Baidu Announces Fourth Quarter and Fiscal Year 2011 Results
BEIJING, Feb. 16, 2012 /PRNewswire-Asia/ — Baidu, Inc. (NASDAQ: BIDU), the leading Chinese language Internet search provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2011(1).
(Logo: http://photos.prnewswire.com/prnh/20081103/BAIDULOGO )
Fourth Quarter and Fiscal Year 2011 Highlights
- Total revenues in the fourth quarter of 2011 were RMB4.474 billion ($710.9 million), an 82.5% increase from the corresponding period in 2010.
- Total revenues in fiscal year 2011 were RMB14.501 billion ($2.304 billion), an 83.2% increase from 2010.
- Operating profit in the fourth quarter of 2011 was RMB2.297 billion ($365.0 million), an 80.2% increase from the corresponding period in 2010.
- Operating profit in fiscal year 2011 was RMB7.577 billion ($1.204 billion), a 91.4% increase from 2010.
- Net income attributable to Baidu in the fourth quarter of 2011 was RMB2.054 billion ($326.3 million), a 76.9% increase from the corresponding period in 2010. Diluted earnings attributable to Baidu per ADS(2) for the fourth quarter of 2011 was RMB5.87 ($0.93); diluted earnings attributable to Baidu per ADS excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2011 was RMB6.01 ($0.95).
- Net income attributable to Baidu in fiscal year 2011 was RMB6.639 billion ($1.055 billion), an 88.3% increase from 2010. Diluted earnings attributable to Baidu per ADS for fiscal year 2011 was RMB18.99 ($3.02); diluted earnings attributable to Baidu per ADS excluding share-based compensation expenses (non-GAAP) for fiscal year 2011 was RMB19.42 ($3.09).
(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 RMB 6.2939 to US$1.00, the
effective noon buying rate as of December 30, 2011 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) Effective on May 12, 2010, Baidu adjusted the ratio of its
American depositary shares ("ADSs") representing Class A ordinary
shares from one (1) ADS for one (1) Class A ordinary share to ten
(10) ADSs for one (1) Class A ordinary share. All earnings per ADS
figures in this announcement give effect to the forgoing ADS to
share ratio change.
“I’m pleased to report that we closed the year with solid financial results as strong execution allowed us to benefit from exceptional market opportunities,” said Robin Li, chairman and chief executive officer of Baidu. “Over the course of 2011, we made great progress on the Baidu Open Data and Open Application platforms, executed effectively on our landing page strategy, and rolled out several new initiatives, including our personalized homepage and the Baidu Yi mobile platform.”
Mr. Li continued, “In 2012, we will continue to innovate and to solidify Baidu’s central position in China’s Internet ecosystem.”
Jennifer Li, Baidu’s chief financial officer, commented, “Driven by strong top line growth, Baidu enjoyed great margins in 2011, as we continued to aggressively invest in infrastructure and talent. Looking ahead, we will continue to focus on driving top line growth and invest at a robust pace to develop and capture long term market opportunities.”
Fourth Quarter 2011 Results
Baidu reported total revenues of RMB4.474 billion ($710.9 million) for the fourth quarter of 2011, representing an 82.5% increase from the corresponding period in 2010.
Online marketing revenues for the fourth quarter of 2011 were RMB4.467 billion ($709.7 million), representing an 82.3% increase from the corresponding period in 2010. Baidu had about 311,000 active online marketing customers in the fourth quarter of 2011, representing a 12.7% increase from the corresponding period in 2010 and a 2.3% increase from the previous quarter. Revenue per online marketing customer for the fourth quarter 2011 was approximately RMB14,400 ($2,288), a 61.8% increase from the corresponding period in 2010 and a 5.1% increase from the previous quarter.
Traffic acquisition cost (TAC) as a component of cost of revenues was RMB353.8 million ($56.2 million), representing 7.9% of total revenues, as compared to 8.1% in the corresponding period in 2010 and 8.0% in the third quarter of 2011.
Bandwidth costs as a component of cost of revenues were RMB192.2 million ($30.5 million), representing 4.3% of total revenues, compared to 4.0% in the corresponding period in 2010. Depreciation costs as a component of cost of revenues were RMB214.9 million ($34.1 million), representing 4.8% of total revenues, compared to 4.0% in the corresponding period in 2010. These increases were mainly due to an increase in network infrastructure capacity.
Selling, general and administrative expenses were RMB522.4 million ($83.0 million), representing an increase of 66.8% from the corresponding period in 2010, mainly due to an increase in personnel-related expenses and marketing expenses.
Research and development expenses were RMB413.8 million ($65.7 million), a 78.4% increase from the corresponding period in 2010. The increase was primarily due to an increase in the number of research and development personnel.
Share-based compensation expenses, which were allocated to related operating cost and expense line items, were RMB46.6 million ($7.4 million) in the fourth quarter of 2011, compared to RMB39.4 million in the previous quarter and RMB28.2 million in the corresponding period in 2010.
Operating profit was RMB2.297 billion ($365.0 million), representing an 80.2% increase from the corresponding period in 2010. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB2.344 billion ($372.4 million), a 79.9% increase from the corresponding period in 2010.
Income tax expense was RMB404.5 million ($64.3 million), compared to an income tax expense of RMB159.6 million in the corresponding period in 2010. The effective tax rate for the fourth quarter of 2011 was 16.5% as compared to 12.1% for the corresponding period in 2010. The year-on-year increase in the effective tax rate was due to the expiration of preferential tax treatments for some of Baidu’s PRC subsidiaries.
Net income attributable to Baidu was RMB2.054 billion ($326.3 million), representing a 76.9% increase from the corresponding period in 2010. Basic and diluted earnings attributable to Baidu per ADS for the fourth quarter of 2011 amounted to RMB5.88 ($0.93) and RMB5.87 ($0.93), respectively.
Net income attributable to Baidu excluding share-based compensation expenses (non-GAAP) was RMB2.100 billion ($333.7 million), a 76.7% increase from the corresponding period in 2010. Basic and diluted earnings attributable to Baidu per ADS excluding share based compensation expense (non-GAAP) for the fourth quarter of 2011 amounted to RMB6.02 ($0.96) and RMB6.01 ($0.95), respectively.
As of December 31, 2011, Baidu had cash, cash equivalents and short-term investments of RMB14.179 billion ($2.253 billion). Net operating cash inflow and capital expenditures for the fourth quarter of 2011 were RMB3.358 billion ($533.5 million) and RMB501.8 million ($79.7 million), respectively.
Adjusted EBITDA (non-GAAP), defined in this announcement as earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses, was RMB2.640 billion ($419.4 million) for the fourth quarter of 2011, representing an 83.9% increase from the corresponding period in 2010.
Fiscal Year 2011 Results
Total revenues in 2011 were RMB14.501 billion ($2.304 billion), representing an 83.2% increase from 2010.
Online marketing revenues in 2011 were RMB14.490 billion ($2.302 billion), representing an 83.1% increase from 2010. The growth was driven by increases in both the number of active online marketing customers and revenue per customer. Baidu had about 488,000 active online marketing customers in 2011, representing an 18.4% increase from 2010. Revenue per online marketing customer for 2011 was RMB29,700 ($4,719), an increase of 54.7% from 2010.
Traffic acquisition costs in 2011 were RMB1.156 billion ($183.6 million), representing 8.0% of total revenues, compared to 9.6% in 2010. The decrease in TAC as a percentage of total revenues reflects the continued impact of the Company’s traffic optimization efforts from previous years.
Bandwidth costs as a component of cost of revenues were RMB626.4 million ($99.5 million), representing 4.3% of total revenues, compared to 3.9% in 2010. Depreciation costs as a component of cost of revenues were RMB657.8 million ($104.5 million), representing 4.5% of total revenues, compared to 4.2% in 2010. These increases were mainly due to an increase in network infrastructure capacity.
Selling, general and administrative expenses in 2011 were RMB1.693 billion ($269.0 million), representing an increase of 55.4% from the previous year, mainly due to an increase in personnel-related expenses and marketing expenses.
Research and development expenses totaled RMB1.334 billion ($212.0 million) in 2011, representing an 85.8% increase from 2010, primarily due to an increase in the number of research and development personnel.
Share-based compensation expenses, which were allocated to related operating cost and expense line items, were RMB152.0 million ($24.2 million) in 2011, compared to RMB93.7 million in 2010.
Operating profit in 2011 was RMB7.577 billion ($1.204 billion), a 91.4% increase from 2010. Operating profit excluding share-based compensation expenses (non-GAAP) in 2011 was RMB7.729 billion ($1.228 billion), representing a 90.7% increase from 2010.
Loss from equity method accounting in 2011 was RMB179.4 million ($28.5 million), representing an increase of RMB170.4 million ($27.1 million) compared to 2010. This increase was mainly attributable to Baidu’s cash investment in iQiyi.
Income tax expense was RMB1.189 billion ($188.9 million), compared to an income tax expense of RMB536.0 million in 2010. The effective tax rate for 2011 was 15.2% as compared to 13.2% in 2010. The year-on-year increase in the effective tax rate was mainly due to the expiration of preferential tax treatments for some of Baidu’s PRC subsidiaries.
Net income attributable to Baidu in 2011 was RMB6.639 billion ($1.055 billion), representing an 88.3% increase from 2010. Basic and diluted earnings attributable to Baidu per ADS for 2011 amounted to RMB19.03 ($3.02) and RMB18.99 ($3.02), respectively.
Net income attributable to Baidu excluding share-based compensation expenses (non-GAAP) in 2011 was RMB6.791 billion ($1.079 billion), reflecting an 87.6% increase from 2010. Basic and diluted earnings attributed to Baidu per ADS excluding share-based compensation expenses (non-GAAP) in 2011 were RMB19.46 ($3.09) and RMB19.42 ($3.09), respectively.
Full year net operating cash inflow and capital expenditures were RMB 8.179 billion ($1.299 billion) and RMB1.762 billion ($280.0 million), respectively.
Adjusted EBITDA (non-GAAP) was RMB 8.614 billion ($1.369 billion) in 2011, representing a 91.4% increase from 2010.
Outlook for First Quarter 2012
Baidu currently expects to generate total revenues in an amount ranging from RMB4.195 billion ($666.5 million) to RMB4.330 billion ($688.0 million) for the first quarter of 2012, representing a 72.2% to 77.7% 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 16, 2012 U.S. Eastern Time (9:00 AM on February 17, 2012 Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
International: +65-6723-9381
US: +1-718-354-1231
UK: 0808-234-6646
Hong Kong: +852-2475-0994
Passcode for all regions: 48685775
A replay of the conference call may be accessed by phone at the following number until February 23, 2012:
International: +61-2-8235-5000
Passcode: 48685775
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 way for people to find information. In addition to serving Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu’s ADSs, ten of which represent one Class A ordinary share, currently trade on the NASDAQ Global Select Market under the symbol “BIDU”.
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 2012 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 fourth 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: our growth strategies; our future business development, including development of new products and services; our ability to attract and retain users and customers; competition in the Chinese and Japanese language Internet search markets; competition for online marketing customers; changes in our revenues and certain cost or expense items as a percentage of our 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 our 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 this 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 measures defined as non-GAAP financial measures by the SEC: adjusted EBITDA, operating profit excluding share-based compensation expenses, net income excluding share-based compensation expenses, and basic and diluted earnings per ADS excluding share-based compensation expenses. 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. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures” and “Reconciliation from net cash provided by operating activities to adjusted EBITDA” set forth at the end of this release.
Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain expenses, particularly share-based compensation expenses, that may not be indicative of its operating We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our 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. Baidu has computed its non-GAAP financial measures using the same consistent method from quarter to quarter since April 1, 2006. Baidu 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 share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our results of operations. A limitation of using non-GAAP adjusted EBITDA is that it does not include all items that impact our net income for the period. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
For investor and media inquiries, please contact:
China
Victor Tseng
Baidu, Inc.
Tel: 86-10-5992-7244
ir@baidu.com
Cynthia He
Brunswick Group (Beijing)
Tel: 86-10-6566-2256
che@brunswickgroup.com
U.S.
Cindy Zheng
Brunswick Group
Tel: +1-212-333-3810
Email: czheng@brunswickgroup.com
Baidu, Inc.
Condensed Consolidated Balance Sheets
December 31 December 31
(in RMB thousands) 2011 2010
------------------ ---- ----
Unaudited Audited
ASSETS
Current assets:
Cash and cash equivalents 4,127,482 7,781,976
Restricted cash 483,387 38,278
Short-term investments 10,051,578 376,492
Accounts receivable, net 599,558 296,900
Other assets, current 315,012 103,654
Due from related parties, current 149,728 98,660
Deferred tax assets, net 121,411 86,487
Total current assets 15,848,156 8,782,447
---------- ---------
Non-current assets:
Fixed assets, net 2,744,241 1,622,412
Intangible assets, net 928,511 115,798
Goodwill 2,419,542 63,686
Long-term investments, net 734,360 287,968
Deferred tax assets, net 52,125 30,843
Due from related parties, noncurrent 100,000 -
Other assets, non-current 513,606 145,285
------- -------
Total non-current assets 7,492,385 2,265,992
--------- ---------
TOTAL ASSETS 23,340,541 11,048,439
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities, current 2,522,645 1,317,771
Customer advances and deposits,
current 1,573,967 1,029,344
Deferred revenue 62,705 109,032
Deferred income 34,779 -
Short-term Borrowings 148,678 -
Long-term loan, current 46,000 -
Capital lease obligation, Current 17,773 -
Due to related parties, current - 95,700
Total current liabilities 4,406,547 2,551,847
--------- ---------
Non-current liabilities:
Deferred Income 19,942 5,000
Loans payable, noncurrent 2,277,925 86,000
Due to Related Parties, noncurrent 148,873 -
Deferred tax liability, non-current 131,629 -
Capital lease obligation, Non-current 30,112 -
Total non-current liabilities 2,608,481 91,000
--------- ------
Total liabilities 7,015,028 2,642,847
--------- ---------
Redeemable noncontrolling interest 935,978 -
Shareholders' equity
Class A Ordinary Shares, Par value
US$0.00005 per share, 825,000,000
shares authorized, and 27,045,340
shares and 27,111,117 shares issued
and outstanding as at December 31,
2010 and December 31, 2011 12 12
Class B Ordinary Shares, Par value
US$0.00005 per share, 35,400,000
shares authorized, and 7,804,332
shares and 7,803,000 shares issued
and outstanding as at December 31,
2010 and December 31, 2011 3 3
Additional paid-in capital 1,769,967 1,557,258
Accumulated other comprehensive loss (82,600) (117,378)
Retained earnings 13,604,334 6,965,697
---------- ---------
Total Baidu, Inc. Shareholders' Equity 15,291,716 8,405,592
Noncontrolling Interest 97,819 -
Total shareholders' equity 15,389,535 8,405,592
---------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 23,340,541 11,048,439
========== ==========
Baidu, Inc.
Condensed Consolidated Statements of Income
For the Three Months Ended
--------------------------
December 31, December 31, September 30,
(in RMB thousands
except for share,
per share
information) 2011 2010 2011
------------------ ---- ---- ----
Unaudited Unaudited Unaudited
Revenues:
Online marketing
services 4,466,664 2,450,494 4,173,869
Other services 7,429 411 1,596
Total revenues 4,474,093 2,450,905 4,175,465
--------- --------- ---------
Operating costs and
expenses:
Cost of revenues
(note 1, 2) (1,240,588) (630,976) (1,106,218)
Selling, general and
administrative (note
2) (522,449) (313,221) (460,212)
Research and
development (note 2) (413,779) (231,906) (382,706)
Total operating costs
and expenses (2,176,816) (1,176,103) (1,949,136)
---------- ---------- ----------
Operating profit 2,297,277 1,274,802 2,226,329
--------- --------- ---------
Other income:
Interest income 133,076 23,268 97,938
Foreign exchange
(loss) gain, net 2,374 30 (2,343)
Other income, net 21,044 28,828 27,457
Loss from equity
method investments (7,794) (6,679) (156,175)
Total other income 148,700 45,447 (33,123)
------- ------ -------
Income before income
taxes 2,445,977 1,320,249 2,193,206
--------- --------- ---------
Income taxes (404,492) (159,635) (317,568)
Net income 2,041,485 1,160,614 1,875,638
========= ========= =========
Less: Net Loss
Attributable To NCI (12,185) - (5,993)
Net Income
Attributable To
Baidu,Inc 2,053,670 1,160,614 1,881,631
========= ========= =========
Earnings per share
for Class A and
Class B ordinary
shares:
Basic 58.83 33.31 53.92
Diluted 58.73 33.22 53.81
Earnings per ADS (1
Class A ordinary
share=10 ADSs ):
Basic 5.88 3.33 5.39
Diluted 5.87 3.32 5.38
Weighted average
aggregate number of
Class A and Class B
ordinary shares
outstanding:
Basic 34,907,318 34,842,234 34,898,813
Diluted 34,966,028 34,941,976 34,967,620
(1) Cost of revenues
are detailed as
follows:
Business tax and
surcharges (327,624) (160,750) (302,855)
Traffic acquisition
costs (353,762) (199,367) (334,120)
Bandwidth costs (192,230) (99,202) (165,710)
Depreciation costs (214,866) (97,997) (176,906)
Operational costs (149,938) (72,047) (124,829)
Share-based
compensation
expenses (2,168) (1,613) (1,798)
Total cost of
revenues (1,240,588) (630,976) (1,106,218)
========== ======== ==========
(2) Includes share-
based compensation
expenses as follows:
Cost of revenues (2,168) (1,613) (1,798)
Selling, general and
administrative (14,113) (9,610) (12,718)
Research and
development (30,360) (16,963) (24,845)
Total share-based
compensation
expenses (46,641) (28,186) (39,361)
======= ======= =======
Twelve Months Ended
-------------------
December
December 31, 31,
(in RMB thousands except for
share, per share
information) 2011 2010
---------------------------- ---- ----
Unaudited Audited
Revenues:
Online marketing services 14,489,767 7,912,869
Other services 11,019 2,205
Total revenues 14,500,786 7,915,074
---------- ---------
Operating costs and expenses:
Cost of revenues (note 1, 2) (3,896,883) (2,149,288)
Selling, general and
administrative (note 2) (1,692,810) (1,088,980)
Research and development
(note 2) (1,334,434) (718,038)
Total operating costs and
expenses (6,924,127) (3,956,306)
---------- ----------
Operating profit 7,576,659 3,958,768
--------- ---------
Other income:
Interest income 335,650 67,121
Foreign exchange (loss) gain,
net (1,959) 6
Other income, net 78,237 44,233
Loss from equity method
investments (179,408) (8,965)
Total other income 232,520 102,395
------- -------
Income before income taxes 7,809,179 4,061,163
--------- ---------
Income taxes (1,188,861) (535,995)
Net income 6,620,318 3,525,168
========= =========
Less: Net Loss Attributable
To NCI (18,319) -
Net Income Attributable To
Baidu,Inc 6,638,637 3,525,168
========= =========
Earnings per share for Class
A and Class B ordinary
shares:
Basic 190.27 101.28
Diluted 189.88 100.96
Earnings per ADS (1 Class A
ordinary share=10 ADSs ):
Basic 19.03 10.13
Diluted 18.99 10.10
Weighted average aggregate
number of Class A and Class
B ordinary shares
outstanding:
Basic 34,890,050 34,805,362
Diluted 34,962,831 34,917,835
(1) Cost of revenues are
detailed as follows:
Business tax and surcharges (1,024,858) (504,846)
Traffic acquisition costs (1,155,546) (758,078)
Bandwidth costs (626,444) (310,540)
Depreciation costs (657,845) (331,685)
Operational costs (424,663) (237,837)
Share-based compensation
expenses (7,527) (6,302)
Total cost of revenues (3,896,883) (2,149,288)
========== ==========
(2) Includes share-based
compensation expenses as
follows:
Cost of revenues (7,527) (6,302)
Selling, general and
administrative (50,012) (36,811)
Research and development (94,489) (50,623)
Total share-based
compensation expenses (152,028) (93,736)
======== =======
Reconciliations of non-GAAP results of operations measures to the
nearest comparable GAAP measures (*) (in RMB thousands, unaudited)
Three months ended December 31,
2010
--------------------------------
Non-GAAP
GAAP Result Adjustment Results
----------- ---------- ---------
Operating
profit 1,274,802 28,186 1,302,988
Three months ended December 31,
2010
--------------------------------
Non-GAAP
GAAP Result Adjustment Results
----------- ---------- ---------
Net income
attributable
to Baidu,
Inc 1,160,614 28,186 1,188,800
Three months ended September 30,
2011
---------------------------------
GAAP Non-GAAP
Result Adjustment Results
------- ---------- ---------
Operating
profit 2,226,329 39,361 2,265,690
Three months ended September 30,
2011
---------------------------------
GAAP Non-GAAP
Result Adjustment Results
------- ---------- ---------
Net
income
attributable
to
Baidu,
Inc 1,881,631 39,361 1,920,992
Three months ended December 31,
2011
--------------------------------
GAAP Non-GAAP
Result Adjustment Results
------- ---------- ---------
Operating
profit 2,297,277 46,641 2,343,918
Three months ended December 31,
2011
--------------------------------
GAAP Non-GAAP
Result Adjustment Results
------- ---------- ---------
Net
income
attributable
to
Baidu,
Inc 2,053,670 46,641 2,100,311
Twelve months ended December 31,
2011
---------------------------------
GAAP Non-GAAP
Result Adjustment Results
------- ---------- ---------
Operating
profit 7,576,659 152,028 7,728,687
Twelve months ended December 31,
2011
---------------------------------
GAAP Non-GAAP
Result Adjustment Results
------- ---------- ---------
Net income
attributable
to Baidu,
Inc 6,638,637 152,028 6,790,665
Twelve months ended December 31, 2010
-------------------------------------
Non-GAAP
GAAP Result Adjustment Results
----------- ---------- ---------
Operating
profit 3,958,768 93,736 4,052,504
Twelve months ended December 31, 2010
-------------------------------------
Non-GAAP
GAAP Result Adjustment Results
----------- ---------- ---------
Net
income
attributable
to
Baidu,
Inc 3,525,168 93,736 3,618,904
(*) The adjustment is only for share-based compensation.
Reconciliation from net cash provided by operating activities to
adjusted EBITDA(*) (in RMB thousands, unaudited)
Three months
ended As a % of
------------ ---------
total
December 31, 2010 revenues
----------------- ---------
Net cash
provided by
operating
activities 1,769,590 72%
Changes in
assets and
liabilities,
net of
effects of
acquisitions (448,306) -18%
Income taxes
expenses 159,635 7%
Interest
income and
other, net (45,447) -2%
Adjusted
EBITDA 1,435,472 59%
========= ===
Three months
ended As a % of
------------ ---------
September 30, total
2011 revenues
-------------- ---------
Net cash
provided by
operating
activities 1,761,126 42%
Changes in
assets and
liabilities,
net of
effects of
acquisitions 397,373 10%
Income taxes
expenses 317,568 7%
Interest
income and
other, net 33,123 1%
Adjusted
EBITDA 2,509,190 60%
========= ===
Three months ended As a % of
------------------ ---------
total
December 31, 2011 revenues
----------------- ---------
Net cash
provided by
operating
activities 3,357,790 75%
Changes in
assets and
liabilities,
net of
effects of
acquisitions (973,970) -22%
Income taxes
expenses 404,492 9%
Interest
income and
other, net (148,700) -3%
Adjusted
EBITDA 2,639,612 59%
========= ===
Twelve months
ended As a % of
------------- ---------
total
December 31, 2011 revenues
----------------- ---------
Net cash
provided by
operating
activities 8,178,819 56%
Changes in
assets and
liabilities,
net of
effects of
acquisitions (521,561) -4%
Income taxes
expenses 1,188,861 8%
Interest
income and
other, net (232,520) -2%
Adjusted
EBITDA 8,613,599 58%
========= ===
Twelve months
ended As a % of
------------- ---------
December 31, total
2010 revenues
------------- ---------
Net cash
provided by
operating
activities 4,700,481 59%
Changes in
assets and
liabilities,
net of
effects of
acquisitions (633,146) -8%
Income taxes
expenses 535,995 7%
Interest
income and
other, net (102,395) -1%
Adjusted
EBITDA 4,500,935 57%
========= ===
(*) Definition of adjusted EBITDA: earnings before interest, taxes,
depreciation, amortization, other non-operating income, and share-
based compensation expenses.
SOURCE Baidu, Inc.