud & AI Platform
- Both Canalys and Synergy Research ranked Baidu Cloud as a Top 3
China-based PaaS and IaaS public cloud service provider in their
China Public Cloud reports
for the first quarter of 2019.
- Baidu's AI Open Platform saw strong adoption in the first six
months of 2019, with its developer base growing 37% to 1.3 million
developer accounts. Through Baidu's AI Open Platform on Baidu
Cloud, developers can leverage Baidu's comprehensive AI
capabilities, such as speech recognition, natural language
processing and computer vision, to build their products and
solutions.
- Developer downloads on PaddlePaddle, Baidu's open-sourced deep
learning platform, increased 45% sequentially in the second quarter
of 2019. Baidu provides advanced, easy-to-use model training
toolkits for PaddlePaddle, such as EasyDL and AI studio, to help
developers build deep learning models at scale.
iQIYI
- iQIYI subscribers reached 100.5 million in June 2019, increasing 50% year over year, further
strengthening its foundation to offer blockbuster original
entertainment content.
Second Quarter 2019 Results
Total revenues reached RMB 26.3
billion ($3.84 billion),
increasing 1% year over year, or 6% year over year, excluding the
impact of announced divestures[2], and increasing 9% quarter
over quarter. Online marketing revenues were RMB19.2 billion ($2.80
billion), decreasing 9% year over year and increasing 9%
quarter over quarter. Other revenues were RMB 7.1 billion ($1.03
billion), increasing 44% year over year, driven mainly by
robust growth in iQIYI membership services, cloud and smart
devices.
Revenue from Baidu Core reached RMB 19.5 billion ($2.85
billion), decreasing 2% year over year, or increasing 3%
year over year, excluding the impact of announced
divestures[2],
and increasing 12% quarter over quarter. Baidu Core's marketing
services experienced softness in top sectors, including healthcare,
online games, financial services, and auto/logistics sectors.
Revenue from iQIYI reached RMB 7.1
billion ($1.04 billion), up
15% year over year. iQIYI membership services grew 38% year over
year, while online advertising revenue fell 16% year over year.
Content costs were RMB 5.8
billion ($847 million),
increasing 12% year over year, mainly due to increased investment
in iQIYI content and, to a much lesser extent, in content for BJH
accounts, Baidu's feed publisher network.
Traffic acquisition cost was RMB
3.4 billion ($499 million),
increasing 27% year over year, as a result of higher TAC costs and
expansion into offline digitalized screens and other areas.
Bandwidth costs were RMB 2.0
billion ($298 million),
increasing 32% year over year, mainly due to increasing demand from
feed, video and cloud services.
Other cost of revenues, which includes depreciation,
operational costs, sales taxes and surcharges, and share-based
compensation, was RMB 4.8 billion
($703 million), increasing 89% year
over year, mainly due to higher cost of goods sold for smart home
devices and higher depreciation expense.
Selling, general and administrative expenses were
RMB 5.2 billion ($764 million), increasing 16% year over year,
primarily due to increased investment in channel and promotional
marketing, as well as the increase in personnel related
expenses.
Research and development expenses were RMB 4.7 billion ($690
million), increasing 17% year over year, primarily due to
the increase in personnel related expenses.
Operating income was RMB 233
million ($34 million), and
operating margin was 1%. Operating income for Baidu
Core was RMB 2.1 billion
($307 million), and Baidu Core
operating margin was 11%. Non-GAAP operating income was
RMB 2.0 billion ($285 million), and non-GAAP operating
margin was 7%. Non-GAAP operating income for Baidu Core
was RMB 3.5 billion ($508 million), and non-GAAP Baidu Core
operating margin was 18%.
Total other income was RMB 1.2
billion ($180 million),
increasing 69% year over year, mainly due to increased income from
equity method investments and foreign exchange gains from RMB
depreciation.
Income tax expense was RMB 416
million ($61 million),
compared to RMB 1.1 billion in the
second quarter of 2018. Effective tax rate was 28%, compared to 18%
in the second quarter of 2018, primarily due to the lower pre-tax
income from Baidu Core and iQIYI not being able to recognize tax
benefit from its losses in the current period.
Net income attributable to Baidu was RMB 2.4 billion ($351
million), and net margin was 9%. Diluted earnings per
ADS amounted to RMB 7 ($0.96). Net income attributable to Baidu
Core was RMB 3.7 billion
($543 million), and Baidu Core net
margin was 19%. Non-GAAP net income attributable to
Baidu was RMB 3.6 billion
($529 million), and non-GAAP net
margin was 14%. Non-GAAP diluted earnings per ADS amounted to
RMB 10 ($1.47). Non-GAAP net income attributable to
Baidu Core was RMB 4.7 billion
($690 million), and non-GAAP net
margin for Baidu Core was 24%.
Adjusted EBITDA was RMB 3.4
billion ($489 million) and
adjusted EBITDA margin was 13%. Adjusted EBITDA to Baidu
Core was RMB 4.8 billion
($694 million) and Baidu Core
adjusted EBITDA margin was 24%.
As of June 30, 2019, cash, cash
equivalents, restricted cash and short-term investments were
RMB 137.3 billion ($20.00 billion), and excluding iQIYI, cash,
cash equivalents, restricted cash and short-term investments
were RMB 120.9 billion ($17.61 billion). Free cash flow was
RMB 5.6 billion ($817 million). Excluding iQIYI, free cash
flow was RMB 4.9 billion
($710 million).
Financial Guidance
For the third quarter of 2019, Baidu expects revenues to be
between RMB 26.9 billion
($3.84 billion[3]) and RMB
28.5 billion ($4.07 billion),
representing -5% to 1% increase year over year, or -1% to 5%
increase year over year, excluding revenues from announced
divestures, and 2% to 8% increase quarter over quarter. Previously
announced divestures, which were consummated in 2018, generated
approximately RMB 1.0 billion revenue
in the third quarter of 2018. This forecast reflects Baidu's
current and preliminary view, which is subject to substantial
uncertainty.
Conference Call Information
Baidu's management will hold an earnings conference call
at 9:15 PM on August 19, 2019,
U.S. Eastern Time (9:15 AM on
August 20, 2019, Beijing/Hong Kong Time). Dial-in details for
the earnings conference call are as follows:
International:
|
+65
67135090
|
Mainland
China
|
4006208038
|
US:
|
+1
8456750437
|
UK:
|
+44
2036214779
|
Hong Kong:
|
+852
30186771
|
|
|
Passcode for all
regions:
|
9480017
|
A replay of the conference call may be accessed by phone at the
following number until August 27,
2019:
International:
|
+61 2 8199
0299
|
Passcode:
|
9480017
|
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. Baidu aims to make a complex world simpler through
technology. Baidu's ADSs trade on the NASDAQ Global Select Market
under the symbol "BIDU." Currently, ten ADSs represent one Class A
ordinary share.
Contacts
Investors Relations, Baidu, Inc.
Tel: +86-10-5992-8888
Email: ir@baidu.com
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 third quarter of 2019, quotations
from management in this announcement, as well as 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 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 feed 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 feed
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. Baidu does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law. All information provided in this press release and
in the attachments is as of the date of the press release, and
Baidu undertakes no duty to update such information, except as
required under applicable law.
Non-GAAP Financial Measures
To supplement Baidu's consolidated financial results presented
in accordance with GAAP, Baidu uses the following non-GAAP
financial measures: non-GAAP operating income (loss), non-GAAP
operating margin, non-GAAP net income (loss) attributable to Baidu,
non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted
EBITDA, adjusted EBITDA margin and free cash flow. The presentation
of these non-GAAP financial measures is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP.
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 not only non-cash charges, but also other
items that are infrequent or unusual 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 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 of intangible assets resulting from business
combinations, disposal gain or loss, impairment of long-term
investments, fair value change of long-term investments, adjusted
for related income tax effects. Baidu's share of equity method
investments for these non-GAAP reconciling items, amortization of
intangible assets not on the investees' 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, adjusted for
related income tax effects, are also excluded.
Non-GAAP diluted earnings per ADS represents diluted earnings
per ADS calculated based on non-GAAP net income attributable to
Baidu, adjusted for accretion for the redeemable noncontrolling
interests. Adjusted EBITDA represents operating income excluding
depreciation, amortization of intangible assets resulting from
business combinations, and share-based compensation expenses. Free
cash flow represents net cash provided by operating activities less
capital expenditures.
For more information on non-GAAP financial measures, please see
the tables captioned "Reconciliations of non-GAAP financial
measures to the nearest comparable GAAP measures."
[1] Unless otherwise noted, all translations from RMB to U.S.
dollars are made at a rate of RMB6.8650 to US$1.00, the effective noon buying rate as of
June 28, 2019, in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank of
New York. Translations are
provided for the convenience of the reader.
[2] Excluding revenues from divested businesses Global DU and Du
Xiaoman (financial services), which were approximately RMB1.0 billion for the three months ended
June 30, 2018.
[3] The translations from RMB to U.S. dollars for the expected
revenues in the third quarter of 2019 are made at a rate of
RMB7.0 to US$1.0, the rounded noon buying rate as of
August 8, 2019, in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank of
New York. We make no
representation that any Renminbi or U.S. dollar amounts could have
been, or could be, converted into U.S. dollars or Renminbi, as the
case may be, at this rate, or any particular rate, or at all.
Baidu,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In millions except
for share information, unaudited)
|
|
|
December
31,
|
|
June
30,
|
|
June
30,
|
|
|
2018
|
|
2019
|
|
2019
|
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
27,638
|
|
20,718
|
|
3,018
|
Restricted
cash
|
|
2,189
|
|
2,221
|
|
324
|
Short-term
investments
|
|
111,626
|
|
114,374
|
|
16,660
|
Accounts
receivable, net
|
|
6,015
|
|
6,932
|
|
1,010
|
Amounts due
from related parties
|
|
785
|
|
1,315
|
|
192
|
Other assets,
current
|
|
6,841
|
|
9,730
|
|
1,417
|
Total current assets
|
|
155,094
|
|
155,290
|
|
22,621
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
Fixed assets,
net
|
|
17,903
|
|
19,306
|
|
2,812
|
Intangible
assets, net
|
|
9,181
|
|
8,474
|
|
1,234
|
Goodwill
|
|
18,536
|
|
19,096
|
|
2,782
|
Long-term
investments, net
|
|
80,454
|
|
83,648
|
|
12,185
|
Amounts due
from related parties
|
|
4,297
|
|
4,120
|
|
600
|
Deferred tax
assets, net
|
|
2,324
|
|
1,637
|
|
238
|
Operating lease
right-of-use assets
|
|
-
|
|
7,075
|
|
1,031
|
Other assets,
non-current
|
|
9,777
|
|
9,949
|
|
1,449
|
Total non-current assets
|
|
142,472
|
|
153,305
|
|
22,331
|
|
|
|
|
|
|
|
Total
assets
|
|
297,566
|
|
308,595
|
|
44,952
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Short-term
loans
|
|
3,046
|
|
4,017
|
|
585
|
Accounts payable and
accrued liabilities
|
|
35,381
|
|
35,758
|
|
5,209
|
Customer deposits and
deferred revenue
|
|
9,221
|
|
9,721
|
|
1,416
|
Deferred
income
|
|
523
|
|
505
|
|
74
|
Long-term loans,
current portion
|
|
84
|
|
353
|
|
51
|
Notes payable,
current portion
|
|
6,871
|
|
5,142
|
|
749
|
Amounts due to
related parties
|
|
1,727
|
|
1,756
|
|
256
|
Operating lease
liabilities
|
|
-
|
|
2,248
|
|
327
|
Total current liabilities
|
|
56,853
|
|
59,500
|
|
8,667
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
Deferred
income
|
|
54
|
|
33
|
|
5
|
Deferred
revenue
|
|
1,309
|
|
1,079
|
|
157
|
Amounts due to
related parties
|
|
4,360
|
|
4,348
|
|
634
|
Long-term
loans
|
|
7,456
|
|
7,197
|
|
1,048
|
Notes
payable
|
|
42,735
|
|
37,534
|
|
5,468
|
Convertible senior
notes
|
|
4,712
|
|
11,919
|
|
1,736
|
Deferred tax
liabilities
|
|
4,099
|
|
4,152
|
|
605
|
Operating lease
liabilities
|
|
-
|
|
4,332
|
|
631
|
Other non-current
liabilities
|
|
236
|
|
297
|
|
43
|
Total non-current liabilities
|
|
64,961
|
|
70,891
|
|
10,327
|
|
|
|
|
|
|
|
Total
liabilities
|
|
121,814
|
|
130,391
|
|
18,994
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
716
|
|
949
|
|
138
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Class A Ordinary
Shares, par value US$0.00005 per share, 825,000,000 shares
authorized, and 27,733,692 shares and 27,652,814 shares
issued and outstanding as at December 31, 2018 and June 30,
2019
|
|
-
|
|
-
|
|
-
|
Class B Ordinary
Shares, par value US$0.00005 per share, 35,400,000 shares
authorized, and 7,201,254 shares and 7,201,254 shares issued
and outstanding as at December 31, 2018 and June 30,
2019
|
|
-
|
|
-
|
|
-
|
Additional paid-in
capital
|
|
33,441
|
|
36,196
|
|
5,273
|
Retained
earnings
|
|
129,246
|
|
129,297
|
|
18,834
|
Accumulated other
comprehensive income
|
|
210
|
|
236
|
|
34
|
Total Baidu shareholders' equity
|
|
162,897
|
|
165,729
|
|
24,141
|
Noncontrolling interests
|
|
12,139
|
|
11,526
|
|
1,679
|
Total
equity
|
|
175,036
|
|
177,255
|
|
25,820
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests, and equity
|
|
297,566
|
|
308,595
|
|
44,952
|
Baidu,
Inc.
|
Condensed
Consolidated Statements of Income (Loss)
|
(In millions except
for share, 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,
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD(2)
|
|
RMB
|
|
RMB
|
|
USD(2)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online
marketing services
|
21,065
|
|
17,657
|
|
19,237
|
|
2,802
|
|
38,234
|
|
36,894
|
|
5,374
|
Others
|
4,907
|
|
6,466
|
|
7,089
|
|
1,033
|
|
8,645
|
|
13,555
|
|
1,975
|
Total
revenues
|
25,972
|
|
24,123
|
|
26,326
|
|
3,835
|
|
46,879
|
|
50,449
|
|
7,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Content
costs
|
5,213
|
|
6,157
|
|
5,817
|
|
847
|
|
9,407
|
|
11,974
|
|
1,744
|
Traffic
acquisition costs
|
2,698
|
|
3,183
|
|
3,424
|
|
499
|
|
4,954
|
|
6,607
|
|
962
|
Bandwidth
costs
|
1,550
|
|
2,040
|
|
2,048
|
|
298
|
|
3,022
|
|
4,088
|
|
595
|
Others
|
2,551
|
|
3,459
|
|
4,827
|
|
703
|
|
4,532
|
|
8,286
|
|
1,207
|
Cost of
revenues(1)
|
12,012
|
|
14,839
|
|
16,116
|
|
2,347
|
|
21,915
|
|
30,955
|
|
4,508
|
Selling, general and
administrative(1)
|
4,505
|
|
6,054
|
|
5,243
|
|
764
|
|
7,647
|
|
11,297
|
|
1,646
|
Research and
development(1)
|
4,033
|
|
4,166
|
|
4,734
|
|
690
|
|
7,327
|
|
8,900
|
|
1,297
|
Total
operating costs and expenses
|
20,550
|
|
25,059
|
|
26,093
|
|
3,801
|
|
36,889
|
|
51,152
|
|
7,451
|
Operating
income (loss)
|
5,422
|
|
(936)
|
|
233
|
|
34
|
|
9,990
|
|
(703)
|
|
(102)
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
882
|
|
1,072
|
|
1,205
|
|
176
|
|
1,703
|
|
2,277
|
|
332
|
Interest
expense
|
(478)
|
|
(693)
|
|
(805)
|
|
(117)
|
|
(830)
|
|
(1,498)
|
|
(218)
|
Foreign
exchange income (loss), net
|
30
|
|
(313)
|
|
216
|
|
31
|
|
(18)
|
|
(97)
|
|
(14)
|
Income (loss)
from equity method investment
|
69
|
|
(860)
|
|
429
|
|
62
|
|
(108)
|
|
(431)
|
|
(63)
|
Other income,
net
|
231
|
|
1,694
|
|
193
|
|
28
|
|
2,087
|
|
1,887
|
|
275
|
Total other
income (loss), net
|
734
|
|
900
|
|
1,238
|
|
180
|
|
2,834
|
|
2,138
|
|
312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
6,156
|
|
(36)
|
|
1,471
|
|
214
|
|
12,824
|
|
1,435
|
|
210
|
Income
taxes
|
1,086
|
|
294
|
|
416
|
|
61
|
|
2,206
|
|
710
|
|
104
|
Net income
(loss)
|
5,070
|
|
(330)
|
|
1,055
|
|
153
|
|
10,618
|
|
725
|
|
106
|
Less: net
income (loss) attributable to noncontrolling
interests
|
(1,332)
|
|
(3)
|
|
(1,357)
|
|
(198)
|
|
(2,478)
|
|
(1,360)
|
|
(198)
|
Net income
(loss) attributable to Baidu
|
6,402
|
|
(327)
|
|
2,412
|
|
351
|
|
13,096
|
|
2,085
|
|
304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
ADS (1 Class A ordinary share equals 10 ADSs):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
18.32
|
|
(0.98)
|
|
6.84
|
|
1.00
|
|
37.17
|
|
5.86
|
|
0.85
|
-Diluted
|
18.14
|
|
(0.98)
|
|
6.57
|
|
0.96
|
|
36.81
|
|
5.72
|
|
0.83
|
Earnings (loss) per
share for Class A and Class B ordinary shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Basic
|
183.16
|
|
(9.81)
|
|
68.38
|
|
9.96
|
|
371.73
|
|
58.60
|
|
8.54
|
-Diluted
|
181.36
|
|
(9.81)
|
|
65.69
|
|
9.57
|
|
368.10
|
|
57.22
|
|
8.34
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
34,953,564
|
|
34,966,643
|
|
34,996,791
|
|
34,996,791
|
|
34,896,297
|
|
34,981,800
|
|
34,981,800
|
Diluted
|
35,299,428
|
|
34,966,643
|
|
35,044,719
|
|
35,044,719
|
|
35,240,508
|
|
35,055,695
|
|
35,055,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
60
|
|
66
|
|
99
|
|
14
|
|
95
|
|
165
|
|
24
|
Selling,
general and administrative
|
302
|
|
516
|
|
503
|
|
74
|
|
593
|
|
1,019
|
|
148
|
Research and
development
|
755
|
|
626
|
|
1,022
|
|
149
|
|
1,207
|
|
1,648
|
|
240
|
Total
share-based compensation expenses
|
1,117
|
|
1,208
|
|
1,624
|
|
237
|
|
1,895
|
|
2,832
|
|
412
|
(2) All
translations from RMB to U.S. dollars are made at a rate of
RMB6.8650 to US$1.00, the effective noon buying rate as of June 28,
2019, in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank of New
York.
|
Baidu,
Inc.
|
Selected
Information
|
(In millions except
for per ADS information, unaudited)
|
|
Three months
ended
June 30, 2018 (RMB)
|
|
Three months
ended
March 31, 2019 (RMB)
|
|
Three months
ended
June 30, 2019 (RMB)
|
|
Three months
ended
June 30, 2019 (USD)
|
|
Baidu
Core
|
iQIYI
|
Elim &
adj(3)
|
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Elim &
adj(3)
|
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Elim &
adj(3)
|
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Elim &
adj(3)
|
|
Baidu,
Inc.
|
Total
revenues
|
20,018
|
6,170
|
(216)
|
|
25,972
|
|
17,450
|
6,990
|
(317)
|
|
24,123
|
|
19,540
|
7,110
|
(324)
|
|
26,326
|
|
2,846
|
1,036
|
(47)
|
|
3,835
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
(2%)
|
15%
|
|
|
1%
|
|
|
|
|
|
|
YOY
excluding revenue from divested
businesses(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
3%
|
|
|
|
6%
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
12%
|
2%
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues (2)
|
6,061
|
6,107
|
(156)
|
|
12,012
|
|
7,849
|
7,277
|
(287)
|
|
14,839
|
|
9,453
|
6,981
|
(318)
|
|
16,116
|
|
1,377
|
1,017
|
(47)
|
|
2,347
|
Selling,
general and administrative (2)
|
3,628
|
950
|
(73)
|
|
4,505
|
|
4,940
|
1,141
|
(27)
|
|
6,054
|
|
3,898
|
1,346
|
(1)
|
|
5,243
|
|
568
|
196
|
-
|
|
764
|
Research and
development (2)
|
3,593
|
441
|
(1)
|
|
4,033
|
|
3,570
|
598
|
(2)
|
|
4,166
|
|
4,080
|
655
|
(1)
|
|
4,734
|
|
594
|
96
|
-
|
|
690
|
Total operating
costs and expenses
|
13,282
|
7,498
|
(230)
|
|
20,550
|
|
16,359
|
9,016
|
(316)
|
|
25,059
|
|
17,431
|
8,982
|
(320)
|
|
26,093
|
|
2,539
|
1,309
|
(47)
|
|
3,801
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
31%
|
20%
|
|
|
27%
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
56%
|
14%
|
|
|
34%
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
7%
|
42%
|
|
|
16%
|
|
|
|
|
|
|
Research
and development
|
|
|
|
|
|
|
|
|
|
|
|
|
14%
|
49%
|
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
6,736
|
(1,328)
|
14
|
|
5,422
|
|
1,091
|
(2,026)
|
(1)
|
|
(936)
|
|
2,109
|
(1,872)
|
(4)
|
|
233
|
|
307
|
(273)
|
-
|
|
34
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
(69%)
|
41%
|
|
|
(96%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
93%
|
(8%)
|
|
|
-
|
|
|
|
|
|
|
Operating
margin
|
34%
|
(22%)
|
|
|
21%
|
|
6%
|
(29%)
|
|
|
(4%)
|
|
11%
|
(26%)
|
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
income (loss),net
|
2,078
|
(768)
|
(576)
|
|
734
|
|
689
|
211
|
-
|
|
900
|
|
1,664
|
(426)
|
-
|
|
1,238
|
|
242
|
(62)
|
-
|
|
180
|
Less: income
taxes
|
1,081
|
5
|
-
|
|
1,086
|
|
287
|
7
|
-
|
|
294
|
|
410
|
6
|
|
|
416
|
|
60
|
1
|
-
|
|
61
|
Less: net
income (loss) attributable to NCI
|
(425)
|
(4)
|
(903)
|
(4)
|
(1,332)
|
|
790
|
(8)
|
(785)
|
(4)
|
(3)
|
|
(368)
|
23
|
(1,012)
|
(4)
|
(1,357)
|
|
(54)
|
3
|
(147)
|
(4)
|
(198)
|
Net income(loss)
attributable to Baidu
|
8,158
|
(2,097)
|
341
|
|
6,402
|
|
703
|
(1,814)
|
784
|
|
(327)
|
|
3,731
|
(2,327)
|
1,008
|
|
2,412
|
|
543
|
(339)
|
147
|
|
351
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
(54%)
|
11%
|
|
|
(62%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
431%
|
28%
|
|
|
-
|
|
|
|
|
|
|
Net
margin
|
41%
|
(34%)
|
|
|
25%
|
|
4%
|
(26%)
|
|
|
(1%)
|
|
19%
|
(33%)
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Key
Metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income (loss)
|
7,784
|
(1,235)
|
|
|
6,563
|
|
2,110
|
(1,708)
|
|
|
401
|
|
3,485
|
(1,526)
|
|
|
1,955
|
|
508
|
(222)
|
|
|
285
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
(55%)
|
24%
|
|
|
(70%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
65%
|
(11%)
|
|
|
388%
|
|
|
|
|
|
|
Non-GAAP operating
margin
|
39%
|
(20%)
|
|
|
25%
|
|
12%
|
(24%)
|
|
|
2%
|
|
18%
|
(21%)
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income (loss) attributable to Baidu
|
8,831
|
(2,004)
|
|
|
7,705
|
|
1,824
|
(1,508)
|
|
|
967
|
|
4,740
|
(1,962)
|
|
|
3,635
|
|
690
|
(286)
|
|
|
529
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
(46%)
|
(2%)
|
|
|
(53%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
160%
|
30%
|
|
|
276%
|
|
|
|
|
|
|
Non-GAAP net
margin
|
44%
|
(32%)
|
|
|
30%
|
|
10%
|
(22%)
|
|
|
4%
|
|
24%
|
(28%)
|
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
8,544
|
(1,161)
|
|
|
7,397
|
|
3,372
|
(1,601)
|
|
|
1,770
|
|
4,766
|
(1,407)
|
|
|
3,355
|
|
694
|
(205)
|
|
|
489
|
Adjusted EBITDA
margin
|
43%
|
(19%)
|
|
|
28%
|
|
19%
|
(23%)
|
|
|
7%
|
|
24%
|
(20%)
|
|
|
13%
|
|
|
|
|
|
|
|
|
(1) Excluding
revenues from divested businesses Global DU and Du Xiaoman
(financial services), which were approximately RMB1.0 billion for
the three months ended June 30, 2018.
|
(2) Includes
share-based compensation as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
41
|
19
|
|
|
60
|
|
30
|
36
|
|
|
66
|
|
58
|
41
|
|
|
99
|
|
8
|
6
|
|
|
14
|
Selling,
general and administrative
|
256
|
46
|
|
|
302
|
|
338
|
178
|
|
|
516
|
|
327
|
176
|
|
|
503
|
|
48
|
26
|
|
|
74
|
Research and
development
|
736
|
19
|
|
|
755
|
|
584
|
42
|
|
|
626
|
|
959
|
63
|
|
|
1,022
|
|
140
|
9
|
|
|
149
|
Total
share-based compensation
|
1,033
|
84
|
|
|
1,117
|
|
952
|
256
|
|
|
1,208
|
|
1,344
|
280
|
|
|
1,624
|
|
196
|
41
|
|
|
237
|
(3) Relates to
intersegment eliminations and adjustments
|
(4) Relates to
the net loss attributable to iQIYI noncontrolling
interests
|
Baidu,
Inc.
|
Reconciliations of
Non-GAAP Financial Measures to the Nearest Comparable GAAP
Measures
|
(In millions except
for ADS and per ADS information, unaudited)
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
June 30, 2018
(RMB)
|
|
March 31,
2019 (RMB)
|
|
June 30,
2019 (RMB)
|
|
June 30, 2019
(USD)
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
Operating income
(loss)
|
6,736
|
(1,328)
|
5,422
|
|
1,091
|
(2,026)
|
(936)
|
|
2,109
|
(1,872)
|
233
|
|
307
|
(273)
|
34
|
Add:
Share-based compensation expenses
|
1,033
|
84
|
1,117
|
|
952
|
256
|
1,208
|
|
1,344
|
280
|
1,624
|
|
196
|
41
|
237
|
Add:
Amortization of intangible assets(1)
|
15
|
9
|
24
|
|
67
|
62
|
129
|
|
32
|
66
|
98
|
|
5
|
10
|
14
|
Non-GAAP operating
income (loss)
|
7,784
|
(1,235)
|
6,563
|
|
2,110
|
(1,708)
|
401
|
|
3,485
|
(1,526)
|
1,955
|
|
508
|
(222)
|
285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
Depreciation of fixed assets
|
760
|
74
|
834
|
|
1,262
|
107
|
1,369
|
|
1,281
|
119
|
1,400
|
|
186
|
17
|
204
|
Adjusted
EBITDA
|
8,544
|
(1,161)
|
7,397
|
|
3,372
|
(1,601)
|
1,770
|
|
4,766
|
(1,407)
|
3,355
|
|
694
|
(205)
|
489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
|
8,158
|
(2,097)
|
6,402
|
|
703
|
(1,814)
|
(327)
|
|
3,731
|
(2,327)
|
2,412
|
|
543
|
(339)
|
351
|
Add: Share-based
compensation expenses
|
1,033
|
84
|
1,081
|
|
947
|
256
|
1,092
|
|
1,337
|
280
|
1,495
|
|
195
|
41
|
218
|
Add: Amortization of
intangible assets(1), net of tax
|
11
|
9
|
17
|
|
27
|
49
|
54
|
|
8
|
52
|
37
|
|
1
|
8
|
5
|
Add: Disposal loss
(gain), net of tax
|
(462)
|
-
|
114
|
|
(31)
|
1
|
(30)
|
|
(181)
|
-
|
(181)
|
|
(26)
|
-
|
(26)
|
Add: Impairment of
long-term investments, net of tax
|
-
|
-
|
-
|
|
279
|
-
|
279
|
|
162
|
23
|
185
|
|
24
|
3
|
27
|
Add: Fair value
change of long-term investments, net of tax
|
(338)
|
-
|
(338)
|
|
(1,058)
|
-
|
(1,058)
|
|
(285)
|
(1)
|
(286)
|
|
(42)
|
-
|
(42)
|
Add: Reconciling
items on equity method investments, net of
tax(2)
|
429
|
-
|
429
|
|
957
|
-
|
957
|
|
(32)
|
11
|
(27)
|
|
(5)
|
1
|
(4)
|
Non-GAAP net
income (loss) attributable to
|
8,831
|
(2,004)
|
7,705
|
|
1,824
|
(1,508)
|
967
|
|
4,740
|
(1,962)
|
3,635
|
|
690
|
(286)
|
529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per ADS
|
|
|
18.14
|
|
|
|
(0.98)
|
|
|
|
6.57
|
|
|
|
0.96
|
Add: Accretion
of the redeemable noncontrolling interests
|
|
|
-
|
|
|
|
0.05
|
|
|
|
0.05
|
|
|
|
0.01
|
Add: Non-GAAP
adjustments to earnings per ADS
|
|
|
3.69
|
|
|
|
3.70
|
|
|
|
3.49
|
|
|
|
0.50
|
Non-GAAP diluted
earnings per ADS
|
|
|
21.83
|
|
|
|
2.77
|
|
|
|
10.11
|
|
|
|
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
6,972
|
156
|
7,128
|
|
1,282
|
379
|
1,661
|
|
6,074
|
891
|
6,965
|
|
885
|
130
|
1,015
|
Less: Capital
expenditures
|
(1,339)
|
(166)
|
(1,505)
|
|
(2,801)
|
(172)
|
(2,973)
|
|
(1,204)
|
(155)
|
(1,359)
|
|
(175)
|
(23)
|
(198)
|
Free cash
flow
|
5,633
|
(10)
|
5,623
|
|
(1,519)
|
207
|
(1,312)
|
|
4,870
|
736
|
5,606
|
|
710
|
107
|
817
|
|
|
|
(1) This represents
amortization of intangible assets resulting from business
combinations.
|
(2) This represents
Baidu's share of equity method investments for other non-GAAP
reconciling items, amortization 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, adjusted for related income tax
effects.
|
(3) Non-GAAP measures
are adjusted retroactively to exclude: 1) amortization of
intangible assets resulting from business combinations ; and 2)
share-based compensation and amortization of intangible assets not
on their books, resulting from equity method pick up; and 3) fair
value change of the investees' long-term investments, net of tax,
as follows:
|
|
Non-GAAP operating
income, previously reported
|
7,769
|
(1,244)
|
6,539
|
|
2,043
|
(1,770)
|
272
|
|
3,453
|
(1,592)
|
1,857
|
|
503
|
(232)
|
271
|
Add:
Amortization of intangible assets(1)
|
15
|
9
|
24
|
|
67
|
62
|
129
|
|
32
|
66
|
98
|
|
5
|
10
|
14
|
Non-GAAP operating
income, revised
|
7,784
|
(1,235)
|
6,563
|
|
2,110
|
(1,708)
|
401
|
|
3,485
|
(1,526)
|
1,955
|
|
508
|
(222)
|
285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to Baidu, previously reported
|
8,565
|
(2,013)
|
7,433
|
|
1,524
|
(1,557)
|
640
|
|
4,418
|
(2,025)
|
3,279
|
|
643
|
(295)
|
477
|
Add: Adjustments
relating to equity-method investments, net of tax
|
255
|
-
|
255
|
|
273
|
-
|
273
|
|
314
|
11
|
319
|
|
46
|
1
|
47
|
Add: Amortization of
intangible assets(1), net of tax
|
11
|
9
|
17
|
|
27
|
49
|
54
|
|
8
|
52
|
37
|
|
1
|
8
|
5
|
Non-GAAP net income
attributable to Baidu, revised
|
8,831
|
(2,004)
|
7,705
|
|
1,824
|
(1,508)
|
967
|
|
4,740
|
(1,962)
|
3,635
|
|
690
|
(286)
|
529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA,
previously reported
|
8,562
|
(1,125)
|
7,417
|
|
3,387
|
(1,526)
|
1,820
|
|
4,780
|
(1,348)
|
3,388
|
|
697
|
(196)
|
494
|
Less:
Adjustments to amortization of intangible assets
|
(18)
|
(36)
|
(20)
|
|
(15)
|
(75)
|
(50)
|
|
(14)
|
(59)
|
(33)
|
|
(3)
|
(9)
|
(5)
|
Adjusted EBITDA,
revised
|
8,544
|
(1,161)
|
7,397
|
|
3,372
|
(1,601)
|
1,770
|
|
4,766
|
(1,407)
|
3,355
|
|
694
|
(205)
|
489
|
View original
content:http://www.prnewswire.com/news-releases/baidu-announces-second-quarter-2019-results-300903822.html
SOURCE Baidu, Inc.