Baidu Announces Third Quarter 2021 Results
Baidu reported its Q3 2021 financial results, showing total revenues of RMB 31.9 billion ($4.95 billion), up 13% year-over-year. Baidu Core revenues increased by 15% to RMB 24.7 billion ($3.83 billion). However, the company faced a net loss of RMB 16.6 billion ($2.57 billion), largely due to a non-cash loss in long-term investments. Operating income dropped 63% to RMB 2.3 billion ($358 million). The AI Cloud revenue saw a notable growth of 73% year-over-year. Baidu anticipates Q4 revenues between RMB 31 billion and RMB 34 billion, reflecting a growth rate of 2% to 12% year-over-year.
- AI Cloud revenue grew 73% year-over-year.
- Total revenues rose to RMB 31.9 billion, an increase of 13% year-over-year.
- Baidu Core revenue increased by 15% to RMB 24.7 billion.
- Free cash flow was RMB 691 million ($108 million).
- Baidu expects Q4 revenues to increase by 2% to 12% year-over-year.
- Net loss of RMB 16.6 billion ($2.57 billion) due to a mark-to-market loss in long-term investments.
- Operating income decreased by 63% to RMB 2.3 billion ($358 million).
- Selling, general, and administrative expenses rose by 56% year-over-year.
BEIJING, Nov. 17, 2021 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the third quarter ended September 30, 2021.
"Baidu is bringing innovation across the consumer, enterprise and public sector with our commitment to AI," said Robin Li, co-founder and CEO of Baidu. "Our AI Cloud is helping businesses better serve customers and move faster with greater efficiency. We are building Baidu Apollo smart transportation and intelligent driving to smoothen traffic congestion, accelerate the move to EV and reduce traffic accidents."
"Baidu Core delivered another solid quarter, powered by our AI cloud revenue growing
Third Quarter 2021 Financial Highlights[1] | ||||||||||
Baidu, Inc. | ||||||||||
(In millions except per | Q3 | Q2 | Q3 | |||||||
ADS, unaudited) | 2020 | 2021 | 2021 | YOY | QOQ | |||||
RMB | RMB | RMB | US$ | |||||||
Total revenues | 28,232 | 31,350 | 31,921 | 4,954 | ||||||
Operating income | 6,156 | 3,463 | 2,308 | 358 | ( | ( | ||||
Operating income (non-GAAP) 2 | 7,636 | 5,653 | 4,708 | 731 | ( | ( | ||||
Net income (loss) to Baidu | 13,678 | (583) | (16,559) | (2,570) | - | |||||
Net income to Baidu (non-GAAP) 2 | 6,988 | 5,359 | 5,090 | 790 | ( | ( | ||||
Diluted earnings (loss) per ADS | 39.79 | (1.70) | (48.18) | (7.48) | - | |||||
Diluted earnings per ADS (non-GAAP) 2 | 20.35 | 15.41 | 14.66 | 2.28 | ( | ( | ||||
Adjusted EBITDA 2 | 9,073 | 7,295 | 5,962 | 925 | ( | ( | ||||
Adjusted EBITDA margin | ||||||||||
[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.4434 as of September 30, 2021, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader. [2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also "Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures" for more details). |
Baidu Core | ||||||||||
Q3 | Q2 | Q3 | ||||||||
(In millions, unaudited) | 2020 | 2021 | 2021 | YOY | QOQ | |||||
RMB | RMB | RMB | US$ | |||||||
Total revenues | 21,379 | 24,041 | 24,661 | 3,827 | ||||||
Operating income | 7,404 | 4,619 | 3,718 | 577 | ( | ( | ||||
Operating income (non-GAAP) 2 | 8,505 | 6,467 | 5,823 | 904 | ( | ( | ||||
Net income (loss) to Baidu Core | 14,368 | 172 | (15,625) | (2,425) | - | - | ||||
Net income to Baidu Core (non-GAAP) 2 | 7,486 | 5,942 | 5,855 | 909 | ( | ( | ||||
Adjusted EBITDA2 | 9,822 | 7,991 | 6,994 | 1,085 | ( | ( | ||||
Adjusted EBITDA margin | ||||||||||
Other Highlights
Corporate
- Q3 21 net loss includes a RMB 18.9 billion non-cash, mark-to-market loss in long-term investments arising from quarterly fair-value adjustment.
- ESG:
- Baidu donated RMB 90 million to help Henan province cope with its recent natural disaster.
- Xiaodu launched "visual assistance" to enable visually impaired voice control and on-demand screen-text reading for a smoother audio experience.
- In October, Baidu established a Data Management Committee, to consolidate its existing committees on data management, data privacy & protection and data security, to further improve its policies and oversight around data management.
AI Cloud
- Baidu releases end-to-end AI cloud solution, powered by Kunlun AI chip and PaddlePaddle deep learning framework, to help financial services firms digitize and automate their operational processes, enlisting leading customers like China Life and Bank of Jiangsu.
- Lijiang, a UNESCO Heritage Site with 800-year old bridges and waterways, is using Baidu smart-city cloud to keep the city safe and clean for visitors. Leveraging the digitalization of tourist areas, Baidu AI solution helps local authorities timely detect and address infractions, e.g., illegal parking and littering.
- Tongxiang, Zhejiang (province) signed with Baidu to enable its manufacturing-based enterprises with Baidu AI solutions, allowing Baidu to further penetrate into industrial Internet.
- Baidu ACE smart transportation has been adopted by 24 cities, tripling year over year, based on contract amount over RMB10 million.
Intelligent Driving
- Apollo L4 has accumulated over 10 million test miles, up
189% year over year, and has received 411 autonomous driving permits, reflecting Apollo's broad geographic coverage and wide-ranging test scenarios. - Rides provided by Apollo Go doubled sequentially, which are available in Shanghai, Beijing, Guangzhou, Changsha and Cangzhou.
- WM Motor, a Chinese EV OEM, signed with Baidu to install Apollo Navigation Pilot (ANP) in its new W6 SUV, taking the total makes that have partnered with Apollo for self-driving and infotainment solutions to 31.
Other Growth Initiatives
- Xiaodu ranks No.1 in smart display shipments globally and smart speaker shipments in China for Q2 2021, according to Strategy Analytics, IDC and Canalys.
- In August 2021, Xiaodu completed Series B financing at a valuation of US
$5.1 billion with Baidu retaining super-majority shareholding.
Mobile Ecosystem
- In September, Baidu App's MAUs reached 607 million, up
12% year over year, and daily logged in users reached an all-time high of79% , reflecting positive user experience. - Managed Page reached
43% of Baidu Core Q3 online marketing revenue, through continuous marketing-cloud enhancements, such as expanded e-commerce features and tools. - The open nature of Baidu's Internet infrastructure is leading to top smartphone makers to select Baidu's smart mini program as the landing page for their browser search.
iQIYI
- iQIYI subscribers reached 104 million in September 2021, creating a strong foundation to provide innovative, self-developed blockbusters.
Third Quarter 2021 Financial Results
Total revenues were RMB 31.9 billion (
- Revenue from Baidu Core was RMB 24.7 billion (
$3.83 billion ), increasing15% year over year; online marketing revenue was RMB 19.5 billion ($3.02 billion ), up6% year over year, and non-online marketing revenue was RMB 5.2 billion ($806 million ), up76% year over year, driven by cloud and other AI-powered businesses. - Revenue from iQIYI was RMB 7.6 billion (
$1.18 billion ), increasing6% year over year.
Cost of revenues was RMB 16.1 billion (
Selling, general and administrative expenses were RMB 7.3 billion (
Research and development expense was RMB 6.2 billion (
Operating income was RMB 2.3 billion (
Total other loss, net was RMB 21.5 billion (
Income tax benefit was RMB 1.8 billion (
Net loss attributable to Baidu was RMB 16.6 billion (
Adjusted EBITDA was RMB 6.0 billion (
As of September 30, 2021, cash, cash equivalents, restricted cash and short-term investments were RMB 194.6 billion (
Financial Guidance
For the fourth quarter of 2021, Baidu expects revenues to be between RMB 31.0 billion (
The COVID-19 situation in China is evolving and business visibility is limited. The above forecast reflects Baidu's current and preliminary view, which is subject to substantial uncertainties.
Conference Call Information
Baidu's management will hold an earnings conference call at 7:30 AM on November 17, 2021, U.S. Eastern Time (8:30 PM on November 17, 2021, Beijing Time).
Please register in advance of the conference call using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode and unique registrant ID by email.
For pre-registration, please click http://apac.directeventreg.com/registration/event/8590343. It will automatically direct you to the registration page of "Baidu Q3 2021 Earnings Conference Call", where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter " 8590343".
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), Direct Event passcode and unique registrant ID) provided in the confirmation email that you have received following your pre-registration.
Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.
A replay of the conference call may be accessed by phone at the following number until November 24 2021:
International: | +61 2 8199 0299 |
Conference ID: | 8590343 |
About Baidu
Founded in 2000, Baidu's mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on the NASDAQ under "BIDU" and HKEX under "9888". One Baidu ADS represents eight Class A ordinary shares.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for the fourth quarter of 2021, quotations from management in this announcement, as well as Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.
Non-GAAP Financial Measures
To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.
Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations and contingent loss pertaining to legal proceeding in relation to former advertising agency.
Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, contingent loss pertaining to legal proceeding in relation to former advertising agency, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, charitable donation from Baidu, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.
Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, which is adjusted for accretion for the redeemable non-controlling interests, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, contingent loss pertaining to legal proceeding in relation to former advertising agency, and share-based compensation expenses.
For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures.
Baidu, Inc. | |||||||||
Condensed Consolidated Statements of Income (Loss) | |||||||||
(In millions except for per share (or ADS) information, unaudited) | |||||||||
Three Months Ended | |||||||||
September 30, | June 30, | September 30, | September 30, | ||||||
2020 | 2021 | 2021 | 2021 | ||||||
RMB | RMB | RMB | US$(2) | ||||||
Revenues: | |||||||||
Online marketing services | 20,201 | 20,828 | 21,050 | 3,267 | |||||
Others | 8,031 | 10,522 | 10,871 | 1,687 | |||||
Total revenues | 28,232 | 31,350 | 31,921 | 4,954 | |||||
Costs and expenses: | |||||||||
Cost of revenues(1) | 12,815 | 15,897 | 16,126 | 2,503 | |||||
Selling, general and administrative(1) | 4,700 | 5,707 | 7,320 | 1,136 | |||||
Research and development(1) | 4,561 | 6,283 | 6,167 | 957 | |||||
Total costs and expenses | 22,076 | 27,887 | 29,613 | 4,596 | |||||
Operating income | 6,156 | 3,463 | 2,308 | 358 | |||||
Other income (loss): | |||||||||
Interest income | 1,297 | 1,342 | 1,462 | 227 | |||||
Interest expense | (755) | (845) | (880) | (137) | |||||
Foreign exchange (loss) income, net | (271) | (36) | 7 | 1 | |||||
Share of loss from equity method investments | (546) | (4) | (4) | (1) | |||||
Others, net | 9,169 | (2,887) | (22,079) | (3,426) | |||||
Total other income (loss), net | 8,894 | (2,430) | (21,494) | (3,336) | |||||
Income (loss) before income taxes | 15,050 | 1,033 | (19,186) | (2,978) | |||||
Income tax expense (benefit) | 1,618 | 2,197 | (1,839) | (286) | |||||
Net income (loss) | 13,432 | (1,164) | (17,347) | (2,692) | |||||
Net loss attributable to noncontrolling interests | (246) | (581) | (788) | (122) | |||||
Net income (loss) attributable to Baidu | 13,678 | (583) | (16,559) | (2,570) | |||||
Earnings (loss) per ADS (1 ADS representing 8 Class A ordinary shares): | |||||||||
-Basic | 40.21 | (1.70) | (48.18) | (7.48) | |||||
-Diluted | 39.79 | (1.70) | (48.18) | (7.48) | |||||
Earnings (loss) per share for Class A and Class B ordinary shares: | |||||||||
-Basic | 5.03 | (0.21) | (6.02) | (0.93) | |||||
-Diluted | 4.97 | (0.21) | (6.02) | (0.93) | |||||
Weighted average number of Class A and Class B ordinary shares outstanding (in millions): | |||||||||
-Basic | 2,719 | 2,782 | 2,778 | 2,778 | |||||
-Diluted | 2,747 | 2,782 | 2,778 | 2,778 | |||||
(1) Includes share-based compensation expenses as follows: | |||||||||
Cost of revenues | 81 | 112 | 74 | 11 | |||||
Selling, general and administrative | 403 | 483 | 353 | 55 | |||||
Research and development | 930 | 1,521 | 921 | 144 | |||||
Total share-based compensation expenses | 1,414 | 2,116 | 1,348 | 210 | |||||
(2) All translations from RMB to U.S. dollars are made at a rate of RMB 6.4434 to US | |||||||||
Baidu, Inc. | ||||||
Condensed Consolidated Balance Sheets | ||||||
(In millions, unaudited) | ||||||
December 31, | September 30, | September 30, | ||||
2020 | 2021 | 2021 | ||||
RMB | RMB | US$ | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | 35,782 | 40,701 | 6,317 | |||
Restricted cash | 758 | 10,773 | 1,672 | |||
Short-term investments, net | 126,402 | 143,127 | 22,213 | |||
Accounts receivable, net | 8,668 | 8,704 | 1,351 | |||
Amounts due from related parties | 726 | 947 | 147 | |||
Other current assets, net | 11,006 | 11,142 | 1,728 | |||
Total current assets | 183,342 | 215,394 | 33,428 | |||
Non-current assets: | ||||||
Fixed assets, net | 17,508 | 20,722 | 3,216 | |||
Licensed copyrights, net | 6,435 | 7,293 | 1,132 | |||
Produced content, net | 6,556 | 9,598 | 1,490 | |||
Intangible assets, net | 2,022 | 1,769 | 275 | |||
Goodwill | 22,248 | 22,605 | 3,508 | |||
Long-term investments, net | 76,233 | 74,012 | 11,486 | |||
Amounts due from related parties | 3,438 | 3,485 | 541 | |||
Deferred tax assets, net | 1,674 | 2,567 | 398 | |||
Operating lease right-of-use assets | 9,804 | 10,491 | 1,628 | |||
Other non-current assets | 3,448 | 16,420 | 2,547 | |||
Total non-current assets | 149,366 | 168,962 | 26,221 | |||
Total assets | 332,708 | 384,356 | 59,649 | |||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Short-term loans | 3,016 | 3,990 | 619 | |||
Accounts payable and accrued liabilities | 36,716 | 40,461 | 6,279 | |||
Customer deposits and deferred revenue | 12,626 | 13,525 | 2,099 | |||
Deferred income | 158 | 99 | 15 | |||
Long-term loans, current portion | 7,427 | 659 | 102 | |||
Convertible senior notes, current portion | 4,752 | 4,808 | 746 | |||
Notes payable, current portion | - | 5,793 | 899 | |||
Amounts due to related parties | 1,324 | 1,824 | 283 | |||
Operating lease liabilities | 2,366 | 2,756 | 428 | |||
Total current liabilities | 68,385 | 73,915 | 11,470 | |||
Non-current liabilities: | ||||||
Deferred income | 97 | 119 | 18 | |||
Deferred revenue | 686 | 197 | 31 | |||
Amounts due to related parties | 3,543 | 3,318 | 515 | |||
Long-term loans | - | 12,768 | 1,982 | |||
Notes payable | 48,408 | 48,438 | 7,517 | |||
Convertible senior notes | 11,927 | 12,671 | 1,967 | |||
Deferred tax liabilities | 3,067 | 3,377 | 524 | |||
Operating lease liabilities | 4,693 | 4,900 | 760 | |||
Other non-current liabilities | 59 | 92 | 14 | |||
Total non-current liabilities | 72,480 | 85,880 | 13,328 | |||
Total liabilities | 140,865 | 159,795 | 24,798 | |||
Redeemable noncontrolling interests | 3,102 | 7,916 | 1,229 | |||
Equity | ||||||
Total Baidu shareholders' equity | 182,696 | 211,378 | 32,805 | |||
Noncontrolling interests | 6,045 | 5,267 | 817 | |||
Total equity | 188,741 | 216,645 | 33,622 | |||
Total liabilities, redeemable noncontrolling | 332,708 | 384,356 | 59,649 | |||
Baidu, Inc. | ||||||||||||||||||||||||
Selected Information | ||||||||||||||||||||||||
(In millions, unaudited) | ||||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||||||||||
Baidu | iQIYI | Elim & | Baidu, | Baidu | iQIYI | Elim & | Baidu, | Baidu | iQIYI | Elim & adj(2) | Baidu, Inc. | Baidu Core | iQIYI | Elim & adj(2) | Baidu, Inc. | |||||||||
Total revenues | 21,379 | 7,188 | (335) | 28,232 | 24,041 | 7,608 | (299) | 31,350 | 24,661 | 7,589 | (329) | 31,921 | 3,827 | 1,178 | (51) | 4,954 | ||||||||
YOY | ||||||||||||||||||||||||
QOQ | ( | |||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Cost of revenues (1) | 6,728 | 6,363 | (276) | 12,815 | 9,289 | 6,869 | (261) | 15,897 | 9,370 | 7,028 | (272) | 16,126 | 1,454 | 1,091 | (42) | 2,503 | ||||||||
Selling, general and administrative (1) | 3,354 | 1,364 | (18) | 4,700 | 4,526 | 1,185 | (4) | 5,707 | 6,089 | 1,246 | (15) | 7,320 | 945 | 193 | (2) | 1,136 | ||||||||
Research and development (1) | 3,893 | 671 | (3) | 4,561 | 5,607 | 676 | - | 6,283 | 5,484 | 683 | - | 6,167 | 851 | 106 | - | 957 | ||||||||
Total costs and expenses | 13,975 | 8,398 | (297) | 22,076 | 19,422 | 8,730 | (265) | 27,887 | 20,943 | 8,957 | (287) | 29,613 | 3,250 | 1,390 | (44) | 4,596 | ||||||||
YOY | ||||||||||||||||||||||||
Cost of revenues | ||||||||||||||||||||||||
Selling, general and administrative | ( | |||||||||||||||||||||||
Research and development | ||||||||||||||||||||||||
Cost and expenses | ||||||||||||||||||||||||
Operating income (loss) | 7,404 | (1,210) | (38) | 6,156 | 4,619 | (1,122) | (34) | 3,463 | 3,718 | (1,368) | (42) | 2,308 | 577 | (212) | (7) | 358 | ||||||||
YOY | ( | ( | ||||||||||||||||||||||
QOQ | ( | ( | ||||||||||||||||||||||
Operating margin | ( | ( | ( | |||||||||||||||||||||
Add: total other income (loss), net | 8,827 | 67 | 8,894 | (2,204) | (226) | - | (2,430) | (21,163) | (331) | - | (21,494) | (3,285) | (51) | - | (3,336) | |||||||||
Less: income tax expense (benefit) | 1,599 | 19 | 1,618 | 2,167 | 30 | - | 2,197 | (1,848) | 9 | - | (1,839) | (287) | 1 | - | (286) | |||||||||
Less: net income (loss) attributable to NCI | 264 | 13 | (523) | (3) | (246) | 76 | 19 | (676) | (3) | (581) | 28 | 22 | (838) | (3) | (788) | 4 | 4 | (130) | (3) | (122) | ||||
Net income (loss) attributable to Baidu | 14,368 | (1,175) | 485 | 13,678 | 172 | (1,397) | 642 | (583) | (15,625) | (1,730) | 796 | (16,559) | (2,425) | (268) | 123 | (2,570) | ||||||||
YOY | - | - | ||||||||||||||||||||||
QOQ | - | |||||||||||||||||||||||
Net margin | ( | ( | ( | ( | ( | ( | ||||||||||||||||||
Non-GAAP financial measures: | ||||||||||||||||||||||||
Operating income (loss) (non-GAAP) | 8,505 | (831) | 7,636 | 6,467 | (780) | 5,653 | 5,823 | (1,073) | 4,708 | 904 | (166) | 731 | ||||||||||||
YOY | ( | ( | ||||||||||||||||||||||
QOQ | ( | ( | ||||||||||||||||||||||
Operating margin (non-GAAP) | ( | ( | ( | |||||||||||||||||||||
Net income (loss) attributable to Baidu | 7,486 | (830) | 6,988 | 5,942 | (1,065) | 5,359 | 5,855 | (1,400) | 5,090 | 909 | (217) | 790 | ||||||||||||
YOY | ( | ( | ||||||||||||||||||||||
QOQ | ( | ( | ||||||||||||||||||||||
Net margin (non-GAAP) | ( | ( | ( | |||||||||||||||||||||
Adjusted EBITDA | 9,822 | (711) | 9,073 | 7,991 | (662) | 7,295 | 6,994 | (990) | 5,962 | 1,085 | (153) | 925 | ||||||||||||
YOY | ( | ( | ||||||||||||||||||||||
QOQ | ( | ( | ||||||||||||||||||||||
Adjusted EBITDA margin | ( | ( | ( | |||||||||||||||||||||
(1) Includes share-based compensation as follows: | ||||||||||||||||||||||||
Cost of revenues | 29 | 52 | 81 | 69 | 43 | 112 | 34 | 40 | 74 | 5 | 6 | 11 | ||||||||||||
Selling, general and administrative | 187 | 216 | 403 | 274 | 209 | 483 | 196 | 157 | 353 | 30 | 25 | 55 | ||||||||||||
Research and development | 846 | 84 | 930 | 1,443 | 78 | 1,521 | 837 | 84 | 921 | 131 | 13 | 144 | ||||||||||||
Total share-based compensation | 1,062 | 352 | 1,414 | 1,786 | 330 | 2,116 | 1,067 | 281 | 1,348 | 166 | 44 | 210 | ||||||||||||
(2) Relates to intersegment eliminations and adjustments | ||||||||||||||||||||||||
(3) Relates to the net loss attributable to iQIYI noncontrolling interests | ||||||||||||||||||||||||
Baidu, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
(In millions,unaudited) | ||||||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
September 30, 2020 (RMB) | June 30, 2021 (RMB) | September 30, 2021 (RMB) | September 30, 2021 (US$) | |||||||||||||
Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | |||||
Net cash provided by (used in) operating | 9,716 | (1,929) | 7,787 | 9,362 | (1,426) | 7,936 | 5,436 | (2,081) | 3,355 | 844 | (323) | 521 | ||||
Net cash (used in) provided by investing activities | (6,576) | 343 | (6,233) | (12,220) | 58 | (12,162) | (15,857) | 1,885 | (13,972) | (2,461) | 293 | (2,168) | ||||
Net cash (used in) provided by financing activities | (4,387) | 238 | (4,149) | 5,256 | 801 | 6,057 | 7,744 | 867 | 8,611 | 1,201 | 135 | 1,336 | ||||
Effect of exchange rate changes on cash, cash | (77) | (113) | (190) | (342) | (92) | (434) | (47) | (21) | (68) | (8) | (3) | (11) | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,324) | (1,461) | (2,785) | 2,056 | (659) | 1,397 | (2,724) | 650 | (2,074) | (424) | 102 | (322) | ||||
Cash, cash equivalents and restricted cash | ||||||||||||||||
At beginning of period | 16,597 | 5,280 | 21,877 | 44,756 | 7,395 | 52,151 | 46,812 | 6,736 | 53,548 | 7,266 | 1,045 | 8,311 | ||||
At end of period | 15,273 | 3,819 | 19,092 | 46,812 | 6,736 | 53,548 | 44,088 | 7,386 | 51,474 | 6,842 | 1,147 | 7,989 | ||||
Net cash provided by (used in) operating | 9,716 | (1,929) | 7,787 | 9,362 | (1,426) | 7,936 | 5,436 | (2,081) | 3,355 | 844 | (323) | 521 | ||||
Less: Capital expenditures | (1,417) | (90) | (1,507) | (2,435) | (61) | (2,496) | (2,548) | (116) | (2,664) | (395) | (18) | (413) | ||||
Free cash flow | 8,299 | (2,019) | 6,280 | 6,927 | (1,487) | 5,440 | 2,888 | (2,197) | 691 | 449 | (341) | 108 | ||||
Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows. | ||||||||||||||||
Baidu, Inc. | ||||||||||||||||
Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures | ||||||||||||||||
(In millions except for per ADS information, unaudited) | ||||||||||||||||
Three months ended | Three months ended | Three months ended | Three months ended | |||||||||||||
September 30, 2020 (RMB) | June 30, 2021 (RMB) | September 30, 2021 (RMB) | September 30, 2021 (US$) | |||||||||||||
Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | Baidu | iQIYI | Baidu, | |||||
Operating income (loss) | 7,404 | (1,210) | 6,156 | 4,619 | (1,122) | 3,463 | 3,718 | (1,368) | 2,308 | 577 | (212) | 358 | ||||
Add: Share-based compensation expenses | 1,062 | 352 | 1,414 | 1,786 | 330 | 2,116 | 1,067 | 281 | 1,348 | 166 | 44 | 210 | ||||
Add: Amortization and impairment of intangible assets(1) | 39 | 27 | 66 | 62 | 12 | 74 | 62 | 14 | 76 | 10 | 2 | 12 | ||||
Add: Contingent loss(5) | - | - | - | - | - | - | 976 | - | 976 | 151 | - | 151 | ||||
Operating income (loss) (non-GAAP) | 8,505 | (831) | 7,636 | 6,467 | (780) | 5,653 | 5,823 | (1,073) | 4,708 | 904 | (166) | 731 | ||||
Add: Depreciation of fixed assets | 1,317 | 120 | 1,437 | 1,524 | 118 | 1,642 | 1,171 | 83 | 1,254 | 181 | 13 | 194 | ||||
Adjusted EBITDA | 9,822 | (711) | 9,073 | 7,991 | (662) | 7,295 | 6,994 | (990) | 5,962 | 1,085 | (153) | 925 | ||||
Net income (loss) attributable to Baidu | 14,368 | (1,175) | 13,678 | 172 | (1,397) | (583) | (15,625) | (1,730) | (16,559) | (2,425) | (268) | (2,570) | ||||
Add: Share-based compensation expenses | 1,056 | 352 | 1,252 | 1,777 | 330 | 1,947 | 1,086 | 281 | 1,231 | 169 | 44 | 191 | ||||
Add: Amortization and impairment of intangible assets(1) | 38 | 27 | 55 | 55 | 12 | 62 | 55 | 14 | 63 | 9 | 2 | 10 | ||||
Add: Disposal loss (gain) | (5) | - | (5) | - | (45) | (28) | - | - | - | - | - | - | ||||
Add: Impairment of long-term investments | - | - | - | 205 | 2 | 206 | 3,187 | 29 | 3,202 | 494 | 5 | 497 | ||||
Add: Fair value (gain) loss of long-term investments | (8,855) | (39) | (8,880) | 3,180 | (9) | 3,175 | 18,970 | 8 | 18,974 | 2,944 | 1 | 2,945 | ||||
Add: Reconciling items on equity method investments(2) | 556 | 3 | 558 | 190 | 32 | 207 | 36 | 3 | 38 | 6 | - | 6 | ||||
Add: Charitable donation from Baidu(4) | - | - | - | - | - | - | 90 | - | 90 | 14 | - | 14 | ||||
Add: Contingent loss(5) | - | - | - | - | - | - | 976 | - | 976 | 151 | - | 151 | ||||
Add: Tax effects on non-GAAP adjustments(3) | 328 | 2 | 330 | 363 | 10 | 373 | (2,920) | (5) | (2,925) | (453) | (1) | (454) | ||||
Net income (loss) attributable to Baidu (non-GAAP) | 7,486 | (830) | 6,988 | 5,942 | (1,065) | 5,359 | 5,855 | (1,400) | 5,090 | 909 | (217) | 790 | ||||
Diluted earnings (loss) per ADS | 39.79 | (1.70) | (48.18) | (7.48) | ||||||||||||
Add: Accretion of the redeemable noncontrolling | 0.04 | 0.02 | 0.49 | 0.08 | ||||||||||||
Add: Non-GAAP adjustments to earnings per ADS | (19.48) | 17.09 | 62.35 | 9.68 | ||||||||||||
Diluted earnings per ADS (non-GAAP) | 20.35 | 15.41 | 14.66 | 2.28 | ||||||||||||
(1) This represents amortization and impairment of intangible assets resulting from business combinations. | ||||||||||||||||
(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee's books, accretion of their | ||||||||||||||||
(3) Tax impact of non-GAAP adjustments is separately presented from 2020Q4, with comparative periods retrospectively adjusted. | ||||||||||||||||
(4) This represents non-recurring charitable donation to discrete events. | ||||||||||||||||
(5) This represents contingent loss pertaining to legal proceeding involving former advertising agency. | ||||||||||||||||
View original content:https://www.prnewswire.com/news-releases/baidu-announces-third-quarter-2021-results-301426444.html
SOURCE Baidu, Inc.
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