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Baidu Announces Third Quarter 2012 Results
(Logo: http://photos.prnewswire.com/prnh/20081103/BAIDULOGO)
Third Quarter 2012 Highlights
- Total revenues in the third quarter of 2012 were
RMB6.251 billion ($994.6 million ), a 49.7% increase from the corresponding period in 2011. - Operating profit in the third quarter of 2012 was
RMB3.297 billion ($524.6 million ), a 48.1% increase from the corresponding period in 2011. - Net income attributable to
Baidu in the third quarter of 2012 wasRMB3.008 billion ($478.6 million ), a 59.8% increase from the corresponding period in 2011. Diluted earnings attributable toBaidu per ADS for the third quarter of 2012 wereRMB8.59 ($1.37) ; diluted earnings attributable toBaidu per ADS excluding share-based compensation expenses (non-GAAP) for the third quarter of 2012 wereRMB8.76 ($1.39) .
(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 RMB6.2848 to US$1.00, the effective noon buying rate as of September 28, 2012 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York. |
"We are pleased to report a solid performance for the third quarter driven by encouraging customer growth and improvements to our monetization platform," said
"During the quarter, we worked to improve user experience by more closely integrating
Third Quarter 2012 Results
Online marketing revenues for the third quarter of 2012 were
Traffic acquisition cost (TAC) as a component of cost of revenues was
Bandwidth 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 as earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses, was
Outlook for Fourth Quarter 2012
Conference Call Information
Dial-in details for the earnings conference call are as follows:
International: |
+65-6723-9381 |
US: |
+1-718-354-1231 |
UK: |
+44-20-3059-8139 |
Hong Kong: |
+852-2475-0994 |
Passcode for all regions: |
39526117 |
A replay of the conference call may be accessed by phone at the following number until
International: |
+61-2-8235-5000 |
Passcode: |
39526117 |
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 fourth quarter 2012 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: +86-10-5992-7244
Email: ir@baidu.com
Tel: +86-10-5960-8600
Email: baidu@brunswickgroup.com
U.S.
Tel: +1-415-671-7676
Email: baidu@brunswickgroup.com
Baidu, Inc. |
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Condensed Consolidated Statements of Income |
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For the Three Months Ended |
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September 30, |
September 30, |
June 30, |
|||
(In RMB thousands except for share, per share (or ADS) information) |
2012 |
2011 |
2012 |
||
Unaudited |
Unaudited |
Unaudited |
|||
Revenues: |
|||||
Online marketing services |
6,246,009 |
4,173,869 |
5,451,555 |
||
Other services |
4,711 |
1,596 |
4,677 |
||
Total revenues |
6,250,720 |
4,175,465 |
5,456,232 |
||
Operating costs and expenses: |
|||||
Cost of revenues (note 1, 2) |
(1,696,512) |
(1,106,218) |
(1,508,168) |
||
Selling, general and administrative (note 2) |
(642,788) |
(460,212) |
(587,626) |
||
Research and development (note 2) |
(614,541) |
(382,706) |
(545,549) |
||
Total operating costs and expenses |
(2,953,841) |
(1,949,136) |
(2,641,343) |
||
Operating profit |
3,296,879 |
2,226,329 |
2,814,889 |
||
Other income: |
|||||
Interest income, net |
204,328 |
97,938 |
177,800 |
||
Foreign exchange gain (loss), net |
(2,359) |
(2,343) |
864 |
||
Loss from equity method investments |
(69,312) |
(156,175) |
(57,331) |
||
Other income (loss), net |
29,656 |
27,457 |
47,581 |
||
Total other income |
162,313 |
(33,123) |
168,914 |
||
Income before income taxes |
3,459,192 |
2,193,206 |
2,983,803 |
||
Income taxes |
(467,699) |
(317,568) |
(235,355) |
||
Net income |
2,991,493 |
1,875,638 |
2,748,448 |
||
Less: Net loss attributable to noncontrolling interests |
(16,208) |
(5,993) |
(21,422) |
||
Net income attributable to Baidu, Inc. |
3,007,701 |
1,881,631 |
2,769,870 |
||
Earnings per share for Class A and Class B ordinary shares: |
|||||
Net income attributable to Baidu, Inc.-Basic |
86.02 |
53.92 |
78.70 |
||
Net income attributable to Baidu, Inc.-Diluted |
85.94 |
53.81 |
78.59 |
||
Earnings per ADS (1 Class A ordinary share equals 10 ADSs ): |
|||||
Net income attributable to Baidu, Inc.-Basic |
8.60 |
5.39 |
7.87 |
||
Net income attributable to Baidu, Inc.-Diluted |
8.59 |
5.38 |
7.86 |
||
Weighted average number of Class A and Class B ordinary shares outstanding: |
|||||
Basic |
34,946,375 |
34,898,813 |
34,931,905 |
||
Diluted |
34,979,732 |
34,967,620 |
34,982,601 |
||
(1) Cost of revenues are detailed as follows: |
|||||
Sales tax and surcharges |
(427,146) |
(302,855) |
(392,544) |
||
Traffic acquisition costs |
(538,192) |
(334,120) |
(453,687) |
||
Bandwidth costs |
(266,871) |
(165,710) |
(242,592) |
||
Depreciation costs |
(279,873) |
(176,906) |
(251,087) |
||
Operational costs |
(182,027) |
(124,829) |
(165,765) |
||
Share-based compensation expenses |
(2,403) |
(1,798) |
(2,493) |
||
Total cost of revenues |
(1,696,512) |
(1,106,218) |
(1,508,168) |
||
(2) Includes share-based compensation expenses as follows: |
|||||
Cost of revenues |
(2,403) |
(1,798) |
(2,493) |
||
Selling, general and administrative |
(18,294) |
(12,718) |
(17,800) |
||
Research and development |
(36,023) |
(24,845) |
(33,571) |
||
Total share-based compensation expenses |
(56,720) |
(39,361) |
(53,864) |
||
Baidu, Inc. |
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Condensed Consolidated Balance Sheets |
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September 30, |
December 31, |
||
(In RMB thousands except for number of shares and per share data) |
2012 |
2011 |
|
Unaudited |
Audited |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
2,574,160 |
4,127,482 |
|
Restricted cash |
422,068 |
483,387 |
|
Short-term investments |
18,713,157 |
10,051,578 |
|
Accounts receivable, net |
995,789 |
599,558 |
|
Due from related parties |
232,503 |
149,728 |
|
Deferred tax assets, net |
191,774 |
121,411 |
|
Other assets, current |
238,375 |
315,012 |
|
Total current assets |
23,367,826 |
15,848,156 |
|
Non-current assets: |
|||
Fixed assets, net |
3,729,489 |
2,744,241 |
|
Intangible assets, net |
899,437 |
928,511 |
|
Goodwill |
2,418,283 |
2,419,542 |
|
Long-term investments, net |
1,093,557 |
734,360 |
|
Due from related parties |
606,996 |
100,000 |
|
Deferred tax assets, net |
52,144 |
52,125 |
|
Other assets, non-current |
525,648 |
513,606 |
|
Total non-current assets |
9,325,554 |
7,492,385 |
|
Total assets |
32,693,380 |
23,340,541 |
|
LIABILITIES AND EQUITY |
|||
Less net loss attributable to noncontrolling interests |
|||
Short-term loans |
- |
125,878 |
|
Accounts payable and accrued liabilities |
3,144,258 |
2,545,445 |
|
Customer advances and deposits |
1,913,759 |
1,573,967 |
|
Deferred revenue |
38,982 |
62,705 |
|
Deferred income |
43,920 |
34,779 |
|
Due to related parties |
40,851 |
- |
|
Long-term loans, current portion |
2,281,618 |
46,000 |
|
Capital lease obligation |
37,030 |
17,773 |
|
Total current liabilities |
7,500,418 |
4,406,547 |
|
Non-current liabilities: |
|||
Deferred income |
223,516 |
19,942 |
|
Long-term loans |
25,000 |
2,277,925 |
|
Due to related parties |
447,934 |
148,873 |
|
Deferred tax liabilities |
220,301 |
131,629 |
|
Capital lease obligation |
52,800 |
30,112 |
|
Total non-current liabilities |
969,551 |
2,608,481 |
|
Total liabilities |
8,469,969 |
7,015,028 |
|
Redeemable noncontrolling interests |
945,066 |
935,978 |
|
Equity |
|||
Class A Ordinary Shares, par value US$0.00005 per share, 825,000,000 shares authorized, and 27,111,117 shares and 27,155,937 shares issued and outstanding as at December 31, 2011 and September 30, 2012 |
12 |
12 |
|
Class B Ordinary Shares, par value US$0.00005 per share, 35,400,000 shares authorized, and 7,803,000 shares and 7,803,000 shares issued and outstanding as at December 31, 2011 and September 30, 2012 |
3 |
3 |
|
Additional paid-in capital |
2,014,057 |
1,771,770 |
|
Retained earnings |
21,242,737 |
13,604,334 |
|
Accumulated other comprehensive loss |
(74,880) |
(84,403) |
|
Total Baidu, Inc. shareholders' equity |
23,181,929 |
15,291,716 |
|
Noncontrolling interests |
96,416 |
97,819 |
|
Total equity |
23,278,345 |
15,389,535 |
|
Total liabilities and equity |
32,693,380 |
23,340,541 |
|
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) |
|||||||||
Three months ended September 30, 2011 |
Three months ended |
Three months ended |
|||||||
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
|
Operating profit |
2,226,329 |
39,361 |
2,265,690 |
2,814,889 |
53,864 |
2,868,753 |
3,296,879 |
56,720 |
3,353,599 |
Three months ended |
Three months ended |
Three months ended |
|||||||
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
|
Net income attributable to Baidu, Inc. |
1,881,631 |
39,361 |
1,920,992 |
2,769,870 |
53,864 |
2,823,734 |
3,007,701 |
56,720 |
3,064,421 |
(*) The adjustment is only for share-based compensation. |
Reconciliation from net cash provided by operating activities to adjusted EBITDA(*) |
||||||
Three months ended |
As a % of |
Three months ended |
As a % of |
Three months ended |
As a % of |
|
September 30, 2011 |
total revenues |
June 30, 2012 |
total revenues |
September 30, 2012 |
total revenues |
|
Net cash provided by operating activities |
1,761,126 |
42% |
3,040,234 |
56% |
3,779,180 |
61% |
Changes in assets and liabilities, net of effects of acquisitions |
397,373 |
10% |
100,205 |
2% |
(360,530) |
-6% |
Income taxes expenses |
317,568 |
7% |
235,355 |
4% |
467,699 |
8% |
Interest income and other, net |
33,123 |
1% |
(168,914) |
-3% |
(162,313) |
-3% |
Adjusted EBITDA |
2,509,190 |
60% |
3,206,880 |
59% |
3,724,036 |
60% |
(*) Definition of adjusted EBITDA: earnings before interest, taxes, depreciation, amortization, other non-operating income, and share-based compensation expenses. |
SOURCE