Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2019

Commission File Number: 000-51469

 

 

BAIDU, INC.

 

 

Baidu Campus

No. 10 Shangdi 10th Street

Haidian District, Beijing 100085

The People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BAIDU, INC.
By:  

/s/ Herman Yu

Name:   Herman Yu
Title:   Chief Financial Officer

Date: February 27, 2019


Exhibit Index

Exhibit 99.1—Press Release

EX-99.1

Exhibit 99.1

Baidu Announces Fourth Quarter and Fiscal Year 2018 Results

BEIJING, China, February 21, 2019 – Baidu, Inc. (NASDAQ: BIDU) (“Baidu” or the “Company”), the leading Chinese language Internet search provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 20181.

“We are excited to enter the new year on strong footing with Baidu 2018 revenues reaching RMB 102 billion2, up 28% annually. The growth rate of Baidu App DAUs has been accelerating over the past year, up 24% year over year to 161 million in December 2018, while Haokan short video app grew to 19 million DAUs from 1 million a year ago,” stated Robin Li, CEO of Baidu. “2018 was a pivotal year for Baidu, as we worked on deploying AI technologies beyond search to feed, voice assistant, AI solutions and autonomous driving, to enable more users, customers and partners to benefit from Baidu’s AI.”

“The diversification of Baidu’s business from mobile internet into the smart home, smart transportation, cloud and autonomous driving markets will require heavy investments,” said Herman Yu, CFO of Baidu. “Nevertheless, these investments taken together give Baidu a balanced portfolio for short-term, medium-term and long-term returns, and we hope to see these investments bear fruit and accelerate Baidu’s revenue growth in the coming years.”

Fourth Quarter 2018 Financial Highlights

 

   

Total revenues were RMB 27.2 billion ($3.96 billion), increasing 22% year over year, or 28% year over year excluding the impact of announced divestures3. Total revenues of Baidu Core were RMB 20.5 billion ($2.98 billion), increasing 14% year over year, or 20% year over year excluding the impact of announced divestures.

 

   

Operating income was RMB 1.1 billion ($162 million), decreasing 77% year over year, and operating margin was 4%, compared to 21% in Q4 2017. Operating income of Baidu Core was RMB 4.4 billion ($645 million), decreasing 26% year over year, and operating margin was 22%, compared to 33% in Q4 2017.

 

   

Non-GAAP operating income was RMB 2.7 billion ($386 million), decreasing 54% year over year, and non-GAAP operating margin was 10%, compared to 26% in Q4 2017. Non-GAAP operating income of Baidu Core was RMB 5.8 billion ($837 million), decreasing 17% year over year, and non-GAAP operating margin of Baidu Core was 28%, compared to 38% in Q4 2017.

 

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 RMB6.8755 to US$1.00, the effective noon buying rate as of December 31, 2018, 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 

Starting from January 1, 2018, Baidu adopted the new revenue accounting standard ASC 606, which reclassifies value added tax from the cost of revenues to net against revenues. To increase comparability of operating results and help investors better understand our business performance and operating trends, 2017 net revenues have been used to calculate all percentage changes in revenues, percentage changes in revenues per online marketing customer, operating margin, non-GAAP operating margin, and adjusted EBITDA margin. 2017 net revenues are defined as gross revenues under legacy GAAP after the deduction of value added taxes, which is presented on the same basis as 2018 and going forward.

3 

From 2017 through Q3 2018, certain non-core businesses were divested, including Baidu Mobile Games, Baidu Deliveries, Global DU businesses and Du Xiaoman (financial services), which together generated approximately RMB 4.1 billion and RMB 3.1 billion in revenues in 2017 and 2018, respectively.

 

1


   

Net income attributable to Baidu was RMB 2.1 billion ($303 million), decreasing 50% year over year, and diluted earnings attributable to Baidu per ADS was RMB 6 ($0.86), decreasing 52% year over year. Net income attributable to Baidu Core was RMB 4.1 billion ($589 million), decreasing 22% year over year.

 

   

Non-GAAP net income attributable to Baidu4 was RMB 4.6 billion ($672 million), decreasing 17% year over year, and non-GAAP diluted earnings per ADS5 was RMB 13 ($1.92), decreasing 17% year over year. Non-GAAP net income attributable to Baidu Core was RMB 6.5 billion ($939 million), decreasing 1% year over year.

Fiscal Year 2018 Financial Highlights

 

   

Total revenues were RMB 102.3 billion ($14.88 billion), increasing 28% from 2017, or 31% year over year excluding the impact of announced divestures. Total revenues of Baidu Core were RMB 78.3 billion ($11.38 billion), increasing 22% from 2017, or 26% year over year excluding the impact of announced divestures.

 

   

Operating income was RMB 15.5 billion ($2.26 billion), decreasing 1% from 2017. Operating margin was 15%, compared to 20% in 2017.

 

   

Non-GAAP operating income was RMB 20.2 billion ($2.94 billion), increasing 7% from 2017. Non-GAAP operating margin was 20%, compared to 24% in 2017. Non-GAAP operating income of Baidu Core was RMB 27.9 billion ($4.06 billion), increasing 23% year over year, and non-GAAP operating margin of Baidu Core was 36%, similar to 2017.

 

   

Net income attributable to Baidu was RMB 27.6 billion ($4.01 billion), increasing 51% from 2017, and diluted earnings attributable to Baidu per ADS was RMB 78 ($11.35), increasing 49% from 2017. Net income attributable to Baidu Core was RMB 33.6 billion ($4.89 billion), increasing 52% year over year.

 

   

Non-GAAP net income attributable to Baidu was RMB 23.3 billion ($3.39 billion), increasing 35% from 2017, and non-GAAP diluted earnings per ADS was RMB 66 ($9.64), increasing 34% from 2017. Non-GAAP net income attributable to Baidu Core was RMB 28.5 billion ($4.14 billion), increasing 37% year over year.

Other Highlights

Corporate

 

   

Baidu World was held in November 2018, with the conference theme “Yes, AI do” to highlight Baidu’s efforts in bringing AI to everyday life in markets, such as smart home, smart transportation, cloud and autonomous driving.

 

   

Baidu was the exclusive red envelop giveaway sponsor of the 2019 CCTV Chinese New Year Gala, which drove traffic to new highs for Baidu’s family of apps, including Baidu App (flagship search plus feed), Haokan (short video), Quanmin (flash video), Baidu Maps and Baidu Drive.

 

   

Baidu completed US$1.25 billion in bond offerings in the fourth quarter, consisting of US$850 million of 4.375% notes due 2024 and US$400 million of 4.875% notes due 2028, the proceeds from which will mostly be used to repay existing indebtedness.

 

4 

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, the gain or loss associated with the issuance of the shares by our equity method investees at a price higher or lower than our carrying value per share, accretion relating to equity method investments, disposal gain or loss, impairment of long-term investments and fair value change of long-term investments, as adjusted for the tax effects on non-GAAP adjustments.

5 

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated based on non-GAAP net income attributable to Baidu.

 

2


Search and Feed

 

   

Baidu App daily active users (“DAUs”) reached 161 million in December 2018, increasing 24% year over year.

 

   

Baijiahao, or BJH accounts, Baidu feed’s content network, grew to 1.9 million publishers in December 2018, and includes People’s Daily, Xinhua News Agency, CCTV and multiple provincial media sources

 

   

Baidu Smart Mini Program monthly active users (“MAUs”) reached 147 million in December 2018, up 30% sequentially. Also in December, Baidu Smart Mini Program was open sourced to network partners.

 

   

Haokan (short video) and Quanmin (flash video) DAUs reached 19 million and 4 million, respectively, in December 2018. According QuestMobile, Quanmin and Haokan were the two fastest growing apps among the Top 10 short video apps in China, across key metrics of total daily time spent, DAUs and MAUs over the three months ending December 2018.

DuerOS

 

   

In December 2018, DuerOS voice assistant installed base surpassed 200 million, up 45% sequentially, and voice queries on DuerOS reached 1.6 billion, representing a sequential CAGR of over 100% for the last seven quarters.

 

   

The DuerOS skills store has released over 1,000 skills in wide-ranging genres, such as Douyu (live video), Dragonfly FM (online radio) and CITIC Academy (online literature), and has a community of 27,000 developers.

 

   

DuerOS for Apollo now enables Smart Mini Programs for Baidu App to operate in the DuerOS skills store in vehicles, positioning DuerOS as the cross-platform voice assistant preferred by users and software developers.

 

   

Baidu released two smart devices powered by DuerOS in November 2018—Xiaodu Smart Speaker Pro (MSRP US$45) and Xiaodu Smartphone Car Mount (MSRP US$15), the latter serves as a smartphone charger with far-field microphones that allow users to operate DuerOS skills via conversational AI.

 

   

Xiaodu Smart Speaker and Xiaodu Smart Display were the best-selling smart speakers on JD.com, Pinduoduo and GOME.com (a leading electronics retailer in China) during the 2018 Double 11 Shopping Festival.

 

   

In the hospitality sector, DuerOS voice assistant is powering Baidu’s smart display to offer personal concierge in over 2,000 rooms across a score of hotels in China, particularly in 5-star hotels, including the recently opened InterContinental Shanghai Wonderland.

 

   

In December 2018, DuerOS and Xiaodu Smart Display received the prestigious 2018 China Red Star Design Award from the China Industrial Design Association, recognizing the two for innovation in user interaction and user design.

Apollo

 

   

In January 2019, Baidu released Apollo v3.5, which supports complex urban-road autonomous driving. At CES, Baidu also introduced Apollo Open Platform, which is available to the developer community, and Apollo Enterprise, which encompasses solutions to support commercial production, including DuerOS for Apollo, valet parking, assisted highway driving and intelligent maps.

 

3


   

Apollo has been granted over 50 licenses for open-road testing for autonomous vehicles, including in Beijing, Tianjin, Chongqing, Changsha and Baoding municipalities, as well as the Fujian province. The Company believes Apollo has received the largest number of open road testing licenses in China to date.

 

   

Apollo signed strategic partnerships with First Automotive Works (FAW) and Volvo Car Corporation in November 2018 to support the commercial production of autonomous L4 passenger vehicles.

 

   

Apollo has garnered over 135 OEMs, Tier 1 parts suppliers and other strategic partners to date, including recent additions of Volkswagen Automobile, China Unicom, Kalray, Quanta Computer and StarNeto Technology.

Cloud and Others

 

   

On the eve of Chinese New Year, the day of the 2019 CCTV Chinese New Year Gala, Baidu Cloud infrastructure smoothly handled 20.8 billion user interactions, with peak volume reaching 10 million hits per second.

 

   

Baidu launched OpenEdge, an open source edge computing platform, which allows developers to build light, secure and scalable edge applications, bringing AI processing to edge devices, like smart home devices, wearables and other IoTs. Baidu also unveiled two edge computing hardware solutions: BIE-AI-Box, a kit for in-vehicle computer vision designed in partnership with Intel, and BIE-AI-Board, a chipboard for mobile detection co-developed with NXP Semiconductor.

 

   

Over 1 million developers have used Baidu’s AI Open Platform, which provides developers with access to Baidu’s comprehensive AI capabilities, including speech recognition, natural language processing and computer vision, from Baidu Cloud to build their products and solutions.

 

   

Baidu is working with the Hainan province to broaden the adoption of blockchain by offering XuperChain, Baidu’s blockchain technology, to a wide range of industries. XuperChain helps multiple parties execute transactions without the need for a trusted, central authority, addressing challenges commonly faced in information security, copyright verification, supply chain financing, online trading and other areas. XuperChain currently processes more than 55,000 transactions per second, far exceeding the industry average.

 

   

Baidu is working with the Beijing Internet Court to develop an electronic-evidence platform using XuperChain. As of December 2018, over 93 million patents were stored and protected on XuperChain’s copyright protection system.

iQIYI

 

   

iQIYI added 36.6 million subscribers in 2018 to reach 87.4 million at year end, further solidifying their leadership in original entertainment blockbuster content.

 

   

Baidu and iQIYI co-launched a hybrid OTT TV box with Sichuan Cable TV, enhancing the home entertainment experience through AI. This follows an earlier release of Gehua Little Fruit OTT TV box.

 

   

In December 2018, iQIYI completed the offering of US$750 million of 3.75% convertible senior notes due 2023, the proceeds from which, net of capped call fees, will be used to expand and enhance iQIYI’s content offerings and strengthen its technologies, as well as for working capital and other general corporate purposes.

 

4


Fourth Quarter 2018 Results

Total revenues reached RMB 27.2 billion ($3.96 billion), increasing 22% year over year, or 28% year over year excluding the impact of announced divestures. Online marketing revenues were RMB21.2 billion ($3.08 billion), increasing 10% year over year. Baidu had approximately 529,000 active online marketing customers7, increasing 15% year over year. Revenue per online marketing customer was approximately RMB 40,100 ($5,800), decreasing 4% year over year. Other revenues were RMB 6.0 billion ($872 million), increasing 104% year over year, which was mainly due to the robust growth in iQIYI membership services, cloud and other businesses.

Revenue from Baidu Core reached RMB 20.5 billion ($2.98 billion), increasing 14% year over year, or 20% year over year excluding the impact of announced divestures, while revenue from iQIYI reached RMB 7.0 billion ($1.02 billion), increasing 55% year over year.

Content costs were RMB 7.3 billion ($1.07 billion), increasing 96% year over year, mainly due to increased investments in iQIYI content and, to a lesser extent, in content for BJH accounts, Baidu feeds’ content network.

Traffic acquisition cost was RMB 3.4 billion ($491 million), increasing 34% year over year, as a result of increasing TAC revenue and revenue derived from online TV and offline digitalized screens.

Bandwidth costs were RMB 1.8 billion ($258 million), increasing 27% year over year, mainly due to increasing demand from feed, video and cloud.

Other cost of revenues, which includes depreciation, operational costs and share-based compensation, was RMB 3.1 billion ($453 million), increasing 27% year over year.

Selling, general and administrative expenses were RMB 5.9 billion ($864 million), increasing 64% year over year, primarily due to increased investment in channel and promotional marketing, as well as in personnel related expenses.

Research and development expenses were RMB 4.5 billion ($659 million), increasing 22% year over year, primarily due to the increase in personnel related expenses.

Operating income was RMB 1.1 billion ($162 million), decreasing 77% year over year. Operating income of Baidu Core was RMB 4.4 billion ($645 million), decreasing 26% year over year. Non-GAAP operating income was RMB 2.7 billion ($386 million), decreasing 54% year over year. Non-GAAP operating income of Baidu Core was RMB 5.8 billion ($837 million), decreasing 17% year over year.

 

7 

The number of active online marketing customers and revenue per online active customer exclude group-buying and delivery related businesses, which is consistent with prior reporting.

 

5


Total other loss was RMB 60 million ($9 million), compared to total other income of RMB 314 million in Q4 2017, mainly due to the loss from equity method investments.

Income tax expense was RMB 484 million ($70 million), compared to RMB 929 million in Q4 2017. Effective tax rate was 46%, compared to 18% last year, primarily due to iQIYI not being able to recognize tax benefit from its losses in the current period.

Net loss attributable to noncontrolling interests was RMB 1.5 billion ($220 million), which mainly consisted of losses from iQIYI allocated to noncontrolling interests subsequent to its IPO.

Net income attributable to Baidu was RMB 2.1 billion ($303 million), decreasing 50% year over year. Diluted earnings per ADS amounted to RMB 6 ($0.86). Net income attributable to Baidu Core was RMB 4.1 billion ($589 million), decreasing 22% year over year. Non-GAAP net income attributable to Baidu was RMB 4.6 billion ($672 million), decreasing 17% year over year. Non-GAAP diluted earnings per ADS amounted to RMB 13 ($1.92). Non-GAAP net income attributable to Baidu Core was RMB 6.5 billion ($939 million), decreasing 1% year over year.

Adjusted EBITDA was RMB 4.0 billion ($577 million) and adjusted EBITDA margin was 15%. Adjusted EBITDA to Baidu Core was RMB 6.9 billion ($1.00 billion) and adjusted EBITDA margin to Baidu Core was 34%.

As of December 31, 2018, cash, cash equivalents, restricted cash and short-term investments were RMB 141.5 billion ($20.57 billion). Excluding iQIYI, cash, cash equivalents, restricted cash and short-term investments were RMB 128.7 billion ($18.71 billion), as of December 31, 2018. Free cash flow was RMB 5.9 billion ($852 million). Excluding iQIYI, free cash flow was RMB 5.5 billion ($801 million).

Fiscal Year 2018 Results

Total revenues reached RMB 102.3 billion ($14.88 billion), increasing 28% year over year, or 31% year over year excluding the impact of announced divestures. Online marketing revenues were RMB 81.9 billion ($11.91 billion), increasing 19% year over year. Baidu had approximately 856,000 active online marketing customers, increasing 10% year over year. Revenue per online marketing customer was approximately RMB 95, 800 ($13,900), an 8% increase from 2017. Other revenues reached RMB 20.4 billion ($2.96 billion), increasing 86% year over year, which was mainly due to the robust growth in iQIYI membership services , cloud and other businesses.

Revenue from Baidu Core reached RMB 78.3 billion ($11.38 billion), increasing 22% year over year, or 26% year over year excluding the impact of announced divestures, while revenue from iQIYI reached RMB 25.0 billion ($3.63 billion), increasing 52% from 2017.

Content costs were RMB 23.5 billion ($3.42 billion), increasing 75% year over year, mainly due to increased investment in iQIYI content and, to a lesser extent, in content for BJH accounts, Baidu feeds’ content network.

 

6


Traffic acquisition costs were RMB 11.4 billion ($1.66 billion), increasing 18% year over year.

Bandwidth costs were RMB 6.5 billion ($944 million), increasing 17% year over year.

Other cost of revenues, which includes depreciation, operational costs and share-based compensation, was RMB 10.3 billion ($1.51 billion), increasing 7% year over year.

Selling, general and administrative expenses were RMB 19.2 billion ($2.80 billion), increasing 46% year over year, primarily due to increased investment in channel and promotional spending.

Research and development expenses totaled RMB 15.8 billion ($2.29 billion), increasing 22% year over year, primarily due to the increase in personnel related expenses.

Operating income was RMB 15.5 billion ($2.26 billion), decreasing 1% from 2017. Operating income of Baidu Core was RMB 23.8 billion ($3.46 billion), increasing 21% year over year. Non-GAAP operating income was RMB 20.2 billion ($2.94 billion), increasing 7% year over year. Non-GAAP operating income of Baidu Core was RMB 27.9 billion ($4.06 billion), increasing 23% year over year.

Total other income was RMB 11.8 billion ($1.72 billion), increasing 111% from 2017, mainly due to gains from the disposal of Du Xiaoman, (financial services), and fair value gains on private company investments in accordance with ASC 321, adopted on January 1, 2018.

Income tax expense was RMB 4.7 billion ($690 million), compared to RMB 3.0 billion in 2017. Effective tax rate was 17%, compared to 14% in 2017, primarily due to iQIYI not being able to recognize tax benefit from its losses in the current period.

Net income attributable to Baidu was RMB 27.6 billion ($4.01 billion), increasing 51% year over year. Diluted earnings attributable to Baidu per ADS amounted to RMB 78 ($11.35). Net income attributable to Baidu Core was RMB 33.6 billion ($4.89 billion), increasing 52% year over year. Non-GAAP net income attributable to Baidu was RMB 23.3 billion ($3.39 billion), a 35% increase from 2017. Non-GAAP diluted earnings per ADS was RMB 66 ($9.64). Non-GAAP net income attributable to Baidu Core was RMB 28.5 billion ($4.14 billion), increasing 37% year over year.

Adjusted EBITDA reached RMB 24.3 billion ($3.54 billion) and adjusted EBITDA margin was 24%. Adjusted EBITDA to Baidu Core reached RMB 31.5 billion ($4.58 billion) and adjusted EBITDA margin to Baidu Core was 40%.

Free cash flow was RMB 27.2 billion ($3.96 billion). Excluding iQIYI, free cash flow was RMB 24.9 billion ($3.62 billion).

 

7


Financial Guidance

For the first quarter of 2019, Baidu expects revenues to be between RMB 23.5 billion ($3.42 billion) and RMB 24.7 billion ($3.60 billion), representing a 12% to 18% increase year over year, or 18% to 24% excluding revenues from announced divestures.

Previously announced divestures together generated approximately RMB 1.1 billion in Q1 2018, and no revenue from announced divestures is expected in the Q1 2019, as these transactions have been consummated. This forecast reflects Baidu’s current and preliminary view, which is subject to substantial uncertainty.

Conference Call Information

Baidu’s management will hold an earnings conference call at 8:15 PM on February 21, 2019, U.S. Eastern Time (9:15 AM on February 22, 2019, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:

 

International:   +65 67135090   
China   4006208038   
US:   +1 8456750437   
UK:   +44 2036214779   
Hong Kong:   +852 30186771   
Passcode for all regions:   5693149   

A replay of the conference call may be accessed by phone at the following number until March 1, 2019:

 

International:    +61 2 8199 0299   
Passcode:    5693149   

Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.

About Baidu

Baidu, Inc. is the leading Chinese language Internet search provider. Baidu aims to make a complex world simpler through technology. Baidu’s ADSs trade on the NASDAQ Global Select Market under the symbol “BIDU.” Currently, ten ADSs represent one Class A ordinary share.

Contacts

Investors Relations, Baidu, Inc.

Tel: +86-10-5992-4958

Email: ir@baidu.com

 

8


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 of 2019, quotations from management in this announcement, as well as 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 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 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 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. 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/loss, non-GAAP operating margin, non-GAAP net income attributable to Baidu, 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 not only non-cash charges, but also other items that are infrequent or unusual 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.

 

9


Non-GAAP operating income represents operating income excluding share-based compensation expenses.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, the gain or loss associated with the issuance of shares by Baidu’s equity method investees at a price higher or lower than the carrying value per share, accretion relating to equity method investments, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, as adjusted for related income tax effects. Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated based on non-GAAP net income attributable to Baidu. Adjusted EBITDA represents operating income excluding depreciation, amortization (excluding the amortization of licensed copyrights and produced content of iQIYI) and share-based compensation expenses. Free cash flow represents net cash provided by operating activities less capital expenditures.

For more information on non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures.”

 

10


Baidu, Inc.

Condensed Consolidated Statements of Income

 

     Three Months Ended     Twelve Months Ended  

(In millions except for share, per share (or
ADS) information)

   December 31,
2017
    September 30,
2018
    December 31,
2018
    December 31,
2018
    December 31,
2017
    December 31,
2018
    December 31,
2018
 
     RMB     RMB     RMB     US$     RMB     RMB     US$  
     Unaudited     Unaudited     Unaudited     Unaudited     Audited     Unaudited     Unaudited  

Revenues:

              

Online marketing services

     20,418       22,481       21,197       3,083       73,146       81,912       11,914  

Others

     3,138       5,722       5,998       872       11,663       20,365       2,962  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues (2017 revenues include VAT, see note 1 for details

     23,556       28,203       27,195       3,955       84,809       102,277       14,876  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and expenses:

              

Content costs

     3,754       6,736       7,344       1,068       13,398       23,487       3,416  

Traffic acquisition costs

     2,518       3,090       3,375       491       9,657       11,419       1,661  

Bandwidth costs

     1,400       1,695       1,775       258       5,558       6,492       944  

Others

     3,774       2,697       3,117       453       14,449       10,346       1,505  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenues (note 2)

     11,446       14,218       15,611       2,270       43,062       51,744       7,526  

Selling, general and administrative (note 2)

     3,632       5,641       5,943       864       13,128       19,231       2,797  

Research and development (note 2)

     3,704       3,916       4,529       659       12,928       15,772       2,294  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     18,782       23,775       26,083       3,793       69,118       86,747       12,617  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     4,774       4,428       1,112       162       15,691       15,530       2,259  

Other income:

              

Interest income

     917       1,258       1,490       217       3,154       4,451       647  

Interest expense

     (400     (479     (574     (84     (1,615     (1,883     (274

Foreign exchange income(loss), net

     (113     (54     (50     (7     (482     (122     (18

Income (loss) from equity method investments

     204       419       (390     (57     (63     (79     (11

Other (loss) income, net

     (294     7,877       (536     (78     4,598       9,428       1,371  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (loss)

     314       9,021       (60     (9     5,592       11,795       1,715  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     5,088       13,449       1,052       153       21,283       27,325       3,974  

Income taxes

     929       2,053       484       70       2,995       4,743       690  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     4,159       11,396       568       83       18,288       22,582       3,284  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less: net income (loss) attributable to noncontrolling interests

     —         (1,000     (1,513     (220     (13     (4,991     (726
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Baidu

     4,159       12,396       2,081       303       18,301       27,573       4,010  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per ADS (1 Class A ordinary share equals 10 ADSs ):

              

-Basic

     12.50       35.53       5.96       0.87       52.75       78.64       11.44  

-Diluted

     12.38       35.26       5.93       0.86       52.41       78.03       11.35  

Earnings per share for Class A and Class B ordinary shares:

              

-Basic

     125.02       355.27       59.55       8.66       527.51       786.36       114.37  

-Diluted

     123.81       352.57       59.32       8.63       524.08       780.27       113.49  

Weighted average number of Class A and Class B ordinary shares outstanding:

              

Basic

     34,783,969       34,891,733       34,909,960       34,909,960       34,725,123       34,898,589       34,898,589  

Diluted

     35,123,903       35,158,747       35,044,338       35,044,338       34,952,391       35,171,043       35,171,043  

 

(1)

Starting on January 1, 2018, valued added tax has been reclassified from cost of revenues to net against revenues. To increase comparability of operating results and help investors better understand our business performance and trends, 2017 net revenues have been presented as follows . 2017 net revenues are defined as gross revenues under legacy GAAP after the deduction of value added taxes, which is presented on the same basis as 2018.

 

     Three Months Ended      Twelve Months Ended  
     December 31,
2017
     September 30,
2018
     December 31,
2018
     December 31,
2018
     December 31,
2017
     December 31,
2018
     December 31,
2018
 
     RMB      RMB      RMB      US$      RMB      RMB      US$  
     Unaudited      Unaudited      Unaudited      Unaudited      Audited      Unaudited      Unaudited  

Gross revenues

     23,556        29,876        28,799        4,189        84,809        108,357        15,760  

Less: value added taxes

     1,327        1,673        1,604        234        4,768        6,080        884  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net revenues

     22,229        28,203        27,195        3,955        80,041        102,277        14,876  

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

    

Cost of revenues

     46        58        71        10        183        224        33  

Selling, general and administrative

     298        545        587        85        973        1,725        251  

Research and development

     633        636        884        129        2,088        2,727        397  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total share-based compensation expenses

     977        1,239        1,542        224        3,244        4,676        681  

 

(3)

All translations from RMB to U.S. dollars are made at a rate of RMB6.8755 to US$1.00, the effective noon buying rate as of December 31, 2018, 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

 

(In millions except for share information)

   December 31,
2017
     December 31,
2018
     December 31,
2018
 
     RMB      RMB      US$  
     Audited      Unaudited      Unaudited  

ASSETS

        

Current assets:

        

Cash and cash equivalents

     11,084        27,638        4,020  

Restricted cash

     252        2,189        318  

Short-term investments

     89,381        111,626        16,235  

Other invested securities

     18,350        —          —    

Accounts receivable, net

     4,571        6,015        875  

Loans and interest receivable, net

     23,938        —          —    

Amounts due from related parties

     168        785        114  

Other assets, current

     3,425        6,841        995  
  

 

 

    

 

 

    

 

 

 

Total current assets

     151,169        155,094        22,557  
  

 

 

    

 

 

    

 

 

 

Non-current assets:

        

Fixed assets, net

     12,475        17,903        2,604  

Intangible assets, net

     5,467        9,181        1,335  

Goodwill

     15,806        18,536        2,696  

Long-term investments, net

     56,283        80,454        11,702  

Loans and interest receivable, net

     3,467        —          —    

Amounts due from related parties

     9        4,297        625  

Deferred tax assets, net

     1,532        2,324        338  

Other assets, non-current

     5,520        9,777        1,422  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     100,559        142,472        20,722  
  

 

 

    

 

 

    

 

 

 

Total assets

     251,728        297,566        43,279  
  

 

 

    

 

 

    

 

 

 

LIABILITIES AND EQUITY

        

Current liabilities:

        

Short-term loans

     1,244        3,046        443  

Amounts due to the third-party investors

     38,486        —          —    

Accounts payable and accrued liabilities

     27,523        35,381        5,147  

Customer advances and deposits

     6,785        7,338        1,067  

Deferred revenue

     788        1,883        274  

Deferred income

     568        523        76  

Long-term loans, current portion

     10        84        12  

Notes payable, current portion

     6,500        6,871        999  

Amounts due to related parties

     153        1,727        251  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     82,057        56,853        8,269  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities:

        

Deferred income

     73        54        8  

Deferred revenue

     —          1,309        190  

Amounts due to related parties

     —          4,360        634  

Long-term loans

     6,701        7,456        1,084  

Notes payable

     29,111        42,735        6,216  

Convertible Notes, non-current

     —          4,712        685  

Deferred tax liabilities

     3,375        4,099        596  

Other non-current liabilities

     39        236        34  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     39,299        64,961        9,447  
  

 

 

    

 

 

    

 

 

 

Total liabilities

     121,356        121,814        17,716  
  

 

 

    

 

 

    

 

 

 

Redeemable noncontrolling interests

     11,022        716        104  

Equity

        

Class A Ordinary Shares, par value US$0.00005 per share, 825,000,000 shares authorized, and 27,614,978 shares and 27,733,692 shares issued and outstanding as at December 31, 2017 and December 31, 2018

     —          —          —    

Class B Ordinary Shares, par value US$0.00005 per share, 35,400,000 shares authorized, and 7,201,254 shares and 7,201,254 shares issued and outstanding as at December 31, 2017 and December 31, 2018

     —          —          —    

Additional paid-in capital

     12,088        33,441        4,864  

Retained earnings

     102,328        129,246        18,798  

Accumulated other comprehensive income

     930        210        31  
  

 

 

    

 

 

    

 

 

 

Total Baidu, Inc. shareholders’ equity

     115,346        162,897        23,693  
  

 

 

    

 

 

    

 

 

 

Noncontrolling interests

     4,004        12,139        1,766  
  

 

 

    

 

 

    

 

 

 

Total equity

     119,350        175,036        25,459  
  

 

 

    

 

 

    

 

 

 

Total liabilities, redeemable noncontrolling interests, and equity

     251,728        297,566        43,279  
  

 

 

    

 

 

    

 

 

 


Baidu, Inc.

Selected Information

 

    Three Months Ended     Twelve Months Ended  

(In millions, unaudited)

  December 31,
2017
    September 30,
2018
    December 31,
2018
    December 31,
2018
    December 31,
2017
    December 31,
2018
    December 31,
2018
 
    RMB     RMB     RMB     US$     RMB     RMB     US$  

Baidu Core

    19,109       21,606       20,520       2,985       67,681       78,271       11,384  

iQIYI

    4,817       6,914       7,028       1,022       17,378       24,989       3,634  

Intersegment eliminations & adjustments

    (370     (317     (353     (52     (250     (983     (142
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues (Note 1)

    23,556       28,203       27,195       3,955       84,809       102,277       14,876  

Baidu Core

    18,043       21,606       20,520       2,985       63,903       78,271       11,384  

iQIYI

    4,545       6,914       7,028       1,022       16,396       24,989       3,634  

Intersegment eliminations & adjustments

    (359     (317     (353     (52     (258     (983     (142
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net revenues (Note 1)

    22,229       28,203       27,195       3,955       80,041       102,277       14,876  

Baidu Core

    6,012       7,015       4,433       645       19,715       23,808       3,463  

iQIYI

    (856     (2,591     (3,325     (484     (3,953     (8,306     (1,208

Intersegment eliminations & adjustments

    (382     4       4       1       (71     28       4  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

    4,774       4,428       1,112       162       15,691       15,530       2,259  

Baidu Core

    33     32     22     22     31     30     30

iQIYI

    (19 %)      (37 %)      (47 %)      (47 %)      (24 %)      (33 %)      (33 %) 

Operating margin (Note 1)

    21     16     4     4     20     15     15

Baidu Core

    6,937       8,050       5,754       837       22,776       27,928       4,062  

iQIYI

    (804     (2,387     (3,104     (452     (3,719     (7,750     (1,126

Intersegment eliminations & adjustments

    (382     4       4       1       (122     28       4  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income

    5,751       5,667       2,654       386       18,935       20,206       2,940  

Baidu Core

    38     37     28     28     36     36     36

iQIYI

    (18 %)      (35 %)      (44 %)      (44 %)      (23 %)      (31 %)      (31 %) 

Non-GAAP operating margin (Note 1)

    26     20     10     10     24     20     20

Baidu Core

    5,190       14,309       4,050       589       22,108       33,605       4,888  

iQIYI

    (612     (3,140     (3,477     (506     (3,737     (9,110     (1,325

Intersegment eliminations & adjustments (Note 2)

    (419     1,227       1,508       220       (70     3,078       447  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Baidu

    4,159       12,396       2,081       303       18,301       27,573       4,010  

Baidu Core

    29     66     20     20     35     43     43

iQIYI

    (13 %)      (45 %)      (49 %)      (49 %)      (23 %)      (36 %)      (36 %) 

Net margin (Note 1)

    19     44     8     8     23     27     27

Baidu Core

    6,513       8,357       6,458       939       20,836       28,471       4,141  

iQIYI

    (560     (2,939     (3,243     (472     (3,470     (8,703     (1,265

Intersegment eliminations & adjustments (Note 2)

    (387     1,267       1,406       205       (122     3,556       516  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to Baidu

    5,566       6,685       4,621       672       17,244       23,324       3,392  

Baidu Core

    36     39     31     31     33     36     36

iQIYI

    (12 %)      (43 %)      (46 %)      (46 %)      (21 %)      (35 %)      (35 %) 

Non-GAAP net margin (Note 1)

    25     24     17     17     22     23     23

Baidu Core

    7,870       8,982       6,887       1,002       26,695       31,503       4,582  

iQIYI

    (634     (2,150     (2,877     (418     (3,239     (7,091     (1,031

Intersegment eliminations & adjustments

    (382     (43     (40     (7     (122     (97     (13
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    6,854       6,789       3,970       577       23,334       24,315       3,538  

Baidu Core

    44     42     34     34     42     40     40

iQIYI

    (14 %)      (31 %)      (41 %)      (41 %)      (20 %)      (28 %)      (28 %) 

Adjusted EBITDA margin (Note 1)

    31     24     15     15     29     24     24

 

(1)

Starting on January 1, 2018, valued added tax has been reclassified from cost of revenues to net against revenues. To increase comparability of operating results and help investors better understand the Company’s business performance and trends, 2017 net revenues were used to calculate operating margin, non-GAAP operating margin, non-GAAP net income margin and adjusted EBITDA margin. Net revenues for 2017 are defined as gross revenues under legacy GAAP after the deduction of value added taxes, consistent with 2018 presentation.

(2)

Primarily related to net loss attributable to iQIYI noncontrolling interests


Baidu, Inc.

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

 

    Three months ended     Twelve Months Ended  

(In millions except for ADS and per ADS  information, unaudited)

  December 31,
2017
    September 30,
2018
    December 31,
2018
    December 31,
2018
    December 31,
2017
    December 31,
2018
    December 31,
2018
 
    RMB     RMB     RMB     US$     RMB     RMB     US$  

Operating income - Baidu Core

    6,012       7,015       4,433       645       19,715       23,808       3,463  

Add: Share-based compensation expenses

    925       1,035       1,321       192       3,061       4,120       599  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income - Baidu Core

    6,937       8,050       5,754       837       22,776       27,928       4,062  

Add: Depreciation of fixed assets

    901       885       1,082       157       3,457       3,418       497  

Add: Amortization of intangible assets

    32       47       51       8       462       157       23  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA - Baidu Core

    7,870       8,982       6,887       1,002       26,695       31,503       4,582  

Operating loss - iQIYI

    (856     (2,591     (3,325     (484     (3,953     (8,306     (1,208

Add: Share-based compensation expenses

    52       204       221       32       234       556       82  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating loss - iQIYI

    (804     (2,387     (3,104     (452     (3,719     (7,750     (1,126

Add: Depreciation of fixed assets

    92       81       93       14       348       312       46  

Add: Amortization of intangible assets

    78       156       134       20       132       347       49  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA - iQIYI

    (634     (2,150     (2,877     (418     (3,239     (7,091     (1,031

Operating income - Baidu

    4,774       4,428       1,112       162       15,691       15,530       2,259  

Add: Share-based compensation expenses

    977       1,239       1,542       224       3,244       4,676       681  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating income - Baidu

    5,751       5,667       2,654       386       18,935       20,206       2,940  

Add: Depreciation of fixed assets

    993       966       1,175       171       3,805       3,730       543  

Add: Amortization of intangible assets

    110       156       141       20       594       379       55  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA-Baidu

    6,854       6,789       3,970       577       23,334       24,315       3,538  

Net income attributable to Baidu core

    5,190       14,309       4,050       589       22,108       33,605       4,888  

Add: Share-based compensation expenses

    925       1,035       1,319       192       3,061       4,118       599  

Add: Loss associated with the dilution of or accretion relating to equity method investments, net of tax

    87       45       179       26       652       451       66  

Add: Disposal loss(gain), net of tax

    5       (6,697     282       41       (5,456     (6,388     (930

Add: Impairment of long-term investments, net of tax

    306       298       185       27       471       566       82  

Add: Fair value change of long-term investments, net of tax

    —         (633     443       64       —         (3,881     (564
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to Baidu core

    6,513       8,357       6,458       939       20,836       28,471       4,141  

Net loss attributable to iQIYI

    (612     (3,140     (3,477     (506     (3,737     (9,110     (1,325

Add: Share-based compensation expenses

    52       204       221       32       234       556       82  

Add: Loss associated with the dilution of or accretion relating to equity method investments, net of tax

    —         —         —         —         —         —         —    

Add: Disposal loss(gain), net of tax

    —         —         —         —         —         —         —    

Add: Impairment of long-term investments, net of tax

    —         —         —         —         33       —         —    

Add: Fair value change of long-term investments, net of tax

    —         (3     13       2       —         (149     (22
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss attributable to iQIYI

    (560     (2,939     (3,243     (472     (3,470     (8,703     (1,265

Net income attributable to Baidu

    4,159       12,396       2,081       303       18,301       27,573       4,010  

Add: Share-based compensation expenses

    977       1,151       1,444       210       3,244       4,454       648  

Add: Loss associated with the dilution of or accretion relating to equity method investments, net of tax

    87       45       179       26       652       451       66  

Add: Disposal loss(gain), net of tax

    5       (6,569     282       41       (5,456     (5,684     (827

Add: Impairment of long-term investments, net of tax

    338       298       185       27       503       566       82  

Add: Fair value change of long-term investments, net of tax

    —         (636     450       65       —         (4,036     (587
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to Baidu

    5,566       6,685       4,621       672       17,244       23,324       3,392  

Diluted earnings per ADS

    12.38       35.26       5.93       0.86       52.41       78.03       11.35  

Add: Accretion of the redeemable noncontrolling interests

    (0.54     —         0.01       —         (0.05     0.37       0.05  

Add: Non-GAAP adjustments to earnings per ADS

    4.00       (16.25     7.24       1.06       (3.02     (12.09     (1.76
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted earnings per ADS

    15.84       19.01       13.18       1.92       49.34       66.31       9.64  

Weighted average number of ADS used in computing non- GAAP diluted earnings per ADS

    351,239,027       351,587,467       350,443,377       350,443,377       349,523,907       351,710,430       351,710,430  

Net cash provided by operating activities - Baidu Core

    8,722       10,361       8,409       1,223       28,817       33,083       4,812  

Less: Capital expenditures

    (1,011     (2,026     (2,900     (422     (3,757     (8,160     (1,187
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow - Baidu Core

    7,711       8,335       5,509       801       25,060       24,923       3,625  

Net cash provided by operating activities - iQIYI

    1,053       994       528       77       4,011       2,884       419  

Less: Capital expenditures

    (177     (193     (178     (26     (1,022     (612     (89
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow - iQIYI

    876       801       350       51       2,989       2,272       330  

Net cash provided by operating activities - Baidu

    9,775       11,355       8,937       1,300       32,828       35,967       5,231  

Less: Capital expenditures

    (1,188     (2,219     (3,078     (448     (4,779     (8,772     (1,276
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow - Baidu

    8,587       9,136       5,859       852       28,049       27,195       3,955