BEIJING, Nov. 17, 2021 /PRNewswire/ -- Baidu, Inc.
(NASDAQ: BIDU and HKEX: 9888) ("Baidu" or the "Company"), a leading
AI company with strong Internet foundation, today announced its
unaudited financial results for the third quarter ended
September 30, 2021.
"Baidu is bringing innovation across the consumer, enterprise
and public sector with our commitment to AI," said Robin Li, co-founder and CEO of Baidu. "Our AI
Cloud is helping businesses better serve customers and move faster
with greater efficiency. We are building Baidu Apollo smart
transportation and intelligent driving to smoothen traffic
congestion, accelerate the move to EV and reduce traffic
accidents."
"Baidu Core delivered another solid quarter, powered by our AI
cloud revenue growing 73% year over year," said Rong Luo, CFO of
Baidu. "With a diversified AI portfolio, including cloud services,
smart transportation, smart devices, self-driving, smart EV and
robotaxi, we are well positioned for long-term growth."
Third Quarter 2021
Financial Highlights[1]
|
|
|
|
Baidu,
Inc.
|
(In millions except
per
|
Q3
|
|
Q2
|
|
Q3
|
|
|
|
|
|
ADS,
unaudited)
|
2020
|
|
2021
|
|
2021
|
|
|
YOY
|
|
QOQ
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
Total
revenues
|
28,232
|
|
31,350
|
|
31,921
|
4,954
|
|
13%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
6,156
|
|
3,463
|
|
2,308
|
358
|
|
(63%)
|
|
(33%)
|
Operating income
(non-GAAP) 2
|
7,636
|
|
5,653
|
|
4,708
|
731
|
|
(38%)
|
|
(17%)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
to Baidu
|
13,678
|
|
(583)
|
|
(16,559)
|
(2,570)
|
|
-
|
|
2740%
|
Net income to Baidu
(non-GAAP) 2
|
6,988
|
|
5,359
|
|
5,090
|
790
|
|
(27%)
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per ADS
|
39.79
|
|
(1.70)
|
|
(48.18)
|
(7.48)
|
|
-
|
|
2734%
|
Diluted earnings per ADS
(non-GAAP) 2
|
20.35
|
|
15.41
|
|
14.66
|
2.28
|
|
(28%)
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
2
|
9,073
|
|
7,295
|
|
5,962
|
925
|
|
(34%)
|
|
(18%)
|
Adjusted EBITDA
margin
|
32%
|
|
23%
|
|
19%
|
19%
|
|
|
|
|
[1] Unless otherwise
noted, RMB to USD was converted at an exchange rate of RMB6.4434 as
of September 30, 2021, as set forth in the H.10 statistical release
of the Board of Governors of the Federal Reserve System.
Translations are provided solely for the convenience of the
reader.
[2] Non-GAAP measures
are defined in the Non-GAAP Financial Measures section (see also
"Reconciliations of Non-GAAP Financial Measures to the Nearest
Comparable GAAP Measures" for more details).
|
|
Baidu
Core
|
|
Q3
|
|
Q2
|
|
Q3
|
|
|
|
|
|
(In millions,
unaudited)
|
2020
|
|
2021
|
|
2021
|
|
|
YOY
|
|
QOQ
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
Total
revenues
|
21,379
|
|
24,041
|
|
24,661
|
3,827
|
|
15%
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
7,404
|
|
4,619
|
|
3,718
|
577
|
|
(50%)
|
|
(20%)
|
Operating income
(non-GAAP) 2
|
8,505
|
|
6,467
|
|
5,823
|
904
|
|
(32%)
|
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
to Baidu Core
|
14,368
|
|
172
|
|
(15,625)
|
(2,425)
|
|
-
|
|
-
|
Net income to
Baidu Core (non-GAAP) 2
|
7,486
|
|
5,942
|
|
5,855
|
909
|
|
(22%)
|
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA2
|
9,822
|
|
7,991
|
|
6,994
|
1,085
|
|
(29%)
|
|
(12%)
|
Adjusted EBITDA
margin
|
46%
|
|
33%
|
|
28%
|
28%
|
|
|
|
|
Other Highlights
Corporate
- Q3 21 net loss includes a RMB 18.9
billion non-cash, mark-to-market loss in long-term
investments arising from quarterly fair-value adjustment.
- ESG:
- Baidu donated RMB 90 million to
help Henan province cope with its
recent natural disaster.
- Xiaodu launched "visual assistance" to enable visually impaired
voice control and on-demand screen-text reading for a smoother
audio experience.
- In October, Baidu established a Data Management Committee, to
consolidate its existing committees on data management, data
privacy & protection and data security, to further improve its
policies and oversight around data management.
AI Cloud
- Baidu releases end-to-end AI cloud solution, powered by Kunlun
AI chip and PaddlePaddle deep learning framework, to help financial
services firms digitize and automate their operational processes,
enlisting leading customers like China Life and Bank of
Jiangsu.
- Lijiang, a UNESCO Heritage Site with 800-year old bridges and
waterways, is using Baidu smart-city cloud to keep the city safe
and clean for visitors. Leveraging the digitalization of tourist
areas, Baidu AI solution helps local authorities timely detect and
address infractions, e.g., illegal parking and littering.
- Tongxiang, Zhejiang (province)
signed with Baidu to enable its manufacturing-based enterprises
with Baidu AI solutions, allowing Baidu to further penetrate into
industrial Internet.
- Baidu ACE smart transportation has been adopted by 24 cities,
tripling year over year, based on contract amount over RMB10 million.
Intelligent Driving
- Apollo L4 has accumulated over 10 million test miles, up 189%
year over year, and has received 411 autonomous driving permits,
reflecting Apollo's broad geographic coverage and wide-ranging test
scenarios.
- Rides provided by Apollo Go doubled sequentially, which are
available in Shanghai,
Beijing, Guangzhou, Changsha and Cangzhou.
- WM Motor, a Chinese EV OEM, signed with Baidu to install Apollo
Navigation Pilot (ANP) in its new W6 SUV, taking the total makes
that have partnered with Apollo for self-driving and infotainment
solutions to 31.
Other Growth Initiatives
- Xiaodu ranks No.1 in smart display shipments globally and smart
speaker shipments in China for Q2
2021, according to Strategy Analytics, IDC and Canalys.
- In August 2021, Xiaodu completed
Series B financing at a valuation of US$5.1
billion with Baidu retaining super-majority
shareholding.
Mobile Ecosystem
- In September, Baidu App's MAUs reached 607 million, up 12% year
over year, and daily logged in users reached an all-time high of
79%, reflecting positive user experience.
- Managed Page reached 43% of Baidu Core Q3 online marketing
revenue, through continuous marketing-cloud enhancements, such as
expanded e-commerce features and tools.
- The open nature of Baidu's Internet infrastructure is leading
to top smartphone makers to select Baidu's smart mini program as
the landing page for their browser search.
iQIYI
- iQIYI subscribers reached 104 million in September 2021, creating a strong foundation to
provide innovative, self-developed blockbusters.
Third Quarter 2021 Financial Results
Total revenues were RMB 31.9
billion ($4.95 billion),
increasing 13% year over year.
- Revenue from Baidu Core was RMB
24.7 billion ($3.83 billion),
increasing 15% year over year; online marketing revenue was
RMB 19.5 billion ($3.02 billion), up 6% year over year, and
non-online marketing revenue was RMB
5.2 billion ($806 million), up
76% year over year, driven by cloud and other AI-powered
businesses.
- Revenue from iQIYI was RMB 7.6
billion ($1.18 billion),
increasing 6% year over year.
Cost of revenues was RMB 16.1
billion ($2.50 billion),
increasing 26% year over year, primarily due to an increase in
traffic acquisition costs, content costs and cost of goods sold
related to new AI business.
Selling, general and administrative expenses were
RMB 7.3 billion ($1.14 billion), increasing 56% year over year,
primarily due to an increase in channel spending, promotional
marketing, personnel-related expenses and contingent loss
pertaining to legal proceeding involving former advertising
agency.
Research and development expense was RMB 6.2 billion ($957
million), increasing 35% year over year, primarily related
to personnel-related expenses.
Operating income was RMB 2.3
billion ($358 million).
Baidu Core operating income was RMB
3.7 billion ($577 million),
and Baidu Core operating margin was 15%. Non-GAAP operating
income was RMB 4.7 billion
($731 million). Baidu Core
non-GAAP operating income was RMB 5.8
billion ($904 million), and
Baidu Core non-GAAP operating margin was 24%.
Total other loss, net was RMB 21.5
billion ($3.34 billion), which
included a RMB 18.9 billion non-cash,
mark-to-market loss in long-term investments. Such quarterly
fair-value adjustment may result in further net income volatility
in the future.
Income tax benefit was RMB 1.8
billion ($286 million),
compared to an income tax expense of RMB 1.6
billion for Q3 '20, primarily due to an increase in deferred
tax benefit recognized on fair value loss of long-term investments
and deduction on certain expenses that were previously considered
non-deductible.
Net loss attributable to Baidu was RMB
16.6 billion ($2.57 billion),
and diluted loss per ADS was RMB
48.18 ($7.48). Net loss
attributable to Baidu Core was RMB 15.6
billion ($2.43 billion).
Non-GAAP net income attributable to Baidu was RMB 5.1 billion ($790
million), and non-GAAP diluted earnings per ADS was
RMB 14.66 ($2.28). Non-GAAP net income attributable to
Baidu Core was RMB 5.9 billion
($909 million).
Adjusted EBITDA was RMB 6.0
billion ($925 million).
Adjusted EBITDA for Baidu Core was RMB 7.0 billion ($1.09
billion) and adjusted EBITDA margin for Baidu Core was
28%.
As of September 30, 2021, cash,
cash equivalents, restricted cash and short-term investments
were RMB 194.6 billion ($30.20 billion), and cash, cash equivalents,
restricted cash and short-term investments excluding iQIYI were
RMB 183.6 billion ($28.49 billion). Free cash flow was
RMB 691 million ($108 million), and free cash flow excluding
iQIYI was RMB 2.9 billion
($449 million).
Financial Guidance
For the fourth quarter of 2021, Baidu expects revenues to be
between RMB 31.0 billion
($4.81 billion) and RMB 34.0 billion ($5.27
billion), representing a growth rate of 2% to 12% year over
year, which assumes that Baidu Core revenue will grow between 5%
and 16% year over year.
The COVID-19 situation in China
is evolving and business visibility is limited. The above forecast
reflects Baidu's current and preliminary view, which is subject to
substantial uncertainties.
Conference Call Information
Baidu's management will hold an earnings conference call at
7:30 AM on November 17, 2021, U.S. Eastern Time
(8:30 PM on November 17, 2021, Beijing Time).
Please register in advance of the conference call using the link
provided below. Upon registering, you will be provided with
participant dial-in numbers, Direct Event passcode and unique
registrant ID by email.
For pre-registration, please click
http://apac.directeventreg.com/registration/event/8590343. It will
automatically direct you to the registration page of "Baidu Q3 2021
Earnings Conference Call", where you may fill in your details for
RSVP. If it requires you to enter a participant conference ID,
please enter " 8590343".
In the 10 minutes prior to the call start time, you may use the
conference access information (including dial-in number(s), Direct
Event passcode and unique registrant ID) provided in the
confirmation email that you have received following your
pre-registration.
Additionally, a live and archived webcast of this conference
call will be available at http://ir.baidu.com.
A replay of the conference call may be accessed by phone at the
following number until November 24
2021:
International:
|
+61 2 8199
0299
|
Conference
ID:
|
8590343
|
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 the 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, the outlook for the fourth quarter of 2021,
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 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 (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 non-cash charges or non-operating in nature.
The Company believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
its performance and when planning and forecasting future periods.
These non-GAAP financial measures also facilitate management's
internal comparisons to Baidu's historical performance and
liquidity. The Company believes these non-GAAP financial measures
are useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its
financial and operational decision making. A limitation of using
these non-GAAP financial measures is that these non-GAAP measures
exclude certain items that have been and will continue to be for
the foreseeable future a significant component in the Company's
results of operations. These non-GAAP financial measures
presented here may not be comparable to similarly titled measures
presented by other companies. Other companies may calculate
similarly titled measures differently, limiting their usefulness as
comparative measures to the Company's data.
Non-GAAP operating income represents operating income excluding
share-based compensation expenses, amortization and impairment of
intangible assets resulting from business combinations and
contingent loss pertaining to legal proceeding in relation to
former advertising agency.
Non-GAAP net income attributable to Baidu represents net income
attributable to Baidu excluding share-based compensation expenses,
amortization and impairment of intangible assets resulting from
business combinations, contingent loss pertaining to legal
proceeding in relation to former advertising agency, disposal gain
or loss, impairment of long-term investments, fair value change of
long-term investments, charitable donation from Baidu, adjusted for
related income tax effects. Baidu's share of equity method
investments for these non-GAAP reconciling items, amortization and
impairment of intangible assets not on the investees' books,
accretion of their redeemable non-controlling interests, and the
gain or loss associated with the issuance of shares by the
investees at a price higher or lower than the carrying value per
shares, adjusted for related income tax effects, are also
excluded.
Non-GAAP diluted earnings per ADS represents diluted earnings
per ADS calculated by dividing non-GAAP net income attributable to
Baidu, which is adjusted for accretion for the redeemable
non-controlling interests, by the weighted average number of
ordinary shares expressed in ADS. Adjusted EBITDA represents
operating income excluding depreciation, amortization and
impairment of intangible assets resulting from business
combinations, contingent loss pertaining to legal proceeding in
relation to former advertising agency, 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 measures.
Baidu,
Inc.
|
Condensed
Consolidated Statements of Income (Loss)
|
(In millions except
for per share (or ADS) information, unaudited)
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
2020
|
|
2021
|
|
2021
|
|
2021
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$(2)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Online
marketing services
|
|
20,201
|
|
20,828
|
|
21,050
|
|
3,267
|
|
Others
|
|
8,031
|
|
10,522
|
|
10,871
|
|
1,687
|
|
Total
revenues
|
|
28,232
|
|
31,350
|
|
31,921
|
|
4,954
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenues(1)
|
|
12,815
|
|
15,897
|
|
16,126
|
|
2,503
|
|
Selling, general and
administrative(1)
|
|
4,700
|
|
5,707
|
|
7,320
|
|
1,136
|
|
Research and
development(1)
|
|
4,561
|
|
6,283
|
|
6,167
|
|
957
|
|
Total costs
and expenses
|
|
22,076
|
|
27,887
|
|
29,613
|
|
4,596
|
|
Operating
income
|
|
6,156
|
|
3,463
|
|
2,308
|
|
358
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,297
|
|
1,342
|
|
1,462
|
|
227
|
|
Interest
expense
|
|
(755)
|
|
(845)
|
|
(880)
|
|
(137)
|
|
Foreign
exchange (loss) income, net
|
|
(271)
|
|
(36)
|
|
7
|
|
1
|
|
Share of
loss from equity method investments
|
|
(546)
|
|
(4)
|
|
(4)
|
|
(1)
|
|
Others,
net
|
|
9,169
|
|
(2,887)
|
|
(22,079)
|
|
(3,426)
|
|
Total other
income (loss), net
|
|
8,894
|
|
(2,430)
|
|
(21,494)
|
|
(3,336)
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
|
15,050
|
|
1,033
|
|
(19,186)
|
|
(2,978)
|
|
Income tax
expense (benefit)
|
|
1,618
|
|
2,197
|
|
(1,839)
|
|
(286)
|
|
Net income
(loss)
|
|
13,432
|
|
(1,164)
|
|
(17,347)
|
|
(2,692)
|
|
Net loss
attributable to noncontrolling interests
|
|
(246)
|
|
(581)
|
|
(788)
|
|
(122)
|
|
Net income
(loss) attributable to Baidu
|
|
13,678
|
|
(583)
|
|
(16,559)
|
|
(2,570)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
ADS (1 ADS representing 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
-Basic
|
|
40.21
|
|
(1.70)
|
|
(48.18)
|
|
(7.48)
|
|
-Diluted
|
|
39.79
|
|
(1.70)
|
|
(48.18)
|
|
(7.48)
|
|
Earnings (loss) per
share for Class A and Class B ordinary shares:
|
|
|
|
|
|
|
|
-Basic
|
|
5.03
|
|
(0.21)
|
|
(6.02)
|
|
(0.93)
|
|
-Diluted
|
|
4.97
|
|
(0.21)
|
|
(6.02)
|
|
(0.93)
|
|
Weighted average
number of Class A and Class B ordinary shares outstanding (in
millions):
|
|
|
|
|
|
-Basic
|
|
2,719
|
|
2,782
|
|
2,778
|
|
2,778
|
|
-Diluted
|
|
2,747
|
|
2,782
|
|
2,778
|
|
2,778
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
81
|
|
112
|
|
74
|
|
11
|
|
Selling,
general and administrative
|
|
403
|
|
483
|
|
353
|
|
55
|
|
Research and
development
|
|
930
|
|
1,521
|
|
921
|
|
144
|
|
Total
share-based compensation expenses
|
|
1,414
|
|
2,116
|
|
1,348
|
|
210
|
|
|
|
|
|
|
|
|
|
|
|
(2) All
translations from RMB to U.S. dollars are made at a rate of RMB
6.4434 to US$1.00, the exchange rate in effect as of
September 30, 2021 as set forth in the H.10 statistical release of
The Board of Governors of the Federal Reserve System.
|
Baidu,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
35,782
|
|
40,701
|
|
6,317
|
Restricted cash
|
|
758
|
|
10,773
|
|
1,672
|
Short-term investments, net
|
|
126,402
|
|
143,127
|
|
22,213
|
Accounts
receivable, net
|
|
8,668
|
|
8,704
|
|
1,351
|
Amounts
due from related parties
|
|
726
|
|
947
|
|
147
|
Other
current assets, net
|
|
11,006
|
|
11,142
|
|
1,728
|
Total current assets
|
|
183,342
|
|
215,394
|
|
33,428
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
Fixed
assets, net
|
|
17,508
|
|
20,722
|
|
3,216
|
Licensed
copyrights, net
|
|
6,435
|
|
7,293
|
|
1,132
|
Produced
content, net
|
|
6,556
|
|
9,598
|
|
1,490
|
Intangible assets, net
|
|
2,022
|
|
1,769
|
|
275
|
Goodwill
|
|
22,248
|
|
22,605
|
|
3,508
|
Long-term investments, net
|
|
76,233
|
|
74,012
|
|
11,486
|
Amounts
due from related parties
|
|
3,438
|
|
3,485
|
|
541
|
Deferred
tax assets, net
|
|
1,674
|
|
2,567
|
|
398
|
Operating lease right-of-use assets
|
|
9,804
|
|
10,491
|
|
1,628
|
Other
non-current assets
|
|
3,448
|
|
16,420
|
|
2,547
|
Total non-current assets
|
|
149,366
|
|
168,962
|
|
26,221
|
|
|
|
|
|
|
|
Total
assets
|
|
332,708
|
|
384,356
|
|
59,649
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Short-term
loans
|
|
3,016
|
|
3,990
|
|
619
|
Accounts
payable and accrued liabilities
|
|
36,716
|
|
40,461
|
|
6,279
|
Customer
deposits and deferred revenue
|
|
12,626
|
|
13,525
|
|
2,099
|
Deferred
income
|
|
158
|
|
99
|
|
15
|
Long-term
loans, current portion
|
|
7,427
|
|
659
|
|
102
|
Convertible
senior notes, current portion
|
|
4,752
|
|
4,808
|
|
746
|
Notes payable,
current portion
|
|
-
|
|
5,793
|
|
899
|
Amounts due to
related parties
|
|
1,324
|
|
1,824
|
|
283
|
Operating
lease liabilities
|
|
2,366
|
|
2,756
|
|
428
|
Total current liabilities
|
|
68,385
|
|
73,915
|
|
11,470
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
Deferred
income
|
|
97
|
|
119
|
|
18
|
Deferred
revenue
|
|
686
|
|
197
|
|
31
|
Amounts due to
related parties
|
|
3,543
|
|
3,318
|
|
515
|
Long-term
loans
|
|
-
|
|
12,768
|
|
1,982
|
Notes
payable
|
|
48,408
|
|
48,438
|
|
7,517
|
Convertible
senior notes
|
|
11,927
|
|
12,671
|
|
1,967
|
Deferred tax
liabilities
|
|
3,067
|
|
3,377
|
|
524
|
Operating
lease liabilities
|
|
4,693
|
|
4,900
|
|
760
|
Other
non-current liabilities
|
|
59
|
|
92
|
|
14
|
Total non-current liabilities
|
|
72,480
|
|
85,880
|
|
13,328
|
|
|
|
|
|
|
|
Total
liabilities
|
|
140,865
|
|
159,795
|
|
24,798
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
3,102
|
|
7,916
|
|
1,229
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Total Baidu shareholders' equity
|
|
182,696
|
|
211,378
|
|
32,805
|
Noncontrolling interests
|
|
6,045
|
|
5,267
|
|
817
|
Total
equity
|
|
188,741
|
|
216,645
|
|
33,622
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling
interests, and equity
|
|
332,708
|
|
384,356
|
|
59,649
|
Baidu,
Inc.
|
Selected
Information
|
(In millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30, 2020 (RMB)
|
|
Three months
ended
June 30, 2021 (RMB)
|
|
Three months
ended
September 30, 2021 (RMB)
|
|
Three months
ended
September 30, 2021 (US$)
|
|
|
Baidu
Core
|
iQIYI
|
Elim &
adj(2)
|
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Elim &
adj(2)
|
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Elim &
adj(2)
|
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Elim &
adj(2)
|
|
Baidu,
Inc.
|
Total
revenues
|
|
21,379
|
7,188
|
(335)
|
|
28,232
|
|
24,041
|
7,608
|
(299)
|
|
31,350
|
|
24,661
|
7,589
|
(329)
|
|
31,921
|
|
3,827
|
1,178
|
(51)
|
|
4,954
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15%
|
6%
|
|
|
13%
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3%
|
(0%)
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues (1)
|
|
6,728
|
6,363
|
(276)
|
|
12,815
|
|
9,289
|
6,869
|
(261)
|
|
15,897
|
|
9,370
|
7,028
|
(272)
|
|
16,126
|
|
1,454
|
1,091
|
(42)
|
|
2,503
|
Selling,
general and administrative (1)
|
|
3,354
|
1,364
|
(18)
|
|
4,700
|
|
4,526
|
1,185
|
(4)
|
|
5,707
|
|
6,089
|
1,246
|
(15)
|
|
7,320
|
|
945
|
193
|
(2)
|
|
1,136
|
Research and
development (1)
|
|
3,893
|
671
|
(3)
|
|
4,561
|
|
5,607
|
676
|
-
|
|
6,283
|
|
5,484
|
683
|
-
|
|
6,167
|
|
851
|
106
|
-
|
|
957
|
Total costs and
expenses
|
|
13,975
|
8,398
|
(297)
|
|
22,076
|
|
19,422
|
8,730
|
(265)
|
|
27,887
|
|
20,943
|
8,957
|
(287)
|
|
29,613
|
|
3,250
|
1,390
|
(44)
|
|
4,596
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39%
|
10%
|
|
|
26%
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82%
|
(9%)
|
|
|
56%
|
|
|
|
|
|
|
Research
and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41%
|
2%
|
|
|
35%
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50%
|
7%
|
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
7,404
|
(1,210)
|
(38)
|
|
6,156
|
|
4,619
|
(1,122)
|
(34)
|
|
3,463
|
|
3,718
|
(1,368)
|
(42)
|
|
2,308
|
|
577
|
(212)
|
(7)
|
|
358
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(50%)
|
13%
|
|
|
(63%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20%)
|
22%
|
|
|
(33%)
|
|
|
|
|
|
|
Operating
margin
|
|
35%
|
(17%)
|
|
|
22%
|
|
19%
|
(15%)
|
|
|
11%
|
|
15%
|
(18%)
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: total
other income (loss), net
|
|
8,827
|
67
|
|
|
8,894
|
|
(2,204)
|
(226)
|
-
|
|
(2,430)
|
|
(21,163)
|
(331)
|
-
|
|
(21,494)
|
|
(3,285)
|
(51)
|
-
|
|
(3,336)
|
Less: income
tax expense (benefit)
|
|
1,599
|
19
|
|
|
1,618
|
|
2,167
|
30
|
-
|
|
2,197
|
|
(1,848)
|
9
|
-
|
|
(1,839)
|
|
(287)
|
1
|
-
|
|
(286)
|
Less: net
income (loss) attributable to NCI
|
|
264
|
13
|
(523)
|
(3)
|
(246)
|
|
76
|
19
|
(676)
|
(3)
|
(581)
|
|
28
|
22
|
(838)
|
(3)
|
(788)
|
|
4
|
4
|
(130)
|
(3)
|
(122)
|
Net income (loss)
attributable to Baidu
|
|
14,368
|
(1,175)
|
485
|
|
13,678
|
|
172
|
(1,397)
|
642
|
|
(583)
|
|
(15,625)
|
(1,730)
|
796
|
|
(16,559)
|
|
(2,425)
|
(268)
|
123
|
|
(2,570)
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
47%
|
|
|
-
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
24%
|
|
|
2740%
|
|
|
|
|
|
|
Net
margin
|
|
67%
|
(16%)
|
|
|
48%
|
|
1%
|
(18%)
|
|
|
(2%)
|
|
(63%)
|
(23%)
|
|
|
(52%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (non-GAAP)
|
|
8,505
|
(831)
|
|
|
7,636
|
|
6,467
|
(780)
|
|
|
5,653
|
|
5,823
|
(1,073)
|
|
|
4,708
|
|
904
|
(166)
|
|
|
731
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(32%)
|
29%
|
|
|
(38%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10%)
|
38%
|
|
|
(17%)
|
|
|
|
|
|
|
Operating margin
(non-GAAP)
|
|
40%
|
(12%)
|
|
|
27%
|
|
27%
|
(10%)
|
|
|
18%
|
|
24%
|
(14%)
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Baidu
(non-GAAP)
|
|
7,486
|
(830)
|
|
|
6,988
|
|
5,942
|
(1,065)
|
|
|
5,359
|
|
5,855
|
(1,400)
|
|
|
5,090
|
|
909
|
(217)
|
|
|
790
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(22%)
|
69%
|
|
|
(27%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1%)
|
31%
|
|
|
(5%)
|
|
|
|
|
|
|
Net margin
(non-GAAP)
|
|
35%
|
(12%)
|
|
|
25%
|
|
25%
|
(14%)
|
|
|
17%
|
|
24%
|
(18%)
|
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
9,822
|
(711)
|
|
|
9,073
|
|
7,991
|
(662)
|
|
|
7,295
|
|
6,994
|
(990)
|
|
|
5,962
|
|
1,085
|
(153)
|
|
|
925
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(29%)
|
39%
|
|
|
(34%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12%)
|
50%
|
|
|
(18%)
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
46%
|
(10%)
|
|
|
32%
|
|
33%
|
(9%)
|
|
|
23%
|
|
28%
|
(13%)
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation as follows:
|
Cost of
revenues
|
|
29
|
52
|
|
|
81
|
|
69
|
43
|
|
|
112
|
|
34
|
40
|
|
|
74
|
|
5
|
6
|
|
|
11
|
Selling,
general and administrative
|
|
187
|
216
|
|
|
403
|
|
274
|
209
|
|
|
483
|
|
196
|
157
|
|
|
353
|
|
30
|
25
|
|
|
55
|
Research and
development
|
|
846
|
84
|
|
|
930
|
|
1,443
|
78
|
|
|
1,521
|
|
837
|
84
|
|
|
921
|
|
131
|
13
|
|
|
144
|
Total
share-based compensation
|
|
1,062
|
352
|
|
|
1,414
|
|
1,786
|
330
|
|
|
2,116
|
|
1,067
|
281
|
|
|
1,348
|
|
166
|
44
|
|
|
210
|
(2) Relates to
intersegment eliminations and adjustments
|
(3) Relates to
the net loss attributable to iQIYI noncontrolling
interests
|
Baidu,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
millions,unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
September 30, 2020
(RMB)
|
|
June 30, 2021
(RMB)
|
|
September 30, 2021
(RMB)
|
|
September 30, 2021
(US$)
|
|
|
Baidu
excl.
iQIYI
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
excl.
iQIYI
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
excl.
iQIYI
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
excl.
iQIYI
|
iQIYI
|
Baidu,
Inc.
|
Net cash provided
by (used in) operating
activities
|
|
9,716
|
(1,929)
|
7,787
|
|
9,362
|
(1,426)
|
7,936
|
|
5,436
|
(2,081)
|
3,355
|
|
844
|
(323)
|
521
|
Net cash (used in)
provided by investing activities
|
|
(6,576)
|
343
|
(6,233)
|
|
(12,220)
|
58
|
(12,162)
|
|
(15,857)
|
1,885
|
(13,972)
|
|
(2,461)
|
293
|
(2,168)
|
Net cash (used in)
provided by financing activities
|
|
(4,387)
|
238
|
(4,149)
|
|
5,256
|
801
|
6,057
|
|
7,744
|
867
|
8,611
|
|
1,201
|
135
|
1,336
|
Effect of exchange
rate changes on cash, cash
equivalents and restricted cash
|
|
(77)
|
(113)
|
(190)
|
|
(342)
|
(92)
|
(434)
|
|
(47)
|
(21)
|
(68)
|
|
(8)
|
(3)
|
(11)
|
Net (decrease)
increase in cash, cash
equivalents and
restricted cash
|
|
(1,324)
|
(1,461)
|
(2,785)
|
|
2,056
|
(659)
|
1,397
|
|
(2,724)
|
650
|
(2,074)
|
|
(424)
|
102
|
(322)
|
Cash, cash
equivalents and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning
of period
|
|
16,597
|
5,280
|
21,877
|
|
44,756
|
7,395
|
52,151
|
|
46,812
|
6,736
|
53,548
|
|
7,266
|
1,045
|
8,311
|
At end of
period
|
|
15,273
|
3,819
|
19,092
|
|
46,812
|
6,736
|
53,548
|
|
44,088
|
7,386
|
51,474
|
|
6,842
|
1,147
|
7,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating
activities
|
|
9,716
|
(1,929)
|
7,787
|
|
9,362
|
(1,426)
|
7,936
|
|
5,436
|
(2,081)
|
3,355
|
|
844
|
(323)
|
521
|
Less: Capital
expenditures
|
|
(1,417)
|
(90)
|
(1,507)
|
|
(2,435)
|
(61)
|
(2,496)
|
|
(2,548)
|
(116)
|
(2,664)
|
|
(395)
|
(18)
|
(413)
|
Free cash
flow
|
|
8,299
|
(2,019)
|
6,280
|
|
6,927
|
(1,487)
|
5,440
|
|
2,888
|
(2,197)
|
691
|
|
449
|
(341)
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2020
(RMB)
|
|
June 30, 2021
(RMB)
|
|
September 30, 2021
(RMB)
|
|
September 30, 2021
(US$)
|
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
Operating income
(loss)
|
|
7,404
|
(1,210)
|
6,156
|
|
4,619
|
(1,122)
|
3,463
|
|
3,718
|
(1,368)
|
2,308
|
|
577
|
(212)
|
358
|
Add: Share-based
compensation expenses
|
|
1,062
|
352
|
1,414
|
|
1,786
|
330
|
2,116
|
|
1,067
|
281
|
1,348
|
|
166
|
44
|
210
|
Add: Amortization and
impairment of intangible assets(1)
|
|
39
|
27
|
66
|
|
62
|
12
|
74
|
|
62
|
14
|
76
|
|
10
|
2
|
12
|
Add: Contingent
loss(5)
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
976
|
-
|
976
|
|
151
|
-
|
151
|
Operating income
(loss) (non-GAAP)
|
|
8,505
|
(831)
|
7,636
|
|
6,467
|
(780)
|
5,653
|
|
5,823
|
(1,073)
|
4,708
|
|
904
|
(166)
|
731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
Depreciation of fixed assets
|
|
1,317
|
120
|
1,437
|
|
1,524
|
118
|
1,642
|
|
1,171
|
83
|
1,254
|
|
181
|
13
|
194
|
Adjusted
EBITDA
|
|
9,822
|
(711)
|
9,073
|
|
7,991
|
(662)
|
7,295
|
|
6,994
|
(990)
|
5,962
|
|
1,085
|
(153)
|
925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Baidu
|
|
14,368
|
(1,175)
|
13,678
|
|
172
|
(1,397)
|
(583)
|
|
(15,625)
|
(1,730)
|
(16,559)
|
|
(2,425)
|
(268)
|
(2,570)
|
Add: Share-based
compensation expenses
|
|
1,056
|
352
|
1,252
|
|
1,777
|
330
|
1,947
|
|
1,086
|
281
|
1,231
|
|
169
|
44
|
191
|
Add: Amortization and
impairment of intangible assets(1)
|
|
38
|
27
|
55
|
|
55
|
12
|
62
|
|
55
|
14
|
63
|
|
9
|
2
|
10
|
Add: Disposal loss
(gain)
|
|
(5)
|
-
|
(5)
|
|
-
|
(45)
|
(28)
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Add: Impairment of
long-term investments
|
|
-
|
-
|
-
|
|
205
|
2
|
206
|
|
3,187
|
29
|
3,202
|
|
494
|
5
|
497
|
Add: Fair value
(gain) loss of long-term investments
|
|
(8,855)
|
(39)
|
(8,880)
|
|
3,180
|
(9)
|
3,175
|
|
18,970
|
8
|
18,974
|
|
2,944
|
1
|
2,945
|
Add: Reconciling
items on equity method investments(2)
|
|
556
|
3
|
558
|
|
190
|
32
|
207
|
|
36
|
3
|
38
|
|
6
|
-
|
6
|
Add: Charitable
donation from Baidu(4)
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
90
|
-
|
90
|
|
14
|
-
|
14
|
Add: Contingent
loss(5)
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
976
|
-
|
976
|
|
151
|
-
|
151
|
Add: Tax effects on
non-GAAP adjustments(3)
|
|
328
|
2
|
330
|
|
363
|
10
|
373
|
|
(2,920)
|
(5)
|
(2,925)
|
|
(453)
|
(1)
|
(454)
|
Net
income (loss) attributable
to Baidu (non-GAAP)
|
|
7,486
|
(830)
|
6,988
|
|
5,942
|
(1,065)
|
5,359
|
|
5,855
|
(1,400)
|
5,090
|
|
909
|
(217)
|
790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per ADS
|
|
|
|
39.79
|
|
|
|
(1.70)
|
|
|
|
(48.18)
|
|
|
|
(7.48)
|
Add: Accretion
of the redeemable noncontrolling
interests
|
|
|
|
0.04
|
|
|
|
0.02
|
|
|
|
0.49
|
|
|
|
0.08
|
Add: Non-GAAP
adjustments to earnings per ADS
|
|
|
|
(19.48)
|
|
|
|
17.09
|
|
|
|
62.35
|
|
|
|
9.68
|
Diluted earnings
per ADS (non-GAAP)
|
|
|
|
20.35
|
|
|
|
15.41
|
|
|
|
14.66
|
|
|
|
2.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This represents
amortization and impairment of intangible assets resulting from
business combinations.
|
(2) This represents
Baidu's share of equity method investments for other non-GAAP
reconciling items, amortization and impairment of intangible assets
not on the investee's books, accretion of their
redeemable noncontrolling interests, and the gain or loss
associated with the issuance of shares by the investees at a price
higher or lower than the carrying value per shares.
|
(3) Tax impact of
non-GAAP adjustments is separately presented from 2020Q4, with
comparative periods retrospectively adjusted.
|
(4) This represents
non-recurring charitable donation to discrete events.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) This represents
contingent loss pertaining to legal proceeding involving former
advertising agency.
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/baidu-announces-third-quarter-2021-results-301426444.html
SOURCE Baidu, Inc.