Baidu 6K Announces Third Quarter 2024 Results | BIDU 21 Nov 24

Exhibit 99.1

Baidu Announces Third Quarter 2024 Results

BEIJING, China, November 21, 2024 – Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), (“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, 2024.

“Baidu Core’s flattish third quarter top line reflected the ongoing weakness in our online marketing business, offset by the growth of our AI Cloud business. Our strong AI capabilities are gaining broader market recognition, as evidenced by increasing adoption of ERNIE. In intelligent driving, Apollo Go continues to lead the global autonomous ride-hailing market, hitting another milestone with our sixth-generation autonomous vehicle now operating on public roads across multiple cities in China,” said Robin Li, Co-founder and CEO of Baidu. “Despite the near-term pressures, we remain steadfast in our AI-focused strategy and are confident in our long-term trajectory. As we further scale AI, we are emboldened to find how it can drive innovations and create value for consumers, enterprises and society at large.”

“Our relentless focus on cost control helped support our third quarter results. Baidu Core’s operating margins remained stable as we managed to further optimize costs and realize more cost efficiencies between business units,” said Junjie He, Interim CFO of Baidu. “AI Cloud continued to show healthy and sustainable development in the third quarter. Meanwhile, Apollo Go continued to make operational strides, underpinning our confidence in the validity of the fully autonomous ride hailing business model.”

Third Quarter 2024 Financial Highlights¹


	Baidu, Inc.
(In millions except per ADS, unaudited)	Q3 2023			Q2 2024			Q3 2024						YOY			QOQ
	RMB			RMB			RMB			US$
Total revenues		34,447			33,931			33,557			4,782			(3	%)		(1	%)

Operating income		6,274			5,944			5,925			844			(6	%)		(0	%)
Operating income (non-GAAP) ²		7,596			7,500			7,014			999			(8	%)		(6	%)

Net income to Baidu		6,681			5,488			7,632			1,088			14	%		39	%
Net income to Baidu (non-GAAP)²		7,267			7,396			5,886			839			(19	%)		(20	%)

Diluted earnings per ADS		18.22			15.01			21.60			3.08			19	%		44	%
Diluted earnings per ADS (non-GAAP)²		20.40			21.02			16.60			2.37			(19	%)		(21	%)

Adjusted EBITDA²		9,505			9,147			8,733			1,244			(8	%)		(5	%)
Adjusted EBITDA margin		28	%		27	%		26	%		26	%

¹	Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.0176 as of September 30, 2024, 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
(In millions, unaudited)	Q3 2023			Q2 2024			Q3 2024						YOY			QOQ
	RMB			RMB			RMB			US$
Total revenues		26,572			26,687			26,524			3,780			(0	%)		(1	%)

Operating income		5,498			5,608			5,694			811			4	%		2	%
Operating income (non-GAAP)²		6,672			7,005			6,652			948			(0	%)		(5	%)

Net income to Baidu Core		6,436			5,462			7,536			1,074			17	%		38	%
Net income to Baidu Core (non-GAAP)²		6,956			7,290			5,676			809			(18	%)		(22	%)

Adjusted EBITDA²		8,513			8,617			8,336			1,188			(2	%)		(3	%)
Adjusted EBITDA margin		32	%		32	%		31	%		31	%

Operational Highlights

Corporate

•

In October 2024, Baidu was upgraded from the prior ‘BBB’ rating to an ‘A’ rating by MSCI ESG Research.

•

Baidu returned US$161 million to shareholders since early Q3 2024, bringing the cumulative repurchase to US$1.4 billion under the 2023 share repurchase program.

AI Cloud

•

PaddlePaddle and ERNIE developer community grew to 18.1 million in November 2024.

•

In November 2024, ERNIE handled approximately 1.5 billion API calls daily, a significant jump from 600 million in August.

•

In the third quarter of 2024, Baidu expanded the ERNIE family with two enhanced lightweight models, Speed Pro and Lite Pro.

•

Baidu AI Cloud was ranked the No.1 AI cloud provider for the fifth consecutive year, according to IDC’s 2023 report on China’s AI public cloud market, issued in August 2024.

Intelligent Driving

•

Apollo Go, Baidu’s autonomous ride-hailing service, provided 988K rides in the third quarter of 2024, up 20% year over year. As of October 28, 2024, the cumulative rides provided to the public by Apollo Go surpassed 8 million.

•

During the third quarter of 2024, rides provided by Apollo Go’s fully driverless vehicles accounted for over 70% of total rides nationwide. The proportion of fully driverless rides further increased to 80% in October 2024.

•

Our sixth generation autonomous vehicle, the RT6, is now operating on public roads in multiple cities in China.

Mobile Ecosystem

•

In September 2024, Baidu App’s MAUs reached 704 million, up 6% year over year.

•

Managed Page accounted for 51% of Baidu Core’s online marketing revenue in the third quarter of 2024.

Third Quarter 2024 Financial Results

Total revenues were RMB33.6 billion ($4.78 billion), decreasing 3% year over year.

•

Revenue from Baidu Core was RMB26.5 billion ($3.78 billion), which was basically flat from last year; online marketing revenue was RMB18.8 billion ($2.68 billion), decreasing 4% year over year, and non-online marketing revenue was RMB7.7 billion ($1.10 billion), up 12% year over year, mainly driven by AI Cloud business.

•

Revenue from iQIYI was RMB7.2 billion ($1.03 billion), decreasing 10% year over year.

Cost of revenues was RMB16.4 billion ($2.34 billion), increasing 1% year over year, primarily due to an increase in traffic acquisition costs and costs related to AI Cloud business, partially offset by a decrease in personnel-related expenses and cost of goods sold.

Selling, general and administrative expenses were RMB5.9 billion ($836 million), increasing 2% 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 RMB5.4 billion ($765 million), decreasing 12% year over year, primarily due to a decrease in personnel-related expenses.

Operating income was RMB5.9 billion ($844 million). Baidu Core operating income was RMB5.7 billion ($811 million), and Baidu Core operating margin was 21%. Non-GAAP operating income was RMB7.0 billion ($999 million). Non-GAAP Baidu Core operating income was RMB6.7 billion ($948 million), and non-GAAP Baidu Core operating margin was 25%.

Total other income, net was RMB2.7 billion ($381 million), increasing 40% year over year, primarily due to an increase in fair value gain from long-term investments and disposal gain, partially offset by an increase in net foreign exchange loss arising from exchange rate fluctuation between Renminbi and U.S. dollar.

Income tax expense was RMB814 million ($116 million), compared to RMB1.3 billion in the same period last year.

Net income attributable to Baidu was RMB7.6 billion ($1.09 billion), and diluted earnings per ADS was RMB21.60 ($3.08). Net income attributable to Baidu Core was RMB7.5 billion ($1.07 billion), and net margin for Baidu Core was 28%. Non-GAAP net income attributable to Baidu was RMB5.9 billion ($839 million). Non-GAAP diluted earnings per ADS was RMB16.60 ($2.37). Non-GAAP net income attributable to Baidu Core was RMB5.7 billion ($809 million), and non-GAAP net margin for Baidu Core was 21%.

Adjusted EBITDA was RMB8.7 billion ($1.24 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB8.3 billion ($1.19 billion) and adjusted EBITDA margin for Baidu Core was 31%.

As of September 30, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB144.5 billion ($20.59 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB140.3 billion ($19.99 billion). Free cash flow was RMB2.6 billion ($376 million), and free cash flow excluding iQIYI was RMB2.4 billion ($342 million).

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on November 21, 2024, U.S. Eastern Time (8.30 PM on November 21, 2024, 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 2024 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/10043066-56ncpy.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.

Contacts

Investors Relations, Baidu, Inc.

Tel: +86-10-5992-8888

Email: ir@baidu.com

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 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 (loss), impairment of long-term investments, and fair value gain (loss) of long-term investments, 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 Ended
	September 30, 2023			June 30, 2024			September 30, 2024			September 30, 2024
	RMB			RMB			RMB			US$⁽²⁾
Revenues:
Online marketing services		21,346			20,625			20,108			2,865
Others		13,101			13,306			13,449			1,917

Total revenues		34,447			33,931			33,557			4,782

Costs and expenses:
Cost of revenues⁽¹⁾		16,294			16,398			16,399			2,337
Selling, general and administrative⁽¹⁾		5,778			5,700			5,867			836
Research and development⁽¹⁾		6,101			5,889			5,366			765

Total costs and expenses		28,173			27,987			27,632			3,938

Operating income		6,274			5,944			5,925			844

Other income:
Interest income		2,082			1,993			1,877			267
Interest expense		(853	)		(742	)		(673	)		(96	)
Foreign exchange (loss) gain, net		(26	)		93			(1,096	)		(156	)
Share of (losses) earnings from equity method investments		(398	)		(119	)		32			5
Others, net		1,100			(454	)		2,535			361

Total other income, net		1,905			771			2,675			381

Income before income taxes		8,179			6,715			8,600			1,225
Income tax expense		1,282			1,131			814			116

Net income		6,897			5,584			7,786			1,109
Net income attributable to noncontrolling interests		216			96			154			21

Net income attributable to Baidu		6,681			5,488			7,632			1,088

Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic		18.45			15.11			21.93			3.13
-Diluted		18.22			15.01			21.60			3.08
Earnings per share for Class A and Class B ordinary shares:
-Basic		2.31			1.89			2.74			0.39
-Diluted		2.28			1.88			2.70			0.38
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic		2,814			2,796			2,785			2,785
-Diluted		2,846			2,804			2,789			2,789

(1) Includes share-based compensation expenses as follows:
Cost of revenues		139			146			104			15
Selling, general and administrative		358			385			328			47
Research and development		778			981			612			87

Total share-based compensation expenses		1,275			1,512			1,044			149

(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.0176 to US$1.00, the exchange rate in effect as of September 30, 2024 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, 2023		September 30, 2024		September 30, 2024
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		25,231		28,682		4,087
Restricted cash		11,503		11,665		1,662
Short-term investments, net		168,670		104,129		14,838
Accounts receivable, net		10,848		9,848		1,403
Amounts due from related parties		1,424		1,379		197
Other current assets, net		12,579		16,415		2,339

Total current assets		230,255		172,118		24,526

Non-current assets:
Fixed assets, net		27,960		29,696		4,232
Licensed copyrights, net		6,967		6,862		978
Produced content, net		13,377		14,313		2,040
Intangible assets, net		881		749		107
Goodwill		22,586		22,586		3,218
Long-term investments, net		47,957		44,637		6,361
Long-term time deposits and held-to-maturity investments		24,666		88,547		12,618
Amounts due from related parties		195		120		17
Deferred tax assets, net		2,100		2,852		406
Operating lease right-of-use assets		10,851		10,693		1,524
Other non-current assets		18,964		24,143		3,440

Total non-current assets		176,504		245,198		34,941

Total assets		406,759		417,316		59,467

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		10,257		11,969		1,706
Accounts payable and accrued liabilities		37,717		39,000		5,557
Customer deposits and deferred revenue		14,627		14,310		2,039
Deferred income		306		300		43
Long-term loans, current portion		2		37		5
Convertible senior notes, current portion		2,802		17		2
Notes payable, current portion		6,029		7,714		1,099
Amounts due to related parties		1,603		1,959		279
Operating lease liabilities		3,108		3,123		445

Total current liabilities		76,451		78,429		11,175

Non-current liabilities:
Deferred income		200		265		38
Deferred revenue		481		532		76
Amounts due to related parties		77		61		9
Long-term loans		14,223		14,487		2,064
Notes payable		34,990		26,911		3,835
Convertible senior notes		8,144		8,187		1,167
Deferred tax liabilities		2,725		2,885		411
Operating lease liabilities		5,040		4,911		700
Other non-current liabilities		1,820		1,457		208

Total non-current liabilities		67,700		59,696		8,508

Total liabilities		144,151		138,125		19,683

Redeemable noncontrolling interests		9,465		9,312		1,327

Equity
Total Baidu shareholders’ equity		243,626		259,649		36,999
Noncontrolling interests		9,517		10,230		1,458

Total equity		253,143		269,879		38,457

Total liabilities, redeemable noncontrolling interests, and equity		406,759		417,316		59,467

Baidu, Inc.

Selected Information

(In millions, unaudited)


	Three months ended September 30, 2023 (RMB)												Three months ended June 30, 2024 (RMB)												Three months ended September 30, 2024 (RMB)												Three months ended September 30, 2024 (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		26,572			8,015			(140	)		34,447			26,687			7,439			(195	)		33,931			26,524			7,246			(213	)		33,557			3,780		1,032		(30	)		4,782
YOY																										(0	%)		(10	%)					(3	%)
QOQ																										(1	%)		(3	%)					(1	%)

Costs and expenses:
Cost of revenues ⁽¹⁾		10,610			5,840			(156	)		16,294			10,888			5,678			(168	)		16,398			10,923			5,650			(174	)		16,399			1,557		805		(25	)		2,337
Selling, general and administrative ⁽¹⁾		4,810			981			(13	)		5,778			4,751			970			(21	)		5,700			4,990			908			(31	)		5,867			711		129		(4	)		836
Research and development ⁽¹⁾		5,654			447			—			6,101			5,440			449			—			5,889			4,917			449			—			5,366			701		64		—			765

Total costs and expenses		21,074			7,268			(169	)		28,173			21,079			7,097			(189	)		27,987			20,830			7,007			(205	)		27,632			2,969		998		(29	)		3,938

YOY
Cost of revenues																										3	%		(3	%)					1	%
Selling, general and administrative																										4	%		(7	%)					2	%
Research and development																										(13	%)		0	%					(12	%)
Costs and expenses																										(1	%)		(4	%)					(2	%)

Operating income (loss)		5,498			747			29			6,274			5,608			342			(6	)		5,944			5,694			239			(8	)		5,925			811		34		(1	)		844
YOY																										4	%		(68	%)					(6	%)
QOQ																										2	%		(30	%)					(0	%)
Operating margin		21	%		9	%					18	%		21	%		5	%					18	%		21	%		3	%					18	%

Add: total other income (loss), net		2,159			(254	)		—			1,905			1,011			(240	)		—			771			2,667			8			—			2,675			380		1		—			381
Less: income tax expense		1,272			10			—			1,282			1,105			26			—			1,131			803			11			—			814			114		2		—			116
Less: net (loss) income attributable to NCI		(51	)		7			260	⁽³⁾		216			52			7			37	⁽³⁾		96			22			7			125	⁽³⁾		154			3		—		18	⁽³⁾		21

Net income (loss) attributable to Baidu		6,436			476			(231	)		6,681			5,462			69			(43	)		5,488			7,536			229			(133	)		7,632			1,074		33		(19	)		1,088

YOY																										17	%		(52	%)					14	%
QOQ																										38	%		232	%					39	%
Net margin		24	%		6	%					19	%		20	%		1	%					16	%		28	%		3	%					23	%

Non-GAAP financial measures:
Operating income (non-GAAP)		6,672			895						7,596			7,005			501						7,500			6,652			370						7,014			948		52					999
YOY																										(0	%)		(59	%)					(8	%)
QOQ																										(5	%)		(26	%)					(6	%)
Operating margin (non-GAAP)		25	%		11	%					22	%		26	%		7	%					22	%		25	%		5	%					21	%

Net income attributable to Baidu (non-GAAP)		6,956			622						7,267			7,290			247						7,396			5,676			480						5,886			809		68					839
YOY																										(18	%)		(23	%)					(19	%)
QOQ																										(22	%)		94	%					(20	%)
Net margin (non-GAAP)		26	%		8	%					21	%		27	%		3	%					22	%		21	%		7	%					18	%

Adjusted EBITDA		8,513			963						9,505			8,617			536						9,147			8,336			405						8,733			1,188		57					1,244
YOY																										(2	%)		(58	%)					(8	%)
QOQ																										(3	%)		(24	%)					(5	%)
Adjusted EBITDA margin		32	%		12	%					28	%		32	%		7	%					27	%		31	%		6	%					26	%

(1) Includes share-based compensation as follows:
Cost of revenues		107			32						139			117			29						146			73			31						104			11		4					15
Selling, general and administrative		290			68						358			292			93						385			268			60						328			38		9					47
Research and development		732			46						778			945			36						981			574			38						612			82		5					87

Total share-based compensation		1,129			146						1,275			1,354			158						1,512			915			129						1,044			131		18					149

(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 ended September 30, 2023 (RMB)									Three months ended June 30, 2024 (RMB)									Three months ended September 30, 2024 (RMB)									Three months ended September 30, 2024 (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 operating activities		8,694			831			9,525			7,970			409			8,379			4,036			243			4,279			575			35			610
Net cash (used in) provided by investing activities		(11,345	)		(55	)		(11,400	)		13,824			337			14,161			(12,300	)		(1,663	)		(13,963	)		(1,753	)		(237	)		(1,990	)
Net cash (used in) provided by financing activities		(5,253	)		269			(4,984	)		(9,946	)		869			(9,077	)		(2,787	)		(2,612	)		(5,399	)		(397	)		(372	)		(769	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		153			5			158			66			22			88			(721	)		(84	)		(805	)		(103	)		(12	)		(115	)

Net (decrease) increase in cash, cash equivalents and restricted cash		(7,751	)		1,050			(6,701	)		11,914			1,637			13,551			(11,772	)		(4,116	)		(15,888	)		(1,678	)		(586	)		(2,264	)
Cash, cash equivalents and restricted cash
At beginning of period		49,814			5,082			54,896			36,964			6,270			43,234			48,878			7,907			56,785			6,965			1,127			8,092
At end of period		42,063			6,132			48,195			48,878			7,907			56,785			37,106			3,791			40,897			5,287			541			5,828
Net cash provided by operating activities		8,694			831			9,525			7,970			409			8,379			4,036			243			4,279			575			35			610
Less: Capital expenditures		(3,525	)		(4	)		(3,529	)		(2,090	)		(28	)		(2,118	)		(1,637	)		(8	)		(1,645	)		(233	)		(1	)		(234	)

Free cash flow		5,169			827			5,996			5,880			381			6,261			2,399			235			2,634			342			34			376

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 September 30, 2023 (RMB)									Three months ended June 30, 2024 (RMB)								Three months ended September 30, 2024 (RMB)								Three months ended September 30, 2024 (US$)
	Baidu Core			iQIYI			Baidu, Inc.			Baidu Core			iQIYI		Baidu, Inc.			Baidu Core			iQIYI		Baidu, Inc.			Baidu Core			iQIYI		Baidu, Inc.
Operating income		5,498			747			6,274			5,608			342		5,944			5,694			239		5,925			811			34		844
Add: Share-based compensation expenses		1,129			146			1,275			1,354			158		1,512			915			129		1,044			131			18		149
Add: Amortization and impairment of intangible assets⁽¹⁾		45			2			47			43			1		44			43			2		45			6			—		6

Operating income (non-GAAP)		6,672			895			7,596			7,005			501		7,500			6,652			370		7,014			948			52		999

Add: Depreciation of fixed assets		1,841			68			1,909			1,612			35		1,647			1,684			35		1,719			240			5		245

Adjusted EBITDA		8,513			963			9,505			8,617			536		9,147			8,336			405		8,733			1,188			57		1,244

Net income attributable to Baidu		6,436			476			6,681			5,462			69		5,488			7,536			229		7,632			1,074			33		1,088
Add: Share-based compensation expenses		1,128			146			1,194			1,353			158		1,425			914			129		972			130			18		138
Add: Amortization and impairment of intangible assets⁽¹⁾		43			2			44			41			1		41			41			2		42			6			—		6
Add: Disposal (gain) loss		(753	)		—			(753	)		(30	)		—		(30	)		(1,501	)		22		(1,491	)		(214	)		3		(212	)
Add: Impairment of long-term investments		46			—			46			26			17		34			26			91		68			4			13		10
Add: Fair value (gain) loss of long-term investments		(384	)		(2	)		(385	)		531			2		531			(1,361	)		7		(1,358	)		(194	)		1		(194	)
Add: Reconciling items on equity method investments⁽²⁾		572			—			572			83			—		83			8			—		8			1			—		1
Add: Tax effects on non-GAAP adjustments⁽³⁾		(132	)		—			(132	)		(176	)		—		(176	)		13			—		13			2			—		2

Net income attributable to Baidu (non-GAAP)		6,956			622			7,267			7,290			247		7,396			5,676			480		5,886			809			68		839

Diluted earnings per ADS								18.22								15.01								21.60								3.08
Add: Accretion of the redeemable noncontrolling interests								0.53								0.57								0.01								—
Add: Non-GAAP adjustments to earnings per ADS								1.65								5.44								(5.01	)							(0.71	)

Diluted earnings per ADS (non-GAAP)								20.40								21.02								16.60								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 share.

(3)	This represents tax impact of all non-GAAP adjustments.

Baidu (BIDU) 6-KBaidu Announces Third Quarter 2024 Results