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First Quarter 2009 Highlights
-- Total revenues in the first quarter of 2009 were RMB810.7 million
($118.6 million), a 41.1% increase from the corresponding period in
2008.
-- Operating profit in the first quarter of 2009 was RMB198.5 million
($29.1 million), a 34.7% increase from the corresponding period in
2008.
-- Net income in the first quarter of 2009 was RMB181.1 million ($26.5
million), a 23.5% increase from the corresponding period in 2008.
Diluted earnings per share ("EPS") for the first quarter of 2009 was
RMB5.22 ($0.76); diluted EPS excluding share-based compensation
expenses (non-GAAP) for the first quarter of 2009 was RMB5.89
($0.86). Costs and expenses related to Baidu's Japan operations for
the first quarter of 2009 were RMB39.5 million ($5.8 million), which
reduced diluted EPS by RMB1.14 ($0.17).
(1) This announcement contains translations of certain RMB amounts into
U.S. dollars at specified rates solely for the convenience of the
reader. Unless otherwise noted, all translations from RMB to U.S.
dollars are made at a rate of RMB6.8329 to US$1.00, the effective
noon buying rate as of March 31, 2009 in The City of New York for
cable transfers of RMB as certified for customs purposes by the
Federal Reserve Bank of New York.
"Despite the typical seasonality associated with the
Recent Business Updates
On
On
First Quarter 2009 Results
Baidu reported total revenues of
Online marketing revenues for the first quarter of 2009 were
Traffic acquisition cost (TAC) as a component of cost of revenues was
Bandwidth costs as a component of cost of revenues were
Selling, general and administrative expenses were
Research and development expenses were
Share-based compensation expenses, which were allocated to related
operating costs and expense line items, increased in aggregate by 44.9% to
Operating profit was
Income tax expense was
Net income was
Net income excluding share-based compensation expenses (non-GAAP) was
As of
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
Outlook for Second Quarter 2009
Baidu currently expects to generate total revenues in an amount ranging
from
Conference Call Information
Baidu's management will hold an earnings conference call at
Dial-in details for the conference call are as follows: US: +1-617-614-3452 UK: +44-207-365-8426 Hong Kong: +852-3002-1672
Passcode for all regions: 50990188
A replay of the conference call may be accessed by phone at the following
number until
International: +1-617-801-6888
Passcode: 98320803
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, each of which represents 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 second quarter 2009 and
quotations from management in this announcement, as well as Baidu's strategic
and operational plans, contain forward-looking statements. Baidu may also make
written or oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission, in its annual report to shareholders, in
press releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. Statements that are not
historical facts, including statements about Baidu's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve inherent
risks and uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking statement,
including but not limited to the following: 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
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 EPS 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
Baidu, Inc. Condensed Consolidated Balance Sheets March 31, December 31, March 31, (in RMB thousands) 2009 2008 2008 Unaudited Audited Unaudited ASSETS Current assets: Cash and cash equivalents 2,494,320 2,362,171 1,427,298 Short-term investments 276,329 301,244 238,776 Accounts receivable, net 76,434 92,777 65,432 Prepaid expenses and other current assets 76,785 80,007 70,330 Receivables from a shareholder -- 10,697 -- Deferred tax assets, net 5,580 5,580 2,587 Total current assets 2,929,448 2,852,476 1,804,423 Non-current assets: Fixed assets, net 767,159 789,714 678,716 Land use right, net 94,032 94,520 95,984 Intangible assets, net 28,896 31,263 38,932 Goodwill 54,083 51,082 51,086 Investments, net 12,300 12,281 15,061 Deferred tax assets, net 27,679 26,537 20,496 Other non-current assets 85,416 80,118 52,574 Total non-current assets 1,069,565 1,085,515 952,849 TOTAL ASSETS 3,999,013 3,937,991 2,757,272 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accrued expenses and other liabilities 410,740 423,029 296,220 Customers' deposits 379,090 422,526 270,169 Deferred revenue 5,662 3,441 12,452 Deferred income 52 332 1,835 Total current liabilities 795,544 849,328 580,676 Non-current liabilities: Deferred income -- -- 52 Total non-current liabilities -- -- 52 Total liabilities 795,544 849,328 580,728 Shareholders' equity Class A Ordinary Shares, Par value US$0.00005 per share, 825,000,000 shares authorized, and 25,641,847 shares and 25,678,183 shares issued and outstanding as at December 31, 2008 and March 31, 2009 11 11 10 Class B Ordinary Shares, Par value US$0.00005 per share, 35,400,000 shares authorized, and 8,873,986 shares and 8,873,986 shares issued and outstanding as at December 31, 2008 and March 31, 2009 4 4 4 Additional paid-in capital 1,183,217 1,218,356 1,197,281 Accumulated other comprehensive loss (116,305) (109,552) (99,085) Retained earnings 2,136,542 1,979,844 1,078,334 Total shareholders' equity 3,203,469 3,088,663 2,176,544 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 3,999,013 3,937,991 2,757,272 Baidu, Inc. Condensed Consolidated Statements of Income For the Three Months Ended (in RMB thousands except for share, March 31, March 31, December 31, per share information) 2009 2008 2008 Unaudited Unaudited Unaudited Revenues: Online marketing services 810,193 572,710 901,389 Other services 518 1,686 731 Total revenues 810,711 574,396 902,120 Operating costs and expenses: Cost of revenues (note 1, 2) (322,235) (228,592) (336,543) Selling, general and administrative (note 2) (204,300) (147,031) (175,313) Research and development (note 2) (85,670) (51,406) (85,541) Total operating costs and expenses (612,205) (427,029) (597,397) Operating profit 198,506 147,367 304,723 Other income: Interest income 9,123 10,604 15,320 Exchange loss, net -- (1,708) (2) Other income, net 385 1,194 10,451 Total other income 9,508 10,090 25,769 Income before income taxes 208,014 157,457 330,492 Income taxes (26,897) (10,859) (41,826) Net income 181,117 146,598 288,666 Earnings per share for Class A and Class B ordinary shares: Basic 5.25 4.29 8.39 Diluted 5.22 4.22 8.31 Weighted average aggregate number of Class A and Class B ordinary shares outstanding: Basic 34,525,338 34,154,776 34,392,036 Diluted 34,727,972 34,765,164 34,740,057 (1) Cost of revenues are detailed as follows: Business tax and surcharges (48,868) (35,071) (58,215) Traffic acquisition costs (124,119) (76,632) (131,352) Bandwidth costs (48,280) (38,365) (49,245) Depreciation costs (59,616) (53,194) (57,908) Operational costs (39,719) (24,415) (38,317) Share-based compensation expenses (1,633) (915) (1,506) Total cost of revenues (322,235) (228,592) (336,543) (2) Includes share-based compensation expenses as follows: Cost of revenues (1,633) (915) (1,506) Selling, general and administrative (11,156) (8,014) (10,220) Research and development (10,665) (7,252) (9,765) Total share-based compensation expenses (23,454) (16,181) (21,491) Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited) Three months ended March 31, 2008 GAAP Result Adjustment Non-GAAP Results Operating profit 147,367 16,181 163,548 Three months ended March 31, 2008 GAAP Result Adjustment Non-GAAP Results Net income 146,598 16,181 162,779 Three months ended December 31, 2008 GAAP Result Adjustment Non-GAAP Results Operating profit 304,723 21,491 326,214 Three months ended December 31, 2008 GAAP Result Adjustment Non-GAAP Results Net income 288,666 21,491 310,157 Three months ended March 31, 2009 GAAP Result Adjustment Non-GAAP Results Operating profit 198,506 23,454 221,960 Three months ended March 31, 2009 GAAP Result Adjustment Non-GAAP Results Net income 181,117 23,454 204,571 (*) 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 March 31, 2008 total revenues Net cash provided by operating activities 248,876 43% Changes in assets and liabilities, net of effects of acquisitions (21,273) -4% Income taxes expenses 10,859 2% Interest income and other, net (10,090) -2% Adjusted EBITDA 228,372 39% Three months ended As a % of December 31, 2008 total revenues Net cash provided by operating activities 482,108 53% Changes in assets and liabilities, net of effects of acquisitions (99,277) -11% Income taxes expenses 41,826 5% Interest income and other, net (25,769) -3% Adjusted EBITDA 398,888 44% Three months ended As a % of March 31, 2009 total revenues Net cash provided by operating activities 247,438 31% Changes in assets and liabilities, net of effects of acquisitions 31,799 4% Income taxes expenses 26,897 3% Interest income and other, net (9,508) -1% Adjusted EBITDA 296,626 37% (*) Definition of adjusted EBITDA: earnings before interest, taxes, depreciation, amortization, other non-operating income, and share-based compensation expenses. For investor inquiries, please contact: Baidu, Inc. Victor Tseng Tel: +86-10-8260-7558 Email: ir@baidu.com For investor and media inquiries please contact: China Brunswick Group (Beijing) Cynthia He Tel: +86-10-6566-2256 Email: che@brunswickgroup.com U.S. Brunswick Group (New York) Mike Guerin Tel: +1-212-333-3810 Email: mguerin@brunswickgroup.com
SOURCE Baidu, Inc.