BEIJING, Feb. 22, 2023 /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 quarter and fiscal year ended December 31, 2022.

"2022 was a challenging year, but we used this period to prepare the company for better times. In 2023, we believe we have a clear path to reaccelerate our revenue growth, and we are now well positioned to make use of the opportunities that China’s economic recovery offers us," said Robin Li, Co-founder and CEO of Baidu. "With our long-term investments in AI, we are poised to capitalize on the imminent inflection point in AI, unlocking exciting new opportunities across our entire business portfolio – from mobile ecosystem to AI Cloud, autonomous driving, smart devices, and beyond."

"We initiated our efforts towards cost optimization and business efficiency at an early stage in the pandemic, creating a stronger, leaner company. In the second half of 2022, Baidu Core non-GAAP operating profit grew 14% year over year. We believe a more streamlined operation will support the sustainable development of our company over the long term," said Rong Luo, CFO of Baidu.

Fourth Quarter and Fiscal Year 2022 Financial Highlights[1]

Baidu, Inc.

(In millions except per

Q4

Q3

Q4

FY

FY

ADS, unaudited)

2021

2022

2022

YOY

2021

2022

YOY

RMB

RMB

RMB

US$

RMB

RMB

US$

Total revenues

33,088

32,540

33,077

4,796

0 %

124,493

123,675

17,931

(1 %)

Operating income

1,958

5,317

4,593

666

135 %

10,518

15,911

2,307

51 %

Operating income (non-GAAP) [2]

4,307

7,200

6,497

942

51 %

19,030

23,186

3,362

22 %

Net income (loss) to Baidu

1,715

(146)

4,953

718

189 %

10,226

7,559

1,096

(26 %)

Net income to Baidu (non-GAAP) [2]

4,084

5,889

5,371

779

32 %

18,830

20,680

2,998

10 %

Diluted earnings (loss) per ADS

4.51

(0.87)

13.59

1.97

201 %

28.07

19.85

2.88

(29 %)

Diluted earnings per ADS (non-GAAP) [2]

11.60

16.87

15.25

2.21

31 %

53.53

58.93

8.54

10 %

Adjusted EBITDA [2]

5,757

8,879

8,231

1,193

43 %

24,914

29,663

4,301

19 %

Adjusted EBITDA margin

17 %

27 %

25 %

25 %

20 %

24 %

24 %

 

Baidu Core

Q4

Q3

Q4

FY

FY

(In millions, unaudited)

2021

2022

2022

YOY

2021

2022

YOY

RMB

RMB

RMB

US$

RMB

RMB

US$

Total revenues

25,978

25,239

25,654

3,719

(1 %)

95,163

95,431

13,836

0 %

Operating income

2,958

4,982

3,782

548

28 %

15,142

14,534

2,107

(4 %)

Operating income (non-GAAP) [2]

4,847

6,650

5,491

796

13 %

22,201

20,948

3,037

(6 %)

Net income to Baidu Core

2,656

25

4,773

692

80 %

13,557

7,551

1,095

(44 %)

Net income to Baidu Core (non-GAAP) [2]

4,625

5,767

4,915

713

6 %

21,292

19,935

2,890

(6 %)

Adjusted EBITDA[2]

6,210

8,239

7,146

1,036

15 %

27,682

27,088

3,927

(2 %)

Adjusted EBITDA margin

24 %

33 %

28 %

28 %

29 %

28 %

28 %

 

[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 6.8972 as of December 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).

Operational Highlights

Corporate

  • Baidu’s board of directors has authorized a new share repurchase program under which the Company may repurchase up to US$5 billion of its shares, effective through December 31, 2025.
  • Baidu received a B rating at the latest CDP climate change scores, making a significant improvement from its D rating in 2021. CDP is a non-profit organization that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts.

AI Cloud

  • Baidu ACE smart transportation has been adopted by 69 cities, up from 35 cities a year ago, based on contract amounts of over RMB10 million, as of the end of 2022.
  • Baidu was once again ranked the No. 1 AI Cloud provider, according to IDC’s first half of 2022 report on China’s public cloud market for the fourth consecutive year.
  • PaddlePaddle developer community has grown to 5.35 million and has served 200,000 businesses, as of the end of 2022. Developers have created 670,000 models on PaddlePaddle by the end of 2022.

Intelligent Driving

  • Apollo Go, Baidu’s autonomous ride-hailing service, provided 561K rides in the fourth quarter of 2022, up 162% year over year. The cumulative rides provided to the public by Apollo Go exceeded 2 million by the end of January 2023.
  • Apollo Go received Beijing’s first license to test vehicles with no driver or safety operator in the car on December 30, 2022, taking Baidu one step closer to providing fully driverless ride-hailing service on public roads in the capital city.

Other Growth Initiatives

  • Xiaodu ranked No.1 in smart display shipments and smart speaker shipments in China for the first nine months of 2022, according to IDC, Strategy Analytics, and Canalys.

Mobile Ecosystem

  • In December, Baidu App’s MAUs reached 648 million, up 4% year over year.
  • Managed Page accounted for 45% of Baidu Core’s online marketing revenue in the fourth quarter of 2022. In 2022, revenues from Managed Page accounted for 48% of total online marketing revenue, up from about 40% a year ago.

iQIYI

  • iQIYI’s average daily number of total subscribing members for the quarter was 111.6 million, compared to 97.0 million for the fourth quarter of 2021 and 101.0 million for the third quarter of 2022.

Fourth Quarter 2022 Financial Results

Total revenues were RMB 33.1 billion ($4.80 billion), which is basically flat from last year.

  • Revenue from Baidu Core was RMB 25.7 billion ($3.72 billion), decreasing 1% year over year; online marketing revenue was RMB 18.1 billion ($2.62 billion), down 6% year over year primarily due to the resurgence of Covid-19 in certain cities in China, and non-online marketing revenue was RMB 7.6 billion ($1.10 billion), up 11% year over year, mainly driven by other AI-powered businesses and cloud business.
  • Revenue from iQIYI was RMB 7.6 billion ($1.10 billion), increasing 3% year over year.

Cost of revenues was RMB 16.9 billion ($2.46 billion), decreasing 2% year over year, primarily due to the reduction in content costs, cost of goods sold and other costs related to new AI business, partially offset by the increase in traffic acquisition costs.

Selling, general and administrative expenses were RMB 5.9 billion ($853 million), decreasing 9% year over year, primarily due to the decrease in personnel-related expenses.

Research and development expense was RMB 5.7 billion ($820 million), decreasing 23% year over year, primarily due to the decrease in personnel-related expense.

Operating income was RMB 4.6 billion ($666 million). Baidu Core operating income was RMB 3.8 billion ($548 million), and Baidu Core operating margin was 15%. Non-GAAP operating income was RMB 6.5 billion ($942 million). Non-GAAP Baidu Core operating income was RMB 5.5 billion ($796 million), and non-GAAP Baidu Core operating margin was 21%.

Total other income, net was RMB 1.8 billion ($258 million), which mainly included a fair value gain of RMB 1.6 billion from long-term investments. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies and private equity funds, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods. Total other income, net was RMB 407 million for the same period last year, which mainly included a fair value gain of RMB 1.5 billion and an impairment loss of RMB 891 million from long-term investments.

Income tax expense was RMB 1.3 billion ($181 million), decreasing 3% year over year.

Net income attributable to Baidu was RMB 5.0 billion ($718 million), and diluted earnings per ADS was RMB 13.59 ($1.97). Net income attributable to Baidu Core was RMB 4.8 billion ($692 million), and net margin for Baidu Core was 19%. Non-GAAP net income attributable to Baidu was RMB 5.4 billion ($779 million). Non-GAAP diluted earnings per ADS was RMB 15.25 ($2.21). Non-GAAP net income attributable to Baidu Core was RMB 4.9 billion ($713 million), and non-GAAP net margin for Baidu Core was 19%.

Adjusted EBITDA was RMB 8.2 billion ($1.19 billion) and adjusted EBITDA margin was 25%. Adjusted EBITDA for Baidu Core was RMB 7.1 billion ($1.04 billion) and adjusted EBITDA margin for Baidu Core was 28%. 

As of December 31, 2022, cash, cash equivalents, restricted cash and short-term investments were RMB 185.3 billion ($26.87 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 177.4 billion ($25.72 billion). Free cash flow was RMB 5.9 billion ($859 million), and free cash flow excluding iQIYI was RMB 5.1 billion ($736 million).

Fiscal Year 2022 Results

Total revenues were RMB 123.7 billion ($17.93 billion), decreasing 1% year over year.

  • Revenue from Baidu Core was RMB 95.4 billion ($13.84 billion), which is basically flat from last year; online marketing revenue was RMB 69.5 billion ($10.08 billion), decreasing 6% year over year, and non-online marketing revenue was RMB 25.9 billion ($3.76 billion), up 22% year over year, mainly driven by cloud and other AI-powered businesses.
  • Revenue from iQIYI was RMB 29.0 billion ($4.20 billion), decreasing 5% year over year.

Cost of revenues was RMB 63.9 billion ($9.27 billion), decreasing 1% year over year, which is basically flat from last year, primarily due to the increase in traffic acquisition costs, bandwidth costs, cost of goods sold and other costs related to new AI business, offset by the decrease in content costs.

Selling, general and administrative expenses were RMB 20.5 billion ($2.98 billion), decreasing 17% year over year, primarily due to the decrease in channel spending, promotional marketing and personnel-related expenses.

Research and development expenses were RMB 23.3 billion ($3.38 billion), decreasing 7% year over year, primarily due to the decrease in personnel-related expenses.

Operating income was RMB 15.9 billion ($2.31 billion). Baidu Core operating income was RMB 14.5 billion ($2.11 billion), and Baidu Core operating margin was 15%. Non-GAAP operating income was RMB 23.2 billion ($3.36 billion). Non-GAAP Baidu Core operating income was RMB 20.9 billion ($3.04 billion), and non-GAAP Baidu Core operating margin was 22%.

Total other loss, net was RMB 5.8 billion ($841 million), which mainly included a fair value loss of RMB 3.9 billion and an impairment loss of RMB 3.0 billion from long-term investments. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies and private equity funds, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods. Total other income, net was RMB 260 million for 2021, which mainly included a fair value gain of RMB 3.1 billion and an impairment loss of RMB 4.3 billion from long-term investments.

Income tax expense was RMB 2.6 billion ($374 million), decreasing 19% year over year, primarily due to deferred tax benefit recognized on fair value loss of long-term investments in 2022 whereas the Company had deferred tax expense recognized on fair value gain of long-term investments in 2021.

Net income attributable to Baidu was RMB 7.6 billion ($1.10 billion), and diluted earnings per ADS was RMB 19.85 ($2.88). Net income attributable to Baidu Core was RMB 7.6 billion ($1.10 billion), and net margin for Baidu Core was 8%. Non-GAAP net income attributable to Baidu was RMB 20.7 billion ($3.00 billion), and non-GAAP diluted earnings per ADS amounted to RMB 58.93 ($8.54). Non-GAAP net income attributable to Baidu Core was RMB 19.9 billion ($2.89 billion), and non-GAAP net margin for Baidu Core was 21%.

Adjusted EBITDA was RMB 29.7 billion ($4.30 billion) and adjusted EBITDA margin was 24%. Adjusted EBITDA to Baidu Core was RMB 27.1 billion ($3.93 billion) and adjusted EBITDA margin for Baidu Core was 28%. 

Free cash flow was RMB 17.9 billion ($2.59 billion), and free cash flow excluding iQIYI was RMB 18.1 billion ($2.63 billion).

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30AM on February 22, 2023, U.S. Eastern Time (8.30PM on February 22, 2023, 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. Q4 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/10028709-re5fs4.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, 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

Twelve Months Ended

December 31,

September 30,

December 31,

December 31,

December 31,

December 31,

December 31,

2021

2022

2022

2022

2021

2022

2022

RMB

RMB

RMB

US$(2)

RMB

RMB

US$(2)

 Revenues: 

 Online marketing services 

20,723

19,943

19,571

2,838

80,695

74,711

10,832

 Others 

12,365

12,597

13,506

1,958

43,798

48,964

7,099

 Total revenues  

33,088

32,540

33,077

4,796

124,493

123,675

17,931

 Costs and expenses: 

     Cost of revenues(1)

17,289

16,273

16,945

2,457

64,314

63,935

9,269

     Selling, general and administrative(1)

6,451

5,193

5,881

853

24,723

20,514

2,975

     Research and development(1)

7,390

5,757

5,658

820

24,938

23,315

3,380

 Total costs and expenses 

31,130

27,223

28,484

4,130

113,975

107,764

15,624

 Operating income 

1,958

5,317

4,593

666

10,518

15,911

2,307

 Other income (loss): 

 Interest income 

1,514

1,619

1,647

239

5,551

6,245

905

 Interest expense 

(873)

(724)

(738)

(107)

(3,421)

(2,913)

(422)

 Foreign exchange (loss) gain, net 

(27)

(806)

(338)

(49)

100

(1,484)

(215)

 Share of losses from equity method investments 

(773)

(376)

(523)

(76)

(932)

(1,910)

(277)

 Others, net 

566

(4,483)

1,733

251

(1,038)

(5,737)

(832)

 Total other income (loss), net 

407

(4,770)

1,781

258

260

(5,799)

(841)

 Income before income taxes 

2,365

547

6,374

924

10,778

10,112

1,466

 Income tax expense 

1,295

908

1,254

181

3,187

2,578

374

 Net income (loss)  

1,070

(361)

5,120

743

7,591

7,534

1,092

 Net (loss) income attributable to noncontrolling interests 

(645)

(215)

167

25

(2,635)

(25)

(4)

 Net income (loss) attributable to Baidu 

1,715

(146)

4,953

718

10,226

7,559

1,096

Earnings (loss) per ADS (1 ADS representing 8 Class A ordinary shares):

 -Basic

4.57

(0.87)

13.73

1.99

28.64

20.02

2.90

 -Diluted

4.51

(0.87)

13.59

1.97

28.07

19.85

2.88

Earnings (loss) per share for Class A and Class B ordinary shares:

 -Basic

0.57

(0.11)

1.72

0.25

3.58

2.50

0.36

 -Diluted

0.56

(0.11)

1.70

0.25

3.51

2.48

0.36

Weighted average number of Class A and Class B ordinary shares outstanding  (in millions):

 -Basic 

2,780

2,790

2,789

2,789

2,758

2,782

2,782

 -Diluted

2,816

2,790

2,801

2,801

2,814

2,809

2,809

(1)  Includes share-based compensation expenses as follows:

 Cost of revenues 

134

84

158

23

399

409

59

 Selling, general and administrative 

533

480

450

65

1,840

1,750

253

 Research and development 

1,426

1,039

1,233

179

4,817

4,629

672

 Total share-based compensation expenses 

2,093

1,603

1,841

267

7,056

6,788

984

(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 6.8972 to US$1.00, the exchange rate in effect as of December 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,

December 31,

December 31,

2021

2022

2022

RMB

RMB

US$

ASSETS

    Current assets:

 Cash and cash equivalents

36,850

53,156

7,707

 Restricted cash

10,821

11,330

1,643

 Short-term investments, net

143,243

120,839

17,520

 Accounts receivable, net

9,981

11,733

1,701

 Amounts due from related parties

1,368

5,432

788

 Other current assets, net

11,052

10,360

1,501

    Total current assets

213,315

212,850

30,860

    Non-current assets:

 Fixed assets, net

23,027

23,973

3,476

 Licensed copyrights, net

7,258

6,841

992

 Produced content, net

10,951

13,002

1,885

 Intangible assets, net

1,689

1,254

182

 Goodwill

22,605

22,477

3,259

 Long-term investments, net

59,418

55,297

8,017

 Long-term time deposits and held-to-maturity investments

7,914

23,629

3,426

 Amounts due from related parties

3,487

60

9

 Deferred tax assets, net

2,372

2,129

309

 Operating lease right-of-use assets

12,065

10,365

1,503

 Other non-current assets

15,933

19,096

2,768

    Total non-current assets

166,719

178,123

25,826

Total assets

380,034

390,973

56,686

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

   Current liabilities:

      Short-term loans

4,168

5,343

775

Accounts payable and accrued liabilities

41,384

38,014

5,512

Customer deposits and deferred revenue

13,706

13,116

1,902

Deferred income

97

72

10

Long-term loans, current portion

2

Convertible senior notes, current portion

8,305

1,204

Notes payable, current portion

10,505

6,904

1,001

Amounts due to related parties

1,764

5,067

735

Operating lease liabilities

2,862

2,809

407

    Total current liabilities

74,488

79,630

11,546

    Non-current liabilities:

Deferred income

129

159

23

Deferred revenue

223

331

48

Amounts due to related parties

3,268

99

14

Long-term loans

12,629

13,722

1,990

Notes payable

43,120

39,893

5,784

Convertible senior notes

12,652

9,568

1,387

Deferred tax liabilities

3,286

2,898

420

Operating lease liabilities

5,569

4,810

697

Other non-current liabilities

718

2,058

299

    Total non-current liabilities

81,594

73,538

10,662

Total liabilities

156,082

153,168

22,208

Redeemable noncontrolling interests

7,148

8,393

1,217

Equity

    Total Baidu shareholders’ equity

211,459

223,478

32,401

    Noncontrolling interests

5,345

5,934

860

Total equity

216,804

229,412

33,261

Total liabilities, redeemable noncontrolling interests, and equity

380,034

390,973

56,686

 

Baidu, Inc. 

Selected Information

(In millions, unaudited)

Three months ended
December 31, 2021 (RMB)

Three months ended
September 30, 2022 (RMB)

Three months ended
December 31, 2022 (RMB)

Three months ended
December 31, 2022, 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 

25,978

7,389

(279)

33,088

25,239

7,471

(170)

32,540

25,654

7,593

(170)

33,077

3,719

1,101

(24)

4,796

  YOY

(1 %)

3 %

(0 %)

  QOQ

2 %

2 %

2 %

Costs and expenses: 

  Cost of revenues (1)

11,017

6,507

(235)

17,289

10,745

5,705

(177)

16,273

11,712

5,405

(172)

16,945

1,699

784

(26)

2,457

  Selling, general and administrative (1)

5,377

1,093

(19)

6,451

4,231

980

(18)

5,193

4,969

939

(27)

5,881

720

136

(3)

853

  Research and development (1)

6,626

764

7,390

5,281

476

5,757

5,191

467

5,658

752

68

820

Total costs and expenses 

23,020

8,364

(254)

31,130

20,257

7,161

(195)

27,223

21,872

6,811

(199)

28,484

3,171

988

(29)

4,130

  YOY 

  Cost of revenues 

6 %

(17 %)

(2 %)

  Selling, general and administrative 

(8 %)

(14 %)

(9 %)

  Research and development 

(22 %)

(39 %)

(23 %)

  Cost and expenses

(5 %)

(19 %)

(8 %)

Operating income (loss)

2,958

(975)

(25)

1,958

4,982

310

25

5,317

3,782

782

29

4,593

548

113

5

666

  YOY

28 %

135 %

  QOQ

(24 %)

152 %

(14 %)

Operating margin 

11 %

(13 %)

6 %

20 %

4 %

16 %

15 %

10 %

14 %

  Add: total other income (loss), net

1,161

(754)

407

(4,108)

(662)

(4,770)

2,271

(490)

1,781

329

(71)

258

  Less: income tax expense (benefit)

1,258

37

1,295

866

42

908

1,265

(11)

1,254

183

(2)

181

  Less: net income (loss) attributable to NCI

205

10

(860)

(3)

(645)

(17)

1

(199)

(3)

(215)

15

(1)

153

(3)

167

2

23

(3)

25

Net income (loss) attributable to Baidu

2,656

(1,776)

835

1,715

25

(395)

224

(146)

4,773

304

(124)

4,953

692

44

(18)

718

  YOY

80 %

189 %

  QOQ

18992 %

Net margin 

10 %

(24 %)

5 %

0 %

(5 %)

(0 %)

19 %

4 %

15 %

Non-GAAP financial measures:

Operating income (loss) (non-GAAP)

4,847

(515)

4,307

6,650

525

7,200

5,491

977

6,497

796

141

942

  YOY

13 %

51 %

  QOQ

(17 %)

86 %

(10 %)

Operating margin (non-GAAP)

19 %

(7 %)

13 %

26 %

7 %

22 %

21 %

13 %

20 %

Net income (loss) attributable to Baidu (non-GAAP)

4,625

(1,001)

4,084

5,767

187

5,889

4,915

856

5,371

713

124

779

  YOY

6 %

32 %

  QOQ

(15 %)

358 %

(9 %)

Net margin (non-GAAP)

18 %

(14 %)

12 %

23 %

3 %

18 %

19 %

11 %

16 %

Adjusted EBITDA

6,210

(428)

5,757

8,239

615

8,879

7,146

1,056

8,231

1,036

152

1,193

  YOY

15 %

43 %

  QOQ

(13 %)

72 %

(7 %)

Adjusted EBITDA margin 

24 %

(6 %)

17 %

33 %

8 %

27 %

28 %

14 %

25 %

(1)  Includes share-based compensation as follows:

 Cost of revenues 

90

44

134

45

39

84

122

36

158

18

5

23

 Selling, general and administrative 

396

137

533

375

105

480

355

95

450

51

14

65

 Research and development 

1,343

83

1,426

978

61

1,039

1,177

56

1,233

171

8

179

 Total share-based compensation 

1,829

264

2,093

1,398

205

1,603

1,654

187

1,841

240

27

267

 (2) Relates to intersegment eliminations and adjustments 

 (3) Relates to the net income/(loss) attributable to iQIYI noncontrolling interests 

 

Baidu, Inc. 

Selected Information

(In millions except for per ADS information, unaudited)

Twelve months ended
December 31, 2021 (RMB)

Twelve months ended
December 31, 2022 (RMB)

Twelve months ended
December 31, 2022 (US$)

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Baidu
Core

iQIYI

Elim &
adj(2)

Baidu,
Inc.

Total revenues 

95,163

30,554

(1,224)

124,493

95,431

28,998

(754)

123,675

13,836

4,204

(109)

17,931

  YOY

0 %

(5 %)

(1 %)

Costs and expenses: 

  Cost of revenues (1)

37,838

27,513

(1,037)

64,314

42,378

22,321

(764)

63,935

6,144

3,236

(111)

9,269

  Selling, general and administrative (1)

20,040

4,725

(42)

24,723

17,103

3,466

(55)

20,514

2,480

503

(8)

2,975

  Research and development (1)

22,143

2,795

24,938

21,416

1,899

23,315

3,105

275

3,380

Total costs and expenses 

80,021

35,033

(1,079)

113,975

80,897

27,686

(819)

107,764

11,729

4,014

(119)

15,624

  YOY 

  Cost of revenues 

12 %

(19 %)

(1 %)

  Selling, general and administrative 

(15 %)

(27 %)

(17 %)

  Research and development 

(3 %)

(32 %)

(7 %)

  Cost and expenses

1 %

(21 %)

(5 %)

Operating income (loss)

15,142

(4,479)

(145)

10,518

14,534

1,312

65

15,911

2,107

190

10

2,307

  YOY

(4 %)

(129 %)

51 %

Operating margin 

16 %

(15 %)

8 %

15 %

5 %

13 %

  Add: total other income (loss),net

1,793

(1,533)

260

(4,453)

(1,346)

(5,799)

(646)

(195)

(841)

  Less: income tax expense

3,090

97

3,187

2,494

84

2,578

362

12

374

  Less: net income (loss) attributable to NCI

288

61

(2,984)

(3)

(2,635)

36

18

(79)

(3)

(25)

4

3

(11)

(3)

(4)

Net income (loss) attributable to Baidu

13,557

(6,170)

2,839

10,226

7,551

(136)

144

7,559

1,095

(20)

21

1,096

  YOY

(44 %)

(98 %)

(26 %)

Net margin 

14 %

(20 %)

8 %

8 %

(0 %)

6 %

Non-GAAP financial measures:

Operating income (loss) (non-GAAP)

22,201

(3,026)

19,030

20,948

2,173

23,186

3,037

315

3,362

  YOY

(6 %)

22 %

Operating margin (non-GAAP)

23 %

(10 %)

15 %

22 %

7 %

19 %

Net income (loss) attributable to Baidu (non-GAAP)

21,292

(4,487)

18,830

19,935

1,284

20,680

2,890

186

2,998

  YOY

(6 %)

10 %

Net margin (non-GAAP)

22 %

(15 %)

15 %

21 %

4 %

17 %

Adjusted EBITDA

27,682

(2,623)

24,914

27,088

2,510

29,663

3,927

364

4,301

  YOY

(2 %)

19 %

Adjusted EBITDA margin 

29 %

(9 %)

20 %

28 %

9 %

24 %

(1)  Includes share-based compensation as follows:

 Cost of revenues 

226

173

399

261

148

409

38

21

59

 Selling, general and administrative 

1,122

718

1,840

1,326

424

1,750

192

61

253

 Research and development 

4,489

328

4,817

4,390

239

4,629

637

35

672

 Total share-based compensation 

5,837

1,219

7,056

5,977

811

6,788

867

117

984

 (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 

December 31, 2021 (RMB)

September 30, 2022 (RMB)

December 31, 2022 (RMB)

December 31, 2022 (US$)

 Baidu excl. iQIYI

iQIYI

Baidu, Inc.

 Baidu excl. iQIYI

iQIYI

Baidu, Inc.

 Baidu excl. iQIYI

iQIYI

Baidu, Inc.

 Baidu excl. iQIYI

iQIYI

Baidu, Inc.

Net cash provided by (used in) operating
activities

5,809

(1,095)

4,714

8,543

196

8,739

6,999

854

7,853

1,015

124

1,139

Net cash (used in) provided by investing activities 

(50)

2,097

2,047

7,603

407

8,010

(5,902)

579

(5,323)

(856)

84

(772)

Net cash (used in) provided by financing activities

(4,662)

(5,239)

(9,901)

(5,967)

(106)

(6,073)

(5,124)

2,862

(2,262)

(743)

415

(328)

Effect of exchange rate changes on cash, cash
equivalents and restricted cash

(589)

(74)

(663)

1,980

60

2,040

(1,420)

(9)

(1,429)

(206)

(1)

(207)

Net increase (decrease) in cash, cash
equivalents and restricted cash 

508

(4,311)

(3,803)

12,159

557

12,716

(5,447)

4,286

(1,161)

(790)

622

(168)

Cash, cash equivalents and restricted cash

  At beginning of period

44,088

7,386

51,474

50,662

3,019

53,681

62,821

3,576

66,397

9,109

518

9,627

  At end of period

44,596

3,075

47,671

62,821

3,576

66,397

57,374

7,862

65,236

8,319

1,140

9,459

Net cash provided by (used in) operating
activities

5,809

(1,095)

4,714

8,543

196

8,739

6,999

854

7,853

1,015

124

1,139

Less: Capital expenditures

(4,213)

(24)

(4,237)

(2,140)

(48)

(2,188)

(1,920)

(9)

(1,929)

(279)

(1)

(280)

Free cash flow

1,596

(1,119)

477

6,403

148

6,551

5,079

845

5,924

736

123

859

Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI’s consolidated cash flows.

 

Baidu, Inc. 

Condensed Consolidated Statements of Cash Flows

(In millions,unaudited)

Twelve months ended

Twelve months ended

Twelve months ended

December 31, 2021 (RMB)

December 31, 2022 (RMB)

December 31, 2022 (US$)

 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

26,074

(5,952)

20,122

26,241

(71)

26,170

3,804

(10)

3,794

Net cash (used in) provided by investing activities 

(32,706)

1,262

(31,444)

(4,210)

266

(3,944)

(611)

39

(572)

Net cash provided by (used in) financing activities

26,355

(2,959)

23,396

(10,859)

4,469

(6,390)

(1,574)

648

(926)

Effect of exchange rate changes on cash, cash
equivalents and restricted cash

(726)

(217)

(943)

1,606

123

1,729

233

18

251

Net increase (decrease) in cash, cash
equivalents and restricted cash 

18,997

(7,866)

11,131

12,778

4,787

17,565

1,852

695

2,547

Cash, cash equivalents and restricted cash

  At beginning of period

25,599

10,941

36,540

44,596

3,075

47,671

6,466

446

6,912

  At end of period

44,596

3,075

47,671

57,374

7,862

65,236

8,318

1,141

9,459

Net cash provided by (used in) operating
activities

26,074

(5,952)

20,122

26,241

(71)

26,170

3,804

(10)

3,794

Less: Capital expenditures

(10,634)

(262)

(10,896)

(8,112)

(174)

(8,286)

(1,176)

(25)

(1,201)

Free cash flow

15,440

(6,214)

9,226

18,129

(245)

17,884

2,628

(35)

2,593

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 

December 31, 2021 (RMB)

September 30, 2022 (RMB)

December 31, 2022 (RMB)

December 31, 2022 (US$)

Baidu Core

iQIYI

Baidu, Inc.

Baidu Core

iQIYI

Baidu, Inc.

Baidu Core

iQIYI

Baidu, Inc.

Baidu Core

iQIYI

Baidu, Inc.

Operating income (loss)

2,958

(975)

1,958

4,982

310

5,317

3,782

782

4,593

548

113

666

Add: Share-based compensation expenses

1,829

264

2,093

1,398

205

1,603

1,654

187

1,841

240

27

267

Add: Amortization and impairment of intangible assets(1)

60

17

77

56

10

66

55

8

63

8

1

9

Add: Contingent loss(5)

214

214

Add: iQIYI non-recurring employee severance costs(6)

179

179

Operating income (loss) (non-GAAP)

4,847

(515)

4,307

6,650

525

7,200

5,491

977

6,497

796

141

942

Add: Depreciation of fixed assets

1,363

87

1,450

1,589

90

1,679

1,655

79

1,734

240

11

251

Adjusted EBITDA

6,210

(428)

5,757

8,239

615

8,879

7,146

1,056

8,231

1,036

152

1,193

Net income (loss) attributable to Baidu

2,656

(1,776)

1,715

25

(395)

(146)

4,773

304

4,953

692

44

718

Add: Share-based compensation expenses

1,805

264

1,941

1,394

205

1,497

1,654

187

1,748

240

27

253

Add: Amortization and impairment of intangible assets(1)

55

17

65

50

10

56

50

8

55

7

1

8

Add: Disposal (gain) loss

(6)

(6)

(484)

62

(453)

(70)

9

(66)

Add: Impairment of long-term investments

752

139

824

1,042

376

1,230

318

271

453

46

39

66

Add: Fair value (gain) loss of long-term investments

(1,339)

2

(1,337)

3,149

(27)

3,135

(1,662)

8

(1,658)

(241)

1

(240)

Add: Reconciling items on equity method investments(2)

430

177

521

237

16

245

377

18

386

55

3

56

Add: Charitable donation from Baidu(4)

50

50

Add: Contingent loss(5)

214

214

Add: iQIYI non-recurring employee severance costs(6)

179

92

Add: Tax effects on non-GAAP adjustments(3)

216

(3)

213

(338)

2

(336)

(111)

(2)

(113)

(16)

(16)

Net income (loss) attributable to Baidu (non-GAAP)

4,625

(1,001)

4,084

5,767

187

5,889

4,915

856

5,371

713

124

779

Diluted earnings (loss) per ADS

4.51

(0.87)

13.59

1.97

Add:  Accretion of the redeemable noncontrolling interests

0.36

0.45

0.46

0.07

Add:  Non-GAAP adjustments to earnings per ADS

6.73

17.29

1.20

0.17

Diluted earnings per ADS (non-GAAP)

11.60

16.87

15.25

2.21

(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 tax impact of all non-GAAP adjustments.

(4) This represents non-recurring charitable donations to discrete events.

(5) This represents contingent loss pertaining to legal proceedings involving former advertising agency.

(6) This represents non-recurring employee severance costs in relation to the iQIYI employee optimization program incurred in 2021.

 

Baidu, Inc. 

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

(In millions except for per ADS information, unaudited)

Twelve months ended

Twelve months ended

Twelve months ended

December 31, 2021 (RMB)

December 31, 2022 (RMB)

December 31, 2022 (US$)

Baidu Core

iQIYI

Baidu, Inc.

Baidu Core

iQIYI

Baidu, Inc.

Baidu Core

iQIYI

Baidu, Inc.

Operating income (loss)

15,142

(4,479)

10,518

14,534

1,312

15,911

2,107

190

2,307

Add:  Share-based compensation expenses

5,837

1,219

7,056

5,977

811

6,788

867

117

984

Add:  Amortization and impairment of intangible assets(1)

246

55

301

223

50

273

32

8

40

Add:  Contingent loss(5)

976

976

214

214

31

31

Add:  iQIYI non-recurring employee severance costs(6)

179

179

Operating income (loss) (non-GAAP)

22,201

(3,026)

19,030

20,948

2,173

23,186

3,037

315

3,362

Add:  Depreciation of fixed assets

5,481

403

5,884

6,140

337

6,477

890

49

939

Adjusted EBITDA

27,682

(2,623)

24,914

27,088

2,510

29,663

3,927

364

4,301

Net income (loss) attributable to Baidu

13,557

(6,170)

10,226

7,551

(136)

7,559

1,095

(20)

1,096

Add: Share-based compensation expenses

5,814

1,219

6,444

5,964

811

6,371

865

118

924

Add: Amortization and impairment of intangible assets(1)

220

55

251

200

50

229

29

7

33

Add: Disposal (gain)

(45)

(28)

(515)

(368)

(700)

(76)

(53)

(101)

Add: Impairment of long-term investments

4,144

170

4,232

2,180

841

2,601

316

122

377

Add: Fair value (gain) loss of long-term investments

(2,734)

(87)

(2,778)

3,977

(18)

3,968

577

(3)

575

Add: Reconciling items on equity method investments(2)

1,249

192

1,349

1,473

105

1,548

214

15

224

Add: Charitable donation from Baidu(4)

140

140

136

136

20

20

Add: Contingent loss(5)

976

976

214

214

31

31

Add:  iQIYI non-recurring employee severance costs(6)

179

92

Add: Tax effects on non-GAAP adjustments(3)

(2,074)

(2,074)

(1,245)

(1)

(1,246)

(181)

(181)

Net income (loss) attributable to Baidu (non-GAAP)

21,292

(4,487)

18,830

19,935

1,284

20,680

2,890

186

2,998

Diluted earnings per ADS

28.07

19.85

2.88

Add:  Accretion of the redeemable noncontrolling interests

1.00

1.68

0.24

Add:  Non-GAAP adjustments to earnings per ADS

24.46

37.40

5.42

Diluted earnings per ADS (non-GAAP)

53.53

58.93

8.54

(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 tax impact of all non-GAAP adjustments.

(4) This represents non-recurring charitable donations to discrete events.

(5) This represents contingent loss pertaining to legal proceedings involving former advertising agency.

(6) This represents non-recurring employee severance costs in relation to the iQIYI employee optimization program incurred in 2021.