BEIJING, May 26, 2022
/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 first quarter ended March
31, 2022.
"Baidu delivered solid first quarter results, especially
with regard to our cloud and intelligent driving businesses. Baidu
AI Cloud reported another quarter of strong revenue growth and
Apollo Go was granted the first permit in China to provide driverless ride-hailing
services on public roads in Beijing," said Robin
Li, Co-founder and CEO of Baidu. "Since mid-March, our
business has been negatively impacted by the recent COVID-19
resurgence in China. Although
challenges related to the virus continue to pressure our near term
business operations, we remain confident that our new AI businesses
will boost the long-term growth of Baidu and contribute to
China's innovation-driven economy
and sustainable development."
"Revenues from Baidu Core remained healthy with non-ad
revenues increasing by 35% year over year, driven by Baidu AI
Cloud, which grew 45% year over year in the quarter," said Rong
Luo, CFO of Baidu. "Looking ahead, we remain committed to quality
revenue growth and an enduring business model. In addition, we will
further enhance our overall operational efficiency to drive
long-term growth."
First Quarter 2022 Financial
Highlights[1]
|
Baidu, Inc.
|
(In millions except
per
|
Q1
|
|
Q4
|
|
Q1
|
|
|
|
|
|
ADS,
unaudited)
|
2021
|
|
2021
|
|
2022
|
|
|
YOY
|
|
QOQ
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
Total revenues
|
28,134
|
|
33,088
|
|
28,411
|
4,482
|
|
1%
|
|
(14%)
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
2,789
|
|
1,958
|
|
2,601
|
410
|
|
(7%)
|
|
33%
|
Operating income (non-GAAP) [2]
|
4,362
|
|
4,307
|
|
3,996
|
630
|
|
(8%)
|
|
(7%)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) to Baidu
|
25,653
|
|
1,715
|
|
(885)
|
(140)
|
|
-
|
|
-
|
Net income to Baidu
(non-GAAP)
[2]
|
4,297
|
|
4,084
|
|
3,879
|
612
|
|
(10%)
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per ADS
|
73.76
|
|
4.51
|
|
(2.87)
|
(0.45)
|
|
-
|
|
-
|
Diluted earnings per ADS
(non-GAAP)
[2]
|
12.38
|
|
11.60
|
|
11.22
|
1.77
|
|
(9%)
|
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA [2]
|
5,900
|
|
5,757
|
|
5,499
|
867
|
|
(7%)
|
|
(4%)
|
Adjusted EBITDA margin
|
21%
|
|
17%
|
|
19%
|
19%
|
|
|
|
|
|
Baidu Core
|
|
Q1
|
|
Q4
|
|
Q1
|
|
|
|
|
|
(In millions,
unaudited)
|
2021
|
|
2021
|
|
2022
|
|
|
YOY
|
|
QOQ
|
|
RMB
|
|
RMB
|
|
RMB
|
US$
|
|
|
|
|
Total revenues
|
20,483
|
|
25,978
|
|
21,378
|
3,372
|
|
4%
|
|
(18%)
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
3,847
|
|
2,958
|
|
2,524
|
398
|
|
(34%)
|
|
(15%)
|
Operating income (non-GAAP)
[2]
|
5,064
|
|
4,847
|
|
3,686
|
581
|
|
(27%)
|
|
(24%)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) to Baidu Core
|
26,354
|
|
2,656
|
|
(963)
|
(152)
|
|
-
|
|
-
|
Net income to Baidu Core (non-GAAP)
[2]
|
4,870
|
|
4,625
|
|
3,804
|
600
|
|
(22%)
|
|
(18%)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA [2]
|
6,487
|
|
6,210
|
|
5,106
|
805
|
|
(21%)
|
|
(18%)
|
Adjusted EBITDA margin
|
32%
|
|
24%
|
|
24%
|
24%
|
|
|
|
|
[1] Unless otherwise
noted, RMB to USD was converted at an exchange rate of RMB6.3393 as
of March 31, 2022, as set forth in the H.10 statistical release of
the Board of Governors of the Federal Reserve System. Translations
are provided solely for the convenience of the reader.
|
[2] Non-GAAP measures
are defined in the Non-GAAP Financial Measures section (see also
"Reconciliations of Non-GAAP Financial Measures to the Nearest
Comparable GAAP Measures" for more details).
|
Operational Highlights
Corporate
- Baidu released its annual ESG Report in May 2022, which details Baidu's ESG policies and
sustainability initiatives
(http://esg.baidu.com/en/esg_download.html).
AI Cloud
- PaddlePaddle developer community has grown to 4.77
million and has served 180,000 businesses and created 560,000
models, as of May 20,
2022.
- Baidu ACE smart transportation has been adopted by 41
cities, up from 16 cities a year ago, based on contract value of
over RMB10 million, as of the end of
the first quarter of 2022.
Intelligent Driving
- Baidu received a nomination letter from Dongfeng Motor, a
Top 3 domestic automaker, in April
2022, indicating that Dongfeng Motor intends to adopt Apollo
Self Driving (ANP, AVP, HD Map) in one of its popular models. This
followed the nomination letter from BYD earlier this
year.
- On April 28th
2022, Apollo Go was granted the permits to provide driverless ride
hailing services on public roads of the Yizhuang region of
Beijing. Apollo also received the
first permits in Chongqing to
conduct driverless testing on May
20th, 2022.
- Apollo Go provided 196K
rides in the first quarter of 2022.
- Apollo Go is now available in ten cities,
including Beijing,
Shanghai, Guangzhou, Shenzhen, Chongqing, Changsha, Cangzhou, Yangquan, Wuzhen Water
Town in Jiaxing and Wuhan. Apollo
Go expanded into Wuzhen Water Town in Jiaxing on March 26, 2022 and Wuhan on May 10,
2022.
Other Growth Initiatives
- Xiaodu again ranked No.1 in smart display shipments
globally for 2021, according to Strategy Analytics and Canalys.
Xiaodu continues to be ranked No.1 in smart speaker shipments in
China for 2021, according to
Strategy Analytics, IDC and Canalys.
Mobile Ecosystem
- In March, Baidu App's MAUs reached 632 million, up 13%
year over year, and daily logged in users reached 83%.
- In March, Baidu Smart Mini Program ("SMPs") MAUs reached
508 million, up 22% year over year, and the number of SMPs grew by
26% year over year.
- Revenue from Managed Page grew by 31% and reached 47% of
Baidu Core's online marketing revenue in the first quarter of
2022.
iQIYI
- iQIYI's average daily number of total subscribing members
for the quarter was 101 million, compared to 105 million for the
first quarter of 2021 and 97 million for the fourth quarter of
2021.
First Quarter 2022 Financial Results
Total revenues were RMB
28.4 billion ($4.48 billion),
increasing 1% year over year.
- Revenue from Baidu Core was
RMB 21.4 billion ($3.37
billion), increasing 4% year over year; online marketing
revenue was RMB 15.7 billion
($2.47 billion), decreasing 4% year
over year, and non-online marketing revenue was RMB 5.7 billion ($903
million), up 35% year over year, driven by cloud and other
AI-powered businesses.
- Revenue from iQIYI was RMB
7.3 billion ($1.15 billion),
decreasing 9% year over year.
Cost of revenues was RMB 15.5 billion ($2.45
billion), increasing 4% year over year, primarily due to an
increase in cost of goods sold, traffic acquisition costs,
bandwidth costs, and other costs related to new AI business, offset
by a decrease in content costs.
Selling, general and administrative expenses
were RMB 4.7 billion
($735 million), decreasing 11% year
over year, primarily due to a decrease in channel spending,
promotional marketing and expected credit losses.
Research and development expense was
RMB 5.6 billion ($885 million), increasing 10% year over year,
primarily due to an increase in personnel related
expense.
Operating income was RMB 2.6 billion ($410
million). Baidu Core operating income was
RMB 2.5 billion ($398 million), and Baidu Core operating margin
was 12%. Non-GAAP operating income was RMB 4.0 billion ($630
million). Non-GAAP Baidu Core operating income was
RMB 3.7 billion ($581 million), and non-GAAP Baidu Core operating
margin was 17%.
Total other loss, net was RMB 3.0 billion ($466
million), which mainly included a fair value loss of
RMB 3.0 billion from long-term
investments. A significant portion of long-term investments,
including but not limited to investments in equity securities of
public and private companies, private equity funds and digital
assets, is subject to quarterly fair value adjustments, which may
contribute to net income volatility in future periods.
Income tax expense was RMB 391 million ($62
million), decreasing 75% year over year,
primarily due to a decrease in profit before tax and an increase in
deduction on certain expenses that were previously considered
non-deductible.
Net loss attributable to Baidu was
RMB 885 million ($140 million), and diluted loss per ADS was
RMB 2.87 ($0.45). Net loss attributable to Baidu
Core was RMB 963 million
($152 million). Non-GAAP net
income attributable to Baidu was RMB 3.9
billion ($612 million).
Non-GAAP diluted earnings per ADS was RMB
11.22 ($1.77). Non-GAAP net
income attributable to Baidu Core was RMB 3.8 billion ($600
million), and non-GAAP net margin for Baidu Core was
18%.
Adjusted EBITDA was RMB 5.5 billion ($867
million) and adjusted EBITDA margin was 19%. Adjusted
EBITDA for Baidu Core was RMB 5.1
billion ($805 million) and
adjusted EBITDA margin for Baidu Core was 24%.
As of March 31, 2022,
cash, cash equivalents, restricted cash and short-term
investments were RMB 191.0
billion ($30.13 billion), and
cash, cash equivalents, restricted cash and short-term
investments excluding iQIYI were RMB
185.8 billion ($29.31
billion). Free cash flow was negative RMB 107 million ($17
million), and free cash flow excluding iQIYI was
RMB 1.1 billion ($175 million).
Conference Call Information
Baidu's management will hold an earnings conference
call at 8.00AM on May 26, 2022, U.S. Eastern Time (8.00PM on May 26,
2022, 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/3917105
It will automatically direct you to the registration page
of "Baidu Q1 2022 Earnings Conference Call", where you may fill in
your details for RSVP. If it requires you to enter a participant
conference ID, please enter " 3917105".
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.
About Baidu
Founded in 2000, Baidu's mission is to make the
complicated world simpler through technology. Baidu is a leading AI
company with strong Internet foundation, trading on NASDAQ under
"BIDU" and HKEX under "9888". One Baidu ADS represents eight Class
A ordinary shares.
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, 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 agencies and iQIYI's
non-recurring employee severance costs.
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 agencies,
iQIYI's non-recurring employee severance costs, 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, 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 agencies, iQIYI's non-recurring employee severance
costs, and share-based compensation expenses.
For more information on non-GAAP financial measures,
please see the tables captioned "Reconciliations of non-GAAP
financial measures to the nearest comparable GAAP
measure.
Baidu,
Inc.
|
Condensed
Consolidated Statements of Income (Loss)
|
(In millions except for
per share (or ADS) information, unaudited)
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
|
2021
|
|
2021
|
|
2022
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$(2)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Online marketing
services
|
|
18,094
|
|
20,723
|
|
16,929
|
|
2,670
|
|
Others
|
|
10,040
|
|
12,365
|
|
11,482
|
|
1,812
|
|
Total
revenues
|
|
28,134
|
|
33,088
|
|
28,411
|
|
4,482
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenues(1)
|
|
15,002
|
|
17,289
|
|
15,546
|
|
2,452
|
|
Selling, general and
administrative(1)
|
|
5,245
|
|
6,451
|
|
4,656
|
|
735
|
|
Research and
development(1)
|
|
5,098
|
|
7,390
|
|
5,608
|
|
885
|
|
Total costs
and expenses
|
|
25,345
|
|
31,130
|
|
25,810
|
|
4,072
|
|
Operating
income
|
|
2,789
|
|
1,958
|
|
2,601
|
|
410
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(loss):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,233
|
|
1,514
|
|
1,454
|
|
229
|
|
Interest
expense
|
|
(823)
|
|
(873)
|
|
(710)
|
|
(112)
|
|
Foreign exchange
income (loss), net
|
|
156
|
|
(27)
|
|
(11)
|
|
(2)
|
|
Share of losses
from equity method investments
|
|
(151)
|
|
(773)
|
|
(408)
|
|
(64)
|
|
Others,
net
|
|
23,362
|
|
566
|
|
(3,286)
|
|
(517)
|
|
Total other
income (loss), net
|
|
23,777
|
|
407
|
|
(2,961)
|
|
(466)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
26,566
|
|
2,365
|
|
(360)
|
|
(56)
|
|
Income tax
expense
|
|
1,534
|
|
1,295
|
|
391
|
|
62
|
|
Net income
(loss)
|
|
25,032
|
|
1,070
|
|
(751)
|
|
(118)
|
|
Net (loss) income
attributable to noncontrolling interests
|
|
(621)
|
|
(645)
|
|
134
|
|
22
|
|
Net income
(loss) attributable to Baidu
|
|
25,653
|
|
1,715
|
|
(885)
|
|
(140)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per ADS
(1 ADS representing 8 Class A ordinary shares):
|
|
|
|
|
|
|
|
-Basic
|
|
76.10
|
|
4.57
|
|
(2.87)
|
|
(0.45)
|
|
-Diluted
|
|
73.76
|
|
4.51
|
|
(2.87)
|
|
(0.45)
|
|
Earnings (loss) per
share for Class A and Class B ordinary shares:
|
|
|
|
|
|
|
|
-Basic
|
|
9.51
|
|
0.57
|
|
(0.36)
|
|
(0.06)
|
|
-Diluted
|
|
9.22
|
|
0.56
|
|
(0.36)
|
|
(0.06)
|
|
Weighted average number
of Class A and Class B ordinary shares outstanding (in
millions):
|
|
|
|
|
|
-Basic
|
|
2,692
|
|
2,780
|
|
2,767
|
|
2,767
|
|
-Diluted
|
|
2,777
|
|
2,816
|
|
2,767
|
|
2,767
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation expenses as follows:
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
79
|
|
134
|
|
82
|
|
13
|
|
Selling, general
and administrative
|
|
471
|
|
533
|
|
377
|
|
60
|
|
Research and
development
|
|
949
|
|
1,426
|
|
864
|
|
136
|
|
Total share-based
compensation expenses
|
|
1,499
|
|
2,093
|
|
1,323
|
|
209
|
|
|
|
|
|
|
|
|
|
|
|
(2) All
translations from RMB to U.S. dollars are made at a rate of RMB
6.3393 to US$1.00, the exchange rate in effect as of March 31,
2022 as set forth in the H.10 statistical release of The Board of
Governors of the Federal Reserve System.
|
Baidu,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(In millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
36,850
|
|
36,832
|
|
5,810
|
Restricted
cash
|
|
10,821
|
|
10,975
|
|
1,731
|
Short-term
investments, net
|
|
143,243
|
|
143,172
|
|
22,585
|
Accounts
receivable, net
|
|
9,981
|
|
9,671
|
|
1,526
|
Amounts due from
related parties
|
|
1,368
|
|
903
|
|
142
|
Other current
assets, net
|
|
11,052
|
|
9,950
|
|
1,569
|
Total current assets
|
|
213,315
|
|
211,503
|
|
33,363
|
|
|
|
|
|
|
|
Non-current assets:
|
|
|
|
|
|
|
Fixed assets,
net
|
|
23,027
|
|
23,133
|
|
3,649
|
Licensed
copyrights, net
|
|
7,258
|
|
7,096
|
|
1,119
|
Produced content,
net
|
|
10,951
|
|
12,032
|
|
1,898
|
Intangible
assets, net
|
|
1,689
|
|
1,556
|
|
245
|
Goodwill
|
|
22,605
|
|
22,605
|
|
3,566
|
Long-term
investments, net
|
|
67,332
|
|
64,247
|
|
10,135
|
Amounts due from
related parties
|
|
3,487
|
|
3,471
|
|
548
|
Deferred tax
assets, net
|
|
2,372
|
|
2,670
|
|
421
|
Operating lease
right-of-use assets
|
|
12,065
|
|
10,769
|
|
1,699
|
Other non-current
assets
|
|
15,933
|
|
16,551
|
|
2,611
|
Total non-current assets
|
|
166,719
|
|
164,130
|
|
25,891
|
|
|
|
|
|
|
|
Total
assets
|
|
380,034
|
|
375,633
|
|
59,254
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
loans
|
|
4,168
|
|
4,442
|
|
701
|
Accounts payable and
accrued liabilities
|
|
41,384
|
|
35,693
|
|
5,630
|
Customer deposits and
deferred revenue
|
|
13,706
|
|
13,153
|
|
2,075
|
Deferred
income
|
|
97
|
|
87
|
|
14
|
Long-term loans,
current portion
|
|
2
|
|
-
|
|
-
|
Notes payable, current
portion
|
|
10,505
|
|
10,457
|
|
1,650
|
Amounts due to related
parties
|
|
1,764
|
|
1,553
|
|
245
|
Operating lease
liabilities
|
|
2,862
|
|
2,804
|
|
442
|
Total current liabilities
|
|
74,488
|
|
68,189
|
|
10,757
|
|
|
|
|
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
Deferred
income
|
|
129
|
|
147
|
|
23
|
Deferred
revenue
|
|
223
|
|
234
|
|
37
|
Amounts due to related
parties
|
|
3,268
|
|
3,243
|
|
512
|
Long-term
loans
|
|
12,629
|
|
12,573
|
|
1,983
|
Notes
payable
|
|
43,120
|
|
42,917
|
|
6,770
|
Convertible senior
notes
|
|
12,652
|
|
13,238
|
|
2,088
|
Deferred tax
liabilities
|
|
3,286
|
|
3,006
|
|
474
|
Operating lease
liabilities
|
|
5,569
|
|
5,149
|
|
812
|
Other non-current
liabilities
|
|
718
|
|
1,707
|
|
269
|
Total non-current liabilities
|
|
81,594
|
|
82,214
|
|
12,968
|
|
|
|
|
|
|
|
Total
liabilities
|
|
156,082
|
|
150,403
|
|
23,725
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
7,148
|
|
6,872
|
|
1,084
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Total Baidu shareholders' equity
|
|
211,459
|
|
212,170
|
|
33,469
|
Noncontrolling interests
|
|
5,345
|
|
6,188
|
|
976
|
Total
equity
|
|
216,804
|
|
218,358
|
|
34,445
|
|
|
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests, and equity
|
|
380,034
|
|
375,633
|
|
59,254
|
Baidu,
Inc.
|
Selected
Information
|
(In millions,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
March 31, 2021 (RMB)
|
|
Three months
ended
December 31, 2021 (RMB)
|
|
Three months
ended
March 31, 2022 (RMB)
|
|
Three months
ended
March 31, 2022 (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
|
|
20,483
|
7,968
|
(317)
|
|
28,134
|
|
25,978
|
7,389
|
(279)
|
|
33,088
|
|
21,378
|
7,277
|
(244)
|
|
28,411
|
|
3,372
|
1,148
|
(38)
|
|
4,482
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4%
|
(9%)
|
|
|
1%
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18%)
|
(2%)
|
|
|
(14%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
(1)
|
|
8,162
|
7,109
|
(269)
|
|
15,002
|
|
11,017
|
6,507
|
(235)
|
|
17,289
|
|
9,807
|
5,964
|
(225)
|
|
15,546
|
|
1,547
|
941
|
(36)
|
|
2,452
|
Selling, general
and administrative (1)
|
|
4,048
|
1,201
|
(4)
|
|
5,245
|
|
5,377
|
1,093
|
(19)
|
|
6,451
|
|
3,913
|
745
|
(2)
|
|
4,656
|
|
617
|
118
|
-
|
|
735
|
Research and
development (1)
|
|
4,426
|
672
|
-
|
|
5,098
|
|
6,626
|
764
|
-
|
|
7,390
|
|
5,134
|
474
|
-
|
|
5,608
|
|
810
|
75
|
-
|
|
885
|
Total costs and
expenses
|
|
16,636
|
8,982
|
(273)
|
|
25,345
|
|
23,020
|
8,364
|
(254)
|
|
31,130
|
|
18,854
|
7,183
|
(227)
|
|
25,810
|
|
2,974
|
1,134
|
(36)
|
|
4,072
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20%
|
(16%)
|
|
|
4%
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3%)
|
(38%)
|
|
|
(11%)
|
|
|
|
|
|
|
Research and
development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16%
|
(29%)
|
|
|
10%
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13%
|
(20%)
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
3,847
|
(1,014)
|
(44)
|
|
2,789
|
|
2,958
|
(975)
|
(25)
|
|
1,958
|
|
2,524
|
94
|
(17)
|
|
2,601
|
|
398
|
14
|
(2)
|
|
410
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(34%)
|
-
|
|
|
(7%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15%)
|
-
|
|
|
33%
|
|
|
|
|
|
|
Operating
margin
|
|
19%
|
(13%)
|
|
|
10%
|
|
11%
|
(13%)
|
|
|
6%
|
|
12%
|
1%
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: total other
income (loss), net
|
|
23,999
|
(222)
|
-
|
|
23,777
|
|
1,161
|
(754)
|
-
|
|
407
|
|
(3,058)
|
97
|
-
|
|
(2,961)
|
|
(481)
|
15
|
-
|
|
(466)
|
Less: income tax
expense
|
|
1,513
|
21
|
-
|
|
1,534
|
|
1,258
|
37
|
-
|
|
1,295
|
|
374
|
17
|
-
|
|
391
|
|
59
|
3
|
-
|
|
62
|
Less: net (loss)
income attributable to NCI
|
|
(21)
|
10
|
(610)
|
(3)
|
(621)
|
|
205
|
10
|
(860)
|
(3)
|
(645)
|
|
55
|
5
|
74
|
(3)
|
134
|
|
10
|
1
|
11
|
(3)
|
22
|
Net income (loss)
attributable to Baidu
|
|
26,354
|
(1,267)
|
566
|
|
25,653
|
|
2,656
|
(1,776)
|
835
|
|
1,715
|
|
(963)
|
169
|
(91)
|
|
(885)
|
|
(152)
|
25
|
(13)
|
|
(140)
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
-
|
|
|
-
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
-
|
|
|
-
|
|
|
|
|
|
|
Net
margin
|
|
129%
|
(16%)
|
|
|
91%
|
|
10%
|
(24%)
|
|
|
5%
|
|
(5%)
|
2%
|
|
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP financial
measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (non-GAAP)
|
|
5,064
|
(658)
|
|
|
4,362
|
|
4,847
|
(515)
|
|
|
4,307
|
|
3,686
|
327
|
|
|
3,996
|
|
581
|
51
|
|
|
630
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(27%)
|
-
|
|
|
(8%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24%)
|
-
|
|
|
(7%)
|
|
|
|
|
|
|
Operating margin
(non-GAAP)
|
|
25%
|
(8%)
|
|
|
16%
|
|
19%
|
(7%)
|
|
|
13%
|
|
17%
|
4%
|
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Baidu (non-
GAAP)
|
|
4,870
|
(1,021)
|
|
|
4,297
|
|
4,625
|
(1,001)
|
|
|
4,084
|
|
3,804
|
162
|
|
|
3,879
|
|
600
|
25
|
|
|
612
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(22%)
|
-
|
|
|
(10%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18%)
|
-
|
|
|
(5%)
|
|
|
|
|
|
|
Net margin
(non-GAAP)
|
|
24%
|
(13%)
|
|
|
15%
|
|
18%
|
(14%)
|
|
|
12%
|
|
18%
|
2%
|
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
6,487
|
(543)
|
|
|
5,900
|
|
6,210
|
(428)
|
|
|
5,757
|
|
5,106
|
410
|
|
|
5,499
|
|
805
|
64
|
|
|
867
|
YOY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21%)
|
-
|
|
|
(7%)
|
|
|
|
|
|
|
QOQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18%)
|
-
|
|
|
(4%)
|
|
|
|
|
|
|
Adjusted EBITDA
margin
|
|
32%
|
(7%)
|
|
|
21%
|
|
24%
|
(6%)
|
|
|
17%
|
|
24%
|
6%
|
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
share-based compensation as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
33
|
46
|
|
|
79
|
|
90
|
44
|
|
|
134
|
|
45
|
37
|
|
|
82
|
|
7
|
6
|
|
|
13
|
Selling, general
and administrative
|
|
256
|
215
|
|
|
471
|
|
396
|
137
|
|
|
533
|
|
257
|
120
|
|
|
377
|
|
41
|
19
|
|
|
60
|
Research and
development
|
|
866
|
83
|
|
|
949
|
|
1,343
|
83
|
|
|
1,426
|
|
804
|
60
|
|
|
864
|
|
127
|
9
|
|
|
136
|
Total share-based
compensation
|
|
1,155
|
344
|
|
|
1,499
|
|
1,829
|
264
|
|
|
2,093
|
|
1,106
|
217
|
|
|
1,323
|
|
175
|
34
|
|
|
209
|
(2) Relates to
intersegment eliminations and adjustments
|
(3) Relates to
the net (loss) income attributable to iQIYI noncontrolling
interests
|
Baidu,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
millions,unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March 31, 2021
(RMB)
|
|
December 31, 2021
(RMB)
|
|
March 31, 2022
(RMB)
|
|
March 31, 2022
(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
|
|
5,467
|
(1,350)
|
4,117
|
|
5,809
|
(1,095)
|
4,714
|
|
3,039
|
(1,167)
|
1,872
|
|
479
|
(184)
|
295
|
Net cash (used in)
provided by investing activities
|
|
(4,579)
|
(2,778)
|
(7,357)
|
|
(50)
|
2,097
|
2,047
|
|
(2,884)
|
(67)
|
(2,951)
|
|
(455)
|
(11)
|
(466)
|
Net cash provided by
(used in) financing activities
|
|
18,018
|
611
|
18,629
|
|
(4,662)
|
(5,239)
|
(9,901)
|
|
(644)
|
2,046
|
1,402
|
|
(102)
|
323
|
221
|
Effect of exchange rate
changes on cash, cash
equivalents and restricted cash
|
|
251
|
(29)
|
222
|
|
(589)
|
(74)
|
(663)
|
|
(183)
|
(4)
|
(187)
|
|
(28)
|
(1)
|
(29)
|
Net increase
(decrease) in cash, cash
equivalents and restricted cash
|
|
19,157
|
(3,546)
|
15,611
|
|
508
|
(4,311)
|
(3,803)
|
|
(672)
|
808
|
136
|
|
(106)
|
127
|
21
|
Cash, cash equivalents
and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of
period
|
|
25,599
|
10,941
|
36,540
|
|
44,088
|
7,386
|
51,474
|
|
44,596
|
3,075
|
47,671
|
|
7,035
|
485
|
7,520
|
At end of
period
|
|
44,756
|
7,395
|
52,151
|
|
44,596
|
3,075
|
47,671
|
|
43,924
|
3,883
|
47,807
|
|
6,929
|
612
|
7,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating
activities
|
|
5,467
|
(1,350)
|
4,117
|
|
5,809
|
(1,095)
|
4,714
|
|
3,039
|
(1,167)
|
1,872
|
|
479
|
(184)
|
295
|
Less: Capital
expenditures
|
|
(1,438)
|
(61)
|
(1,499)
|
|
(4,213)
|
(24)
|
(4,237)
|
|
(1,928)
|
(51)
|
(1,979)
|
|
(304)
|
(8)
|
(312)
|
Free cash
flow
|
|
4,029
|
(1,411)
|
2,618
|
|
1,596
|
(1,119)
|
477
|
|
1,111
|
(1,218)
|
(107)
|
|
175
|
(192)
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
March 31, 2021
(RMB)
|
|
December 31, 2021
(RMB)
|
|
March 31, 2022
(RMB)
|
|
March 31, 2022
(US$)
|
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
|
Baidu
Core
|
iQIYI
|
Baidu,
Inc.
|
Operating income
(loss)
|
|
3,847
|
(1,014)
|
2,789
|
|
2,958
|
(975)
|
1,958
|
|
2,524
|
94
|
2,601
|
|
398
|
14
|
410
|
Add: Share-based
compensation expenses
|
|
1,155
|
344
|
1,499
|
|
1,829
|
264
|
2,093
|
|
1,106
|
217
|
1,323
|
|
175
|
34
|
209
|
Add: Amortization and
impairment of intangible assets(1)
|
|
62
|
12
|
74
|
|
60
|
17
|
77
|
|
56
|
16
|
72
|
|
8
|
3
|
11
|
Add: iQIYI
non-recurring employee severance costs(4)
|
|
-
|
-
|
-
|
|
-
|
179
|
179
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Operating income
(loss) (non-GAAP)
|
|
5,064
|
(658)
|
4,362
|
|
4,847
|
(515)
|
4,307
|
|
3,686
|
327
|
3,996
|
|
581
|
51
|
630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Depreciation
of fixed assets
|
|
1,423
|
115
|
1,538
|
|
1,363
|
87
|
1,450
|
|
1,420
|
83
|
1,503
|
|
224
|
13
|
237
|
Adjusted
EBITDA
|
|
6,487
|
(543)
|
5,900
|
|
6,210
|
(428)
|
5,757
|
|
5,106
|
410
|
5,499
|
|
805
|
64
|
867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Baidu
|
|
26,354
|
(1,267)
|
25,653
|
|
2,656
|
(1,776)
|
1,715
|
|
(963)
|
169
|
(885)
|
|
(152)
|
25
|
(140)
|
Add: Share-based
compensation expenses
|
|
1,146
|
344
|
1,325
|
|
1,805
|
264
|
1,941
|
|
1,101
|
217
|
1,210
|
|
175
|
34
|
191
|
Add: Amortization and
impairment of intangible assets(1)
|
|
55
|
12
|
61
|
|
55
|
17
|
65
|
|
50
|
16
|
59
|
|
8
|
3
|
9
|
Add: Disposal (gain)
loss
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
|
-
|
(430)
|
(216)
|
|
-
|
(68)
|
(34)
|
Add: Impairment of
long-term investments
|
|
-
|
-
|
-
|
|
752
|
139
|
824
|
|
598
|
183
|
690
|
|
93
|
29
|
109
|
Add: Fair value (gain)
loss of long-term investments
|
|
(23,545)
|
(88)
|
(23,590)
|
|
(1,339)
|
2
|
(1,337)
|
|
3,037
|
(1)
|
3,037
|
|
479
|
-
|
479
|
Add: Reconciling items
on equity method investments(2)
|
|
593
|
(20)
|
583
|
|
430
|
177
|
521
|
|
456
|
11
|
462
|
|
72
|
2
|
73
|
Add: Charitable
donation from Baidu(3)
|
|
-
|
-
|
-
|
|
50
|
-
|
50
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Add: iQIYI
non-recurring employee severance costs(4)
|
|
-
|
-
|
-
|
|
-
|
179
|
92
|
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Add: Tax effects on
non-GAAP adjustments
|
|
267
|
(2)
|
265
|
|
216
|
(3)
|
213
|
|
(475)
|
(3)
|
(478)
|
|
(75)
|
-
|
(75)
|
Net income (loss)
attributable to Baidu (non-GAAP)
|
|
4,870
|
(1,021)
|
4,297
|
|
4,625
|
(1,001)
|
4,084
|
|
3,804
|
162
|
3,879
|
|
600
|
25
|
612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per ADS
|
|
|
|
73.76
|
|
|
|
4.51
|
|
|
|
(2.87)
|
|
|
|
(0.45)
|
Add: Accretion of
the redeemable noncontrolling interests
|
|
|
|
0.14
|
|
|
|
0.36
|
|
|
|
0.31
|
|
|
|
0.05
|
Add: Non-GAAP
adjustments to earnings per ADS
|
|
|
|
(61.52)
|
|
|
|
6.73
|
|
|
|
13.78
|
|
|
|
2.17
|
Diluted earnings per
ADS (non-GAAP)
|
|
|
|
12.38
|
|
|
|
11.60
|
|
|
|
11.22
|
|
|
|
1.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) This represents
non-recurring charitable donation to discrete events.
|
(4) This represents
non-recurring employee severance costs in relation to the iQIYI
employee optimization program incurred in 2021.
|
View original
content:https://www.prnewswire.com/news-releases/baidu-announces-first-quarter-2022-results-301555695.html
SOURCE Baidu, Inc.