Latest news with #JunjieHe
Wall Street Journal
21-05-2025
- Business
- Wall Street Journal
Baidu's First-Quarter Revenue Rose on Robust AI Business
Chinese search-engine giant Baidu BIDU 0.10%increase; green up pointing triangle snapped a three-quarter run of falling revenue, posting a rise for the first three months of the year as it develops new growth drivers in AI. The Beijing-based internet company said Wednesday that first-quarter revenue rose 3.0% to 32.45 billion yuan, equivalent to $4.49 billion. That compared with an estimate of 30.43 billion yuan compiled by FactSet and expectations that revenue would fall as Baidu grapples with weak demand for its core advertising business. Net profit rose to 7.72 billion yuan from 5.45 billion yuan, beating the 3.745 billion yuan expected by analysts in the FactSet poll. 'AI Cloud continued its robust growth in the first quarter, which provides solid support to our overall revenue while we accelerate the AI transformation across our mobile ecosystem,' said Junjie He, Interim CFO of Baidu. 'Looking ahead, we are strongly committed to investing in AI to translate our technological strengths into sustainable long-term growth.' Baidu, once the most prominent name among Chinese tech companies, has been struggling to find new avenues of growth in recent years. Slowing demand for advertising–the company's traditional earnings engine–has pushed it into new areas such as AI and autonomous driving. Investors are focusing on the momentum of Baidu's AI cloud business, viewed as the next big driver of profit. Uncertainties about U.S. tariffs have raised concerns about the pace of adoption among Baidu's cloud customers and the company's AI monetization, Citi analysts said in a recent note. Baidu's flagship AI product, the Ernie chatbot, made waves when it was released but now faces growing competition from startup rivals such as DeepSeek, as well as other tech giants like Alibaba Group and ByteDance. Ernie Bot's monthly active users ranked eighth in April among Chinese chatbots, according to a Chinese website that tracks AI products. In a reflection of its challenges, Baidu's Hong Kong-listed stock was 1.9% lower ahead of the earnings release. Shares of the company are up a modest 4% this year, compared with Alibaba's nearly 50% surge and the Hang Seng Tech Index's 20% jump. The company is also trying to expand its robotaxi business to more overseas locations. It has been in talks with Switzerland's PostAuto, a unit of Swiss Post that provides public bus services, to launch its Apollo Go robotaxi service in the European nation, The Wall Street Journal reported earlier this month. Write to Tracy Qu at
Yahoo
21-05-2025
- Business
- Yahoo
Baidu Announces First Quarter 2025 Results
BEIJING, May 21, 2025 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)) ("Baidu" or the "Company"), a leading AI company with a strong Internet foundation, today announced its unaudited financial results for the first quarter ended March 31, 2025. "Baidu Core revenue grew 7% year over year in the first quarter, driven by the accelerating momentum of AI Cloud, which surged 42% year over year. The strong performance of our AI Cloud business underscores the growing market recognition of our distinctive strength in providing full-stack AI products and solutions with a highly competitive price-performance advantage. We also achieved a pivotal milestone in our robotaxi business, as Apollo Go expanded internationally by entering Dubai and Abu Dhabi, reinforcing our commitment to bringing safe, comfortable, and affordable autonomous ride-hailing services to global markets," said Robin Li, Co-founder and CEO of Baidu. "We are confident that our AI-first strategy positions us to remain at the forefront and to capture long-term growth opportunities in the AI era." "AI Cloud continued its robust growth in the first quarter, which provides solid support to our overall revenue while we accelerate the AI transformation across our mobile ecosystem," said Junjie He, Interim CFO of Baidu. "Looking ahead, we are strongly committed to investing in AI to translate our technological strengths into sustainable long-term growth." First Quarter 2025 Financial Highlights[1]Baidu, Inc. (In millions except per Q1Q4Q1 ADS, unaudited) 202420242025YOYQOQRMBRMBRMB US$ Total revenues 31,51334,12432,452 4,4723 %(5 %)Operating income 5,4843,9174,508 621(18 %)15 % Operating income (non-GAAP) [2] 6,6735,0475,333 735(20 %)6 %Net income to Baidu 5,4485,1927,717 1,06342 %49 % Net income to Baidu (non-GAAP) [2] 7,0116,7096,469 891(8 %)(4 %)Diluted earnings per ADS 14.9114.2621.59 2.9845 %51 % Diluted earnings per ADS (non-GAAP) [2] 19.9119.1818.54 2.55(7 %)(3 %)Adjusted EBITDA [2] 8,2446,9547,209 993(13 %)4 % Adjusted EBITDA margin 26 %20 %22 % 22 % Baidu CoreQ1Q4Q1 (In millions, unaudited) 202420242025YOYQOQRMBRMBRMB US$ Total revenues 23,80327,69825,463 3,5097 %(8 %)Operating income 4,5383,6384,164 574(8 %)14 % Operating income (non-GAAP) [2] 5,5864,6474,872 671(13 %)5 %Net income to Baidu Core 5,1505,2837,633 1,05248 %44 % Net income to Baidu Core (non-GAAP) [2] 6,6286,7416,330 872(4 %)(6 %)Adjusted EBITDA[2] 7,1186,5166,712 925(6 %)3 % Adjusted EBITDA margin 30 %24 %26 % 26 %[1] Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 7.2567 as of March 31, 2025, 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). Operational Highlights Corporate Baidu released ERNIE 4.5, its first flagship foundation model with multimodal capabilities, and ERNIE X1, its first reasoning model, in March 2025. Baidu launched enhanced versions, ERNIE 4.5 Turbo and ERNIE X1 Turbo, in April, delivering improved performance at significantly lower pricing. Apollo Go received Gold in the Driverless Vehicles category at the 2025 Edison Awards, recognizing it as China's largest autonomous ride-hailing service. Baidu ranked second in Asia Pacific on Fast Company's 2025 Most Innovative Companies list, following DeepSeek, and was recognized for "deploying the world's largest autonomous driving experiment." Baidu held China's largest portfolio of AI-related patents and patent applications across various areas, including foundation models and AI agents, as of December 31, 2024, according to a recent report by CICS-CERT, a research institute under the Ministry of Industry and Information Technology. Baidu released its annual ESG Report on April 28, 2025, which details Baidu's latest ESG policies and sustainability initiatives ( Baidu has returned US$445 million to shareholders since the beginning of Q1 2025, bringing the cumulative repurchase to US$2.1 billion under the 2023 share repurchase program. AI Cloud Baidu upgraded its MaaS platform, Qianfan, with an expanded model library and more comprehensive toolkits, extending support for the training and fine-tuning of multimodal and reasoning models to further facilitate AI-native application development. Baidu officially released version 3.0 of its deep learning framework, PaddlePaddle, in April 2025. Intelligent Driving Apollo Go, Baidu's autonomous ride-hailing service, expanded into Dubai and Abu Dhabi in March 2025. In May, Apollo Go commenced open-road validation testing in Dubai. Apollo Go entered into a long-term strategic partnership with CAR Inc., China's leading auto rental service provider, in May 2025 to launch fully autonomous vehicle rental services. Apollo Go obtained permission to conduct open-road testing with designated passengers in Hong Kong in April 2025. Apollo Go provided over 1.4 million rides in the first quarter of 2025, up 75% year over year, underscoring the accelerating momentum of its scaled operations. As of May 2025, the cumulative rides provided to the public by Apollo Go surpassed 11 million. Mobile Ecosystem In March 2025, Baidu App's MAUs reached 724 million, up 7% year over year. Managed Page accounted for 47% of Baidu Core's online marketing revenue in the first quarter of 2025. First Quarter 2025 Financial Results Total revenues were RMB32.5 billion ($4.47 billion), increasing 3% year over year. Revenue from Baidu Core was RMB25.5 billion ($3.51 billion), increasing 7% year over year; online marketing revenue was RMB16.0 billion ($2.21 billion), decreasing 6% year over year, and non-online marketing revenue was RMB9.4 billion ($1.30 billion), up 40% year over year, mainly driven by AI Cloud business. Revenue from iQIYI was RMB7.2 billion ($990 million), decreasing 9% year over year. Cost of revenues was RMB17.5 billion ($2.41 billion), increasing 14% year over year, primarily due to an increase in costs related to AI Cloud business and traffic acquisition costs. Selling, general and administrative expenses were RMB5.9 billion ($815 million), increasing 10% year over year, primarily due to an increase in channel spending and promotional marketing expenses, partially offset by a decrease in personnel-related expenses. Research and development expenses were RMB4.5 billion ($626 million), decreasing 15% year over year, primarily due to a decrease in personnel-related expenses. Operating income was RMB4.5 billion ($621 million). Baidu Core operating income was RMB4.2 billion ($574 million), and Baidu Core operating margin was 16%. Non-GAAP operating income was RMB5.3 billion ($735 million). Non-GAAP Baidu Core operating income was RMB4.9 billion ($671 million), and non-GAAP Baidu Core operating margin was 19%. Total other income, net was RMB4.5 billion ($618 million), increasing 260% year over year, mainly due to an increase in fair value gain and pickup of earnings from long-term investments, partially offset by the decrease in net foreign exchange gain arising from exchange rate fluctuation between Renminbi and U.S. dollar. Income tax expense was RMB1.2 billion ($162 million), compared to RMB883 million for the same period last year. Net income attributable to Baidu was RMB7.7 billion ($1.06 billion), and diluted earnings per ADS was RMB21.59 ($2.98). Net income attributable to Baidu Core was RMB7.6 billion ($1.05 billion), and net margin for Baidu Core was 30%. Non-GAAP net income attributable to Baidu was RMB6.5 billion ($891 million). Non-GAAP diluted earnings per ADS was RMB18.54 ($2.55). Non-GAAP net income attributable to Baidu Core was RMB6.3 billion ($872 million), and non-GAAP net margin for Baidu Core was 25%. Adjusted EBITDA was RMB7.2 billion ($993 million) and adjusted EBITDA margin was 22%. Adjusted EBITDA for Baidu Core was RMB6.7 billion ($925 million) and adjusted EBITDA margin for Baidu Core was 26%. As of March 31, 2025, cash, cash equivalents, restricted cash and short-term investments were RMB142.0 billion ($19.57 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB136.7 billion ($18.84 billion). Free cash flow was negative RMB8.9 billion (negative $1.23 billion), and free cash flow excluding iQIYI was negative RMB9.2 billion (negative $1.27 billion), mainly due to an increase of investment in AI business. We define net cash position as total cash, cash equivalents, restricted cash, short-term investments, net, long-term time deposits and held-to-maturity investments, and others, less total loans, convertible senior notes, and notes payable. As of March 31, 2025, net cash position for Baidu was RMB159.0 billion. Conference Call Information Baidu's management will hold an earnings conference call 8.00 AM on May 21, 2025, U.S. Eastern Time (8.00 PM on May 21, 2025, 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. Q1 2025 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: 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 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 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, non-GAAP operating margin, non-GAAP net income (loss) 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, and amortization and impairment of intangible assets resulting from business combinations. 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, disposal gain or loss, impairment of long-term investments, and fair value gain or loss of long-term investments and exchangeable bonds, 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 share, 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, 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 Income (In millions except for per share (or ADS) information, unaudited)Three Months EndedMarch 31,December 31,March 31,March 31,2024202420252025RMBRMBRMBUS$(2)Revenues:Online marketing services18,49019,34017,3062,385Others13,02314,78415,1462,087Total revenues 31,51334,12432,4524,472Costs and expenses:Cost of revenues(1)15,29118,01417,4872,410Selling, general and administrative(1)5,3756,6785,913815Research and development(1)5,3635,5154,544626Total costs and expenses26,02930,20727,9443,851Operating income5,4843,9174,508621Other income:Interest income2,0912,0012,664367Interest expense(766)(643)(801)(110)Foreign exchange gain (loss), net4011,678(210)(29)Share of (losses) earnings from equity method investments (205)(399)57479Others, net(275)232,260311Total other income, net1,2462,6604,487618Income before income taxes6,7306,5778,9951,239Income tax expense8831,6191,177162Net income 5,8474,9587,8181,077Net income (loss) attributable to noncontrolling interests 399(234)10114Net income attributable to Baidu5,4485,1927,7171,063Earnings per ADS (1 ADS representing 8 Class A ordinary shares): -Basic14.9714.4121.863.01 -Diluted14.9114.2621.592.98Earnings per share for Class A and Class B ordinary shares: -Basic1.871.802.730.38 -Diluted1.861.782.700.37Weighted average number of Class A and Class B ordinary shares outstanding (in millions): -Basic 2,8042,7752,7512,751 -Diluted2,8162,7832,7622,762(1) Includes share-based compensation expenses as follows: Cost of revenues 1081037711 Selling, general and administrative 41729731343 Research and development ... 61868536150 Total share-based compensation expenses 1,1431,085751104(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.2567 to US$1.00, the exchange rate in effect as of March 31, 2025 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. Baidu, Inc. Condensed Consolidated Balance Sheets (In millions, unaudited)December 31,March 31,March 31, 202420252025 RMBRMBUS$ ASSETS Current assets: Cash and cash equivalents24,83249,2026,780 Restricted cash11,69723833 Short-term investments, net102,60892,56712,756 Accounts receivable, net10,10411,0781,527 Amounts due from related parties790743102 Other current assets, net18,81822,0013,032 Total current assets168,849175,82924,230Non-current assets: Fixed assets, net30,10230,6914,229 Licensed copyrights, net6,9306,487894 Produced content, net14,69514,3721,981 Intangible assets, net7722,588357 Goodwill22,58637,6375,187 Long-term investments, net41,72143,4705,990 Long-term time deposits and held-to-maturity investments98,535106,21214,636 Amounts due from related parties13726637 Deferred tax assets, net2,1932,171299 Operating lease right-of-use assets10,89811,2031,544 Receivables related to the proposed acquisition of YY Live, net13,547-- Other non-current assets16,81523,0563,176 Total non-current assets258,931278,15338,330Total assets427,780453,98262,560LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Current liabilities: Short-term loans10,6697,7241,064 Accounts payable and accrued liabilities41,44338,7705,342 Customer deposits and deferred revenue14,62413,9091,917 Deferred income68461184 Long-term loans, current portion16856077 Convertible senior notes, current portion2422,133294 Notes payable, current portion8,0267,9861,101 Amounts due to related parties1,7941,683232 Operating lease liabilities3,3033,488481 Total current liabilities80,95376,86410,592Non-current liabilities: Deferred income23119126 Deferred revenue58566592 Amounts due to related parties56517 Long-term loans15,59616,0722,215 Notes payable27,99652,2027,194 Convertible senior notes8,3516,775934 Deferred tax liabilities3,8704,011553 Operating lease liabilities4,9735,113705 Other non-current liabilities1,5571,964269 Total non-current liabilities63,21587,04411,995Total liabilities144,168163,90822,587Redeemable noncontrolling interests9,87010,0671,387Equity Total Baidu shareholders' equity263,620269,74737,172 Noncontrolling interests10,12210,2601,414 Total equity273,742280,00738,586Total liabilities, redeemable noncontrolling interests, and equity427,780453,98262,560 Baidu, Inc. Selected Information (In millions, unaudited)Three months endedThree months endedThree months endedThree months ended March 31, 2024 (RMB)December 31, 2024 (RMB)March 31, 2025 (RMB)March 31, 2025 (US$) Baidu Core iQIYI Elim & adj(2)Baidu, Core iQIYI Elim & adj(2)Baidu, Core iQIYI Elim & adj(2)Baidu, Core iQIYI Elim & adj(2)Baidu, Inc. Total revenues 23,803 7,927 (217)31,51327,698 6,613 (187)34,12425,463 7,186 (197)32,4523,509 990 (27)4,472 YOY7 % (9 %) 3 % QOQ(8 %) 9 % (5 %)Costs and expenses: Cost of revenues (1)9,839 5,631 (179)15,29113,180 4,995 (161)18,01412,246 5,406 (165)17,4871,688 745 (23)2,410 Selling, general and administrative (1)4,492 922 (39)5,3755,816 882 (20)6,6784,921 1,026 (34)5,913678 141 (4)815 Research and development (1)4,934 429 -5,3635,064 451 -5,5154,132 412 -4,544569 57 -626 Total costs and expenses 19,265 6,982 (218)26,02924,060 6,328 (181)30,20721,299 6,844 (199)27,9442,935 943 (27)3,851 YOY Cost of revenues 24 % (4 %) 14 % Selling, general and administrative 10 % 11 % 10 % Research and development (16 %) (4 %) (15 %) Costs and expenses11 % (2 %) 7 %Operating income4,538 945 15,4843,638 285 (6)3,9174,164 342 24,508574 47 -621 YOY(8 %) (64 %) (18 %) QOQ14 % 20 % 15 % Operating margin 19 % 12 % 17 %13 % 4 % 11 %16 % 5 % 14 % Add: total other income (loss), net1,508 (262) -1,2463,125 (465) -2,6604,602 (115) -4,487634 (16) -618 Less: income tax expense866 17 -8831,612 7 -1,6191,136 41 -1,177156 6 -162 Less: net income (loss) attributable to NCI30 11 358(3)399(132) 2 (104)(3)(234)(3) 4 100(3)101- 1 13(3)14 Net income (loss) attributable to Baidu5,150 655 (357)5,4485,283 (189) 985,1927,633 182 (98)7,7171,052 24 (13)1,063 YOY48 % (72 %) 42 % QOQ44 % - 49 % Net margin 22 % 8 % 17 %19 % (3 %) 15 %30 % 3 % 24 %Non-GAAP financial measures: Operating income (non-GAAP)5,586 1,086 6,6734,647 406 5,0474,872 459 5,333671 64 735 YOY(13 %) (58 %) (20 %) QOQ5 % 13 % 6 % Operating margin (non-GAAP)23 % 14 % 21 %17 % 6 % 15 %19 % 6 % 16 %Net income (loss) attributable to Baidu (non-GAAP) 6,628 844 7,0116,741 (59) 6,7096,330 304 6,469872 41 891 YOY(4 %) (64 %) (8 %) QOQ(6 %) - (4 %) Net margin (non-GAAP)28 % 11 % 22 %24 % (1 %) 20 %25 % 4 % 20 %Adjusted EBITDA7,118 1,125 8,2446,516 444 6,9546,712 495 7,209925 68 993 YOY(6 %) (56 %) (13 %) QOQ3 % 11 % 4 % Adjusted EBITDA margin 30 % 14 % 26 %24 % 7 % 20 %26 % 7 % 22 %(1) Includes share-based compensation as follows: Cost of revenues 76 32 10874 29 10350 27 777 4 11 Selling, general and administrative 353 64 417240 57 297257 56 31335 8 43 Research and development 575 43 618652 33 685329 32 36145 5 50 Total share-based compensation 1,004 139 1,143966 119 1,085636 115 75187 17 104 (2) Relates to intersegment eliminations and adjustments (3) Relates to the net income attributable to iQIYI noncontrolling interests Baidu, Inc. Condensed Consolidated Statements of Cash Flows (In millions,unaudited)Three months endedThree months endedThree months endedThree months ended March 31, 2024 (RMB)December 31, 2024 (RMB)March 31, 2025 (RMB)March 31, 2025 (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 activities5,284 936 6,2201,836 520 2,356(6,340) 339 (6,001)(874) 47 (827) Net cash used in investing activities (2,893) (223) (3,116)(4,741) (896) (5,637)(1,175) (30) (1,205)(162) (4) (166) Net cash provided by (used in) financing activities2,126 261 2,387(1,784) 114 (1,670)19,639 860 20,4992,706 119 2,825 Effect of exchange rate changes on cash, cash equivalents and restricted cash154 15 169582 61 643(5) (1) (6)(1) - (1) Net increase (decrease) in cash, cash equivalents and restricted cash 4,671 989 5,660(4,107) (201) (4,308)12,119 1,168 13,2871,669 162 1,831 Cash, cash equivalents and restricted cash At beginning of period32,293 5,281 37,57437,106 3,791 40,89732,999 3,590 36,5894,547 495 5,042 At end of period36,964 6,270 43,23432,999 3,590 36,58945,118 4,758 49,8766,216 657 6,873Net cash provided by (used in) operating activities5,284 936 6,2201,836 520 2,356(6,340) 339 (6,001)(874) 47 (827) Less: Capital expenditures(2,016) (22) (2,038)(2,312) (21) (2,333)(2,869) (31) (2,900)(395) (4) (399) Free cash flow3,268 914 4,182(476) 499 23(9,209) 308 (8,901)(1,269) 43 (1,226)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 March 31, 2024 (RMB)December 31, 2024 (RMB)March 31, 2025 (RMB)March 31, 2025 (US$) Baidu Core iQIYI Baidu, Core iQIYI Baidu, Core iQIYI Baidu, Core iQIYI Baidu, Inc. Operating income4,538 945 5,4843,638 285 3,9174,164 342 4,508574 47 621 Add: Share-based compensation expenses1,004 139 1,143966 119 1,085636 115 75187 17 104 Add: Amortization and impairment of intangible assets(1)44 2 4643 2 4572 2 7410 - 10 Operating income (non-GAAP)5,586 1,086 6,6734,647 406 5,0474,872 459 5,333671 64 735Add: Depreciation of fixed assets1,532 39 1,5711,869 38 1,9071,840 36 1,876254 4 258 Adjusted EBITDA7,118 1,125 8,2446,516 444 6,9546,712 495 7,209925 68 993Net income (loss) attributable to Baidu5,150 655 5,4485,283 (189) 5,1927,633 182 7,7171,052 24 1,063 Add: Share-based compensation expenses1,003 139 1,066965 119 1,019635 115 68787 16 95 Add: Amortization and impairment of intangible assets(1)42 2 4341 2 4270 2 7110 - 10 Add: Disposal (gain) loss(458) - (458)7 - 7(91) - (91)(13) - (13) Add: Impairment of long-term investments36 71 6884 14 90- 2 1- - - Add: Fair value loss (gain) of long-term investments and exchangeable bonds725 (23) 714(288) (5) (290)(1,889) (2) (1,890)(260) - (260) Add: Reconciling items on equity method investments(2)280 - 280679 - 679(66) 5 (64)(9) 1 (9) Add: Tax effects on non-GAAP adjustments(3)(150) - (150)(30) - (30)38 - 385 - 5 Net income (loss) attributable to Baidu (non-GAAP)6,628 844 7,0116,741 (59) 6,7096,330 304 6,469872 41 891Diluted earnings per ADS14.9114.2621.592.98 Add: Accretion of the redeemable noncontrolling interests0.550.550.570.08 Add: Non-GAAP adjustments to earnings per ADS4.454.37(3.62)(0.51) Diluted earnings per ADS (non-GAAP)19.9119.1818.542.55(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 share. (3) This represents tax impact of all non-GAAP adjustments. View original content: SOURCE Baidu, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
18-02-2025
- Business
- South China Morning Post
Baidu hit by weak ad spending in 2024, but AI remains a bright spot
Chinese internet search giant Baidu 's revenue fell 2 per cent in the fourth quarter, as China's sputtering economic growth weighed on advertising spending, even as artificial intelligence (AI) remained a bright spot despite fresh competition. Beijing-based Baidu's total revenue for the fourth quarter fell to 34.1 billion yuan (US$4.7 billion), the company reported on Tuesday. Revenue for the year declined 1 per cent to 133 billion yuan. Net income for the December quarter reached 5.1 billion yuan, up 100 per cent year on year. Net income for the full year was 23.7 billion yuan, a 17 per cent increase over 2023. Baidu co-founder and CEO Robin Li Yanhong said 2024 marked a pivotal year in the firm's transformation from an internet-centric business to one that is AI-first. 'With our strategic foresight increasingly validated, we expect our AI investments to deliver more significant results in 2025,' he said in a statement. Baidu's core online marketing revenue for the year fell 3 per cent to 73 billion yuan. Junjie He, Baidu's interim chief financial officer, said the 'softness in online marketing' was offset by the company's AI cloud business, which grew 26 per cent for the quarter.
