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Baidu Announces Fourth Quarter and Fiscal Year 2013 Results
(Logo: http://photos.prnewswire.com/prnh/20081103/BAIDULOGO )
Fourth Quarter and Fiscal Year 2013 Highlights
- Total revenues in the fourth quarter of 2013 were
RMB9.523 billion ($1.573 billion ), a 50.3% increase from the corresponding period in 2012. - Total revenues in fiscal year 2013 were
RMB31.944 billion ($5.277 billion ), a 43.2% increase from 2012. - Operating profit in the fourth quarter of 2013 was
RMB2.740 billion ($452.6 million ), a 3.8% decrease from the corresponding period in 2012. - Operating profit in fiscal year 2013 was
RMB11.192 billion ($1.849 billion ), a 1.3% increase from 2012. - Net income attributable to
Baidu in the fourth quarter of 2013 wasRMB2.784 billion ($459.9 million ), a 0.4% decrease from the corresponding period in 2012. Diluted earnings attributable toBaidu per ADS for the fourth quarter of 2013 wereRMB7.90 ($1.30) ; diluted earnings attributable toBaidu per ADS excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2013 wereRMB8.40 ($1.39) . - Net income attributable to
Baidu in fiscal year 2013 wasRMB10.519 billion ($1.738 billion ), a 0.6% increase from 2012. Diluted earnings attributable toBaidu per ADS for the fiscal year 2013 wereRMB29.93 ($4.94) ; diluted earnings attributable toBaidu per ADS excluding share-based compensation expenses (non-GAAP) in fiscal year 2013 wereRMB31.40 ($5.19) .
"We're pleased to have finished a milestone year for
Mr. Li continued, "Building out our platform to capture the huge opportunities ahead remains our focus for 2014. We are confident that
"We delivered solid top line growth in 2013, and the increasing revenue contribution from mobile over the last several quarters has been especially encouraging," commented
Fourth Quarter 2013 Results
Online marketing revenues for the fourth quarter of 2013 were
Revenue per online marketing customer for the fourth quarter of 2013 was approximately
Traffic acquisition cost as a component of cost of revenues was
Bandwidth costs as a component of cost of revenues were
Content costs as a component of cost of revenues were
Selling, general and administrative expenses were
Research and development expenses were
Share-based compensation expenses, which were allocated to related operating costs and expense line items, were
Operating profit was
Income tax expense was
Net income attributable to
Net income attributable to
As of
Net operating cash inflow for the fourth quarter of 2013 was RMB4.107 billion (
Adjusted EBITDA (non-GAAP), defined in this announcement as earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses, was
Fiscal Year 2013 Results
Total revenues in 2013 were
Online marketing revenues in 2013 were
Traffic acquisition costs in 2013 were
Bandwidth costs as a component of cost of revenues were
Content costs as a component of cost of revenues were
Selling, general and administrative expenses in 2013 were
Research and development expenses totaled
Share-based compensation expenses, which were allocated to related operating cost and expense line items, were
Operating profit in 2013 was
Income tax expense was
Net income attributable to
Net income attributable to
Net operating cash inflow in 2013 was RMB 13.793 billion (
Adjusted EBITDA (non-GAAP) was
Outlook for First Quarter 2014
Conference Call Information
Dial-in details for the earnings conference call are as follows:
International: |
+65-6723-9381 |
U.S.: |
+1-845-675-0437 |
UK: |
+44-20-3059-8139 |
Hong Kong: |
+852-2475-0994 |
Passcode for all regions: |
52281034 |
A replay of the conference call may be accessed by phone at the following number until
International: |
+61-2-8199-0299 |
Passcode: |
52281034 |
Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.
About
Baidu, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best and most equitable way for people to find what they're looking for. In addition to serving individual Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu's ADSs trade on the NASDAQ Global Select Market under the symbol "BIDU". Currently, ten ADSs represent one Class A ordinary share.
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 first quarter 2014 and quotations from management in this announcement, as well as
About Non-GAAP Financial Measures
To supplement
For investor and media inquiries, please contact:
Tel: +86-10-5992-3776
Email: ir@baidu.com
Brunswick Group LLC
Tel: +86-10-5960-8600
Email: baidu@brunswickgroup.com
U.S.
Brunswick Group
Tel: +1-212-333-3810
Email: baidu@brunswickgroup.com
[1] |
This announcement contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.0537 to US$1.00, the effective noon buying rate as of December 31, 2013, in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. |
[2] |
The number of active online marketing customers and revenue per online active customer exclude our group-buying related businesses for consistency with previous reporting. |
Baidu, Inc. |
||||||||
Condensed Consolidated Statements of Income |
||||||||
Three Months Ended |
Twelve Months Ended |
|||||||
December 31, |
December 31, |
September 30, |
December 31, |
December 31, |
||||
(In RMB thousands except for share, per share (or ADS) information) |
2013 |
2012 |
2013 |
2013 |
2012 |
|||
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Audited |
||||
Revenues: |
||||||||
Online marketing services |
9,462,202 |
6,287,549 |
8,847,987 |
31,802,219 |
22,245,643 |
|||
Other services |
60,711 |
47,797 |
43,671 |
141,705 |
60,383 |
|||
Total revenues |
9,522,913 |
6,335,346 |
8,891,658 |
31,943,924 |
22,306,026 |
|||
Operating costs and expenses: |
||||||||
Cost of revenues (note 1, 2) |
(3,656,489) |
(1,993,313) |
(3,078,969) |
(11,471,839) |
(6,448,545) |
|||
Selling, general and administrative (note 2) |
(1,862,966) |
(792,373) |
(1,384,399) |
(5,173,533) |
(2,501,336) |
|||
Research and development (note 2) |
(1,263,835) |
(701,575) |
(1,090,549) |
(4,106,832) |
(2,304,825) |
|||
Total operating costs and expenses |
(6,783,290) |
(3,487,261) |
(5,553,917) |
(20,752,204) |
(11,254,706) |
|||
Operating profit |
2,739,623 |
2,848,085 |
3,337,741 |
11,191,720 |
11,051,320 |
|||
Other income: |
||||||||
Interest income |
367,922 |
252,556 |
348,822 |
1,308,542 |
866,465 |
|||
Interest expense |
(148,207) |
(33,012) |
(118,381) |
(447,084) |
(107,857) |
|||
Foreign exchange loss, net |
(40,861) |
(3,028) |
(676) |
(48,379) |
(4,533) |
|||
Income (loss) from equity method investments |
(651) |
(121,719) |
215 |
(5,806) |
(294,229) |
|||
Other income, net |
115,399 |
380,545 |
36,815 |
186,023 |
454,271 |
|||
Total other income |
293,602 |
475,342 |
266,795 |
993,296 |
914,117 |
|||
Income before income taxes |
3,033,225 |
3,323,427 |
3,604,536 |
12,185,016 |
11,965,437 |
|||
Income taxes |
(338,832) |
(539,909) |
(588,067) |
(1,828,930) |
(1,574,159) |
|||
Net income |
2,694,393 |
2,783,518 |
3,016,469 |
10,356,086 |
10,391,278 |
|||
Less: net loss attributable to noncontrolling interests |
(89,870) |
(11,964) |
(31,512) |
(162,880) |
(64,750) |
|||
Net income attributable to Baidu, Inc. |
2,784,263 |
2,795,482 |
3,047,981 |
10,518,966 |
10,456,028 |
|||
Earnings per share for Class A and Class B ordinary shares: |
||||||||
Net income attributable to Baidu, Inc.-Basic |
79.22 |
79.96 |
86.47 |
299.75 |
298.62 |
|||
Net income attributable to Baidu, Inc.-Diluted |
78.99 |
79.91 |
86.34 |
299.32 |
298.29 |
|||
Earnings per ADS (1 Class A ordinary share equals 10 ADSs ): |
||||||||
Net income attributable to Baidu, Inc.-Basic |
7.92 |
8.00 |
8.65 |
29.98 |
29.86 |
|||
Net income attributable to Baidu, Inc.-Diluted |
7.90 |
7.99 |
8.63 |
29.93 |
29.83 |
|||
Weighted average number of Class A and Class B ordinary shares outstanding: |
||||||||
Basic |
35,013,458 |
34,963,019 |
34,985,689 |
34,986,228 |
34,939,838 |
|||
Diluted |
35,117,726 |
34,983,115 |
35,041,729 |
35,036,346 |
34,979,459 |
|||
(1) Cost of revenues are detailed as follows: |
||||||||
Sales tax and surcharges |
(702,336) |
(442,709) |
(649,496) |
(2,329,558) |
(1,572,420) |
|||
Traffic acquisition costs |
(1,175,929) |
(606,809) |
(1,038,641) |
(3,704,146) |
(1,929,966) |
|||
Bandwidth costs |
(563,709) |
(337,194) |
(512,644) |
(1,938,520) |
(1,069,306) |
|||
Depreciation costs |
(410,164) |
(317,488) |
(369,403) |
(1,469,646) |
(1,062,060) |
|||
Operational costs |
(433,478) |
(164,412) |
(280,204) |
(1,175,624) |
(589,555) |
|||
Content costs |
(361,702) |
(120,337) |
(222,224) |
(830,369) |
(215,133) |
|||
Share-based compensation expenses |
(9,171) |
(4,364) |
(6,357) |
(23,976) |
(10,105) |
|||
Total cost of revenues |
(3,656,489) |
(1,993,313) |
(3,078,969) |
(11,471,839) |
(6,448,545) |
|||
(2) Includes share-based compensation expenses as follows: |
||||||||
Cost of revenues |
(9,171) |
(4,364) |
(6,357) |
(23,976) |
(10,105) |
|||
Selling, general and administrative |
(63,861) |
(4,423) |
(49,167) |
(164,704) |
(54,512) |
|||
Research and development |
(104,319) |
(57,778) |
(87,620) |
(326,047) |
(147,692) |
|||
Total share-based compensation expenses |
(177,351) |
(66,565) |
(143,144) |
(514,727) |
(212,309) |
Baidu, Inc. |
|||
Condensed Consolidated Balance Sheets |
|||
December 31 |
December 31 |
||
(In RMB thousands except for number of shares and per share data) |
2013 |
2012 |
|
Unaudited |
Audited |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
9,691,797 |
11,880,632 |
|
Restricted cash |
259,533 |
395,029 |
|
Short-term investments |
28,734,761 |
20,604,223 |
|
Accounts receivable, net |
2,220,846 |
1,253,483 |
|
Amounts due from related parties |
104 |
- |
|
Deferred tax assets, net |
286,844 |
160,315 |
|
Other assets, current |
1,835,265 |
380,407 |
|
Total current assets |
43,029,150 |
34,674,089 |
|
Non-current assets: |
|||
Fixed assets, net |
5,370,268 |
3,887,877 |
|
Intangible assets, net |
3,630,315 |
1,587,665 |
|
Goodwill |
16,864,350 |
3,877,564 |
|
Long-term investments, net |
634,777 |
803,499 |
|
Amounts due from related parties |
370,916 |
- |
|
Deferred tax assets, net |
97,940 |
53,303 |
|
Other assets, non-current |
988,072 |
784,893 |
|
Total non-current assets |
27,956,638 |
10,994,801 |
|
Total assets |
70,985,788 |
45,668,890 |
|
LIABILITIES AND EQUITY |
|||
Current liabilities: |
|||
Accounts payable and accrued liabilities |
7,362,138 |
3,806,836 |
|
Customer advances and deposits |
2,977,872 |
2,067,586 |
|
Deferred revenue |
226,599 |
94,121 |
|
Deferred income |
77,287 |
64,506 |
|
Long-term loans, current portion |
343,625 |
2,170,978 |
|
Capital lease obligation |
44,907 |
32,502 |
|
Due to Related Parties, Current |
398 |
- |
|
Total current liabilities |
11,032,826 |
8,236,529 |
|
Non-current liabilities: |
|||
Deferred income |
376,491 |
190,000 |
|
Long-term loans |
2,112,359 |
356,589 |
|
Notes payable |
15,116,990 |
9,336,686 |
|
Amounts due to related parties |
373,227 |
- |
|
Deferred tax liabilities |
1,200,270 |
289,482 |
|
Capital lease obligation |
40,999 |
44,479 |
|
Other Non Current Liabilities |
67,376 |
- |
|
Total non-current liabilities |
19,287,712 |
10,217,236 |
|
Total liabilities |
30,320,538 |
18,453,765 |
|
Redeemable noncontrolling interests |
- |
1,033,283 |
|
Equity |
|||
Class A Ordinary Shares, par value US$0.00005 per share, |
12 |
12 |
|
Class B Ordinary Shares, par value US$0.00005 per share, |
3 |
3 |
|
Additional paid-in capital |
3,056,418 |
2,095,273 |
|
Retained earnings |
34,525,386 |
24,038,219 |
|
Accumulated other comprehensive income (loss) |
843,096 |
(78,278) |
|
Total Baidu, Inc. shareholders' equity |
38,424,915 |
26,055,229 |
|
Noncontrolling interests |
2,240,335 |
126,613 |
|
Total equity |
40,665,250 |
26,181,842 |
|
Total liabilities, redeemable noncontrolling interests, and equity |
70,985,788 |
45,668,890 |
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited) |
|||||||||||||||
Three months ended December 31, 2012 |
Three months ended September 30, 2013 |
Three months ended December 31, 2013 |
Twelve months ended December 31, 2012 |
Twelve months ended December 31, 2013 |
|||||||||||
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
|
Operating profit |
2,848,085 |
66,565 |
2,914,650 |
3,337,741 |
143,144 |
3,480,885 |
2,739,623 |
177,351 |
2,916,974 |
11,051,320 |
212,309 |
11,263,629 |
11,191,720 |
514,727 |
11,706,447 |
Three months ended December 31, 2012 |
Three months ended September 30, 2013 |
Three months ended December 31, 2013 |
Twelve months ended December 31, 2012 |
Twelve months ended December 31, 2013 |
|||||||||||
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
|
Net income |
2,795,482 |
66,565 |
2,862,047 |
3,047,981 |
143,144 |
3,191,125 |
2,784,263 |
177,351 |
2,961,614 |
10,456,028 |
212,309 |
10,668,337 |
10,518,966 |
514,727 |
11,033,693 |
(*) The adjustment is only for share-based compensation. |
Reconciliation from net cash provided by operating activities to adjusted EBITDA(*) (in RMB thousands, unaudited) |
||||||||||||
Three months ended |
As a % of |
Three months ended |
As a % of |
Three months ended |
As a % of |
Twelve months ended |
As a % of |
Twelve months ended |
As a % of |
|||
December 31, 2012 |
total revenues |
September 30, 2013 |
total revenues |
December 31, 2013 |
total revenues |
December 31, 2012 |
total revenues |
December 31, 2013 |
total revenues |
|||
Net cash provided by operating activities |
3,396,282 |
54% |
4,295,062 |
48% |
4,107,321 |
42% |
12,582,618 |
56% |
13,792,971 |
43% |
||
Changes in assets and liabilities, net of effects of acquisitions |
(136,513) |
-2% |
(618,730) |
-7% |
(589,598) |
-6% |
(545,055) |
-2% |
(810,058) |
-3% |
||
Income taxes expenses |
539,909 |
8% |
588,067 |
7% |
338,832 |
4% |
1,574,159 |
7% |
1,828,930 |
6% |
||
Interest income and other, net |
(475,342) |
-8% |
(266,795) |
-3% |
(293,602) |
-3% |
(914,117) |
-4% |
(993,296) |
-3% |
||
Adjusted EBITDA |
3,324,336 |
52% |
3,997,604 |
45% |
3,562,953 |
37% |
12,697,605 |
57% |
13,818,547 |
43% |
||
(*) Definition of adjusted EBITDA: earnings before interest, taxes, depreciation, amortization, other non-operating income, and share-based compensation expenses. |
SOURCE