Baidu (BIDU) 6-K Baidu Announces Fourth Quarter and Fiscal Year 2024 Results

Exhibit 99.1

Baidu Announces Fourth Quarter and Fiscal Year 2024 Results

BEIJING, China, February 18, 2025 – 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 quarter and fiscal year ended December 31, 2024.

“2024 marked a pivotal year in our ongoing transformation from an internet-centric to an AI-first business. AI Cloud gained momentum, fueled by broad market recognition of our full stack AI capabilities. In Mobile Ecosystem, we have been steadfast in advancing the AI transformation, making search more AI-native to deliver a better user experience. Apollo Go, after years of investment, validated its business model, paving the way for global expansion and scalable, asset-light strategies,” said Robin Li, Co-founder and CEO of Baidu. “With our strategic foresight increasingly validated, we expect our AI investments to deliver more significant results in 2025.”

“Our AI Cloud business demonstrated robust momentum with fourth-quarter revenue growth accelerating to 26% year over year, offsetting the softness in online marketing business,” said Junjie He, Interim CFO of Baidu. “While navigating near-term pressures, we are confident that our strategic AI investments will drive meaningful progress and foster long-term success.”

Fourth Quarter and Fiscal Year 2024 Financial Highlights¹

	Baidu, Inc.
(In millions except per	Q4			Q3			Q4									FY			FY
ADS, unaudited)	2023			2024			2024						YOY			2023			2024						YOY
	RMB			RMB			RMB			US$						RMB			RMB			US$
Total revenues		34,951			33,557			34,124			4,675			(2	%)		134,598			133,125			18,238			(1	%)
Operating income		5,392			5,925			3,917			537			(27	%)		21,856			21,270			2,914			(3	%)
Operating income (non-GAAP) 2		7,075			7,014			5,047			691			(29	%)		28,433			26,234			3,594			(8	%)
Net income to Baidu		2,599			7,632			5,192			711			100	%		20,315			23,760			3,255			17	%
Net income to Baidu (non-GAAP) 2		7,755			5,886			6,709			919			(13	%)		28,747			27,002			3,699			(6	%)
Diluted earnings per ADS		6.77			21.60			14.26			1.95			111	%		55.08			65.91			9.03			20	%
Diluted earnings per ADS (non-GAAP) 2		21.86			16.60			19.18			2.63			(12	%)		80.85			76.85			10.53			(5	%)
Adjusted EBITDA 2		9,057			8,733			6,954			953			(23	%)		35,823			33,078			4,532			(8	%)
Adjusted EBITDA margin		26	%		26	%		20	%		20	%					27	%		25	%		25	%

¹ Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 7.2993 as of December 31, 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).

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	Baidu Core
	Q4			Q3			Q4									FY			FY
(In millions, unaudited)	2023			2024			2024						YOY			2023			2024						YOY
	RMB			RMB			RMB			US$						RMB			RMB			US$
Total revenues		27,488			26,524			27,698			3,795			1	%		103,465			104,712			14,345			1	%
Operating income		4,668			5,694			3,638			498			(22	%)		18,825			19,478			2,668			3	%
Operating income (non-GAAP) 2		6,197			6,652			4,647			637			(25	%)		24,748			23,890			3,273			(3	%)
Net income to Baidu Core		2,440			7,536			5,283			724			117	%		19,401			23,431			3,210			21	%
Net income to Baidu Core (non-GAAP) 2		7,500			5,676			6,741			924			(10	%)		27,418			26,335			3,608			(4	%)
Adjusted EBITDA 2		8,118			8,336			6,516			893			(20	%)		31,863			30,587			4,190			(4	%)
Adjusted EBITDA margin		30	%		31	%		24	%		24	%					31	%		29	%		29	%

Operational Highlights

Corporate

• Baidu returned US$356 million to shareholders since Q4 2024, bringing the cumulative repurchase to over US$1 billion since 2024 and to US$1.7 billion under the 2023 share repurchase program.

• Baidu earned a position in the global edition of the S&P Global Sustainability Yearbook for the first time, demonstrating its further advancement in ESG performance. The selection stems from a comprehensive evaluation of 7,690 companies globally as part of the S&P Global 2024 Corporate Sustainability Assessment, underscoring Baidu’s sustainability practices.

• Forbes China placed Baidu on its 2024 China ESG 50 list.

AI Cloud

• ERNIE handled approximately 1.65 billion API calls daily in December 2024, with external API calls increasing by 178% quarter over quarter, highlighting particularly strong momentum.

• The MAU of Baidu Wenku’s AI-enabled features reached 94 million in December 2024, with a 216% year over year and an 83% quarter over quarter increase.

Intelligent Driving

• Apollo Go, Baidu’s autonomous ride-hailing service, provided over 1.1 million rides in the fourth quarter of 2024, up 36% year over year. In January 2025, accumulated rides provided to the public by Apollo Go surpassed 9 million.

• In November 2024, Apollo Go was granted permits to conduct autonomous driving testing on public roads in Hong Kong, making Apollo Go the first and only of its kind to receive robotaxi testing authorization in the region. This marks Apollo Go’s first entry into a right-hand drive, left-hand traffic market.

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• Apollo Go has commenced 100% fully driverless operations across China since February 2025.

Mobile Ecosystem

• In December 2024, Baidu App’s MAUs reached 679 million, up 2% year over year.

• Managed Page accounted for 48% of Baidu Core’s online marketing revenue in the fourth quarter of 2024.

Fourth Quarter 2024 Financial Results

Total revenues were RMB34.1 billion ($4.68 billion), decreasing 2% year over year.

• Revenue from Baidu Core was RMB27.7 billion ($3.80 billion), increasing 1% year over year; online marketing revenue was RMB17.9 billion ($2.46 billion), decreasing 7% year over year, and non-online marketing revenue was RMB9.8 billion ($1.34 billion), up 18% year over year, mainly driven by AI Cloud business.

• Revenue from iQIYI was RMB6.6 billion ($906 million), decreasing 14% year over year.

Cost of revenues was RMB18.0 billion ($2.47 billion), increasing 3% year over year, primarily due to an increase in traffic acquisition costs, costs related to AI Cloud business and a one-time write-down of inventories, partially offset by a decrease in personnel-related expenses and content costs.

Selling, general and administrative expenses were RMB6.7 billion ($915 million), increasing 14% year over year, primarily due to an increase in expected credit losses, and channel spending and promotional marketing expenses, partially offset by a decrease in personnel-related expenses. RMB561 million of the increase in expected credit losses was pertaining to a one-time accrual.

Research and development expenses were RMB5.5 billion ($756 million), decreasing 12% year over year, primarily due to a decrease in personnel-related expenses, partially offset by an increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs.

Operating income was RMB3.9 billion ($537 million) in Q4, compared to RMB5.4 billion for the same period last year. Baidu Core operating income was RMB3.6 billion ($498 million), and Baidu Core operating margin was 13% in Q4, compared to RMB4.7 billion and 17% for the same period last year. The decrease was due to one-time losses of RMB1.0 billion including accrual of expected credit losses, write-down of inventories and others. Non-GAAP operating income was RMB5.0 billion ($691 million). Non-GAAP Baidu Core operating income was RMB4.6 billion ($637 million), and non-GAAP Baidu Core operating margin was 17%.

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Total other income, net was RMB2.7 billion ($364 million), compared to total other loss, net of RMB2.5 billion for the same period last year, mainly due to an increase in net foreign exchange gain arising from exchange rate fluctuation between Renminbi and U.S. dollar, and a decrease in pickup of losses from an equity method investment, which modified certain terms of its preferred shares and resulted in significant loss pickup in 2023.

Income tax expense was RMB1.6 billion ($222 million), compared to income tax benefit of RMB96 million for the same period last year.

Net income attributable to Baidu was RMB5.2 billion ($711 million), and diluted earnings per ADS was RMB14.26 ($1.95). Net income attributable to Baidu Core was RMB5.3 billion ($724 million), and net margin for Baidu Core was 19%. Non-GAAP net income attributable to Baidu was RMB6.7 billion ($919 million). Non-GAAP diluted earnings per ADS was RMB19.18 ($2.63). Non-GAAP net income attributable to Baidu Core was RMB6.7 billion ($924 million), and non-GAAP net margin for Baidu Core was 24%.

Adjusted EBITDA was RMB7.0 billion ($953 million) and adjusted EBITDA margin was 20%. Adjusted EBITDA for Baidu Core was RMB6.5 billion ($893 million) and adjusted EBITDA margin for Baidu Core was 24%.

As of December 31, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB139.1 billion ($19.06 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB134.7 billion ($18.45 billion). Free cash flow was RMB23 million ($3 million), and free cash flow excluding iQIYI was negative RMB476 million (negative $65 million).

Fiscal Year 2024 Results

Total revenues were RMB133.1 billion ($18.24 billion), decreasing 1% year over year.

• Revenue from Baidu Core was RMB104.7 billion ($14.35 billion), increasing 1% year over year; online marketing revenue was RMB73.0 billion ($10.00 billion), decreasing 3% year over year, and non-online marketing revenue was RMB31.7 billion ($4.35 billion), up 12% year over year, mainly driven by AI Cloud business.

• Revenue from iQIYI was RMB29.2 billion ($4.00 billion), decreasing 8% year over year.

Cost of revenues was RMB66.1 billion ($9.06 billion), increasing 2% year over year, primarily due to an increase in traffic acquisition costs, bandwidth costs and server custody fees, partially offset by a decrease in personnel-related expenses and content costs.

Selling, general and administrative expenses were RMB23.6 billion ($3.24 billion), which remained flat compared to the same period last year.

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Research and development expenses were RMB22.1 billion ($3.03 billion), decreasing 9% year over year, primarily due to a decrease in personnel-related expenses.

Operating income was RMB21.3 billion ($2.91 billion). Baidu Core operating income was RMB19.5 billion ($2.67 billion), and Baidu Core operating margin was 19%. Non-GAAP operating income was RMB26.2 billion ($3.59 billion). Non-GAAP Baidu Core operating income was RMB23.9 billion ($3.27 billion), and non-GAAP Baidu Core operating margin was 23%.

Total other income, net was RMB7.4 billion ($1.01 billion), increasing 120% year over year, primarily due to a decrease in pickup of losses from an equity method investment, which modified certain terms of its preferred shares and resulted in significant loss pickup in 2023.

Income tax expense was RMB4.4 billion ($609 million), compared to RMB3.6 billion in the same period last year.

Net income attributable to Baidu was RMB23.8 billion ($3.26 billion), and diluted earnings per ADS was RMB65.91 ($9.03). Net income attributable to Baidu Core was RMB23.4 billion ($3.21 billion), and net margin for Baidu Core was 22%. Non-GAAP net income attributable to Baidu was RMB27.0 billion ($3.70 billion). Non-GAAP diluted earnings per ADS was RMB76.85 ($10.53). Non-GAAP net income attributable to Baidu Core was RMB26.3 billion ($3.61 billion), and non-GAAP net margin for Baidu Core was 25%.

Adjusted EBITDA was RMB33.1 billion ($4.53 billion) and adjusted EBITDA margin was 25%. Adjusted EBITDA for Baidu Core was RMB30.6 billion ($4.19 billion) and adjusted EBITDA margin for Baidu Core was 29%.

Free cash flow was RMB13.1 billion ($1.80 billion), and free cash flow excluding iQIYI was RMB11.1 billion ($1.52 billion).

Conference Call Information

Baidu’s management will hold an earnings conference call at 7.30 AM on February 18, 2025, U.S. Eastern Time (8.30 PM on February 18, 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. Q4 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/10044727-f3pyuq.html

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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.

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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, 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.

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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.”

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Baidu, Inc.

Condensed Consolidated Statements of Income

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

	Three Months Ended												Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,			December 31,			December 31,
	2023			2024			2024			2024			2023			2024			2024
	RMB			RMB			RMB			US$(2)			RMB			RMB			US$(2)
Revenues:
Online marketing services		20,804			20,108			19,340			2,650			81,203			78,563			10,763
Others		14,147			13,449			14,784			2,025			53,395			54,562			7,475
Total revenues		34,951			33,557			34,124			4,675			134,598			133,125			18,238
Costs and expenses:
Cost of revenues(1)		17,418			16,399			18,014			2,467			65,031			66,102			9,056
Selling, general and administrative(1)		5,854			5,867			6,678			915			23,519			23,620			3,236
Research and development(1)		6,287			5,366			5,515			756			24,192			22,133			3,032
Total costs and expenses		29,559			27,632			30,207			4,138			112,742			111,855			15,324
Operating income		5,392			5,925			3,917			537			21,856			21,270			2,914
Other (loss) income:
Interest income		2,064			1,877			2,001			274			8,009			7,962			1,091
Interest expense		(774	)		(673	)		(643	)		(88	)		(3,248	)		(2,824	)		(387	)
Foreign exchange (loss) gain, net		(449	)		(1,096	)		1,678			230			595			1,076			147
Share of (losses) earnings from equity method investments		(2,970	)		32			(399	)		(55	)		(3,799	)		(691	)		(95	)
Others, net		(398	)		2,535			23			3			1,785			1,829			251
Total other (loss) income, net		(2,527	)		2,675			2,660			364			3,342			7,352			1,007
Income before income taxes		2,865			8,600			6,577			901			25,198			28,622			3,921
Income tax (benefit) expense		(96	)		814			1,619			222			3,649			4,447			609
Net income		2,961			7,786			4,958			679			21,549			24,175			3,312
Net income (loss) attributable to noncontrolling interests		362			154			(234	)		(32	)		1,234			415			57
Net income attributable to Baidu		2,599			7,632			5,192			711			20,315			23,760			3,255
Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic		6.85			21.93			14.41			1.97			55.83			66.40			9.10
-Diluted		6.77			21.60			14.26			1.95			55.08			65.91			9.03
Earnings per share for Class A and Class B ordinary shares:
-Basic		0.86			2.74			1.80			0.25			6.98			8.31			1.14
-Diluted		0.85			2.70			1.78			0.24			6.89			8.24			1.13
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic		2,812			2,785			2,775			2,775			2,807			2,790			2,790
-Diluted		2,830			2,789			2,783			2,783			2,837			2,798			2,798
(1) Includes share-based compensation expenses as follows:
Cost of revenues		159			104			103			14			590			461			63
Selling, general and administrative		411			328			297			41			1,678			1,427			195
Research and development		1,068			612			685			93			4,077			2,896			397
Total share-based compensation expenses		1,638			1,044			1,085			148			6,345			4,784			655

(2) All translations from RMB to U.S. dollars are made at a rate of RMB7.2993 to US$1.00, the exchange rate in effect as of December 31, 2024 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

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Baidu, Inc.

Condensed Consolidated Balance Sheets

(In millions, unaudited)

	December 31,		December 31,		December 31,
	2023		2024		2024
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		25,231		24,832		3,402
Restricted cash		11,503		11,697		1,602
Short-term investments, net		168,670		102,608		14,057
Accounts receivable, net		10,848		10,104		1,384
Amounts due from related parties		1,424		790		108
Other current assets, net		12,579		18,818		2,580
Total current assets		230,255		168,849		23,133
Non-current assets:
Fixed assets, net		27,960		30,102		4,124
Licensed copyrights, net		6,967		6,930		949
Produced content, net		13,377		14,695		2,013
Intangible assets, net		881		772		106
Goodwill		22,586		22,586		3,094
Long-term investments, net		47,957		41,721		5,716
Long-term time deposits and held-to-maturity investments		24,666		98,535		13,499
Amounts due from related parties		195		137		19
Deferred tax assets, net		2,100		2,193		300
Operating lease right-of-use assets		10,851		10,898		1,493
Prepayments and receivables related to the proposed acquisition of YY Live, net		13,198		13,547		1,856
Other non-current assets		5,766		16,815		2,304
Total non-current assets		176,504		258,931		35,473
Total assets		406,759		427,780		58,606
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		10,257		10,669		1,462
Accounts payable and accrued liabilities		37,717		41,443		5,677
Customer deposits and deferred revenue		14,627		14,624		2,003
Deferred income		306		684		94
Long-term loans, current portion		2		168		23
Convertible senior notes, current portion		2,802		242		33
Notes payable, current portion		6,029		8,026		1,100
Amounts due to related parties		1,603		1,794		246
Operating lease liabilities		3,108		3,303		453
Total current liabilities		76,451		80,953		11,091
Non-current liabilities:
Deferred income		200		231		32
Deferred revenue		481		585		80
Amounts due to related parties		77		56		8
Long-term loans		14,223		15,596		2,137
Notes payable		34,990		27,996		3,835
Convertible senior notes		8,144		8,351		1,144
Deferred tax liabilities		2,725		3,870		530
Operating lease liabilities		5,040		4,973		681
Other non-current liabilities		1,820		1,557		213
Total non-current liabilities		67,700		63,215		8,660
Total liabilities		144,151		144,168		19,751
Redeemable noncontrolling interests		9,465		9,870		1,352
Equity
Total Baidu shareholders’ equity		243,626		263,620		36,116
Noncontrolling interests		9,517		10,122		1,387
Total equity		253,143		273,742		37,503
Total liabilities, redeemable noncontrolling interests, and equity		406,759		427,780		58,606

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Baidu, Inc.     

Selected Information     

(In millions, unaudited)    

	Three months ended December 31, 2023 (RMB)														Three months ended September 30, 2024 (RMB)														Three months ended December 31, 2024 (RMB)														Three months ended December 31, 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		27,488			7,707			(244	)				34,951			26,524			7,246			(213	)				33,557			27,698			6,613			(187	)				34,124			3,795			906			(26	)				4,675
YOY																														1	%		(14	%)							(2	%)
QOQ																														4	%		(9	%)							2	%
Costs and expenses:
Cost of revenues (1)		12,050			5,533			(165	)				17,418			10,923			5,650			(174	)				16,399			13,180			4,995			(161	)				18,014			1,806			684			(23	)				2,467
Selling, general and administrative (1)		4,936			948			(30	)				5,854			4,990			908			(31	)				5,867			5,816			882			(20	)				6,678			797			121			(3	)				915
Research and development (1)		5,834			453			—					6,287			4,917			449			—					5,366			5,064			451			—					5,515			694			62			—					756
Total costs and expenses		22,820			6,934			(195	)				29,559			20,830			7,007			(205	)				27,632			24,060			6,328			(181	)				30,207			3,297			867			(26	)				4,138
YOY
Cost of revenues																														9	%		(10	%)							3	%
Selling, general and administrative																														18	%		(7	%)							14	%
Research and development																														(13	%)		(0	%)							(12	%)
Costs and expenses																														5	%		(9	%)							2	%
Operating income (loss)		4,668			773			(49	)				5,392			5,694			239			(8	)				5,925			3,638			285			(6	)				3,917			498			39			—					537
YOY																														(22	%)		(63	%)							(27	%)
QOQ																														(36	%)		19	%							(34	%)
Operating margin		17	%		10	%							15	%		21	%		3	%							18	%		13	%		4	%							11	%
Add: total other (loss) income, net		(2,267	)		(260	)		—					(2,527	)		2,667			8			—					2,675			3,125			(465	)		—					2,660			428			(64	)		—					364
Less: income tax (benefit) expense		(134	)		38			—					(96	)		803			11			—					814			1,612			7			—					1,619			221			1			—					222
Less: net income (loss) attributable to NCI		95			9			258		(3	)		362			22			7			125		(3	)		154			(132	)		2			(104	)	(3	)		(234	)		(19	)		—			(13	)	(3	)		(32	)
Net income (loss) attributable to Baidu		2,440			466			(307	)				2,599			7,536			229			(133	)				7,632			5,283			(189	)		98					5,192			724			(26	)		13					711
YOY																														117	%		—								100	%
QOQ																														(30	%)		—								(32	%)
Net margin		9	%		6	%							7	%		28	%		3	%							23	%		19	%		(3	%)							15	%
Non-GAAP financial measures:
Operating income (non-GAAP)		6,197			927								7,075			6,652			370								7,014			4,647			406								5,047			637			54								691
YOY																														(25	%)		(56	%)							(29	%)
QOQ																														(30	%)		10	%							(28	%)
Operating margin (non-GAAP)		23	%		12	%							20	%		25	%		5	%							21	%		17	%		6	%							15	%
Net income (loss) attributable to Baidu (non-GAAP)		7,500			681								7,755			5,676			480								5,886			6,741			(59	)							6,709			924			(9	)							919
YOY																														(10	%)		—								(13	%)
QOQ																														19	%		—								14	%
Net margin (non-GAAP)		27	%		9	%							22	%		21	%		7	%							18	%		24	%		(1	%)							20	%
Adjusted EBITDA		8,118			988								9,057			8,336			405								8,733			6,516			444								6,954			893			60								953
YOY																														(20	%)		(55	%)							(23	%)
QOQ																														(22	%)		10	%							(20	%)
Adjusted EBITDA margin		30	%		13	%							26	%		31	%		6	%							26	%		24	%		7	%							20	%
(1) Includes share-based compensation as follows:
Cost of revenues		125			34								159			73			31								104			74			29								103			10			4								14
Selling, general and administrative		340			71								411			268			60								328			240			57								297			33			8								41
Research and development		1,020			48								1,068			574			38								612			652			33								685			90			3								93
Total share-based compensation		1,485			153								1,638			915			129								1,044			966			119								1,085			133			15								148

(2) Relates to intersegment eliminations and adjustments    

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

11

Baidu, Inc.

Selected Information

(In millions except for per ADS information, unaudited)

	Twelve months ended December 31, 2023 (RMB)														Twelve months ended December 31, 2024 (RMB)														Twelve months ended December 31, 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.
Total revenues		103,465			31,873			(740	)				134,598			104,712			29,225			(812	)				133,125			14,345			4,004			(111	)				18,238
YOY																1	%		(8	%)							(1	%)
Costs and expenses:
Cost of revenues (1)		42,592			23,103			(664	)				65,031			44,830			21,954			(682	)				66,102			6,142			3,008			(94	)				9,056
Selling, general and administrative (1)		19,623			4,014			(118	)				23,519			20,049			3,682			(111	)				23,620			2,747			504			(15	)				3,236
Research and development (1)		22,425			1,767			—					24,192			20,355			1,778			—					22,133			2,788			244			—					3,032
Total costs and expenses		84,640			28,884			(782	)				112,742			85,234			27,414			(793	)				111,855			11,677			3,756			(109	)				15,324
YOY
Cost of revenues																5	%		(5	%)							2	%
Selling, general and administrative																2	%		(8	%)							0	%
Research and development																(9	%)		1	%							(9	%)
Cost and expenses																1	%		(5	%)							(1	%)
Operating income (loss)		18,825			2,989			42					21,856			19,478			1,811			(19	)				21,270			2,668			248			(2	)				2,914
YOY																3	%		(39	%)							(3	%)
Operating margin		18	%		9	%							16	%		19	%		6	%							16	%
Add: total other income (loss), net		4,298			(956	)		—					3,342			8,311			(959	)		—					7,352			1,139			(132	)		—					1,007
Less: income tax expense		3,568			81			—					3,649			4,386			61			—					4,447			601			8			—					609
Less: net income (loss) attributable to NCI		154			27			1,053		(3	)		1,234			(28	)		27			416		(3	)		415			(4	)		4			57		(3	)		57
Net income (loss) attributable to Baidu		19,401			1,925			(1,011	)				20,315			23,431			764			(435	)				23,760			3,210			104			(59	)				3,255
YOY																21	%		(60	%)							17	%
Net margin		19	%		6	%							15	%		22	%		3	%							18	%
Non-GAAP financial measures:
Operating income (non-GAAP)		24,748			3,643								28,433			23,890			2,363								26,234			3,273			323								3,594
YOY																(3	%)		(35	%)							(8	%)
Operating margin (non-GAAP)		24	%		11	%							21	%		23	%		8	%							20	%
Net income attributable to Baidu (non-GAAP)		27,418			2,838								28,747			26,335			1,512								27,002			3,608			206								3,699
YOY																(4	%)		(47	%)							(6	%)
Net margin (non-GAAP)		26	%		9	%							21	%		25	%		5	%							20	%
Adjusted EBITDA		31,863			3,918								35,823			30,587			2,510								33,078			4,190			344								4,532
YOY																(4	%)		(36	%)							(8	%)
Adjusted EBITDA margin		31	%		12	%							27	%		29	%		9	%							25	%
(1) Includes share-based compensation as follows:
Cost of revenues		457			133								590			340			121								461			47			16								63
Selling, general and administrative		1,363			315								1,678			1,153			274								1,427			158			37								195
Research and development		3,888			189								4,077			2,746			150								2,896			376			21								397
Total share-based compensation		5,708			637								6,345			4,239			545								4,784			581			74								655

(2) Relates to intersegment eliminations and adjustments    

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

12

Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions,unaudited)

	Three months ended									Three months ended									Three months ended									Three months ended
	December 31, 2023 (RMB)									September 30, 2024 (RMB)									December 31, 2024 (RMB)									December 31, 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		9,985			633			10,618			4,036			243			4,279			1,836			520			2,356			252			71			323
Net cash used in investing activities		(11,805	)		(1,431	)		(13,236	)		(12,300	)		(1,663	)		(13,963	)		(4,741	)		(896	)		(5,637	)		(649	)		(123	)		(772	)
Net cash (used in) provided by financing activities		(7,586	)		(22	)		(7,608	)		(2,787	)		(2,612	)		(5,399	)		(1,784	)		114			(1,670	)		(245	)		16			(229	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(364	)		(31	)		(395	)		(721	)		(84	)		(805	)		582			61			643			80			8			88
Net decrease in cash, cash equivalents and restricted cash		(9,770	)		(851	)		(10,621	)		(11,772	)		(4,116	)		(15,888	)		(4,107	)		(201	)		(4,308	)		(562	)		(28	)		(590	)
Cash, cash equivalents and restricted cash
At beginning of period		42,063			6,132			48,195			48,878			7,907			56,785			37,106			3,791			40,897			5,084			519			5,603
At end of period		32,293			5,281			37,574			37,106			3,791			40,897			32,999			3,590			36,589			4,522			491			5,013
Net cash provided by operating activities		9,985			633			10,618			4,036			243			4,279			1,836			520			2,356			252			71			323
Less: Capital expenditures		(3,641	)		(19	)		(3,660	)		(1,637	)		(8	)		(1,645	)		(2,312	)		(21	)		(2,333	)		(317	)		(3	)		(320	)
Free cash flow		6,344			614			6,958			2,399			235			2,634			(476	)		499			23			(65	)		68			3

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

13

Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions,unaudited)

	Twelve months ended									Twelve months ended									Twelve months ended
	December 31, 2023 (RMB)									December 31, 2024 (RMB)									December 31, 2024 (US$)
	Baidu excl. iQIYI			iQIYI			Baidu, Inc.			Baidu excl. iQIYI			iQIYI			Baidu, Inc.			Baidu excl. iQIYI			iQIYI			Baidu, Inc.
Net cash provided by operating activities		33,263			3,352			36,615			19,126			2,108			21,234			2,620			289			2,909
Net cash used in investing activities		(48,657	)		(1,740	)		(50,397	)		(6,110	)		(2,445	)		(8,555	)		(837	)		(335	)		(1,172	)
Net cash used in financing activities		(9,876	)		(4,286	)		(14,162	)		(12,391	)		(1,368	)		(13,759	)		(1,698	)		(187	)		(1,885	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		189			93			282			81			14			95			11			2			13
Net (decrease) increase in cash, cash equivalents and restricted cash		(25,081	)		(2,581	)		(27,662	)		706			(1,691	)		(985	)		96			(231	)		(135	)
Cash, cash equivalents and restricted cash
At beginning of period		57,374			7,862			65,236			32,293			5,281			37,574			4,426			722			5,148
At end of period		32,293			5,281			37,574			32,999			3,590			36,589			4,522			491			5,013
Net cash provided by operating activities		33,263			3,352			36,615			19,126			2,108			21,234			2,620			289			2,909
Less: Capital expenditures		(11,154	)		(36	)		(11,190	)		(8,055	)		(79	)		(8,134	)		(1,103	)		(11	)		(1,114	)
Free cash flow		22,109			3,316			25,425			11,071			2,029			13,100			1,517			278			1,795

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

14

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
	December 31, 2023 (RMB)									September 30, 2024 (RMB)								December 31, 2024 (RMB)									December 31, 2024 (US$)
	Baidu Core			iQIYI			Baidu, Inc.			Baidu Core			iQIYI		Baidu, Inc.			Baidu Core			iQIYI			Baidu, Inc.			Baidu Core			iQIYI			Baidu, Inc.
Operating income		4,668			773			5,392			5,694			239		5,925			3,638			285			3,917			498			39			537
Add: Share-based compensation expenses		1,485			153			1,638			915			129		1,044			966			119			1,085			133			15			148
Add: Amortization and impairment of intangible assets(1)		44			1			45			43			2		45			43			2			45			6			—			6
Operating income (non-GAAP)		6,197			927			7,075			6,652			370		7,014			4,647			406			5,047			637			54			691
Add: Depreciation of fixed assets		1,921			61			1,982			1,684			35		1,719			1,869			38			1,907			256			6			262
Adjusted EBITDA		8,118			988			9,057			8,336			405		8,733			6,516			444			6,954			893			60			953
Net income (loss) attributable to Baidu		2,440			466			2,599			7,536			229		7,632			5,283			(189	)		5,192			724			(26	)		711
Add: Share-based compensation expenses		1,484			153			1,553			914			129		972			965			119			1,019			131			16			140
Add: Amortization and impairment of intangible assets(1)		42			1			42			41			2		42			41			2			42			6			—			6
Add: Disposal (gain) loss		(37	)		(1	)		(38	)		(1,501	)		22		(1,491	)		7			—			7			1			—			1
Add: Impairment of long-term investments		132			62			160			26			91		68			84			14			90			12			2			12
Add: Fair value loss (gain) of long-term investments		403			—			403			(1,361	)		7		(1,358	)		(288	)		(5	)		(290	)		(39	)		(1	)		(40	)
Add: Reconciling items on equity method investments(2)		3,172			—			3,172			8			—		8			679			—			679			93			—			93
Add: Tax effects on non-GAAP adjustments(3)		(136	)		—			(136	)		13			—		13			(30	)		—			(30	)		(4	)		—			(4	)
Net income (loss) attributable to Baidu (non-GAAP)		7,500			681			7,755			5,676			480		5,886			6,741			(59	)		6,709			924			(9	)		919
Diluted earnings per ADS								6.77								21.60									14.26									1.95
Add: Accretion of the redeemable noncontrolling interests								0.53								0.01									0.55									0.08
Add: Non-GAAP adjustments to earnings per ADS								14.56								(5.01	)								4.37									0.60
Diluted earnings per ADS (non-GAAP)								21.86								16.60									19.18									2.63

(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.

15

Baidu, Inc.

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

(In millions except for per ADS information, unaudited)

	Twelve months ended									Twelve months ended									Twelve months ended
	December 31, 2023 (RMB)									December 31, 2024 (RMB)									December 31, 2024 (US$)
	Baidu Core			iQIYI			Baidu, Inc.			Baidu Core			iQIYI			Baidu, Inc.			Baidu Core			iQIYI			Baidu, Inc.
Operating income		18,825			2,989			21,856			19,478			1,811			21,270			2,668			248			2,914
Add: Share-based compensation expenses		5,708			637			6,345			4,239			545			4,784			581			74			655
Add: Amortization and impairment of intangible assets(1)		215			17			232			173			7			180			24			1			25
Operating income (non-GAAP)		24,748			3,643			28,433			23,890			2,363			26,234			3,273			323			3,594
Add: Depreciation of fixed assets		7,115			275			7,390			6,697			147			6,844			917			21			938
Adjusted EBITDA		31,863			3,918			35,823			30,587			2,510			33,078			4,190			344			4,532
Net income attributable to Baidu		19,401			1,925			20,315			23,431			764			23,760			3,210			104			3,255
Add: Share-based compensation expenses		5,704			637			5,993			4,235			545			4,482			580			75			613
Add: Amortization and impairment of intangible assets(1)		195			17			204			165			7			168			23			1			23
Add: Disposal (gain) loss		(1,926	)		(90	)		(1,967	)		(1,982	)		22			(1,972	)		(272	)		3			(270	)
Add: Impairment of long-term investments		479			336			631			172			193			260			24			26			36
Add: Fair value (gain) loss of long-term investments		(54	)		4			(52	)		(393	)		(19	)		(403	)		(54	)		(3	)		(55	)
Add: Reconciling items on equity method investments(2)		3,918			9			3,922			1,050			—			1,050			144			—			144
Add: Tax effects on non-GAAP adjustments(3)		(299	)		—			(299	)		(343	)		—			(343	)		(47	)		—			(47	)
Net income attributable to Baidu (non-GAAP)		27,418			2,838			28,747			26,335			1,512			27,002			3,608			206			3,699
Diluted earnings per ADS								55.08									65.91									9.03
Add: Accretion of the redeemable noncontrolling interests								2.02									1.68									0.23
Add: Non-GAAP adjustments to earnings per ADS								23.75									9.26									1.27
Diluted earnings per ADS (non-GAAP)								80.85									76.85									10.53

(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.

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