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Baidu Announces Third Quarter 2013 Results
(Logo: http://photos.prnewswire.com/prnh/20081103/BAIDULOGO)
Third Quarter 2013 Highlights
- Total revenues in the third quarter of 2013 were
RMB8.892 billion ($1.453 billion ), a 42.3% increase from the corresponding period in 2012. - Operating profit in the third quarter of 2013 was
RMB3.338 billion ($545.4 million ), a 1.2% increase from the corresponding period in 2012. - Net income attributable to
Baidu in the third quarter of 2013 wasRMB3.048 billion ($498.0 million ), a 1.3% increase from the corresponding period in 2012. Diluted earnings attributable toBaidu per ADS for the third quarter of 2013 wereRMB8.63 ($1.41) ; diluted earnings attributable toBaidu per ADS excluding share-based compensation expenses (non-GAAP) for the third quarter of 2013 wereRMB9.04 ($1.48) .
"We were pleased to see strong results in the third quarter as revenue remained on a solid growth trajectory," said
Mr. Li continued, "I am proud of the progress we made during the quarter. Our flagship mobile products like search and maps continue to gain momentum. We solidified our mobile native app distribution capabilities with the 91 Wireless acquisition. And we introduced search-enabled Light Apps, which will allow users to more easily discover long tail app content, and will offer developers a powerful distribution channel in
"Our focus on investment continues, and we are now seeing real returns, particularly in mobile user adoption and in monetization," commented
Third Quarter 2013 Results
Online marketing revenues for the third quarter of 2013 were
Revenue per online marketing customer for the third quarter was approximately
Traffic acquisition cost (TAC) 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 Fourth Quarter 2013
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: 86667396 |
A replay of the conference call may be accessed by phone at the following number until
International: |
+61-2-8199-0299 |
Passcode: |
86667396 |
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 2013 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
ir@baidu.com
Brunswick Group LLC
Tel: +86-10-5960-8600
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 RMB6.1200 to US$1.00, the effective noon buying rate as of September 30, 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. |
Baidu, Inc. |
|||
Condensed Consolidated Balance Sheets |
|||
September 30 |
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 |
17,811,025 |
11,880,632 |
|
Restricted cash |
466,874 |
395,029 |
|
Short-term investments |
25,489,360 |
20,604,223 |
|
Accounts receivable, net |
2,182,030 |
1,253,483 |
|
Deferred tax assets, net |
297,240 |
160,315 |
|
Other assets, current |
1,379,480 |
380,407 |
|
Total current assets |
47,626,009 |
34,674,089 |
|
Non-current assets: |
|||
Fixed assets, net |
4,600,252 |
3,887,877 |
|
Intangible assets, net |
2,304,528 |
1,587,665 |
|
Goodwill |
6,202,427 |
3,877,564 |
|
Long-term investments, net |
2,133,682 |
803,499 |
|
Deferred tax assets, net |
48,574 |
53,303 |
|
Other assets, non-current |
1,028,683 |
784,893 |
|
Total non-current assets |
16,318,146 |
10,994,801 |
|
Total assets |
63,944,155 |
45,668,890 |
|
LIABILITIES AND EQUITY |
|||
Current liabilities: |
|||
Short-term loans |
25,050 |
0 |
|
Accounts payable and accrued liabilities |
5,765,072 |
3,806,836 |
|
Customer advances and deposits |
2,542,911 |
2,067,586 |
|
Deferred revenue |
119,915 |
94,121 |
|
Deferred income |
72,287 |
64,506 |
|
Long-term loans, current portion |
0 |
2,170,978 |
|
Capital lease obligation |
34,130 |
32,502 |
|
Total current liabilities |
8,559,365 |
8,236,529 |
|
Non-current liabilities: |
|||
Deferred income |
370,891 |
190,000 |
|
Long-term loans |
2,482,333 |
356,589 |
|
Notes payable |
15,283,757 |
9,336,686 |
|
Deferred tax liabilities |
885,183 |
289,482 |
|
Capital lease obligation |
18,674 |
44,479 |
|
Total non-current liabilities |
19,040,838 |
10,217,236 |
|
Total liabilities |
27,600,203 |
18,453,765 |
|
Redeemable noncontrolling interests |
892,696 |
1,033,283 |
|
Equity |
|||
Class A Ordinary Shares, par value US$0.00005 per share, 825,000,000 shares authorized, and 27,202,710 shares and 27,319,703 shares issued and outstanding as at December 31, 2012 and September 30, 2013 |
12 |
12 |
|
Class B Ordinary Shares, par value US$0.00005 per share, 35,400,000 shares authorized, and 7,763,000 shares and 7,674,300 shares issued and outstanding as at December 31, 2012 and September 30, 2013 |
3 |
3 |
|
Additional paid-in capital |
2,330,045 |
2,095,273 |
|
Retained earnings |
31,751,481 |
24,038,219 |
|
Accumulated other comprehensive income (loss) |
1,003,693 |
(78,278) |
|
Total Baidu, Inc. shareholders' equity |
35,085,234 |
26,055,229 |
|
Noncontrolling interests |
366,022 |
126,613 |
|
Total equity |
35,451,256 |
26,181,842 |
|
Total liabilities, redeemable noncontrolling interests, and equity |
63,944,155 |
45,668,890 |
|
Baidu, Inc. |
|||||
Condensed Consolidated Statements of Income |
|||||
Three Months Ended |
|||||
September 30, |
September 30, |
June 30, |
|||
(In RMB thousands except for share, per share (or ADS) information) |
2013 |
2012 |
2013 |
||
Unaudited |
Unaudited |
Unaudited |
|||
Revenues: |
|||||
Online marketing services |
8,847,987 |
6,246,009 |
7,539,133 |
||
Other services |
43,671 |
4,711 |
21,682 |
||
Total revenues |
8,891,658 |
6,250,720 |
7,560,815 |
||
Operating costs and expenses: |
|||||
Cost of revenues (note 1, 2) |
(3,078,969) |
(1,696,512) |
(2,637,118) |
||
Selling, general and administrative (note 2) |
(1,384,399) |
(642,788) |
(1,078,066) |
||
Research and development (note 2) |
(1,090,549) |
(614,541) |
(941,766) |
||
Total operating costs and expenses |
(5,553,917) |
(2,953,841) |
(4,656,950) |
||
Operating profit |
3,337,741 |
3,296,879 |
2,903,865 |
||
Other income: |
|||||
Interest income |
348,822 |
228,330 |
317,811 |
||
Interest expense |
(118,381) |
(24,002) |
(91,249) |
||
Foreign exchange loss, net |
(676) |
(2,359) |
(6,382) |
||
Income (loss) from equity method investments |
215 |
(69,312) |
84 |
||
Other income, net |
36,815 |
29,656 |
27,341 |
||
Total other income |
266,795 |
162,313 |
247,605 |
||
Income before income taxes |
3,604,536 |
3,459,192 |
3,151,470 |
||
Income taxes |
(588,067) |
(467,699) |
(513,170) |
||
Net income |
3,016,469 |
2,991,493 |
2,638,300 |
||
Less: net loss attributable to noncontrolling interests |
(31,512) |
(16,208) |
(5,589) |
||
Net income attributable to Baidu, Inc. |
3,047,981 |
3,007,701 |
2,643,889 |
||
Earnings per share for Class A and Class B ordinary shares: |
|||||
Net income attributable to Baidu, Inc.-Basic |
86.47 |
86.02 |
75.19 |
||
Net income attributable to Baidu, Inc.-Diluted |
86.34 |
85.94 |
75.15 |
||
Earnings per ADS (1 Class A ordinary share equals 10 ADSs ): |
|||||
Net income attributable to Baidu, Inc.-Basic |
8.65 |
8.60 |
7.52 |
||
Net income attributable to Baidu, Inc.-Diluted |
8.63 |
8.59 |
7.52 |
||
Weighted average number of Class A and Class B ordinary shares outstanding: |
|||||
Basic |
34,985,689 |
34,946,375 |
34,975,728 |
||
Diluted |
35,041,729 |
34,979,732 |
34,994,400 |
||
(1) Cost of revenues are detailed as follows: |
|||||
Sales tax and surcharges |
(649,496) |
(427,145) |
(544,958) |
||
Traffic acquisition costs |
(1,038,641) |
(538,192) |
(879,971) |
||
Bandwidth costs |
(512,644) |
(266,871) |
(457,287) |
||
Depreciation costs |
(369,403) |
(274,960) |
(356,979) |
||
Operational costs |
(280,204) |
(154,632) |
(243,229) |
||
Content costs |
(222,224) |
(32,309) |
(150,652) |
||
Share-based compensation expenses |
(6,357) |
(2,403) |
(4,042) |
||
Total cost of revenues |
(3,078,969) |
(1,696,512) |
(2,637,118) |
||
(2) Includes share-based compensation expenses as follows: |
|||||
Cost of revenues |
(6,357) |
(2,403) |
(4,042) |
||
Selling, general and administrative |
(49,167) |
(18,294) |
(22,135) |
||
Research and development |
(87,620) |
(36,023) |
(57,107) |
||
Total share-based compensation expenses |
(143,144) |
(56,720) |
(83,284) |
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited) |
|||||||||
Three months ended September 30, 2012 |
Three months ended June 30, 2013 |
Three months ended September 30, 2013 |
|||||||
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
|
Operating profit |
3,296,879 |
56,720 |
3,353,599 |
2,903,865 |
83,284 |
2,987,149 |
3,337,741 |
143,144 |
3,480,885 |
Three months ended September 30, 2012 |
Three months ended June 30, 2013 |
Three months ended Septemer 30, 2013 |
|||||||
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
GAAP Result |
Adjustment |
Non-GAAP Results |
|
Net income Inc. |
3,007,701 |
56,720 |
3,064,421 |
2,643,889 |
83,284 |
2,727,173 |
3,047,981 |
143,144 |
3,191,125 |
(*) 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 |
|
September 30, 2012 |
total revenues |
June 30, 2013 |
total revenues |
September 30, 2013 |
total revenues |
|
Net cash provided by operating activities |
3,779,180 |
61% |
3,205,046 |
42% |
4,295,062 |
48% |
Changes in assets and liabilities, net of effects of acquisitions |
(360,530) |
-6% |
6,321 |
0% |
(618,730) |
-7% |
Income taxes expenses |
467,699 |
8% |
513,170 |
7% |
588,067 |
7% |
Interest income and other, net |
(162,313) |
-3% |
(247,605) |
-3% |
(266,795) |
-3% |
Adjusted EBITDA |
3,724,036 |
60% |
3,476,932 |
46% |
3,997,604 |
45% |
(*) Definition of adjusted EBITDA: earnings before interest, taxes, depreciation, amortization, other non-operating income, and share-based compensation expenses. |
SOURCE