Baidu Announces Second Quarter 2024 Results

Rhea-AI Summary

Baidu, Inc. (NASDAQ: BIDU) announced its Q2 2024 financial results, showing modest growth despite macro headwinds. Total revenues were RMB33.9 billion ($4.67 billion), flat year-over-year. Baidu Core revenue increased 1% to RMB26.7 billion ($3.67 billion), driven by 10% growth in non-online marketing revenue, mainly from AI Cloud. Net income attributable to Baidu was RMB5.5 billion ($755 million), with diluted earnings per ADS of RMB15.01 ($2.07).

The company highlighted progress in AI initiatives, including the launch of ERNIE 4.0 Turbo and expansion of Apollo Go autonomous ride-hailing service. Baidu App's MAUs reached 703 million in June 2024, up 4% year-over-year. The company maintained a healthy margin while optimizing operations and speeding up AI-native transformation of its products.

Positive

• AI Cloud business showed strong growth, driving a 10% increase in non-online marketing revenue
• Apollo Go autonomous ride-hailing service provided 899K rides in Q2, up 26% year-over-year
• Baidu App's MAUs reached 703 million in June 2024, up 4% year-over-year
• Non-GAAP operating margin for Baidu Core was 26%
• Free cash flow was RMB6.3 billion ($862 million)

Negative

• Online marketing revenue decreased 2% year-over-year to RMB19.2 billion ($2.64 billion)
• Total revenues were flat year-over-year, impacted by macro headwinds
• iQIYI revenue decreased 5% year-over-year to RMB7.4 billion ($1.02 billion)
• Non-GAAP net income attributable to Baidu decreased 8% year-over-year to RMB7.4 billion ($1.02 billion)

Insights

Financial Analyst

Baidu's Q2 2024 results show resilience amid challenging macroeconomic conditions. The company's total revenues remained flat year-over-year at RMB33.9 billion ($4.67 billion), with Baidu Core revenues growing 1%. The AI Cloud business demonstrated strong momentum, offsetting the decline in online marketing revenue.

Key financial highlights include:

• Non-GAAP operating income increased 2% YoY to RMB7.5 billion ($1.03 billion)
• Non-GAAP net income attributable to Baidu decreased 8% YoY to RMB7.4 billion ($1.02 billion)
• Free cash flow stood at RMB6.3 billion ($862 million)

The company's focus on AI-driven transformation and operational optimization has helped maintain a healthy margin despite challenges. The continued growth in AI Cloud and investments in autonomous driving technology position Baidu well for future growth opportunities.

Tech Expert

Baidu's Q2 results highlight its strategic pivot towards AI and autonomous technologies. The launch of ERNIE 4.0 Turbo in June 2024 demonstrates Baidu's commitment to advancing its AI capabilities, offering improved performance at lower costs. This could potentially enhance Baidu's competitiveness in the AI market.

The Apollo Go autonomous ride-hailing service has made significant strides, providing 899,000 rides in Q2, a 26% YoY increase. The expansion to fully driverless operations in Wuhan and the testing of the RT6 vehicle underscore Baidu's leadership in autonomous driving technology. These advancements could position Baidu as a key player in the future of transportation.

The growth of the PaddlePaddle and ERNIE developer community to 14.7 million indicates strong adoption of Baidu's AI tools, potentially creating a robust ecosystem for future AI applications and services.

Market Research Analyst

Baidu's Q2 performance reflects its resilience in a challenging market. The company's AI-driven strategy is showing promise, with AI Cloud growth offsetting declines in traditional online marketing. This shift suggests Baidu is successfully adapting to changing market dynamics.

The Baidu App's MAU growth to 703 million, up 4% YoY, indicates strong user engagement. Additionally, the Managed Page accounting for 51% of Baidu Core's online marketing revenue demonstrates the effectiveness of Baidu's content ecosystem strategy.

However, the 5% YoY decrease in iQIYI revenue suggests ongoing challenges in the streaming sector. Baidu's continued investment in AI and autonomous technologies, despite short-term monetization impacts, shows a long-term strategic focus. This approach could potentially yield significant returns as these technologies mature and find broader market adoption.

BEIJING, Aug. 22, 2024 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("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, 2024.

"AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline growth for Baidu Core. Operationally, we fast-tracked the renovation of Baidu search, which we believe will drive long-term success despite the short-term impact on monetization. We also achieved new breakthroughs with Apollo Go, which now offers 100% fully driverless ride-hailing services in practically the entire Wuhan municipality, and has started scalable testing of the latest RT6 vehicles," said Robin Li, Co-founder and CEO of Baidu. "Gradually, the transformative impact of Gen-AI and foundation models is becoming more tangible in business and everyday life. Throughout all layers of our AI technology stack and with the rapid adoption of applications built on top of ERNIE, we are scaling AI to address real-world problems and generate substantial value both for external customers and our own product portfolio."

"As we speeded up the AI-native transformation of our products in the second quarter, we continued to optimize our operations and maintained a healthy margin," said Rong Luo, CFO of Baidu. "For AI Cloud in particular, we expect growth to maintain a strong momentum."

Second Quarter 2024 Financial Highlights[1]
	Baidu, Inc.
(In millions except per	Q2		Q1		Q2
ADS, unaudited)	2023		2024		2024			YOY		QOQ
	RMB		RMB		RMB	US$
Total revenues	34,056		31,513		33,931	4,669		(0 %)		8 %
Operating income	5,210		5,484		5,944	818		14 %		8 %
Operating income (non-GAAP) [2]	7,334		6,673		7,500	1,032		2 %		12 %
Net income to Baidu	5,210		5,448		5,488	755		5 %		1 %
Net income to Baidu (non-GAAP) [2]	7,998		7,011		7,396	1,018		(8 %)		5 %
Diluted earnings per ADS	14.17		14.91		15.01	2.07		6 %		1 %
Diluted earnings per ADS (non-GAAP) [2]	22.55		19.91		21.02	2.89		(7 %)		6 %
Adjusted EBITDA [2]	9,116		8,244		9,147	1,259		0 %		11 %
Adjusted EBITDA margin	27 %		26 %		27 %	27 %

 

 

	Baidu Core
	Q2		Q1		Q2
(In millions, unaudited)	2023		2024		2024			YOY		QOQ
	RMB		RMB		RMB	US$
Total revenues	26,407		23,803		26,687	3,672		1 %		12 %
Operating income	4,568		4,538		5,608	772		23 %		24 %
Operating income (non-GAAP) [2]	6,516		5,586		7,005	964		8 %		25 %
Net income to Baidu Core	5,012		5,150		5,462	752		9 %		6 %
Net income to Baidu Core (non-GAAP) [2]	7,694		6,628		7,290	1,003		(5 %)		10 %
Adjusted EBITDA[2]	8,229		7,118		8,617	1,186		5 %		21 %
Adjusted EBITDA margin	31 %		30 %		32 %	32 %
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2672 as of June 28, 2024, 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 expanded the ERNIE family of models with the launch of ERNIE 4.0 Turbo in June 2024, offering superior capabilities for typical use cases, and designed to run faster and at lower cost compared to ERNIE 4.0.
• Baidu returned US$301 million to shareholders since the beginning of Q2 2024, bringing the cumulative repurchase to about US$1.2 billion under the 2023 share repurchase program.
• Baidu earned a position in the China edition of the S&P Global Sustainability Yearbook, in recognition of its exceptional ESG performance. The selection stems from a comprehensive evaluation of 1,700 Chinese companies as part of the S&P Global 2023 Corporate Sustainability Assessment, underscoring Baidu's sustainability practices.

AI Cloud

• PaddlePaddle and ERNIE developer community grew to 14.7 million in June 2024.

Intelligent Driving

• Apollo Go, Baidu's autonomous ride-hailing service, provided about 899K rides in the second quarter of 2024, up 26% year over year. As of July 28, 2024, the cumulative rides provided to the public by Apollo Go surpassed 7 million.
• On June 19, Apollo Go started offering 100% fully driverless operations in practically the entire Wuhan municipality, its largest operational city, marking a significant milestone.
• The sixth-generation of our autonomous vehicle, the RT6, is now undergoing scalable testing.

Mobile Ecosystem

• In June 2024, Baidu App's MAUs reached 703 million, up 4% year over year.
• Managed Page accounted for 51% of Baidu Core's online marketing revenue in the second quarter of 2024.

Second Quarter 2024 Financial Results 

Total revenues were RMB33.9 billion ($4.67 billion), which was basically flat from last year.

• Revenue from Baidu Core was RMB26.7 billion ($3.67 billion), increasing 1% year over year; online marketing revenue was RMB19.2 billion ($2.64 billion), decreasing 2% year over year, and non-online marketing revenue was RMB7.5 billion ($1.03 billion), up 10% year over year, mainly driven by AI Cloud business.
• Revenue from iQIYI was RMB7.4 billion ($1.02 billion), decreasing 5% year over year.

Cost of revenues was RMB16.4 billion ($2.26 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business.

Selling, general and administrative expenses were RMB5.7 billion ($784 million), decreasing 9% year over year, primarily due to a decrease in expected credit losses, channel spending and promotional marketing expenses and personnel related expenses.

Research and development expenses were RMB5.9 billion ($810 million), decreasing 8% year over year, primarily due to a decrease in personnel related expenses.

Operating income was RMB5.9 billion ($818 million). Baidu Core operating income was RMB5.6 billion ($772 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.5 billion ($1.03 billion). Non-GAAP Baidu Core operating income was RMB7.0 billion ($964 million), and non-GAAP Baidu Core operating margin was 26%.

Total other income, net was RMB771 million ($106 million), decreasing 44% year over year, primarily due to a decrease in net foreign exchange gain and disposal gain, partially offset by the decrease in fair value loss and impairment loss from long-term investments.

Income tax expense was RMB1.1 billion ($156 million), compared to RMB1.3 billion in the same period last year.

Net income attributable to Baidu was RMB5.5 billion ($755 million), and diluted earnings per ADS was RMB15.01 ($2.07). Net income attributable to Baidu Core was RMB5.5 billion ($752 million), and net margin for Baidu Core was 20%. Non-GAAP net income attributable to Baidu was RMB7.4 billion ($1.02 billion). Non-GAAP diluted earnings per ADS was RMB21.02 ($2.89). Non-GAAP net income attributable to Baidu Core was RMB7.3 billion ($1.00 billion), and non-GAAP net margin for Baidu Core was 27%.

Adjusted EBITDA was RMB9.1 billion ($1.26 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB8.6 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 32%.

As of June 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB162.0 billion ($22.29 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB155.0 billion ($21.32 billion). Free cash flow was RMB6.3 billion ($862 million), and free cash flow excluding iQIYI was RMB5.9 billion ($810 million).

Conference Call Information

Baidu's management will hold an earnings conference call at 8.00 AM on Aug 22, 2024, U.S. Eastern Time (8.00 PM on Aug 22, 2024, 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 2024 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/10040402-jgu7y6.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.

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, 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, and amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain, impairment of long-term investments, and fair value gain (loss) of long-term investments, 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 share, 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, 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
(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,
		2023		2024		2024		2024		2023		2024		2024
		RMB		RMB		RMB		US$(2)		RMB		RMB		US$(2)
Revenues:
Online marketing services		21,081		18,490		20,625		2,838		39,053		39,115		5,382
Others		12,975		13,023		13,306		1,831		26,147		26,329		3,623
Total revenues		34,056		31,513		33,931		4,669		65,200		65,444		9,005
Costs and expenses:
Cost of revenues(1)		16,167		15,291		16,398		2,257		31,319		31,689		4,361
Selling, general and administrative(1)		6,298		5,375		5,700		784		11,887		11,075		1,524
Research and development(1)		6,381		5,363		5,889		810		11,804		11,252		1,548
Total costs and expenses		28,846		26,029		27,987		3,851		55,010		54,016		7,433
Operating income		5,210		5,484		5,944		818		10,190		11,428		1,572
Other income:
Interest income		1,948		2,091		1,993		274		3,863		4,084		562
Interest expense		(817)		(766)		(742)		(102)		(1,621)		(1,508)		(208)
Foreign exchange gain, net		1,176		401		93		13		1,070		494		68
Share of losses from equity method investments		(383)		(205)		(119)		(16)		(431)		(324)		(45)
Others, net		(555)		(275)		(454)		(63)		1,083		(729)		(100)
Total other income, net		1,369		1,246		771		106		3,964		2,017		277
Income before income taxes		6,579		6,730		6,715		924		14,154		13,445		1,849
Income tax expense		1,270		883		1,131		156		2,463		2,014		277
Net income		5,309		5,847		5,584		768		11,691		11,431		1,572
Net income attributable to noncontrolling interests		99		399		96		13		656		495		68
Net income attributable to Baidu		5,210		5,448		5,488		755		11,035		10,936		1,504
Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic		14.34		14.97		15.11		2.08		30.55		30.12		4.14
-Diluted		14.17		14.91		15.01		2.07		30.05		29.98		4.13
Earnings per share for Class A and Class B ordinary shares:
-Basic		1.79		1.87		1.89		0.26		3.82		3.77		0.52
-Diluted		1.77		1.86		1.88		0.26		3.76		3.74		0.51
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic		2,804		2,804		2,796		2,796		2,801		2,800		2,800
-Diluted		2,834		2,816		2,804		2,804		2,836		2,810		2,810
(1)  Includes share-based compensation expenses as follows:
Cost of revenues		194		108		146		20		292		254		35
Selling, general and administrative		446		417		385		53		909		802		110
Research and development		1,403		618		981		135		2,231		1,599		220
Total share-based compensation expenses		2,043		1,143		1,512		208		3,432		2,655		365
(2)  All translations from RMB to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the exchange rate in effect as of June 28, 2024 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,
		2023		2024		2024
		RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		25,231		43,534		5,990
Restricted cash		11,503		11,646		1,603
Short-term investments, net		168,670		106,821		14,699
Accounts receivable, net		10,848		11,112		1,529
Amounts due from related parties		1,424		1,396		192
Other current assets, net		12,579		12,757		1,756
Total current assets		230,255		187,266		25,769
Non-current assets:
Fixed assets, net		27,960		29,154		4,012
Licensed copyrights, net		6,967		6,914		951
Produced content, net		13,377		14,320		1,970
Intangible assets, net		881		812		112
Goodwill		22,586		22,586		3,108
Long-term investments, net		47,957		46,193		6,356
Long-term time deposits and held-to-maturity investments		24,666		72,497		9,976
Amounts due from related parties		195		212		29
Deferred tax assets, net		2,100		2,342		322
Operating lease right-of-use assets		10,851		10,919		1,503
Other non-current assets		18,964		22,312		3,071
Total non-current assets		176,504		228,261		31,410
Total assets		406,759		415,527		57,179
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		10,257		12,514		1,722
Accounts payable and accrued liabilities		37,717		37,988		5,227
Customer deposits and deferred revenue		14,627		14,038		1,932
Deferred income		306		291		40
Long-term loans, current portion		2		29		4
Convertible senior notes, current portion		2,802		2,892		398
Notes payable, current portion		6,029		7,986		1,099
Amounts due to related parties		1,603		1,831		252
Operating lease liabilities		3,108		3,196		440
Total current liabilities		76,451		80,765		11,114
Non-current liabilities:
Deferred income		200		287		39
Deferred revenue		481		520		72
Amounts due to related parties		77		67		9
Long-term loans		14,223		14,859		2,045
Notes payable		34,990		27,860		3,834
Convertible senior notes		8,144		8,408		1,157
Deferred tax liabilities		2,725		2,940		405
Operating lease liabilities		5,040		5,056		696
Other non-current liabilities		1,820		1,827		250
Total non-current liabilities		67,700		61,824		8,507
Total liabilities		144,151		142,589		19,621
Redeemable noncontrolling interests		9,465		10,107		1,391
Equity
Total Baidu shareholders' equity		243,626		252,769		34,782
Noncontrolling interests		9,517		10,062		1,385
Total equity		253,143		262,831		36,167
Total liabilities, redeemable noncontrolling interests, and equity		406,759		415,527		57,179

 

 

 

Baidu, Inc.
Selected Information
(In millions, unaudited)
		Three months ended June 30, 2023 (RMB)						Three months ended March 31, 2024 (RMB)						Three months ended June 30, 2024 (RMB)						Three months ended June 30, 2024 (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		26,407	7,802	(153)		34,056		23,803	7,927	(217)		31,513		26,687	7,439	(195)		33,931		3,672	1,024	(27)		4,669
YOY														1 %	(5 %)			(0 %)
QOQ														12 %	(6 %)			8 %
Costs and expenses:
Cost of revenues (1)		10,553	5,774	(160)		16,167		9,839	5,631	(179)		15,291		10,888	5,678	(168)		16,398		1,498	781	(22)		2,257
Selling, general and administrative (1)		5,344	979	(25)		6,298		4,492	922	(39)		5,375		4,751	970	(21)		5,700		654	133	(3)		784
Research and development (1)		5,942	439	-		6,381		4,934	429	-		5,363		5,440	449	-		5,889		748	62	-		810
Total costs and expenses		21,839	7,192	(185)		28,846		19,265	6,982	(218)		26,029		21,079	7,097	(189)		27,987		2,900	976	(25)		3,851
YOY
Cost of revenues														3 %	(2 %)			1 %
Selling, general and administrative														(11 %)	(1 %)			(9 %)
Research and development														(8 %)	2 %			(8 %)
Costs and expenses														(3 %)	(1 %)			(3 %)
Operating income (loss)		4,568	610	32		5,210		4,538	945	1		5,484		5,608	342	(6)		5,944		772	48	(2)		818
YOY														23 %	(44 %)			14 %
QOQ														24 %	(64 %)			8 %
Operating margin		17 %	8 %			15 %		19 %	12 %			17 %		21 %	5 %			18 %
Add: total other income (loss), net		1,603	(234)	-		1,369		1,508	(262)	-		1,246		1,011	(240)	-		771		139	(33)	-		106
Less: income tax expense		1,262	8	-		1,270		866	17	-		883		1,105	26	-		1,131		152	4	-		156
Less: net (loss) income attributable to NCI		(103)	3	199	(3)	99		30	11	358	(3)	399		52	7	37	(3)	96		7	1	5	(3)	13
Net income (loss) attributable to Baidu		5,012	365	(167)		5,210		5,150	655	(357)		5,448		5,462	69	(43)		5,488		752	10	(7)		755
YOY														9 %	(81 %)			5 %
QOQ														6 %	(89 %)			1 %
Net margin		19 %	5 %			15 %		22 %	8 %			17 %		20 %	1 %			16 %
Non-GAAP financial measures:
Operating income (non-GAAP)		6,516	786			7,334		5,586	1,086			6,673		7,005	501			7,500		964	70			1,032
YOY														8 %	(36 %)			2 %
QOQ														25 %	(54 %)			12 %
Operating margin (non-GAAP)		25 %	10 %			22 %		23 %	14 %			21 %		26 %	7 %			22 %
Net income attributable to Baidu (non-GAAP)		7,694	595			7,998		6,628	844			7,011		7,290	247			7,396		1,003	34			1,018
YOY														(5 %)	(58 %)			(8 %)
QOQ														10 %	(71 %)			5 %
Net margin (non-GAAP)		29 %	8 %			23 %		28 %	11 %			22 %		27 %	3 %			22 %
Adjusted EBITDA		8,229	855			9,116		7,118	1,125			8,244		8,617	536			9,147		1,186	75			1,259
YOY														5 %	(37 %)			0 %
QOQ														21 %	(52 %)			11 %
Adjusted EBITDA margin		31 %	11 %			27 %		30 %	14 %			26 %		32 %	7 %			27 %
(1)  Includes share-based compensation as follows:
Cost of revenues		160	34			194		76	32			108		117	29			146		16	4			20
Selling, general and administrative		356	90			446		353	64			417		292	93			385		40	13			53
Research and development		1,358	45			1,403		575	43			618		945	36			981		130	5			135
Total share-based compensation		1,874	169			2,043		1,004	139			1,143		1,354	158			1,512		186	22			208
(2) Relates to intersegment eliminations and adjustments
(3) Relates to the net 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
		June 30, 2023 (RMB)				March 31, 2024 (RMB)				June 30, 2024 (RMB)				June 30, 2024 (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 operating activities		9,746	886	10,632		5,284	936	6,220		7,970	409	8,379		1,097	56	1,153
Net cash provided by (used in) investing activities		7,309	(421)	6,888		(2,893)	(223)	(3,116)		13,824	337	14,161		1,903	46	1,949
Net cash provided by (used in) financing activities		1,908	(1,176)	732		2,126	261	2,387		(9,946)	869	(9,077)		(1,369)	120	(1,249)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		496	128	624		154	15	169		66	22	88		9	3	12
Net increase (decrease) in cash, cash equivalents and restricted cash		19,459	(583)	18,876		4,671	989	5,660		11,914	1,637	13,551		1,640	225	1,865
Cash, cash equivalents and restricted cash
At beginning of period		30,355	5,665	36,020		32,293	5,281	37,574		36,964	6,270	43,234		5,086	863	5,949
At end of period		49,814	5,082	54,896		36,964	6,270	43,234		48,878	7,907	56,785		6,726	1,088	7,814
Net cash provided by operating activities		9,746	886	10,632		5,284	936	6,220		7,970	409	8,379		1,097	56	1,153
Less: Capital expenditures		(2,693)	(13)	(2,706)		(2,016)	(22)	(2,038)		(2,090)	(28)	(2,118)		(287)	(4)	(291)
Free cash flow		7,053	873	7,926		3,268	914	4,182		5,880	381	6,261		810	52	862
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, 2023 (RMB)				March 31, 2024 (RMB)				June 30, 2024 (RMB)				June 30, 2024 (US$)
		Baidu Core	iQIYI	Baidu, Inc.		Baidu Core	iQIYI	Baidu, Inc.		Baidu Core	iQIYI	Baidu, Inc.		Baidu Core	iQIYI	Baidu, Inc.
Operating income		4,568	610	5,210		4,538	945	5,484		5,608	342	5,944		772	48	818
Add: Share-based compensation expenses		1,874	169	2,043		1,004	139	1,143		1,354	158	1,512		186	22	208
Add: Amortization and impairment of intangible assets(1)		74	7	81		44	2	46		43	1	44		6	-	6
Operating income (non-GAAP)		6,516	786	7,334		5,586	1,086	6,673		7,005	501	7,500		964	70	1,032
Add:  Depreciation of fixed assets		1,713	69	1,782		1,532	39	1,571		1,612	35	1,647		222	5	227
Adjusted EBITDA		8,229	855	9,116		7,118	1,125	8,244		8,617	536	9,147		1,186	75	1,259
Net income attributable to Baidu		5,012	365	5,210		5,150	655	5,448		5,462	69	5,488		752	10	755
Add: Share-based compensation expenses		1,872	169	1,949		1,003	139	1,066		1,353	158	1,425		185	22	196
Add: Amortization and impairment of intangible assets(1)		61	7	65		42	2	43		41	1	41		6	-	6
Add: Disposal (gain)		(919)	(89)	(959)		(458)	-	(458)		(30)	-	(30)		(4)	-	(4)
Add: Impairment of long-term investments		270	155	340		36	71	68		26	17	34		4	2	5
Add: Fair value loss (gain) of long-term investments		1,239	(4)	1,237		725	(23)	714		531	2	531		73	-	73
Add: Reconciling items on equity method investments(2)		296	(9)	292		280	-	280		83	-	83		11	-	11
Add: Tax effects on non-GAAP adjustments(3)		(137)	1	(136)		(150)	-	(150)		(176)	-	(176)		(24)	-	(24)
Net income attributable to Baidu (non-GAAP)		7,694	595	7,998		6,628	844	7,011		7,290	247	7,396		1,003	34	1,018
Diluted earnings per ADS				14.17				14.91				15.01				2.07
Add:  Accretion of the redeemable noncontrolling interests				0.50				0.55				0.57				0.08
Add:  Non-GAAP adjustments to earnings per ADS				7.88				4.45				5.44				0.74
Diluted earnings per ADS (non-GAAP)				22.55				19.91				21.02				2.89
(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 share.
																	.
(3) This represents tax impact of all non-GAAP adjustments.

 

 

View original content:https://www.prnewswire.com/news-releases/baidu-announces-second-quarter-2024-results-302228460.html

SOURCE Baidu, Inc.

FAQ

What was Baidu's (BIDU) total revenue for Q2 2024?

Baidu's total revenue for Q2 2024 was RMB33.9 billion ($4.67 billion), which was basically flat compared to the same period last year.

How did Baidu's (BIDU) AI Cloud business perform in Q2 2024?

Baidu's AI Cloud business showed strong growth, contributing to a 10% year-over-year increase in non-online marketing revenue, which reached RMB7.5 billion ($1.03 billion).

What was the performance of Apollo Go, Baidu's (BIDU) autonomous ride-hailing service, in Q2 2024?

Apollo Go provided about 899,000 rides in Q2 2024, representing a 26% increase year-over-year. As of July 28, 2024, the cumulative rides provided by Apollo Go surpassed 7 million.

How many monthly active users (MAUs) did Baidu App have in June 2024?

Baidu App's MAUs reached 703 million in June 2024, showing a 4% increase year-over-year.