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Baidu Announces Second Quarter 2015 Results
"With Baidu's cornerstone search business delivering solid growth and enjoying ample runway ahead, and with powerful mobile gateways to leverage, we are ideally positioned to capture the O2O e-commerce opportunity and build the 'Next Baidu'," said
"We delivered solid financial results in the second quarter of 2015, with our core search business exhibiting strong growth and attractive profitability," said
Second Quarter 2015 Operational Highlights
- Mobile search monthly active users (MAUs) were 629 million for the month of
June 2015 , an increase of 24% year-over-year - Mobile maps MAUs were 304 million for the month of
June 2015 , an increase of 48% year-over-year - Gross merchandise value[3] (GMV) for O2O services totaled
RMB40.5 billion ($6.5 billion ) for the second quarter of 2015, an increase of 109% year-over-year
Second Quarter 2015 Financial Highlights
- Total revenues in the second quarter of 2015 were
RMB16.575 billion ($2.673 billion ), a 38.3% increase from the corresponding period in 2014. Mobile revenue represented 50% of total revenues for the second quarter of 2015, flat from the first quarter of 2015. - Operating profit in the second quarter of 2015 was
RMB3.470 billion ($559.6 million ), a 2.5% decrease from the corresponding period in 2014. O2O & Other reduced operating margins by 25.3 percentage points and iQiyi reduced operating margins by 5.1 percentage points. - Net income attributable to
Baidu in the second quarter of 2015 wasRMB3.662 billion ($590.6 million ), a 3.3% increase from the corresponding period in 2014. Diluted earnings attributable toBaidu per ADS for the second quarter of 2015 wereRMB10.19 ($1.64) ; diluted earnings attributable toBaidu per ADS excluding share-based compensation expenses (non-GAAP) for the second quarter of 2015 wereRMB11.19 ($1.81) .
Second Quarter 2015 Results
Online marketing revenues for the second quarter of 2015 were
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
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
Outlook for Third Quarter 2015
Conference Call Information
Dial-in details for the earnings conference call are as follows:
International: |
+65 67135090 |
China |
4006208038 |
US: |
+1 8456750437 |
UK: |
+44 2030598139 |
Hong Kong: |
+852 30186771 |
Passcode for all regions: |
79830113 |
A replay of the conference call may be accessed by phone at the following number until August 4, 2015:
International: |
+61 2 8199 0299 |
Passcode: |
79830113 |
Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.
About
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 third quarter 2015 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: +86-10-5992-4958
Email: ir@baidu.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 RMB6.2000 to US$1.00, the effective noon buying rate as of June 30, 2015 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] |
O2O (online to offline) & Other includes Qunar, Baidu Nuomi, Baidu Takeout Delivery, Baidu Maps, Baidu Connect, Baidu Wallet and other products. |
[3] |
Gross merchandise value (GMV) for O2O services is defined as GMV generated by Qunar, Baidu Nuomi and Baidu Takeout Delivery. GMV generated by Qunar is defined as the value of confirmed orders of products and services, excluding cancellations. GMV generated by Baidu Nuomi and Baidu Takeout Delivery is defined as the value of confirmed orders of products and services, regardless of whether the service has been consumed or delivered. |
[4] |
The number of active online marketing customers and revenue per online active customer exclude those associated with our group-buying and takeout delivery related businesses for consistency with previous reporting. |
Baidu, Inc. |
|||||
Condensed Consolidated Statements of Income |
|||||
Three Months Ended |
|||||
June 30, |
June 30, |
March 31, |
|||
(In RMB thousands except for share, per share (or ADS) information) |
2015 |
2014 |
2015 |
||
Unaudited |
Unaudited |
Unaudited |
|||
Revenues: |
|||||
Online marketing services |
16,227,496 |
11,836,858 |
12,518,757 |
||
Other services |
347,742 |
148,924 |
205,859 |
||
Total revenues |
16,575,238 |
11,985,782 |
12,724,616 |
||
Operating costs and expenses: |
|||||
Cost of revenues (note 1, 2) |
(6,503,020) |
(4,541,422) |
(5,326,103) |
||
Selling, general and administrative (note 2) |
(3,889,844) |
(2,148,874) |
(2,956,867) |
||
Research and development (note 2) |
(2,712,681) |
(1,737,216) |
(2,286,333) |
||
Total operating costs and expenses |
(13,105,545) |
(8,427,512) |
(10,569,303) |
||
Operating profit |
3,469,693 |
3,558,270 |
2,155,313 |
||
Other income: |
|||||
Interest income |
612,523 |
463,802 |
561,213 |
||
Interest expense |
(213,522) |
(146,045) |
(199,128) |
||
Foreign exchange income, net |
5,396 |
81 |
8,992 |
||
Loss from equity method investments |
(2,417) |
(5,501) |
(7,979) |
||
Other income, net |
142,382 |
66,888 |
90,875 |
||
Total other income |
544,362 |
379,225 |
453,973 |
||
Income before income taxes |
4,014,055 |
3,937,495 |
2,609,286 |
||
Income taxes |
(762,951) |
(605,614) |
(541,000) |
||
Net income |
3,251,104 |
3,331,881 |
2,068,286 |
||
Less: net loss attributable to noncontrolling interests |
(410,909) |
(214,815) |
(380,994) |
||
Net income attributable to Baidu, Inc. |
3,662,013 |
3,546,696 |
2,449,280 |
||
Earnings per share for Class A and Class B ordinary shares: |
|||||
Net income attributable to Baidu, Inc.-Basic |
102.23 |
101.19 |
67.86 |
||
Net income attributable to Baidu, Inc.-Diluted |
101.86 |
100.91 |
67.57 |
||
Earnings per ADS (1 Class A ordinary share equals 10 ADSs): |
|||||
Net income attributable to Baidu, Inc.-Basic |
10.22 |
10.12 |
6.79 |
||
Net income attributable to Baidu, Inc.-Diluted |
10.19 |
10.09 |
6.76 |
||
Weighted average number of Class A and Class B ordinary shares outstanding: |
|||||
Basic |
35,141,734 |
35,050,662 |
35,112,842 |
||
Diluted |
35,268,366 |
35,148,579 |
35,267,371 |
||
(1) Cost of revenues are detailed as follows: |
|||||
Sales tax and surcharges |
(1,175,617) |
(872,086) |
(948,209) |
||
Traffic acquisition costs |
(2,111,734) |
(1,517,128) |
(1,721,629) |
||
Bandwidth costs |
(896,156) |
(700,473) |
(849,628) |
||
Depreciation costs |
(616,072) |
(461,927) |
(582,437) |
||
Operational costs |
(850,503) |
(627,052) |
(607,068) |
||
Content costs |
(840,223) |
(354,294) |
(608,420) |
||
Share-based compensation expenses |
(12,715) |
(8,462) |
(8,712) |
||
Total cost of revenues |
(6,503,020) |
(4,541,422) |
(5,326,103) |
||
(2) Includes share-based compensation expenses as follows: |
|||||
Cost of revenues |
(12,715) |
(8,462) |
(8,712) |
||
Selling, general and administrative |
(130,418) |
(97,030) |
(117,855) |
||
Research and development |
(211,592) |
(115,060) |
(164,509) |
||
Total share-based compensation expenses |
(354,725) |
(220,552) |
(291,076) |
||
Baidu, Inc. |
|||
Condensed Consolidated Balance Sheets |
|||
June 30 |
December 31 |
||
(In RMB thousands except for number of shares and per share data) |
2015 |
2014 |
|
Unaudited |
Audited |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
21,296,827 |
13,852,725 |
|
Restricted cash |
646,400 |
413,010 |
|
Short-term investments |
53,661,977 |
43,818,037 |
|
Accounts receivable, net |
3,804,167 |
3,664,447 |
|
Amounts due from related parties |
50 |
50 |
|
Deferred tax assets, net |
985,126 |
684,952 |
|
Other assets, current |
4,053,862 |
3,407,427 |
|
Total current assets |
84,448,409 |
65,840,648 |
|
Non-current assets: |
|||
Fixed assets, net |
9,863,213 |
8,705,364 |
|
Intangible assets, net |
3,633,241 |
3,574,359 |
|
Goodwill |
17,727,971 |
17,418,895 |
|
Long-term investments, net |
5,582,952 |
2,878,922 |
|
Deferred tax assets, net |
258,011 |
259,127 |
|
Other assets, non-current |
1,197,292 |
893,952 |
|
Total non-current assets |
38,262,680 |
33,730,619 |
|
Total assets |
122,711,089 |
99,571,267 |
|
LIABILITIES AND EQUITY |
|||
Current liabilities: |
|||
Short-term loans |
49,650 |
93,000 |
|
Accounts payable and accrued liabilities |
16,057,112 |
12,964,893 |
|
Customer advances and deposits |
4,691,757 |
4,296,440 |
|
Deferred revenue |
313,442 |
164,809 |
|
Deferred income |
522,625 |
518,543 |
|
Long-term loans, current portion |
2,171,870 |
2,167,405 |
|
Capital lease obligation |
48,768 |
57,346 |
|
Due to Related Parties, Current |
1,521 |
8,385 |
|
Total current liabilities |
23,856,745 |
20,270,821 |
|
Non-current liabilities: |
|||
Deferred income |
42,413 |
39,626 |
|
Long-term loans |
1,861,890 |
1,860,000 |
|
Notes payable |
31,795,845 |
21,556,782 |
|
Amounts due to related parties |
- |
8 |
|
Deferred tax liabilities |
1,107,326 |
1,143,821 |
|
Capital lease obligation |
27,159 |
50,079 |
|
Other Non Current Liabilities |
170,337 |
144,542 |
|
Total non-current liabilities |
35,004,970 |
24,794,858 |
|
Total liabilities |
58,861,715 |
45,065,679 |
|
Redeemable noncontrolling interests |
2,032,524 |
1,894,502 |
|
Equity |
|||
Class A Ordinary Shares, par value US$0.00005 per share, 825,000,000 shares authorized, and 27,613,315 shares and 27,657,626 shares issued and outstanding as at December 31, 2014 and June 30, 2015 |
12 |
12 |
|
Class B Ordinary Shares, par value US$0.00005 per share, 35,400,000 shares authorized, and 7,492,921 shares and 7,492,921 shares issued and outstanding as at December 31, 2014 and June 30, 2015 |
3 |
3 |
|
Additional paid-in capital |
5,497,383 |
3,633,919 |
|
Retained earnings |
53,619,055 |
47,659,772 |
|
Accumulated other comprehensive income (loss) |
1,028,775 |
231,923 |
|
Total Baidu, Inc. shareholders' equity |
60,145,228 |
51,525,629 |
|
Noncontrolling interests |
1,671,622 |
1,085,457 |
|
Total equity |
61,816,850 |
52,611,086 |
|
Total liabilities, redeemable noncontrolling interests, and equity |
122,711,089 |
99,571,267 |
|
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited) |
|||||||||
Three months ended June 30, 2014 |
Three months ended March 31, 2015 |
Three months ended June 30, 2015 |
|||||||
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
|
Operating profit |
3,558,270 |
220,552 |
3,778,822 |
2,155,313 |
291,076 |
2,446,389 |
3,469,693 |
354,725 |
3,824,418 |
Three months ended June 30, 2014 |
Three months ended March 31, 2015 |
Three months ended June 30, 2015 |
|||||||
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
|
Net income Inc. |
3,546,696 |
220,552 |
3,767,248 |
2,449,280 |
291,076 |
2,740,356 |
3,662,013 |
354,725 |
4,016,738 |
(*) The adjustment is only for share-based compensation. |
Reconciliation from net cash provided by operating activities to free cash flow (in RMB thousands, unaudited) |
||||||
Three months ended |
As a % of |
Three months ended |
As a % of |
Three months ended |
As a % of |
|
June 30, 2014 |
total revenues |
March 31, 2015 |
total revenues |
June 30, 2015 |
total revenues |
|
Net cash provided by operating activities |
4,127,577 |
34% |
2,839,481 |
22% |
5,727,404 |
35% |
Less: Capital expenditures |
(863,717) |
-7% |
(1,021,341) |
-8% |
(923,146) |
-6% |
Free cash flow |
3,263,860 |
27% |
1,818,140 |
14% |
4,804,258 |
29% |
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