BEIJING, Feb. 23, 2017 /PRNewswire/ -- Baidu, Inc.
(NASDAQ: BIDU) ("Baidu" or the "Company"), the leading Chinese
language Internet search provider, today announced its unaudited
financial results for the fourth quarter and fiscal year ended
December 31,
2016[1].
"AI is an enormous opportunity that will revolutionize the
Internet and traditional industries. Baidu, in particular, is well
positioned to lead the AI wave in China, with our unique combination of
technology, data and talent," said Robin
Li, Chairman and CEO of Baidu. "Our existing platform,
including our search and newsfeed products, are enhanced by AI and
enriched by our content and services ecosystem. We are thrilled by
the opportunities that our existing platform has opened up and are
excited to build the next generation of AI-enabled businesses."
"During the fourth quarter we largely completed our initiative
to ensure that new and existing customers meet our stringent
quality requirements," said Jennifer
Li, CFO of Baidu. "We believe that the impact of these
initiatives is mostly behind us and we look forward to 2017 as a
time of recovery and growth. As always, we will stay focused on
creating the best possible experience for users, while maintaining
investment in key AI-enabled initiatives such as financial
services, cloud and autonomous driving."
Fourth Quarter and Fiscal Year 2016 Operational
Highlights
- Mobile search monthly active users (MAUs) were 665
million for the month of December
2016, an increase of 2% year-over-year
- Mobile maps MAUs were 341 million for the month of
December 2016, an increase of 13%
year-over-year
- Gross merchandise value[2]
(GMV) for Transaction Services totaled RMB18.1 billion ($2.6
billion) for the fourth quarter of 2016, an increase of 23%
year-over-year
- Baidu Wallet activated accounts reached 100 million at
the end of December 2016, an increase
of 88% year-over-year
Changes to Board Composition
Effective on February 26,
2017:
- Dr. Qi Lu, Baidu's Group President and Chief Operating Officer,
has been appointed as a director and the vice chairman of the board
of directors of the Company.
- Mr. Greg Penner, who has served
as a board member since July 2004,
will step down from the board and all the committees on the
board.
- Mr. Yuanqing Yang has been
appointed as a member of the audit committee and as a member of the
corporate governance and nominating committee of the board of
directors of the Company.
Fourth Quarter and Fiscal Year 2016 Financial
Highlights
- Total revenues in the fourth quarter of 2016 were
RMB18.212 billion ($2.623 billion), a 2.6% decrease from the
corresponding period in 2015, and flat year-over-year, excluding
Qunar[3] in the fourth quarter of 2015. Mobile revenue
represented 65% of total revenues for the fourth quarter of 2016,
compared to 56% for the corresponding period in 2015.
- Total revenues in fiscal year 2016 were RMB70.549 billion ($10.161
billion), a 6.3% increase and 11.9% year-over-year increase
excluding Qunar from 2015. Mobile revenue represented 63% of total
revenues in 2016, compared to 53% in 2015.
- Operating profit in the fourth quarter of 2016 was
RMB2.185 billion ($314.7 million), a 38.2% decrease from the
corresponding period in 2015. Transaction Services reduced
non-GAAP operating margins by 22.9 percentage points and
iQiyi further reduced non-GAAP operating margins by 9.8
percentage points for the fourth quarter of 2016.
- Operating profit in fiscal year 2016 was RMB10.049 billion ($1.447
billion), a 13.9% decrease from 2015. Transaction
Services reduced non-GAAP operating margins by 23.8 percentage
points and iQiyi further reduced non-GAAP operating margins
by 7.9 percentage points for the fiscal year 2016.
- Net income attributable to Baidu in the fourth quarter
of 2016 was RMB4.129 billion
($594.7 million). Diluted earnings
attributable to Baidu per ADS for the fourth quarter of 2016
were RMB11.40 ($1.64); non-GAAP net income attributable to
Baidu[4] in the fourth quarter of 2016 were
RMB4.606 billion ($663.4 million); non-GAAP diluted
earnings per ADS[5] in the fourth quarter of
2016 were RMB13.23 ($1.91); diluted earnings attributable to
Baidu per ADS excluding net gain recognized as a result of Baidu's
exchange of Uber China shares with
Didi for the fourth quarter of 2016 were RMB6.49 ($0.93).
- Net income attributable to Baidu in fiscal year 2016 was
RMB11.632 billion ($1.675 billion). Diluted earnings attributable
to Baidu per ADS for the fiscal year 2016 were RMB31.86 ($4.59);
non-GAAP net income attributable to Baidu in fiscal year
2016 were RMB13.219 billion
($1.904 billion); non-GAAP
diluted earnings per ADS in fiscal year 2016 were
RMB38.03 ($5.48); diluted earnings attributable to
Baidu per ADS excluding net gain recognized as a result of Baidu's
exchange of Uber China shares with
Didi in fiscal year 2016 were RMB26.94 ($3.88).
In the following section, comparison and analysis are provided
based on reported consolidated financial results. For ease of
comparison, a table with apples-to-apples adjusted financials and
metrics excluding Qunar can be found at the end of the following
section.
Fourth Quarter 2016 Results
Baidu reported total revenues of RMB18.212 billion ($2.623
billion) for the fourth quarter of 2016, representing a 2.6%
decrease from the corresponding period in 2015.
Online marketing revenues for the fourth quarter of 2016
were RMB16.166 billion ($2.328 billion), representing an 8.2% decrease
from the corresponding period in 2015. Baidu had about 452,000
active online marketing customers[6] in
the fourth quarter of 2016, representing an 18.6% decrease from the
corresponding period in 2015. Revenue per online marketing
customer for the fourth quarter of 2016 was approximately
RMB35,400 ($5,099), a 14.2% increase from the corresponding
period in 2015.
Traffic acquisition cost as a component of cost of
revenues was RMB2.636 billion
($379.7 million), representing 14.5%
of total revenues, as compared to 14.0% in the corresponding period
in 2015 and 14.2% in the third quarter of 2016.
Bandwidth costs as a component of cost of revenues were
RMB1.235 billion ($177.9 million), representing 6.8% of total
revenues, compared to 5.4% in the corresponding period in
2015.
Depreciation costs as a component of cost of revenues
were RMB811.5 million ($116.9 million), representing 4.5% of total
revenues, compared to 3.7% in the corresponding period in 2015.
Operational costs as a component of cost of revenues were
RMB1.186 billion ($170.9 million), representing 6.5% of total
revenues, compared to 6.3% in the corresponding period in 2015.
Content costs as a component of cost of revenues were
RMB2.571 billion ($370.3 million), representing 14.1% of total
revenues, compared to 7.4% in the corresponding period in 2015. The
year-over-year increase was mainly due to iQiyi's increased content
costs.
Selling, general and administrative expenses were
RMB3.334 billion ($480.2 million), representing a decrease of 26.4%
from the corresponding period in 2015, primarily due to a decrease
in promotional spending for transaction services.
Research and development expenses were RMB2.971 billion ($428.0
million), a 19.5% increase from the corresponding period in
2015. The increase was primarily due to the growth of research and
development personnel-related cost.
Share-based compensation expenses, which were allocated
to related operating costs and expense line items, were
RMB631.9 million ($91.0 million) in the fourth quarter of 2016,
compared to RMB341.0 million in the
corresponding period in 2015.
Operating profit was RMB2.185
billion ($314.7 million),
representing a 38.2% decrease from the corresponding period in
2015. Non-GAAP operating profit was RMB2.817 billion ($405.7
million), a 27.3% decrease from the corresponding period in
2015.
Other income, net was RMB1.796
billion ($258.6 million) in
the fourth quarter of 2016, which mainly consisted of the
investment gain recognized as a result of Baidu's exchange of
Uber China shares with Didi.
Other income, net was RMB24.294
billion in the corresponding period of 2015, which mainly
consisted of the investment gain recognized as a result of Baidu's
exchange of Qunar shares with Ctrip.
Income tax expense was RMB400.9
million ($57.7 million),
compared to income tax expense of RMB3.580
billion in the corresponding period in 2015. The effective
tax rate for the fourth quarter of 2016 was 8.9% as compared to
12.7% for the corresponding period in 2015. The decrease in the
effective tax rate was due to the newly granted preferential tax
licenses for certain PRC subsidiaries.
Net income attributable to Baidu was RMB4.129 billion ($594.7
million). Basic and diluted earnings per ADS for the
fourth quarter of 2016 amounted to RMB11.43 ($1.65)
and RMB11.40 ($1.64), respectively.
Non-GAAP net income attributable to Baidu was
RMB4.606 billion ($663.4 million). Non-GAAP diluted earnings per
ADS for the fourth quarter of 2016 amounted to RMB13.23 ($1.91).
As of December 31, 2016, the
Company had cash, cash equivalents and short-term
investments of RMB89.842 billion
($12.940 billion). Net operating
cash inflow for the fourth quarter of 2016
was RMB8.011 billion ($1.154
billion). Capital expenditures for the
fourth quarter of 2016 were RMB1.201 billion ($173.0 million).
Adjusted EBITDA was RMB3.855
billion ($555.2 million) for
the fourth quarter of 2016, representing a 19.9% decrease from the
corresponding period in 2015. On an apples-to-apples basis,
excluding Qunar from Baidu's financials, the adjusted EBITDA
represents a 21.4% year-over-year decrease.
Summary of adjusted financial information (excluding
Qunar) [7]
(RMB in millions, unless otherwise noted)
|
Three months
ended
December 31,
|
|
YoY
variance
|
|
|
2016
|
|
2015
|
|
|
Adjusted
Revenues
|
18,212
|
|
18,209
|
|
0.0%
|
|
Adjusted online
marketing revenues
|
16,166
|
|
17,267
|
|
(6.4%)
|
|
Active online
marketing customer (000)
|
452,000
|
|
555,000
|
|
(18.6%)
|
|
Revenue per active
online marketing customer (RMB)
|
35,400
|
|
31,000
|
|
14.2%
|
|
Adjusted cost of
revenues
|
9,722
|
|
7,935
|
|
22.5%
|
|
Adjusted selling,
general and administrative expenses
|
3,334
|
|
4,259
|
|
(21.7%)
|
|
Adjusted research and
development expenses
|
2,971
|
|
2,379
|
|
24.9%
|
|
Adjusted operating
profit
|
2,185
|
|
3,636
|
|
(39.9%)
|
|
Fiscal Year 2016 Results
Total revenues in 2016 were RMB70.549 billion ($10.161
billion), representing a 6.3% increase from 2015.
Online marketing revenues in 2016 were RMB64.525 billion ($9.294
billion), representing a 0.8% increase from 2015. Baidu had
about 982,000 active online marketing customers in 2016,
representing a 6.4% decrease from 2015. Revenue per online
marketing customer for 2016 was RMB65,300 ($9,405),
an increase of 7.9% from 2015.
Traffic acquisition costs in 2016 were RMB10.373 billion ($1.494
billion), representing 14.7% of total revenues, compared to
13.3% in 2015.
Bandwidth costs as a component of cost of revenues were
RMB4.716 billion ($679.3 million), representing 6.7% of total
revenues, compared to 5.6% in 2015.
Depreciation costs as a component of cost of revenues
were RMB3.075 billion ($442.9 million), representing 4.4% of total
revenues, compared to 3.9% in 2015.
Operational costs as a component of cost of revenues were
RMB4.430 billion ($638.0 million), representing 6.3% of total
revenues, compared to 5.8% in 2015.
Content costs as a component of cost of revenues were
RMB7.864 billion ($1.133 billion), representing 11.1% of total
revenues, compared to 5.6% in 2015. The year-over-year increase was
mainly due to iQiyi's increased content costs.
Selling, general and administrative expenses in 2016 were
RMB15.071 billion ($2.171 billion), representing a decrease of 11.7%
from the previous year, primarily due to a decrease in promotional
spending for transaction services.
Research and development expenses totaled RMB10.150 billion ($1.462
billion) in 2016, representing a 0.2% decrease from
2015.
Share-based compensation expenses, which were allocated
to related operating cost and expense line items, were RMB1.760 billion ($253.5
million) in 2016, compared to RMB1.387 billion in 2015.
Operating profit in 2016 was RMB10.049 billion ($1.447
billion), a 13.9% decrease from 2015. Non-GAAP operating
profit in 2016 was RMB11.809
billion ($1.701 billion),
representing a 9.6% decrease from 2015.
Other income, net was RMB3.793
billion ($546.4 million) in
2016, which mainly consisted of the investment gain recognized as a
result of Baidu's exchange of Uber
China shares with Didi. Other income, net was
RMB24.728 billion in 2015, which
mainly consisted of the investment gain recognized as a result of
Baidu's exchange of Qunar shares with Ctrip.
Income tax expense was RMB2.914
billion ($419.6 million),
compared to an income tax expense of RMB5.474 billion in 2015. The effective tax rate
for 2016 was 20.1% as compared to 14.4% in 2015. Excluding the
share exchange transactions impact for the past two years, the
effective tax rate was flat year over year.
Net income attributable to Baidu in 2016 was
RMB11.632 billion ($1.675 billion). Basic and diluted
earnings attributable to Baidu per ADS for 2016
amounted to RMB31.95 ($4.60) and RMB31.86 ($4.59),
respectively.
Non-GAAP net income attributable to Baidu in 2016 was
RMB13.219 billion ($1.904 billion). Non-GAAP diluted earnings per
ADS in 2016 was RMB38.03
($5.48).
Net operating cash inflow in 2016 was RMB22.258
billion ($3.206 billion). Capital
expenditures in 2016 were RMB4.189 billion ($603.4 million).
Adjusted EBITDA was RMB15.792
billion ($2.275 billion) in
2016, representing a 5.2% decrease from 2015.
Summary of adjusted financial information (excluding
Qunar)
(RMB in millions, unless otherwise noted)
|
Year ended
December 31,
|
|
YoY
variance
|
|
|
2016
|
|
2015
|
|
|
Adjusted
Revenues
|
70,549
|
|
63,073
|
|
11.9%
|
|
Adjusted online
marketing revenues
|
64,525
|
|
61,205
|
|
5.4%
|
|
Active online
marketing customer (000)
|
982,000
|
|
915,000
|
|
7.3%
|
|
Revenue per active
online marketing customer (RMB)
|
65,300
|
|
66,700
|
|
(2.1%)
|
|
Adjusted cost of
revenues
|
35,279
|
|
26,329
|
|
34.0%
|
|
Adjusted selling,
general and administrative expenses
|
15,071
|
|
14,275
|
|
5.6%
|
|
Adjusted research and
development expenses
|
10,150
|
|
9,027
|
|
12.5%
|
|
Adjusted operating
profit
|
10,049
|
|
13,442
|
|
(25.2%)
|
|
Outlook for First Quarter 2017
Baidu currently expects to generate total revenues in an amount
ranging from RMB16.480 billion
($2.374 billion) to RMB17.030 billion
($2.453 billion) for the first
quarter of 2017, representing a 4.2% to 7.6% year-over-year
increase. This forecast reflects Baidu's current and preliminary
view, which is subject to change.
Conference Call Information
Baidu's management will hold an earnings conference call at
8:00 PM on February 23, 2017, U.S. Eastern Time
(9:00 AM on February 24, 2017, Beijing/Hong Kong Time).
Dial-in details for the earnings conference call are as
follows:
International:
|
+65
67135090
|
China
|
4006208038
|
US:
|
+1
8456750437
|
UK:
|
+44
2036214779
|
Hong Kong:
|
+852
30186771
|
|
|
Passcode for all
regions:
|
67004023
|
|
|
A replay of the conference call may be accessed by phone at the
following number until March 3, 2017:
International:
|
+61 2 8199
0299
|
Passcode:
|
67004023
|
Additionally, a live and archived webcast of this conference
call will be available at http://ir.baidu.com.
About Baidu
Baidu, Inc. is the leading Chinese language Internet search
provider. As a technology-based media company, Baidu aims to
provide the best and most equitable way for people to find what
they're looking for. In addition to serving individual Internet
search users, Baidu provides an effective platform for businesses
to reach potential customers. Baidu's ADSs trade on the NASDAQ
Global Select Market under the symbol "BIDU". Currently, ten ADSs
represent one Class A ordinary share.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for the first quarter 2017 and quotations
from management in this announcement, as well as Baidu's strategic
and operational plans, contain forward-looking statements. Baidu
may also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission, in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are
not historical facts, including statements about Baidu's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: Baidu's growth strategies; its future
business development, including development of new products and
services; its ability to attract and retain users and customers;
competition in the Chinese Internet search market; competition for
online marketing customers; changes in the Company's revenues and
certain cost or expense items as a percentage of its revenues; the
outcome of ongoing, or any future, litigation or arbitration,
including those relating to intellectual property rights; the
expected growth of the Chinese language Internet search market and
the number of Internet and broadband users in China; Chinese governmental policies relating
to the Internet and Internet search providers and general economic
conditions in China, Japan and elsewhere. Further information
regarding these and other risks is included in the Company's annual
report on Form 20-F and other documents filed with the Securities
and Exchange Commission. Baidu does not undertake any obligation to
update any forward-looking statement, except as required under
applicable law. All information provided in this press
release and in the attachments is as of the date of the press
release, and Baidu undertakes no duty to update such information,
except as required under applicable law.
About 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 profit, non-GAAP net income
attributable to Baidu, non-GAAP diluted earnings per ADS, adjusted
EBITDA and free cash flow. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with GAAP.
Baidu believes that these non-GAAP financial measures provide
meaningful supplemental information regarding its performance and
liquidity by excluding certain items that may not be indicative of
its recurring core business operating results, such as operating
performance excluding not only non-cash charges, but also other
items that are infrequent or unusual in nature. The Company
believes that both management and investors benefit from referring
to these non-GAAP financial measures in assessing its performance
and when planning and forecasting future periods. These non-GAAP
financial measures also facilitate management's internal
comparisons to Baidu's historical performance and liquidity. The
Company believes these non-GAAP financial measures are useful to
investors in allowing for greater transparency with respect to
supplemental information used by management in its financial and
operational decision making. A limitation of using these non-GAAP
financial measures is that these non-GAAP measures exclude certain
items that have been and will continue to be for the foreseeable
future a significant component in the Company's results of
operations. These non-GAAP financial measures presented here
may not be comparable to similarly titled measures presented by
other companies. Other companies may calculate similarly titled
measures differently, limiting their usefulness as comparative
measures to the Company's data.
Non-GAAP operating profit represents operating profit
excluding share-based compensation expenses.
Non-GAAP net income attributable to Baidu represents net
income attributable to Baidu excluding share-based compensation
expenses and the gain or loss associated with the issuance of
shares by Baidu's equity method investees at a price higher or
lower than the carrying value per share.
Non-GAAP diluted earnings per ADS represents diluted
earnings per ADS calculated based on non-GAAP net income
attributable to Baidu.
Adjusted EBITDA represents operating profit excluding
depreciation, amortization and share-based compensation
expenses.
Free cash flow represents net cash provided by operating
activities less capital expenditures.
For more information on non-GAAP financial measures, please see
the tables captioned "Reconciliations of non-GAAP financial
measures to the nearest comparable GAAP measures".
For investor inquiries, please contact:
Sharon Ng
Baidu, Inc.
Tel: +86-10-5992-4958
Email: ir@baidu.com
[1] This announcement
contains translations of certain RMB amounts into U.S. dollars at
specified rates solely for the convenience of the reader. Unless
otherwise noted, all translations from RMB to U.S. dollars are made
at a rate of RMB6.9430 to US$1.00, the effective noon buying rate
as of December 30, 2016, in The City of New York for cable
transfers of RMB as certified for customs purposes by the Federal
Reserve Bank of New York.
[2] Gross merchandise value (GMV) is defined as GMV generated by
the Baidu platform, through products such as Baidu Nuomi, Baidu
Deliveries and Baidu Wallet. GMV is defined as the value of
confirmed orders of products and services, regardless of whether
the service has been consumed or delivered.
[3] Qunar Cayman Islands Limited ("Qunar") financials were
consolidated in Baidu's financial statements from July 2011 to
October 26, 2015. Following Baidu's exchange of Qunar shares with
Ctrip, Baidu deconsolidated Qunar's financials after October 26,
2015.
[4] Non-GAAP net income attributable to Baidu represents net income
attributable to Baidu excluding share-based compensation expenses
and the gain or loss associated with the issuance of the shares by
our equity method investees at a price higher or lower than our
carrying value per share.
[5] Non-GAAP diluted earnings per ADS represents diluted earnings
per ADS calculated based on non-GAAP net income attributable to
Baidu.
[6] The number of active online marketing customers and revenue per
online active customer exclude our group-buying and delivery
related businesses for consistency with previous reporting.
[7] The adjusted figures for the fourth quarter of 2015 only
exclude Qunar related figures from Baidu's consolidated results.
Share-based compensation was allocated to related operating costs
and expense line items.
|
Baidu,
Inc.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
September
30,
|
December
31,
|
|
December
31,
|
December
31,
|
(In RMB thousands
except for share, per share (or ADS) information)
|
|
2015
|
2016
|
2016
|
|
2015
|
2016
|
|
|
Unaudited
|
Unaudited
|
Unaudited
|
|
audited
|
Unaudited
|
Revenues:
|
|
|
|
|
|
|
|
Online
marketing services
|
|
17,610,379
|
16,490,040
|
16,165,751
|
|
64,037,006
|
64,525,115
|
Other
services
|
|
1,088,415
|
1,762,719
|
2,046,634
|
|
2,344,723
|
6,024,249
|
Total
revenues
|
|
18,698,794
|
18,252,759
|
18,212,385
|
|
66,381,729
|
70,549,364
|
|
|
|
|
|
|
|
|
Operating costs
and expenses:
|
|
|
|
|
|
|
|
Cost of
revenues (note 1, 2)
|
|
(8,149,327)
|
(9,256,370)
|
(9,721,570)
|
|
(27,458,030)
|
(35,278,945)
|
Selling,
general and administrative (note 2)
|
|
(4,527,813)
|
(3,595,985)
|
(3,334,168)
|
|
(17,076,383)
|
(15,070,586)
|
Research and
development (note 2)
|
|
(2,486,778)
|
(2,613,573)
|
(2,971,521)
|
|
(10,175,762)
|
(10,150,753)
|
Total
operating costs and expenses
|
|
(15,163,918)
|
(15,465,928)
|
(16,027,259)
|
|
(54,710,175)
|
(60,500,284)
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
3,534,876
|
2,786,831
|
2,185,126
|
|
11,671,554
|
10,049,080
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
Interest
income
|
|
572,725
|
627,308
|
631,346
|
|
2,362,632
|
2,341,631
|
Interest
expense
|
|
(299,372)
|
(319,899)
|
(294,193)
|
|
(1,041,394)
|
(1,157,562)
|
Foreign
exchange income, net
|
|
106,007
|
20,361
|
310,206
|
|
181,802
|
508,312
|
Income(loss)
from equity method investments
|
|
23,119
|
(248,460)
|
(105,642)
|
|
3,867
|
(1,025,727)
|
Other income,
net
|
|
24,294,280
|
1,271,932
|
1,795,684
|
|
24,728,162
|
3,793,473
|
Total other
income
|
|
24,696,759
|
1,351,242
|
2,337,401
|
|
26,235,069
|
4,460,127
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
28,231,635
|
4,138,073
|
4,522,527
|
|
37,906,623
|
14,509,207
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
(3,579,909)
|
(1,045,184)
|
(400,937)
|
|
(5,474,377)
|
(2,913,594)
|
|
|
|
|
|
|
|
|
Net
income
|
|
24,651,726
|
3,092,889
|
4,121,590
|
|
32,432,246
|
11,595,613
|
Less: net
loss attributable to noncontrolling interests
|
|
(60,085)
|
(9,441)
|
(7,695)
|
|
(1,231,927)
|
(36,656)
|
Net income
attributable to Baidu
|
|
24,711,811
|
3,102,330
|
4,129,285
|
|
33,664,173
|
11,632,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
for Class A and Class B ordinary shares:
|
|
|
|
|
|
Net income
attributable to Baidu -Basic
|
|
711.02
|
85.27
|
114.32
|
|
954.56
|
319.47
|
Net income
attributable to Baidu -Diluted
|
|
709.15
|
85.06
|
113.98
|
|
951.49
|
318.62
|
|
|
|
|
|
|
|
|
Earnings per ADS (1
Class A ordinary share equals 10 ADSs):
|
|
|
|
|
|
Net income
attributable to Baidu -Basic
|
|
71.10
|
8.53
|
11.43
|
|
95.46
|
31.95
|
Net income
attributable to Baidu -Diluted
|
|
70.92
|
8.51
|
11.40
|
|
95.15
|
31.86
|
|
|
|
|
|
|
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
Basic
|
|
34,588,703
|
34,678,734
|
34,712,363
|
|
34,921,782
|
34,665,238
|
Diluted
|
|
34,679,673
|
34,764,579
|
34,816,049
|
|
35,034,470
|
34,757,086
|
|
|
|
|
|
|
|
|
(1) Cost of
revenues are detailed as follows:
|
|
|
|
|
|
|
|
Sales tax and
surcharges
|
|
(1,259,925)
|
(1,220,377)
|
(1,238,965)
|
|
(4,644,357)
|
(4,718,468)
|
Traffic
acquisition costs
|
|
(2,616,319)
|
(2,594,452)
|
(2,636,455)
|
|
(8,860,861)
|
(10,372,516)
|
Bandwidth
costs
|
|
(1,000,957)
|
(1,240,986)
|
(1,235,400)
|
|
(3,716,747)
|
(4,716,416)
|
Depreciation
costs
|
|
(692,046)
|
(802,257)
|
(811,529)
|
|
(2,559,623)
|
(3,074,893)
|
Operational
costs
|
|
(1,181,667)
|
(1,158,554)
|
(1,186,252)
|
|
(3,881,609)
|
(4,429,713)
|
Content
costs
|
|
(1,381,875)
|
(2,211,373)
|
(2,570,729)
|
|
(3,745,063)
|
(7,863,585)
|
Share-based
compensation expenses
|
|
(16,538)
|
(28,371)
|
(42,240)
|
|
(49,770)
|
(103,354)
|
Total cost of
revenues
|
|
(8,149,327)
|
(9,256,370)
|
(9,721,570)
|
|
(27,458,030)
|
(35,278,945)
|
|
|
|
|
|
|
|
|
(2) Includes
share-based compensation expenses as follows:
|
|
|
|
|
|
Cost of
revenues
|
|
(16,538)
|
(28,371)
|
(42,240)
|
|
(49,770)
|
(103,354)
|
Selling,
general and administrative
|
|
(100,353)
|
(116,646)
|
(113,709)
|
|
(486,760)
|
(429,234)
|
Research and
development
|
|
(224,129)
|
(273,045)
|
(475,984)
|
|
(850,588)
|
(1,227,400)
|
Total
share-based compensation expenses
|
|
(341,020)
|
(418,062)
|
(631,933)
|
|
(1,387,118)
|
(1,759,988)
|
Baidu,
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
December
31,
|
December
31,
|
(In RMB thousands
except for number of shares and per share data)
|
2015
|
2016
|
|
|
Audited
|
Unaudited
|
|
|
|
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash
equivalents
|
|
9,959,932
|
10,898,463
|
Restricted
cash
|
|
95,997
|
317,521
|
Short-term
investments
|
|
57,969,242
|
78,943,065
|
Accounts
receivable, net
|
|
3,926,986
|
4,109,324
|
Loans and
interest receivable, net
|
|
227,107
|
1,800,397
|
Amounts due
from related parties
|
|
1,940,559
|
345,594
|
Other assets,
current
|
|
4,113,840
|
3,344,516
|
Total current assets
|
|
78,233,663
|
99,758,880
|
|
|
|
|
Non-current assets:
|
|
|
|
Fixed assets,
net
|
|
10,627,127
|
11,294,348
|
Intangible
assets, net
|
|
3,334,619
|
3,872,227
|
Goodwill
|
|
15,395,573
|
15,342,096
|
Long-term
investments, net
|
|
37,958,591
|
45,690,363
|
Amounts due
from related parties
|
|
9,725
|
11,153
|
Deferred tax
assets, net
|
|
1,008,174
|
1,100,230
|
Loans and
interest receivable, net
|
|
122,093
|
2,708,817
|
Other assets,
non-current
|
|
1,163,743
|
2,219,277
|
Total non-current assets
|
|
69,619,645
|
82,238,511
|
|
|
|
|
Total
assets
|
|
147,853,308
|
181,997,391
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Short-term
loans
|
|
100,000
|
1,115,000
|
Accounts payable and
accrued liabilities
|
|
17,840,192
|
28,654,086
|
Customer advances and
deposits
|
|
5,420,230
|
6,031,681
|
Deferred
revenue
|
|
375,672
|
596,460
|
Deferred
income
|
|
559,855
|
566,104
|
Long-term loans,
current portion
|
|
974,820
|
3,468,296
|
Notes payable,current
portion
|
|
-
|
5,203,315
|
Capital lease
obligation
|
|
46,088
|
8,416
|
Amounts due to
related parties
|
|
785,945
|
458,687
|
Total current liabilities
|
|
26,102,802
|
46,102,045
|
|
|
|
|
Non-current liabilities:
|
|
|
|
Deferred
income
|
|
17,413
|
27,828
|
Long-term
loans
|
|
3,239,676
|
6,822,109
|
Notes
payable
|
|
30,702,116
|
27,648,477
|
Deferred tax
liabilities
|
|
3,441,290
|
3,589,235
|
Capital lease
obligation
|
|
8,435
|
348
|
Other non-current
liabilities
|
|
125,860
|
64,954
|
Total non-current liabilities
|
|
37,534,790
|
38,152,951
|
|
|
|
|
Total
liabilities
|
|
63,637,592
|
84,254,996
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
3,947,879
|
5,491,976
|
|
|
|
|
Equity
|
|
|
|
Class A Ordinary
Shares, par value US$0.00005 per share,
825,000,000 shares authorized, and 27,113, 541 shares and
27,325,551 shares issued and outstanding as at December
31, 2015 and December 31, 2016
|
|
12
|
12
|
Class B Ordinary
Shares, par value US$0.00005 per share,
35,400,000 shares authorized, and 7,492,921 shares
and
7,401,254 shares issued and outstanding as at December 31,
2015 and December 31, 2016
|
|
3
|
3
|
Additional paid-in
capital
|
|
6,402,349
|
8,322,787
|
Retained
earnings
|
|
74,659,355
|
85,733,706
|
Accumulated other
comprehensive loss
|
|
(806,056)
|
(1,782,966)
|
Total Baidu, Inc. shareholders' equity
|
|
80,255,663
|
92,273,542
|
Noncontrolling interests
|
|
12,174
|
(23,123)
|
Total
equity
|
|
80,267,837
|
92,250,419
|
|
|
|
|
Total liabilities,
redeemable noncontrolling interests, and equity
|
|
147,853,308
|
181,997,391
|
Reconciliations of
non-GAAP financial measures to the nearest comparable GAAP
measures (in RMB thousands except for share and per ADS
information, unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
December 31,
2015
|
|
September 30,
2016
|
|
December 31,
2016
|
|
December 31,
2015
|
December 31,
2016
|
Operating
profit
|
3,534,876
|
|
2,786,831
|
|
2,185,126
|
|
11,671,554
|
10,049,080
|
Add:
Share-based compensation expenses
|
341,020
|
|
418,062
|
|
631,933
|
|
1,387,118
|
1,759,988
|
Non-GAAP operating
profit
|
3,875,896
|
|
3,204,893
|
|
2,817,059
|
|
13,058,672
|
11,809,068
|
Add:
Depreciation of fixed assets
|
772,684
|
|
898,890
|
|
911,578
|
|
2,886,254
|
3,451,422
|
Add:
Amortization of intangible assets
|
166,632
|
|
125,839
|
|
126,292
|
|
715,108
|
531,550
|
Adjusted
EBITDA
|
4,815,212
|
|
4,229,622
|
|
3,854,929
|
|
16,660,034
|
15,792,040
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
December 31,
2015
|
|
September 30,
2016
|
|
December 31,
2016
|
|
December 31,
2015
|
December 31,
2016
|
Net income
attributable to Baidu
|
24,711,811
|
|
3,102,330
|
|
4,129,285
|
|
33,664,173
|
11,632,269
|
Add:
Share-based compensation expenses
|
341,020
|
|
418,062
|
|
631,933
|
|
1,387,118
|
1,759,988
|
Add: Gain
associated with the dilution of equity method investees
|
-
|
|
(73,408)
|
|
(155,515)
|
|
-
|
(172,958)
|
Non-GAAP net
income attributable to Baidu
|
25,052,831
|
|
3,446,984
|
|
4,605,703
|
|
35,051,291
|
13,219,299
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ADS used in computing non-
GAAP diluted earnings per ADS
|
346,796,727
|
|
347,645,787
|
|
348,160,487
|
|
350,344,697
|
347,570,857
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per ADS
|
72.24
|
|
9.92
|
|
13.23
|
|
100.05
|
38.03
|
Reconciliation
from net cash provided by operating activities to free cash flow
(in RMB thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
As a %
of
|
Three months
ended
|
As a %
of
|
Three months
ended
|
As a %
of
|
|
Twelve months
ended
|
As a %
of
|
Twelve months
ended
|
As a %
of
|
|
December 31,
2015
|
total
revenues
|
September 30,
2016
|
total
revenues
|
December 31,
2016
|
total
revenues
|
|
December 31,
2015
|
total
revenues
|
December 31,
2016
|
total
revenues
|
Net cash provided
by operating activities
|
6,070,158
|
32%
|
2,953,166
|
16%
|
8,011,229
|
44%
|
|
19,422,438
|
29%
|
22,258,297
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Capital
expenditures
|
(1,423,527)
|
-8%
|
(1,182,627)
|
-6%
|
(1,201,360)
|
-7%
|
|
(5,229,616)
|
-8%
|
(4,189,187)
|
-6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
4,646,631
|
24%
|
1,770,539
|
10%
|
6,809,869
|
37%
|
|
14,192,822
|
21%
|
18,069,110
|
26%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/baidu-announces-fourth-quarter-and-fiscal-year-2016-results-300412705.html
SOURCE Baidu, Inc.