EX-99.1

Exhibit 99.1

Baidu Announces First Quarter 2024 Results

BEIJING, China, May 16, 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 first quarter ended March 31, 2024.

“Baidu Core’s online marketing revenue remained stable, while the end-to-end optimization of our AI technology stack continued to propel the growth of our AI Cloud revenue during the quarter,” said Robin Li, Co-founder and CEO of Baidu. “As a new era of Gen-AI unfolds in China, foundation models like ERNIE will serve as the underlying infrastructure, infusing various facets of people’s lives. We are making our ERNIE family of models increasingly affordable and efficient. This should provide Baidu with even greater opportunities ahead.”

“In the first quarter of 2024, Baidu Core’s non-GAAP operating margin expanded both year-over-year and quarter-over-quarter to 23.5%. We have established a track record of consistently improving operational efficiency. In the coming quarters, we will execute on what is needed to optimize our operational efficiency in support of our AI enabled businesses and high-quality growth, and maintain a healthy non-GAAP operating margin,” said Rong Luo, CFO of Baidu.

First Quarter 2024 Financial Highlights¹


	Baidu, Inc.
(In millions except per	Q1			Q4			Q1
ADS, unaudited)	2023			2023			2024						YOY			QOQ
	RMB			RMB			RMB			US$
Total revenues		31,144			34,951			31,513			4,365			1	%		(10	%)
Operating income		4,980			5,392			5,484			760			10	%		2	%
Operating income (non-GAAP) ²		6,428			7,075			6,673			924			4	%		(6	%)
Net income to Baidu		5,825			2,599			5,448			755			(6	%)		110	%
Net income to Baidu (non-GAAP)²		5,727			7,755			7,011			971			22	%		(10	%)
Diluted earnings per ADS		15.92			6.77			14.91			2.07			(6	%)		120	%
Diluted earnings per ADS (non-GAAP)²		16.10			21.86			19.91			2.76			24	%		(9	%)
Adjusted EBITDA²		8,145			9,057			8,244			1,142			1	%		(9	%)
Adjusted EBITDA margin		26	%		26	%		26	%		26	%

¹	Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB 7.2203 as of March 29, 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
	Q1			Q4			Q1
(In millions, unaudited)	2023			2023			2024						YOY			QOQ
	RMB			RMB			RMB			US$
Total revenues		22,998			27,488			23,803			3,297			4	%		(13	%)
Operating income		4,091			4,668			4,538			629			11	%		(3	%)
Operating income (non-GAAP)²		5,363			6,197			5,586			774			4	%		(10	%)
Net income to Baidu Core		5,513			2,440			5,150			713			(7	%)		111	%
Net income to Baidu Core (non-GAAP)²		5,268			7,500			6,628			918			26	%		(12	%)
Adjusted EBITDA²		7,003			8,118			7,118			986			2	%		(12	%)
Adjusted EBITDA margin		30	%		30	%		30	%		30	%

Operational Highlights

Corporate

•

Baidu returned US$229 million to shareholders since the beginning of Q1 2024, bringing the cumulative repurchase to US$898 million under the 2023 share repurchase program.

•

Baidu released its annual ESG Report on May 13, 2024, which details Baidu’s latest ESG policies and sustainability initiatives. (http://esg.baidu.com/Uploads/Baidu_2023_ESG_Report.pdf).

AI Cloud

•

PaddlePaddle developer community grew to 13 million in mid-April, 2024.

•

Baidu expanded the ERNIE family of models, by launching several lightweight large language models in Q1 2024, making ERNIE increasingly affordable.

•

Baidu launched and improved the tools on its MaaS platform for enterprise customers in Q1 2024. These tools aim to facilitate the development of AI-native applications, AI agents, and the creation of customized models on Baidu’s MaaS platform.

Intelligent Driving

•

Apollo Go, Baidu’s autonomous ride-hailing service, provided about 826K rides in the first quarter of 2024, up 25% year over year. As of April 19, 2024, the cumulative rides provided to the public by Apollo Go surpassed 6 million.

Mobile Ecosystem

•

In March 2024, Baidu App’s MAUs reached 676 million, up 3% year over year.

•

Managed Page accounted for 50% of Baidu Core’s online marketing revenue in the first quarter of 2024.

First Quarter 2024 Financial Results

Total revenues were RMB31.5 billion ($4.37 billion), increasing 1% year over year.

•

Revenue from Baidu Core was RMB23.8 billion ($3.30 billion), increasing 4% year over year; online marketing revenue was RMB17.0 billion ($2.36 billion), up 3% year over year, and non-online marketing revenue was RMB6.8 billion ($935 million), up 6% year over year, mainly driven by AI Cloud business.

•

Revenue from iQIYI was RMB7.9 billion ($1.10 billion), decreasing 5% year over year.

Cost of revenues was RMB15.3 billion ($2.12 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 the decrease in content costs.

Selling, general and administrative expenses were RMB5.4 billion ($745 million), accounting for 17% of total revenues in the quarter, compared to 18% in the same period last year.

Research and development expenses were RMB5.4 billion ($742 million), decreasing 1% year over year, primarily due to a decrease in personnel related expenses and other R&D expenditures, partially offset by the increase in server depreciation expenses and server custody fees which support Gen-AI research and development inputs.

Operating income was RMB5.5 billion ($760 million). Baidu Core operating income was RMB4.5 billion ($629 million), and Baidu Core operating margin was 19%. Non-GAAP operating income was RMB6.7 billion ($924 million). Non-GAAP Baidu Core operating income was RMB5.6 billion ($774 million), and non-GAAP Baidu Core operating margin was 23%.

Total other income, net was RMB1.2 billion ($173 million), decreasing 52% year over year, primarily due to a decrease in fair value gain from long-term investments, partially offset by the increase in net foreign exchange gain.

Income tax expense was RMB883 million ($122 million), compared to RMB1.2 billion in the same period last year.

Net income attributable to Baidu was RMB5.4 billion ($755 million), and diluted earnings per ADS was RMB14.91 ($2.07). Net income attributable to Baidu Core was RMB5.2 billion ($713 million), and net margin for Baidu Core was 22%. Non-GAAP net income attributable to Baidu was RMB7.0 billion ($971 million). Non-GAAP diluted earnings per ADS was RMB19.91 ($2.76). Non-GAAP net income attributable to Baidu Core was RMB6.6 billion ($918 million), and non-GAAP net margin for Baidu Core was 28%.

Adjusted EBITDA was RMB8.2 billion ($1.14 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB7.1 billion ($986 million) and adjusted EBITDA margin for Baidu Core was 30%.

As of March 31, 2024, cash, cash equivalents, restricted cash and short-term investments were RMB191.8 billion ($26.56 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB185.8 billion ($25.73 billion). Free cash flow was RMB4.2 billion ($579 million), and free cash flow excluding iQIYI was RMB3.3 billion ($452 million).

Conference Call Information

Baidu’s management will hold an earnings conference call at 8.00 AM on May 16, 2024, U.S. Eastern Time (8.00 PM on May 16, 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. Q1 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/10038153-8wbttd.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 (loss), 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 change 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.”

First Quarter 2024 Financial Highlights ¹


	Baidu, Inc.
(In millions except per ADS, unaudited)	Q1			Q4			Q1
(In millions except per ADS, unaudited)	2023			2023			2024						*YOY*			*QOQ*
	RMB			RMB			RMB			US$
Total revenues		31,144			34,951			31,513			4,365			1	%		(10	%)
Operating income		4,980			5,392			5,484			760			10	%		2	%
Operating income (non-GAAP) ²		6,428			7,075			6,673			924			4	%		(6	%)
Net income to Baidu		5,825			2,599			5,448			755			(6	%)		110	%
Net income to Baidu (non-GAAP) ²		5,727			7,755			7,011			971			22	%		(10	%)
Diluted earnings per ADS		15.92			6.77			14.91			2.07			(6	%)		120	%
Diluted earnings per ADS (non-GAAP) ²		16.10			21.86			19.91			2.76			24	%		(9	%)
Adjusted EBITDA ²		8,145			9,057			8,244			1,142			1	%		(9	%)
Adjusted EBITDA margin		26	%		26	%		26	%		26	%

	Baidu Core
(In millions, unaudited)	Q1			Q4			Q1
(In millions, unaudited)	2023			2023			2024						*YOY*			*QOQ*
	RMB			RMB			RMB			US$
Total revenues		22,998			27,488			23,803			3,297			4	%		(13	%)
Operating income		4,091			4,668			4,538			629			11	%		(3	%)
Operating income (non-GAAP) ²		5,363			6,197			5,586			774			4	%		(10	%)
Net income to Baidu Core		5,513			2,440			5,150			713			(7	%)		111	%
Net income to Baidu Core (non-GAAP) ²		5,268			7,500			6,628			918			26	%		(12	%)
Adjusted EBITDA ²		7,003			8,118			7,118			986			2	%		(12	%)
Adjusted EBITDA margin		30	%		30	%		30	%		30	%

¹	Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB7.2203 as of March 29, 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, Inc.

Condensed Consolidated Statements of Income

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


	Three Months Ended
	March 31,			December 31,			March 31,			March 31,
	2023			2023			2024			2024
	RMB			RMB			RMB			US$⁽²⁾
Revenues:
Online marketing services		17,972			20,804			18,490			2,561
Others		13,172			14,147			13,023			1,804

Total revenues		31,144			34,951			31,513			4,365

Costs and expenses:
Cost of revenues⁽¹⁾		15,152			17,418			15,291			2,118
Selling, general and administrative⁽¹⁾		5,589			5,854			5,375			745
Research and development⁽¹⁾		5,423			6,287			5,363			742

Total costs and expenses		26,164			29,559			26,029			3,605

Operating income		4,980			5,392			5,484			760
Other income (loss):
Interest income		1,915			2,064			2,091			290
Interest expense		(804	)		(774	)		(766	)		(106	)
Foreign exchange (loss) gain, net		(106	)		(449	)		401			56
Share of losses from equity method investments		(48	)		(2,970	)		(205	)		(28	)
Others, net		1,638			(398	)		(275	)		(39	)

Total other income (loss), net		2,595			(2,527	)		1,246			173

Income before income taxes		7,575			2,865			6,730			933
Income tax expense (benefit)		1,193			(96	)		883			122

Net income		6,382			2,961			5,847			811
Net income attributable to noncontrolling interests		557			362			399			56

Net income attributable to Baidu		5,825			2,599			5,448			755

Earnings per ADS (1 ADS representing 8 Class A ordinary shares):
-Basic		16.17			6.85			14.97			2.07
-Diluted		15.92			6.77			14.91			2.07
Earnings per share for Class A and Class B ordinary shares:
-Basic		2.02			0.86			1.87			0.26
-Diluted		1.99			0.85			1.86			0.26
Weighted average number of Class A and Class B ordinary shares outstanding (in millions):
-Basic		2,798			2,812			2,804			2,804
-Diluted		2,837			2,830			2,816			2,816
(1) Includes share-based compensation expenses as follows:
Cost of revenues		98			159			108			15
Selling, general and administrative		463			411			417			58
Research and development		828			1,068			618			86

Total share-based compensation expenses		1,389			1,638			1,143			159

(2)	All translations from RMB to U.S. dollars are made at a rate of RMB7.2203 to US$1.00, the exchange rate in effect as of March 29, 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,		March 31,		March 31,
	2023		2024		2024
	RMB		RMB		US$
ASSETS
Current assets:
Cash and cash equivalents		25,231		30,418		4,213
Restricted cash		11,503		11,591		1,605
Short-term investments, net		168,670		149,781		20,744
Accounts receivable, net		10,848		10,935		1,514
Amounts due from related parties		1,424		1,173		162
Other current assets, net		12,579		13,580		1,882

Total current assets		230,255		217,478		30,120

Non-current assets:
Fixed assets, net		27,960		28,157		3,900
Licensed copyrights, net		6,967		6,920		958
Produced content, net		13,377		13,613		1,885
Intangible assets, net		881		873		121
Goodwill		22,586		22,586		3,128
Long-term investments, net		47,957		46,947		6,502
Long-term time deposits and held-to-maturity investments		24,666		45,407		6,289
Amounts due from related parties		195		289		40
Deferred tax assets, net		2,100		2,256		312
Operating lease right-of-use assets		10,851		10,692		1,481
Other non-current assets		18,964		19,479		2,699

Total non-current assets		176,504		197,219		27,315

Total assets		406,759		414,697		57,435

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		10,257		13,716		1,900
Accounts payable and accrued liabilities		37,717		36,739		5,089
Customer deposits and deferred revenue		14,627		13,641		1,889
Deferred income		306		232		32
Long-term loans, current portion		2		23		3
Convertible senior notes, current portion		2,802		2,855		395
Notes payable, current portion		6,029		6,136		850
Amounts due to related parties		1,603		1,475		204
Operating lease liabilities		3,108		3,114		431

Total current liabilities		76,451		77,931		10,793

Non-current liabilities:
Deferred income		200		198		27
Deferred revenue		481		509		70
Amounts due to related parties		77		72		10
Long-term loans		14,223		14,705		2,037
Notes payable		34,990		35,605		4,931
Convertible senior notes		8,144		8,357		1,157
Deferred tax liabilities		2,725		2,818		390
Operating lease liabilities		5,040		4,886		677
Other non-current liabilities		1,820		1,853		258

Total non-current liabilities		67,700		69,003		9,557

Total liabilities		144,151		146,934		20,350

Redeemable noncontrolling interests		9,465		9,906		1,372
Equity
Total Baidu shareholders’ equity		243,626		248,007		34,349
Noncontrolling interests		9,517		9,850		1,364

Total equity		253,143		257,857		35,713

Total liabilities, redeemable noncontrolling interests, and equity		406,759		414,697		57,435

Baidu, Inc.

Selected Information

(In millions, unaudited)


	Three months ended												Three months ended												Three months ended												Three months ended
	March 31, 2023 (RMB)												December 31, 2023 (RMB)												March 31, 2024 (RMB)												March 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		22,998			8,349			(203	)		31,144			27,488			7,707			(244	)		34,951			23,803			7,927			(217	)		31,513			3,297		1,098			(30	)		4,365
YOY																										4	%		(5	%)					1	%
QOQ																										(13	%)		3	%					(10	%)
Costs and expenses:
Cost of revenues ⁽¹⁾		9,379			5,956			(183	)		15,152			12,050			5,533			(165	)		17,418			9,839			5,631			(179	)		15,291			1,363		780			(25	)		2,118
Selling, general and administrative ⁽¹⁾		4,533			1,106			(50	)		5,589			4,936			948			(30	)		5,854			4,492			922			(39	)		5,375			622		128			(5	)		745
Research and development ⁽¹⁾		4,995			428			—			5,423			5,834			453			—			6,287			4,934			429			—			5,363			683		59			—			742

Total costs and expenses		18,907			7,490			(233	)		26,164			22,820			6,934			(195	)		29,559			19,265			6,982			(218	)		26,029			2,668		967			(30	)		3,605

YOY
Cost of revenues																										5	%		(5	%)					1	%
Selling, general and administrative																										(1	%)		(17	%)					(4	%)
Research and development																										(1	%)		0	%					(1	%)
Costs and expenses																										2	%		(7	%)					(1	%)
Operating income (loss)		4,091			859			30			4,980			4,668			773			(49	)		5,392			4,538			945			1			5,484			629		131			—			760
YOY																										11	%		10	%					10	%
QOQ																										(3	%)		22	%					2	%
Operating margin		18	%		10	%					16	%		17	%		10	%					15	%		19	%		12	%					17	%
Add: total other income (loss), net		2,803			(208	)		—			2,595			(2,267	)		(260	)		—			(2,527	)		1,508			(262	)		—			1,246			209		(36	)		—			173
Less: income tax expense (benefit)		1,168			25			—			1,193			(134	)		38			—			(96	)		866			17			—			883			120		2			—			122
Less: net income attributable to NCI		213			8			336	⁽³⁾		557			95			9			258	⁽³⁾		362			30			11			358	⁽³⁾		399			5		2			49	⁽³⁾		56

Net income (loss) attributable to Baidu		5,513			618			(306	)		5,825			2,440			466			(307	)		2,599			5,150			655			(357	)		5,448			713		91			(49	)		755

YOY																										(7	%)		6	%					(6	%)
QOQ																										111	%		41	%					110	%
Net margin		24	%		7	%					19	%		9	%		6	%					7	%		22	%		8	%					17	%
Non-GAAP financial measures:
Operating income (non-GAAP)		5,363			1,035						6,428			6,197			927						7,075			5,586			1,086						6,673			774		150						924
YOY																										4	%		5	%					4	%
QOQ																										(10	%)		17	%					(6	%)
Operating margin (non-GAAP)		23	%		12	%					21	%		23	%		12	%					20	%		23	%		14	%					21	%
Net income attributable to Baidu (non-GAAP)		5,268			940						5,727			7,500			681						7,755			6,628			844						7,011			918		117						971
YOY																										26	%		(10	%)					22	%
QOQ																										(12	%)		24	%					(10	%)
Net margin (non-GAAP)		23	%		11	%					18	%		27	%		9	%					22	%		28	%		11	%					22	%
Adjusted EBITDA		7,003			1,112						8,145			8,118			988						9,057			7,118			1,125						8,244			986		156						1,142
YOY																										2	%		1	%					1	%
QOQ																										(12	%)		14	%					(9	%)
Adjusted EBITDA margin		30	%		13	%					26	%		30	%		13	%					26	%		30	%		14	%					26	%
(1) Includes share-based compensation as follows:
Cost of revenues		65			33						98			125			34						159			76			32						108			11		4						15
Selling, general and administrative		377			86						463			340			71						411			353			64						417			49		9						58
Research and development		778			50						828			1,020			48						1,068			575			43						618			80		6						86

Total share-based compensation		1,220			169						1,389			1,485			153						1,638			1,004			139						1,143			140		19						159

(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 March 31, 2023 (RMB)									Three months ended December 31, 2023 (RMB)									Three months ended March 31, 2024 (RMB)									Three months ended March 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		4,838			1,002			5,840			9,985			633			10,618			5,284			936			6,220			731			130			861
Net cash (used in) provided by investing activities		(32,816	)		167			(32,649	)		(11,805	)		(1,431	)		(13,236	)		(2,893	)		(223	)		(3,116	)		(401	)		(31	)		(432	)
Net cash provided by (used in) financing activities		1,055			(3,357	)		(2,302	)		(7,586	)		(22	)		(7,608	)		2,126			261			2,387			295			36			331
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(96	)		(9	)		(105	)		(364	)		(31	)		(395	)		154			15			169			21			2			23

Net (decrease) increase in cash, cash equivalents and restricted cash		(27,019	)		(2,197	)		(29,216	)		(9,770	)		(851	)		(10,621	)		4,671			989			5,660			646			137			783
Cash, cash equivalents and restricted cash
At beginning of period		57,374			7,862			65,236			42,063			6,132			48,195			32,293			5,281			37,574			4,473			731			5,204
At end of period		30,355			5,665			36,020			32,293			5,281			37,574			36,964			6,270			43,234			5,119			868			5,987
Net cash provided by operating activities		4,838			1,002			5,840			9,985			633			10,618			5,284			936			6,220			731			130			861
Less: Capital expenditures		(1,295	)		—			(1,295	)		(3,641	)		(19	)		(3,660	)		(2,016	)		(22	)		(2,038	)		(279	)		(3	)		(282	)

Free cash flow		3,543			1,002			4,545			6,344			614			6,958			3,268			914			4,182			452			127			579

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 March 31, 2023 (RMB)									Three months ended December 31, 2023 (RMB)									Three months ended March 31, 2024 (RMB)									Three months ended March 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		4,091			859			4,980			4,668			773			5,392			4,538			945			5,484			629			131			760
Add: Share-based compensation expenses		1,220			169			1,389			1,485			153			1,638			1,004			139			1,143			140			19			159
Add: Amortization and impairment of intangible assets⁽¹⁾		52			7			59			44			1			45			44			2			46			5			—			5

Operating income (non-GAAP)		5,363			1,035			6,428			6,197			927			7,075			5,586			1,086			6,673			774			150			924
Add: Depreciation of fixed assets		1,640			77			1,717			1,921			61			1,982			1,532			39			1,571			212			6			218

Adjusted EBITDA		7,003			1,112			8,145			8,118			988			9,057			7,118			1,125			8,244			986			156			1,142
Net income attributable to Baidu		5,513			618			5,825			2,440			466			2,599			5,150			655			5,448			713			91			755
Add: Share-based compensation expenses		1,220			169			1,297			1,484			153			1,553			1,003			139			1,066			139			19			147
Add: Amortization and impairment of intangible assets⁽¹⁾		49			7			53			42			1			42			42			2			43			6			—			6
Add: Disposal (gain)		(217	)		—			(217	)		(37	)		(1	)		(38	)		(458	)		—			(458	)		(63	)		—			(63	)
Add: Impairment of long-term investments		31			119			85			132			62			160			36			71			68			5			10			9
Add: Fair value (gain) loss of long-term investments		(1,312	)		10			(1,307	)		403			—			403			725			(23	)		714			100			(3	)		99
Add: Reconciling items on equity method investments⁽²⁾		(122	)		18			(114	)		3,172			—			3,172			280			—			280			39			—			39
Add: Tax effects on non-GAAP adjustments⁽³⁾		106			(1	)		105			(136	)		—			(136	)		(150	)		—			(150	)		(21	)		—			(21	)

Net income attributable to Baidu (non-GAAP)		5,268			940			5,727			7,500			681			7,755			6,628			844			7,011			918			117			971
Diluted earnings per ADS								15.92									6.77									14.91									2.07
Add: Accretion of the redeemable noncontrolling interests								0.46									0.53									0.55									0.08
Add: Non-GAAP adjustments to earnings per ADS								(0.28	)								14.56									4.45									0.61

Diluted earnings per ADS (non-GAAP)								16.10									21.86									19.91									2.76

(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.