BEIJING, Aug. 30, 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 second quarter ended June 30, 2022.
“Despite a challenging macro environment caused by Covid-19, Baidu Core generated RMB23.2 billion in revenues in the second quarter, while Baidu AI Cloud revenues maintained rapid growth momentum of 31% year over year and 10% quarter over quarter,” said Robin Li, Co-founder and CEO of Baidu. “Apollo Go further solidified its position as the world’s largest autonomous ride-hailing service provider. Apollo Go completed 287K rides in the second quarter, and accumulated one million rides on July 20, becoming an important alternative means of people’s everyday travel in the Yizhuang region of Beijing. Moreover, in a momentous landmark, Apollo Go became the first provider to offer fully driverless ride-hailing services – i.e. completely without human drivers present in the car – on open roads in Chongqing and Wuhan, allowing us to further scale up our operations at an accelerated pace.”
“Baidu Core delivered a non-GAAP operating margin of 22% in the second quarter, up from 17% in the first quarter of 2022, as we continued to optimize our costs and enhance operational efficiency,” said Rong Luo, CFO of Baidu. “Going forward, we remain committed to quality revenue growth and sustainable business models.”
Second Quarter 2022 Financial Highlights[1]
Baidu, Inc.
(In millions except per
Q2
Q1
Q2
ADS, unaudited)
2021
2022
2022
YOY
QOQ
RMB
RMB
RMB
US$
Total revenues
31,350
28,411
29,647
4,426
(5 %)
4 %
Operating income
3,463
2,601
3,400
508
(2 %)
31 %
Operating income (non-GAAP) [2]
5,653
3,996
5,493
820
(3 %)
37 %
Net (loss) income to Baidu
(583)
(885)
3,637
543
–
–
Net income to Baidu (non-GAAP) [2]
5,359
3,879
5,541
827
3 %
43 %
Diluted (loss) earnings per ADS
(1.70)
(2.87)
9.97
1.49
–
–
Diluted earnings per ADS (non-GAAP) [2]
15.41
11.22
15.79
2.36
2 %
41 %
Adjusted EBITDA [2]
7,295
5,499
7,054
1,053
(3 %)
28 %
Adjusted EBITDA margin
23 %
19 %
24 %
24 %
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.6981 as of June 30, 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)
Baidu Core
Q2
Q1
Q2
(In millions, unaudited)
2021
2022
2022
YOY
QOQ
RMB
RMB
RMB
US$
Total revenues
24,041
21,378
23,160
3,458
(4 %)
8 %
Operating income
4,619
2,524
3,246
485
(30 %)
29 %
Operating income (non-GAAP) [2]
6,467
3,686
5,121
765
(21 %)
39 %
Net income (loss) to Baidu Core
172
(963)
3,716
555
2060 %
–
Net income to Baidu Core (non-GAAP) [2]
5,942
3,804
5,449
814
(8 %)
43 %
Adjusted EBITDA[2]
7,991
5,106
6,597
985
(17 %)
29 %
Adjusted EBITDA margin
33 %
24 %
28 %
28 %
Operational Highlights
Corporate
Forbes China placed Baidu on its 2022 China ESG 50 list.
AI Cloud
Baidu AI Cloud was again ranked the No. 1 AI cloud provider, according to IDC’s second half of 2021 report on China’s public cloud market report, issued in June 2022. Baidu ACE smart transportation has been adopted by 51 cities, up from 20 cities a year ago, based on contract value of over RMB10 million, as of the end of the second quarter of 2022.
Intelligent Driving
Apollo Go, Baidu’s autonomous ride-hailing service, continued its solid progress in scaling operations.
– Apollo Go provided 287K rides in the second quarter of 2022. On July 20, 2022, Apollo Go reached one million accumulated rides, serving passengers on open roads.
– Apollo Go started offering fully driverless ride-hailing services on open roads and received the permits to collect fees from the passengers in Chongqing and Wuhan on August 8, 2022. This has made Apollo Go the first and only of its kind in China to provide ride-hailing services completely without human drivers present in the car.
– Apollo Go was granted the permits to charge fees for the driverless ride-hailing services on public roads of the Yizhuang region of Beijing on July 20, 2022.
– Apollo Go expanded into Hefei (Anhui) on July 11, 2022 and Chengdu (Sichuan) on July 22, 2022, and is now available in more than ten cities in China, including all the tier-1 cities (Beijing, Shanghai, Guangzhou, Shenzhen) and other major cities. Baidu unveiled its 6th generation robotaxi vehicle Apollo RT6 in July 2022. RT6 is the first steering wheel-free, all electric model designed for fully driverless autonomous driving. Apollo RT6 is distinct from the previous generations that had otherwise been retrofitted on conventional vehicles.
Other Growth Initiatives
Xiaodu continued to be ranked No.1 in smart speaker shipments in China for 1Q22, according to IDC and Canalys.
Mobile Ecosystem
In June, Baidu App’s MAUs reached 628 million, up 8% year over year, and daily logged in users reached 84%. Revenue from Managed Page grew by 10% year over year and reached 49% of Baidu Core’s online marketing revenue in the second quarter of 2022.
iQIYI
iQIYI’s average daily number of total subscribing members for the quarter was 98 million, compared to 99 million for the second quarter of 2021 and 101 million for the first quarter of 2022.
Second Quarter 2022 Financial Results
Total revenues were RMB 29.6 billion ($4.43 billion), decreasing 5% year over year.
Revenue from Baidu Core was RMB 23.2 billion ($3.46 billion), decreasing 4% year over year; online marketing revenue was RMB 17.1 billion ($2.55 billion), decreasing 10% year over year primarily due to the resurgence of Covid-19 in certain cities in China, and non-online marketing revenue was RMB 6.1 billion ($906 million), up 22% year over year, driven by cloud and other AI-powered businesses. Revenue from iQIYI was RMB 6.7 billion ($994 million), decreasing 13% year over year.
Cost of revenues was RMB 15.2 billion ($2.27 billion), decreasing 5% year over year, primarily due to the decrease in content costs, partially offset by the increase in personnel related expense and other costs related to new AI business.
Selling, general and administrative expenses were RMB 4.8 billion ($714 million), decreasing 16% year over year, primarily due to a decrease in channel spending and promotional marketing.
Research and development expense was RMB 6.3 billion ($939 million), which was basically flat from last year.
Operating income was RMB 3.4 billion ($508 million). Baidu Core operating income was RMB 3.2 billion ($485 million), and Baidu Core operating margin was 14%. Non-GAAP operating income was RMB 5.5 billion ($820 million). Non-GAAP Baidu Core operating income was RMB 5.1 billion ($765 million), and non-GAAP Baidu Core operating margin was 22%.
Total other income, net was RMB 151 million ($23 million), compared to a total other loss of RMB 2.4 billion last year, which included a fair value loss of RMB 3.1 billion from long-term investments. In the second quarter of 2022, we recognized a fair value gain of RMB 536 million. 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 25 million ($4 million), decreasing 99% year over year, primarily due to the reversal of certain tax expenses accrued for 2021 based on the 2021 tax return filed in the second quarter of 2022 and an increase in deduction on certain expenses that were considered non-deductible in the second quarter of 2021.
Net income attributable to Baidu was RMB 3.6 billion ($543 million), and diluted earnings per ADS was RMB 9.97 ($1.49). Net income attributable to Baidu Core was RMB 3.7 billion ($555 million). Non-GAAP net income attributable to Baidu was RMB 5.5 billion ($827 million). Non-GAAP diluted earnings per ADS was RMB 15.79 ($2.36). Non-GAAP net income attributable to Baidu Core was RMB 5.4 billion ($814 million), and non-GAAP net margin for Baidu Core was 24%.
Adjusted EBITDA was RMB 7.1 billion ($1.05 billion) and adjusted EBITDA margin was 24%. Adjusted EBITDA for Baidu Core was RMB 6.6 billion ($985 million) and adjusted EBITDA margin for Baidu Core was 28%.
As of June 30, 2022, cash, cash equivalents, restricted cash and short-term investments were RMB 189.4 billion ($28.28 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 184.5 billion ($27.55 billion). Free cash flow was RMB 5.5 billion ($823 million), and free cash flow excluding iQIYI was RMB 5.5 billion ($826 million).
Conference Call Information
Baidu’s management will hold an earnings conference call at 8.00AM on August 30, 2022, U.S. Eastern Time (8.00PM on August 30, 2022, Beijing Time).
Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of “Baidu Inc Q2 2022 Earnings Conference Call”. Please follow the steps to enter your registration details, then click “Register”. Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.
For pre-registration, please click
https://s1.c-conf.com/diamondpass/10024320-jfgv94.html
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.
Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.
About Baidu
Founded in 2000, Baidu’s mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under “BIDU” and HKEX under “9888”. One Baidu ADS represents eight Class A ordinary shares.
Contacts
Investors Relations, Baidu, Inc.
Tel: +86-10-5992-8888
Email: [email protected]
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 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 (Loss) Income
(In millions except for 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,
2021
2022
2022
2022
2021
2022
2022
RMB
RMB
RMB
US$(2)
RMB
RMB
US$(2)
Revenues:
Online marketing services
20,828
16,929
18,268
2,727
38,922
35,197
5,255
Others
10,522
11,482
11,379
1,699
20,562
22,861
3,413
Total revenues
31,350
28,411
29,647
4,426
59,484
58,058
8,668
Costs and expenses:
Cost of revenues(1)
15,897
15,546
15,171
2,265
30,899
30,717
4,586
Selling, general and administrative(1)
5,707
4,656
4,784
714
10,952
9,440
1,409
Research and development(1)
6,283
5,608
6,292
939
11,381
11,900
1,777
Total costs and expenses
27,887
25,810
26,247
3,918
53,232
52,057
7,772
Operating income
3,463
2,601
3,400
508
6,252
6,001
896
Other income (loss):
Interest income
1,342
1,454
1,525
228
2,575
2,979
445
Interest expense
(845)
(710)
(741)
(111)
(1,668)
(1,451)
(217)
Foreign exchange (loss) gain, net
(36)
(11)
(329)
(49)
120
(340)
(51)
Share of losses from equity method investments
(4)
(408)
(603)
(90)
(155)
(1,011)
(151)
Others, net
(2,887)
(3,286)
299
45
20,475
(2,987)
(446)
Total other (loss) income, net
(2,430)
(2,961)
151
23
21,347
(2,810)
(420)
Income (loss) before income taxes
1,033
(360)
3,551
531
27,599
3,191
476
Income tax expense
2,197
391
25
4
3,731
416
62
Net (loss) income
(1,164)
(751)
3,526
527
23,868
2,775
414
Net (loss) income attributable to noncontrolling interests
(581)
134
(111)
(16)
(1,202)
23
3
Net (loss) income attributable to Baidu
(583)
(885)
3,637
543
25,070
2,752
411
(Loss) earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic
(1.70)
(2.87)
10.06
1.50
73.12
7.23
1.08
-Diluted
(1.70)
(2.87)
9.97
1.49
71.23
7.15
1.07
(Loss) earnings per share for Class A and Class B ordinary shares:
-Basic
(0.21)
(0.36)
1.26
0.19
9.14
0.91
0.14
-Diluted
(0.21)
(0.36)
1.25
0.19
8.90
0.89
0.13
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic
2,782
2,767
2,780
2,780
2,737
2,773
2,773
-Diluted
2,782
2,767
2,811
2,811
2,809
2,806
2,806
(1) Includes share-based compensation expenses as follows:
Cost of revenues
112
82
85
13
191
167
25
Selling, general and administrative
483
377
443
67
954
820
122
Research and development
1,521
864
1,493
222
2,470
2,357
352
Total share-based compensation expenses
2,116
1,323
2,021
302
3,615
3,344
499
(2) All translations from RMB to U.S. dollars are made at a rate of RMB 6.6981 to US$1.00, the exchange rate in effect as of June 30, 2022 as set forth in the H.10 statistical release of The
Board of Governors of the Federal Reserve System.
Baidu, Inc.
Condensed Consolidated Balance Sheets
(In millions, unaudited)
December 31,
June 30,
June 30,
2021
2022
2022
RMB
RMB
US$
ASSETS
Current assets:
Cash and cash equivalents
36,850
42,533
6,350
Restricted cash
10,821
11,148
1,664
Short-term investments, net
143,243
135,753
20,267
Accounts receivable, net
9,981
10,034
1,498
Amounts due from related parties
1,368
1,009
151
Other current assets, net
11,052
9,035
1,350
Total current assets
213,315
209,512
31,280
Non-current assets:
Fixed assets, net
23,027
23,318
3,481
Licensed copyrights, net
7,258
6,783
1,013
Produced content, net
10,951
12,527
1,870
Intangible assets, net
1,689
1,510
225
Goodwill
22,605
22,602
3,374
Long-term investments, net
67,332
74,321
11,096
Amounts due from related parties
3,487
3,473
519
Deferred tax assets, net
2,372
2,998
448
Operating lease right-of-use assets
12,065
10,512
1,569
Other non-current assets
15,933
17,563
2,622
Total non-current assets
166,719
175,607
26,217
Total assets
380,034
385,119
57,497
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans
4,168
4,100
612
Accounts payable and accrued liabilities
41,384
35,783
5,342
Customer deposits and deferred revenue
13,706
13,027
1,945
Deferred income
97
80
12
Long-term loans, current portion
2
–
–
Convertible notes, current
–
8,013
1,196
Notes payable, current portion
10,505
11,052
1,650
Amounts due to related parties
1,764
1,388
207
Operating lease liabilities
2,862
2,757
413
Total current liabilities
74,488
76,200
11,377
Non-current liabilities:
Deferred income
129
147
22
Deferred revenue
223
267
40
Amounts due to related parties
3,268
3,411
509
Long-term loans
12,629
13,291
1,984
Notes payable
43,120
45,353
6,771
Convertible senior notes
12,652
5,990
894
Deferred tax liabilities
3,286
2,950
440
Operating lease liabilities
5,569
4,957
740
Other non-current liabilities
718
1,816
272
Total non-current liabilities
81,594
78,182
11,672
Total liabilities
156,082
154,382
23,049
Redeemable noncontrolling interests
7,148
7,699
1,149
Equity
Total Baidu shareholders’ equity
211,459
217,113
32,414
Noncontrolling interests
5,345
5,925
885
Total equity
216,804
223,038
33,299
Total liabilities, redeemable noncontrolling
interests, and equity
380,034
385,119
57,497
Baidu, Inc.
Selected Information
(In millions, unaudited)
Three months ended
June 30, 2021 (RMB)
Three months ended
March 31, 2022 (RMB)
Three months ended
June 30, 2022 (RMB)
Three months ended
June 30, 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
24,041
7,608
(299)
31,350
21,378
7,277
(244)
28,411
23,160
6,657
(170)
29,647
3,458
994
(26)
4,426
YOY
(4 %)
(13 %)
(5 %)
QOQ
8 %
(9 %)
4 %
Costs and expenses:
Cost of revenues (1)
9,289
6,869
(261)
15,897
9,807
5,964
(225)
15,546
10,114
5,248
(191)
15,171
1,511
784
(30)
2,265
Selling, general and administrative (1)
4,526
1,185
(4)
5,707
3,913
745
(2)
4,656
3,990
801
(7)
4,784
595
120
(1)
714
Research and development (1)
5,607
676
–
6,283
5,134
474
–
5,608
5,810
482
–
6,292
867
72
–
939
Total costs and expenses
19,422
8,730
(265)
27,887
18,854
7,183
(227)
25,810
19,914
6,531
(198)
26,247
2,973
976
(31)
3,918
YOY
Cost of revenues
9 %
(24 %)
(5 %)
Selling, general and administrative
(12 %)
(32 %)
(16 %)
Research and development
4 %
(29 %)
0 %
Cost and expenses
3 %
(25 %)
(6 %)
Operating income (loss)
4,619
(1,122)
(34)
3,463
2,524
94
(17)
2,601
3,246
126
28
3,400
485
18
5
508
YOY
(30 %)
–
(2 %)
QOQ
29 %
34 %
31 %
Operating margin
19 %
(15 %)
11 %
12 %
1 %
9 %
14 %
2 %
11 %
Add: total other (loss) income, net
(2,204)
(226)
–
(2,430)
(3,058)
97
–
(2,961)
442
(291)
–
151
66
(43)
–
23
Less: income tax expense (benefit)
2,167
30
–
2,197
374
17
–
391
(11)
36
–
25
(1)
5
–
4
Less: net income (loss) attributable to NCI
76
19
(676)
(3)
(581)
55
5
74
(3)
134
(17)
13
(107)
(3)
(111)
(3)
2
(15)
(3)
(16)
Net income (loss) attributable to Baidu
172
(1,397)
642
(583)
(963)
169
(91)
(885)
3,716
(214)
135
3,637
555
(32)
20
543
YOY
2060 %
(85 %)
–
QOQ
–
–
–
Net margin
1 %
(18 %)
(2 %)
(5 %)
2 %
(3 %)
16 %
(3 %)
12 %
Non-GAAP financial measures:
Operating income (loss) (non-GAAP)
6,467
(780)
5,653
3,686
327
3,996
5,121
344
5,493
765
50
820
YOY
(21 %)
–
(3 %)
QOQ
39 %
5 %
37 %
Operating margin (non-GAAP)
27 %
(10 %)
18 %
17 %
4 %
14 %
22 %
5 %
19 %
Net income (loss) attributable to Baidu
(non-GAAP)
5,942
(1,065)
5,359
3,804
162
3,879
5,449
79
5,541
814
11
827
YOY
(8 %)
–
3 %
QOQ
43 %
(51 %)
43 %
Net margin (non-GAAP)
25 %
(14 %)
17 %
18 %
2 %
14 %
24 %
1 %
19 %
Adjusted EBITDA
7,991
(662)
7,295
5,106
410
5,499
6,597
429
7,054
985
63
1,053
YOY
(17 %)
–
(3 %)
QOQ
29 %
5 %
28 %
Adjusted EBITDA margin
33 %
(9 %)
23 %
24 %
6 %
19 %
28 %
6 %
24 %
(1) Includes share-based compensation as follows:
Cost of revenues
69
43
112
45
37
82
49
36
85
8
5
13
Selling, general and administrative
274
209
483
257
120
377
339
104
443
51
16
67
Research and development
1,443
78
1,521
804
60
864
1,431
62
1,493
213
9
222
Total share-based compensation
1,786
330
2,116
1,106
217
1,323
1,819
202
2,021
272
30
302
(2) Relates to intersegment eliminations and adjustments
(3) Relates to the net income/(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
June 30, 2021 (RMB)
March 31, 2022 (RMB)
June 30, 2022 (RMB)
June 30, 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
9,362
(1,426)
7,936
3,039
(1,167)
1,872
7,658
48
7,706
1,143
7
1,150
Net cash (used in) provided by investing activities
(12,220)
58
(12,162)
(2,884)
(67)
(2,951)
(3,027)
(653)
(3,680)
(452)
(97)
(549)
Net cash provided by (used in) financing activities
5,256
801
6,057
(644)
2,046
1,402
877
(334)
543
131
(50)
81
Effect of exchange rate changes on cash, cash
equivalents and restricted cash
(342)
(92)
(434)
(183)
(4)
(187)
1,230
75
1,305
184
11
195
Net increase (decrease) in cash, cash
equivalents and restricted cash
2,056
(659)
1,397
(672)
808
136
6,738
(864)
5,874
1,006
(129)
877
Cash, cash equivalents and restricted cash
At beginning of period
44,756
7,395
52,151
44,596
3,075
47,671
43,924
3,883
47,807
6,557
580
7,137
At end of period
46,812
6,736
53,548
43,924
3,883
47,807
50,662
3,019
53,681
7,563
451
8,014
Net cash provided by (used in) operating
activities
9,362
(1,426)
7,936
3,039
(1,167)
1,872
7,658
48
7,706
1,143
7
1,150
Less: Capital expenditures
(2,435)
(61)
(2,496)
(1,928)
(51)
(1,979)
(2,124)
(66)
(2,190)
(317)
(10)
(327)
Free cash flow
6,927
(1,487)
5,440
1,111
(1,218)
(107)
5,534
(18)
5,516
826
(3)
823
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
June 30, 2021 (RMB)
March 31, 2022 (RMB)
June 30, 2022 (RMB)
June 30, 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)
4,619
(1,122)
3,463
2,524
94
2,601
3,246
126
3,400
485
18
508
Add: Share-based compensation expenses
1,786
330
2,116
1,106
217
1,323
1,819
202
2,021
272
30
302
Add: Amortization and impairment of intangible assets(1)
62
12
74
56
16
72
56
16
72
8
2
10
Operating income (loss) (non-GAAP)
6,467
(780)
5,653
3,686
327
3,996
5,121
344
5,493
765
50
820
Add: Depreciation of fixed assets
1,524
118
1,642
1,420
83
1,503
1,476
85
1,561
220
13
233
Adjusted EBITDA
7,991
(662)
7,295
5,106
410
5,499
6,597
429
7,054
985
63
1,053
Net income (loss) attributable to Baidu
172
(1,397)
(583)
(963)
169
(885)
3,716
(214)
3,637
555
(32)
543
Add: Share-based compensation expenses
1,777
330
1,947
1,101
217
1,210
1,815
202
1,916
271
30
286
Add: Amortization and impairment of intangible assets(1)
55
12
62
50
16
59
50
16
59
7
2
9
Add: Disposal (gain) loss
–
(45)
(28)
–
(430)
(216)
(25)
–
(25)
(4)
–
(4)
Add: Impairment of long-term investments
205
2
206
598
183
690
222
11
228
34
2
34
Add: Fair value loss (gain) of long-term investments
3,180
(9)
3,175
3,037
(1)
3,037
(547)
2
(546)
(82)
–
(82)
Add: Reconciling items on equity method investments(2)
190
32
207
456
11
462
403
60
455
61
9
69
Add: Charitable donation from Baidu(3)
–
–
–
–
–
–
136
–
136
20
–
20
Add: Tax effects on non-GAAP adjustments
363
10
373
(475)
(3)
(478)
(321)
2
(319)
(48)
–
(48)
Net income (loss) attributable to Baidu (non-GAAP)
5,942
(1,065)
5,359
3,804
162
3,879
5,449
79
5,541
814
11
827
Diluted (loss) earnings per ADS
(1.70)
(2.87)
9.97
1.49
Add: Accretion of the redeemable noncontrolling interests
0.02
0.31
0.39
0.06
Add: Non-GAAP adjustments to earnings per ADS
17.09
13.78
5.43
0.81
Diluted earnings per ADS (non-GAAP)
15.41
11.22
15.79
2.36
(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.