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Baidu Announces Third Quarter 2022 Results

BEIJING, Nov. 22, 2022 /PRNewswire/ — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) (“Baidu” or the “Company”), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the third quarter ended September 30, 2022.

“Baidu Core delivered a solid set of financial and operational results in the third quarter, despite the continued challenges posed by the COVID-19 resurgence. Baidu Core’s revenue resumed positive growth, driven by a gradual recovery of our online marketing business and the steady growth of our AI Cloud revenue. Notably, we continued to make significant progress in intelligent driving. On the one hand, Baidu Apollo’s auto solutions continued gaining popularity amongst leading automakers. On the other hand, Apollo Go continued scaling up its operation, completing more than 474,000 rides in the quarter, further strengthening its leading position in the global autonomous ride-hailing market,” said Robin Li, Co-founder and CEO of Baidu. “Looking ahead, we expect our mobile ecosystem to continue generating strong cash flow and fund our investment in AI Cloud and intelligent driving, which will help maintain our leadership in the new AI business and drive long term business growth.”

“In the third quarter of 2022, Baidu Core’s non-GAAP operating profit increased by 14% year over year to RMB6.7 billion despite that the resurgence of COVID-19 pressured revenue performance. This achievement is attributable to our relentless efforts in cost optimization and operational efficiency.” said Rong Luo, CFO of Baidu. “Going forward, we will continue to focus on quality revenue growth. At the same time, we will keep investing in technology and talents to propel our future development.”

Third Quarter 2022 Financial Highlights[1]


Baidu, Inc.

(In millions except per

Q3


Q2


Q3






ADS, unaudited)

2021


2022


2022



YOY


QOQ


RMB


RMB


RMB

US$





Total revenues

31,921


29,647


32,540

4,574


2 %


10 %












Operating income

2,308


3,400


5,317

747


130 %


56 %

Operating income (non-GAAP) [2]

4,708


5,493


7,200

1,012


53 %


31 %












Net (loss) income to Baidu

(16,559)


3,637


(146)

(21)


(99 %)


Net income to Baidu (non-GAAP) [2]

5,090


5,541


5,889

828


16 %


6 %












Diluted (loss) earnings per ADS

(48.18)


9.97


(0.87)

(0.12)


(98 %)


Diluted earnings per ADS (non-GAAP) [2]

14.66


15.79


16.87

2.37


15 %


7 %












Adjusted EBITDA [2]

5,962


7,054


8,879

1,248


49 %


26 %

Adjusted EBITDA margin

19 %


24 %


27 %

27 %
















[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.1135 as of September 30,
2022, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are
provided solely for the convenience of the reader.

[2] Non-GAAP measures are defined in the Non-GAAP Financial Measures section (see also “Reconciliations of Non-
GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details).


Baidu Core


Q3


Q2


Q3






(In millions, unaudited)

2021


2022


2022



YOY


QOQ


RMB


RMB


RMB

US$





Total revenues

24,661


23,160


25,239

3,548


2 %


9 %












Operating income

3,718


3,246


4,982

700


34 %


53 %

Operating income (non-GAAP) [2]

5,823


5,121


6,650

935


14 %


30 %












Net (loss) income to Baidu Core

(15,625)


3,716


25

4



(99 %)

Net income to Baidu Core (non-GAAP) [2]

5,855


5,449


5,767

811


(2 %)


6 %












Adjusted EBITDA [2]

6,994


6,597


8,239

1,158


18 %


25 %

Adjusted EBITDA margin

28 %


28 %


33 %

33 %

















Operational Highlights  

Corporate

  • Baidu returned US$272 million to shareholders since Q3 2022, bringing the cumulative repurchase to $3.2 billion under the 2020 Share Repurchase Program.

AI Cloud

  • As of the end of the third quarter of 2022, Baidu ACE smart transportation solutions have been adopted by 63 cities, up from 24 cities a year ago, based on the contract value of over RMB10 million for each city.

Intelligent Driving

  • Baidu Apollo’s auto solutions continued to gain traction among leading automakers:

– One of China’s largest automotive and technology companies intended to use ANP (Apollo Navigation Pilot), AVP (Automated Valet Parking) and HD Maps for another popular car model. The partnership is an extension of existing collaboration, validating an increasing appetite for ASD (Apollo Self Driving) solutions from automakers.

  • Apollo Go continued to progress rapidly and remained the largest autonomous ride-hailing service provider worldwide:

– Apollo Go provided more than 474K rides in the third quarter of 2022, up 311% year over year and 65% quarter over quarter. The accumulated rides provided to the public by Apollo Go reached 1.4 million by the third quarter of 2022.

Other Growth Initiatives

  • Xiaodu ranked No.1 in smart display shipments and smart speaker shipments in China for 2Q22, according to IDC, Strategy Analytics and Canalys.

Mobile Ecosystem

  • In September, Baidu App’s MAUs reached 634 million, up 5% year over year.
  • Revenue from Managed Page grew by 13% year over year and reached 51% of Baidu Core’s online marketing revenue in the third quarter of 2022.

iQIYI

iQIYI’s average daily number of total subscribing members for the quarter was 101.0 million, compared to 104.7 million for the third quarter of 2021 and 98.3 million for the second quarter of 2022.

Third Quarter 2022 Financial Results

Total revenues were RMB 32.5 billion ($4.57 billion), increasing 2% year over year.

  • Revenue from Baidu Core was RMB 25.2 billion ($3.55 billion), increasing 2% year over year; online marketing revenue was RMB 18.7 billion ($2.63 billion), decreasing 4% year over year but improved 10% from the second quarter as macro has improved gradually since June, and non-online marketing revenue was RMB 6.5 billion ($916 million), up 25% year over year, driven by AI Cloud and other AI-powered businesses.
  • Revenue from iQIYI was RMB 7.5 billion ($1.05 billion), decreasing 2% year over year.

Cost of revenues was RMB 16.3 billion ($2.29 billion), increasing 1% year over year.

Selling, general and administrative expenses were RMB 5.2 billion ($730 million), decreasing 29% year over year, primarily due to a decrease in channel spending and promotional marketing.

Research and development expense was RMB 5.8 billion ($809 million), decreasing 7% year over year, primarily due to a decrease in staff related expenses.

Operating income was RMB 5.3 billion ($747 million). Baidu Core operating income was RMB 5.0 billion ($700 million), and Baidu Core operating margin was 20%. Non-GAAP operating income was RMB 7.2 billion ($1.01 billion). Non-GAAP Baidu Core operating income was RMB 6.7 billion ($935 million), and non-GAAP Baidu Core operating margin was 26%.

Total other loss, net was RMB 4.8 billion ($670 million), decreasing 78% year over year, which mainly includes a fair value loss of RMB 3.1 billion and an impairment of long-term investments of RMB 1.4 billion. In the third quarter of 2021, we recognized a fair value loss of RMB 18.9 billion. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies, private equity funds and digital assets, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods.

Income tax expense was RMB 908 million ($128 million), compared to an income tax benefit of RMB 1.8 billion for Q3′ 21, primarily due to an increase in deferred tax benefit recognized on fair value loss of long-term investments and deduction on certain expenses that were previously considered non-deductible in the third quarter of 2021.

Net loss attributable to Baidu was RMB 146 million ($21 million), and diluted loss per ADS was RMB 0.87 ($0.12). Net income attributable to Baidu Core was RMB 25 million ($4 million). Non-GAAP net income attributable to Baidu was RMB 5.9 billion ($828 million). Non-GAAP diluted earnings per ADS was RMB 16.87 ($2.37). Non-GAAP net income attributable to Baidu Core was RMB 5.8 billion ($811 million), and non-GAAP net margin for Baidu Core was 23%.

Adjusted EBITDA was RMB 8.9 billion ($1.25 billion) and adjusted EBITDA margin was 27%. Adjusted EBITDA for Baidu Core was RMB 8.2 billion ($1.16 billion) and adjusted EBITDA margin for Baidu Core was 33%. 

As of September 30, 2022, cash, cash equivalents, restricted cash and short-term investments were RMB 184.5 billion ($25.94 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 179.5 billion ($25.23 billion). Free cash flow was RMB 6.6 billion ($921 million), and free cash flow excluding iQIYI was RMB 6.4 billion ($900 million).

Conference Call Information

Baidu’s management will hold an earnings conference call at 7:30AM on November 22, 2022, U.S. Eastern Time (8:30PM on November 22, 2022, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of “Baidu Inc Q3 2022 Earnings Conference Call”. Please follow the steps to enter your registration details, then click “Register”. Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click
https://s1.c-conf.com/diamondpass/10026844-g6c9hw.html 

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

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

About Baidu

Founded in 2000, Baidu’s mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under “BIDU” and HKEX under “9888”. One Baidu ADS represents eight Class A ordinary shares.

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, 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 announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), 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 and newsfeed 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 liquidity condition of Baidu and/its subsidiaries and consolidated affiliated entities and their respective ability to fulfill payment obligations when due; 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 and newsfeed 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, and announcements on the website of the Hong Kong Stock Exchange. 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 net margin, 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 non-cash charges or non-operating 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.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations and contingent loss pertaining to legal proceeding in relation to former advertising agencies and iQIYI’s non-recurring employee severance costs.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, contingent loss pertaining to legal proceeding in relation to former advertising agencies, iQIYI’s non-recurring employee severance costs, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, charitable donation from Baidu, adjusted for related income tax effects. Baidu’s share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, contingent loss pertaining to legal proceeding in relation to former advertising agencies, iQIYI’s non-recurring employee severance costs, and share-based compensation expenses.

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

Baidu, Inc. 

Condensed Consolidated Statements of (Loss) Income 

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



Three Months Ended




September 30,


June 30,


September 30,


September 30,




2021


2022


2022


2022




RMB


RMB


RMB


US$(2)


 Revenues: 










 Online marketing services 


21,050


18,268


19,943


2,803


 Others 


10,871


11,379


12,597


1,771


 Total revenues  


31,921


29,647


32,540


4,574












 Costs and expenses: 










     Cost of revenues(1)


16,126


15,171


16,273


2,288


     Selling, general and administrative(1)


7,320


4,784


5,193


730


     Research and development(1)


6,167


6,292


5,757


809


 Total costs and expenses 


29,613


26,247


27,223


3,827


 Operating income 


2,308


3,400


5,317


747












 Other income (loss): 










 Interest income 


1,462


1,525


1,619


228


 Interest expense 


(880)


(741)


(724)


(102)


 Foreign exchange gain (loss), net 


7


(329)


(806)


(113)


 Share of losses from equity method investments 


(4)


(603)


(376)


(53)


 Others, net 


(22,079)


299


(4,483)


(630)


 Total other (loss) income, net 


(21,494)


151


(4,770)


(670)












 (Loss) income before income taxes 


(19,186)


3,551


547


77


 Income tax (benefit) expense 


(1,839)


25


908


128


 Net (loss) income 


(17,347)


3,526


(361)


(51)


 Net (loss) income attributable to noncontrolling interests 


(788)


(111)


(215)


(30)


 Net (loss) income attributable to Baidu 


(16,559)


3,637


(146)


(21)






















(Loss) earnings per ADS (1 ADS representing 8 Class A ordinary shares):








 -Basic


(48.18)


10.06


(0.87)


(0.12)


 -Diluted


(48.18)


9.97


(0.87)


(0.12)


(Loss) earnings per share for Class A and Class B ordinary shares:








 -Basic


(6.02)


1.26


(0.11)


(0.02)


 -Diluted


(6.02)


1.25


(0.11)


(0.02)


Weighted average number of Class A and Class B ordinary shares outstanding  (in millions):






 -Basic 


2,778


2,780


2,790


2,790


 -Diluted


2,778


2,811


2,790


2,790












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










 Cost of revenues 


74


85


84


12


 Selling, general and administrative 


353


443


480


68


 Research and development 


921


1,493


1,039


145


 Total share-based compensation expenses 


1,348


2,021


1,603


225












(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 7.1135 to US$1.00, the exchange rate in effect as of September 30,
2022 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

Baidu, Inc. 

Condensed Consolidated Balance Sheets

(In millions, unaudited)










December 31,


September 30,


September 30,



2021


2022


2022



RMB


RMB


US$

ASSETS







    Current assets:







 Cash and cash equivalents


36,850


55,164


7,755

 Restricted cash


10,821


11,233


1,579

 Short-term investments, net


143,243


118,148


16,609

 Accounts receivable, net


9,981


10,677


1,501

 Amounts due from related parties


1,368


3,880


545

 Other current assets, net


11,052


9,818


1,380

    Total current assets


213,315


208,920


29,369








    Non-current assets:







 Fixed assets, net


23,027


24,251


3,409

 Licensed copyrights, net


7,258


7,147


1,005

 Produced content, net


10,951


12,712


1,787

 Intangible assets, net


1,689


1,453


204

 Goodwill


22,605


22,602


3,177

 Long-term investments, net


59,417


55,527


7,806

 Long-term time deposits and held-to-maturity investments

7,915


22,149


3,114

 Amounts due from related parties


3,487


1,521


214

 Deferred tax assets, net


2,372


3,209


451

 Operating lease right-of-use assets


12,065


10,778


1,515

 Other non-current assets


15,933


18,764


2,639

    Total non-current assets


166,719


180,113


25,321








Total assets


380,034


389,033


54,690








LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

   Current liabilities:







      Short-term loans


4,168


4,977


700

Accounts payable and accrued liabilities


41,384


38,689


5,439

Customer deposits and deferred revenue


13,706


13,984


1,966

Deferred income


97


70


10

Long-term loans, current portion


2



Convertible notes, current



8,521


1,198

Notes payable, current portion


10,505


12,444


1,749

Amounts due to related parties


1,764


3,482


489

Operating lease liabilities


2,862


2,811


395

    Total current liabilities


74,488


84,978


11,946








    Non-current liabilities:







Deferred income


129


175


25

Deferred revenue


223


285


40

Amounts due to related parties


3,268


1,521


214

Long-term loans


12,629


14,124


1,986

Notes payable


43,120


41,077


5,775

Convertible senior notes


12,652


6,370


895

Deferred tax liabilities


3,286


2,854


401

Operating lease liabilities


5,569


5,165


726

Other non-current liabilities


718


1,692


237

    Total non-current liabilities


81,594


73,263


10,299








Total liabilities


156,082


158,241


22,245








Redeemable noncontrolling interests


7,148


8,100


1,139








Equity







    Total Baidu shareholders’ equity


211,459


217,236


30,539

    Noncontrolling interests


5,345


5,456


767

Total equity


216,804


222,692


31,306








Total liabilities, redeemable noncontrolling interests, and equity


380,034


389,033


54,690








Baidu, Inc. 

Selected Information

(In millions, unaudited)





























Three months ended
September 30, 2021 (RMB)


Three months ended
June 30, 2022 (RMB)


Three months ended
September 30, 2022 (RMB)


Three months ended
September 30, 2022 (US$)




Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Baidu
Core

iQIYI

Elim &
adj(2)


Baidu,
Inc.


Total revenues 


24,661

7,589

(329)


31,921


23,160

6,657

(170)


29,647


25,239

7,471

(170)


32,540


3,548

1,050

(24)


4,574


  YOY














2 %

(2 %)



2 %








  QOQ














9 %

12 %



10 %


































Costs and expenses: 


























  Cost of revenues (1)


9,370

7,028

(272)


16,126


10,114

5,248

(191)


15,171


10,745

5,705

(177)


16,273


1,511

802

(25)


2,288


  Selling, general and administrative (1)


6,089

1,246

(15)


7,320


3,990

801

(7)


4,784


4,231

980

(18)


5,193


595

138

(3)


730


  Research and development (1)


5,484

683


6,167


5,810

482


6,292


5,281

476


5,757


742

67


809


Total costs and expenses 


20,943

8,957

(287)


29,613


19,914

6,531

(198)


26,247


20,257

7,161

(195)


27,223


2,848

1,007

(28)


3,827


  YOY 


























  Cost of revenues 














15 %

(19 %)



1 %








  Selling, general and administrative 














(31 %)

(21 %)



(29 %)








  Research and development 














(4 %)

(30 %)



(7 %)








  Cost and expenses














(3 %)

(20 %)



(8 %)


































Operating income (loss)


3,718

(1,368)

(42)


2,308


3,246

126

28


3,400


4,982

310

25


5,317


700

43

4


747


  YOY














34 %



130 %








  QOQ














53 %

146 %



56 %








Operating margin 


15 %

(18 %)



7 %


14 %

2 %



11 %


20 %

4 %



16 %


































  Add: total other (loss) income, net


(21,163)

(331)


(21,494)


442

(291)


151


(4,108)

(662)


(4,770)


(577)

(93)


(670)


  Less: income tax (benefit) expense


(1,848)

9


(1,839)


(11)

36


25


866

42


908


122

6


128


  Less: net income (loss) attributable to NCI


28

22

(838)(3)


(788)


(17)

13

(107)(3)


(111)


(17)

1

(199)(3)


(215)(3)



(27)(3)


(30)


Net (loss) income attributable to Baidu


(15,625)

(1,730)

796


(16,559)


3,716

(214)

135


3,637


25

(395)

224


(146)


4

(56)

31


(21)


  YOY














(77 %)



(99 %)








  QOQ














(99 %)

85 %










Net margin 


(63 %)

(23 %)



(52 %)


16 %

(3 %)



12 %


0 %

(5 %)



(0 %)


































Non-GAAP financial measures:


























Operating income (loss) (non-GAAP)


5,823

(1,073)



4,708


5,121

344



5,493


6,650

525



7,200


935

73



1,012


  YOY














14 %



53 %








  QOQ














30 %

53 %



31 %








Operating margin (non-GAAP)


24 %

(14 %)



15 %


22 %

5 %



19 %


26 %

7 %



22 %


































Net income (loss) attributable to Baidu (non-GAAP)


5,855

(1,400)



5,090


5,449

79



5,541


5,767

187



5,889


811

25



828


  YOY














(2 %)



16 %








  QOQ














6 %

137 %



6 %








Net margin (non-GAAP)


24 %

(18 %)



16 %


24 %

1 %



19 %


23 %

3 %



18 %


































Adjusted EBITDA


6,994

(990)



5,962


6,597

429



7,054


8,239

615



8,879


1,158

86



1,248


  YOY














18 %



49 %








  QOQ














25 %

43 %



26 %








Adjusted EBITDA margin 


28 %

(13 %)



19 %


28 %

6 %



24 %


33 %

8 %



27 %


































(1)  Includes share-based compensation as follows:

























 Cost of revenues 


34

40



74


49

36



85


45

39



84


7

5



12


 Selling, general and administrative 


196

157



353


339

104



443


375

105



480


53

15



68


 Research and development 


837

84



921


1,431

62



1,493


978

61



1,039


136

9



145


 Total share-based compensation 


1,067

281



1,348


1,819

202



2,021


1,398

205



1,603


196

29



225


 (2) Relates to intersegment eliminations and adjustments 
























 (3) Relates to the net income/(loss) attributable to iQIYI noncontrolling interests 






















Baidu, Inc. 

Condensed Consolidated Statements of Cash Flows

(In millions,unaudited)




















Three months ended 


Three months ended 


Three months ended 


Three months ended 



September 30, 2021 (RMB)


June 30, 2022 (RMB)


September 30, 2022 (RMB)


September 30, 2022 (US$)



 Baidu excl. iQIYI

iQIYI

Baidu, Inc.


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.

Net cash provided by (used in) operating activities


5,436

(2,081)

3,355


7,658

48

7,706


8,543

196

8,739


1,201

28

1,229

Net cash (used in) provided by investing activities 


(15,857)

1,885

(13,972)


(3,027)

(653)

(3,680)


7,603

407

8,010


1,069

57

1,126

Net cash provided by (used in) financing activities


7,744

867

8,611


877

(334)

543


(5,967)

(106)

(6,073)


(839)

(15)

(854)

Effect of exchange rate changes on cash, cash
equivalents and restricted cash


(47)

(21)

(68)


1,230

75

1,305


1,980

60

2,040


279

8

287

Net (decrease) increase in cash, cash equivalents
and restricted cash 


(2,724)

650

(2,074)


6,738

(864)

5,874


12,159

557

12,716


1,710

78

1,788

Cash, cash equivalents and restricted cash

















  At beginning of period


46,812

6,736

53,548


43,924

3,883

47,807


50,662

3,019

53,681


7,122

424

7,546

  At end of period


44,088

7,386

51,474


50,662

3,019

53,681


62,821

3,576

66,397


8,832

502

9,334


















Net cash provided by (used in) operating activities


5,436

(2,081)

3,355


7,658

48

7,706


8,543

196

8,739


1,201

28

1,229

Less: Capital expenditures


(2,548)

(116)

(2,664)


(2,124)

(66)

(2,190)


(2,140)

(48)

(2,188)


(301)

(7)

(308)

Free cash flow


2,888

(2,197)

691


5,534

(18)

5,516


6,403

148

6,551


900

21

921


















Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI’s consolidated cash flows.














Baidu, Inc. 

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

(In millions except for per ADS information, unaudited)




















Three months ended 


Three months ended 


Three months ended 


Three months ended 



September 30, 2021 (RMB)


June 30, 2022 (RMB)


September 30, 2022 (RMB)


September 30, 2022 (US$)



Baidu Core

iQIYI

Baidu, Inc.


Baidu Core

iQIYI

Baidu, Inc.


Baidu Core

iQIYI

Baidu, Inc.


Baidu Core

iQIYI

Baidu, Inc.

Operating income (loss)


3,718

(1,368)

2,308


3,246

126

3,400


4,982

310

5,317


700

43

747

Add: Share-based compensation expenses


1,067

281

1,348


1,819

202

2,021


1,398

205

1,603


196

29

225

Add: Amortization and impairment of intangible assets(1)


62

14

76


56

16

72


56

10

66


8

1

9

Add: Contingent loss(4)


976

976



214

214


31

31

Operating income (loss) (non-GAAP)


5,823

(1,073)

4,708


5,121

344

5,493


6,650

525

7,200


935

73

1,012


















Add:  Depreciation of fixed assets


1,171

83

1,254


1,476

85

1,561


1,589

90

1,679


223

13

236

Adjusted EBITDA


6,994

(990)

5,962


6,597

429

7,054


8,239

615

8,879


1,158

86

1,248


















Net (loss) income attributable to Baidu


(15,625)

(1,730)

(16,559)


3,716

(214)

3,637


25

(395)

(146)


4

(56)

(21)

Add: Share-based compensation expenses


1,086

281

1,231


1,815

202

1,916


1,394

205

1,497


196

29

210

Add: Amortization and impairment of intangible assets(1)


55

14

63


50

16

59


50

10

56


7

1

8

Add: Disposal (gain) loss



(25)

(25)


(6)

(6)


(1)

(1)

Add: Impairment of long-term investments


3,187

29

3,202


222

11

228


1,042

376

1,230


146

53

173

Add: Fair value loss (gain) of long-term investments


18,970

8

18,974


(547)

2

(546)


3,149

(27)

3,135


443

(4)

442

Add: Reconciling items on equity method investments(2)


36

3

38


403

60

455


237

16

245


34

2

35

Add: Charitable donation from Baidu(3)


90

90


136

136



Add: Contingent loss(4)


976

976



214

214


30

30

Add: Tax effects on non-GAAP adjustments


(2,920)

(5)

(2,925)


(321)

2

(319)


(338)

2

(336)


(48)

(48)

Net income (loss) attributable to Baidu (non-GAAP)


5,855

(1,400)

5,090


5,449

79

5,541


5,767

187

5,889


811

25

828


















Diluted (loss) earnings per ADS




(48.18)




9.97




(0.87)




(0.12)

Add:  Accretion of the redeemable noncontrolling interests




0.49




0.39




0.45




0.06

Add:  Non-GAAP adjustments to earnings per ADS




62.35




5.43




17.29




2.43

Diluted earnings per ADS (non-GAAP)




14.66




15.79




16.87




2.37


















(1) This represents amortization and impairment of intangible assets resulting from business combinations.

(2) This represents Baidu’s share of equity method investments for other non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable
noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares.

(3) This represents non-recurring charitable donation to discrete events.















(4) This represents contingent loss pertaining to legal proceeding involving former advertising agency.

SOURCE Baidu, Inc.