(Logo: http://www.newscom.com/cgi-bin/prnh/20081103/BAIDULOGO )
First Quarter 2010 Highlights
-- Total revenues in the first quarter of 2010 were RMB1.294 billion
($189.6 million), a 59.6% increase from the corresponding period
in 2009.
-- Operating profit in the first quarter of 2010 was RMB530.8 million
($77.8 million), a 167.4% increase from the corresponding period
in 2009.
-- Net income in the first quarter of 2010 was RMB480.5 million
($70.4 million), a 165.3% increase from the corresponding period in
2009. Diluted earnings per share ("EPS") for the first quarter of 2010
was RMB13.77 ($2.02); diluted EPS excluding share-based compensation
expenses (non-GAAP) for the first quarter of 2010 was RMB14.33 ($2.10).
"We delivered a quarter of record revenue and strong profitability despite
the usual seasonality associated with the
(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 RMB6.8258 to US$1.00, the effective noon buying rate as of March 31, 2010 in The City of New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York.
First Quarter 2010 Results
Baidu reported total revenues of
Online marketing revenues for the first quarter of 2010 were
Traffic acquisition costs (TAC) as a component of cost of revenues were
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, decreased in aggregate by 16.7% 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 2010
Baidu currently expects to generate total revenues in an amount ranging
from
Earnings Conference Call
Baidu's management will hold an earnings conference call at
Dial-in details for the earnings conference call are as follows: US: +1-617-597-5364 UK: +44-207-365-8426 Hong Kong: +852-3002-1672 Passcode for all regions: 83504881
A replay of the conference call may be accessed by phone at the following
number until
International: +1-617-801-6888
Passcode: 34704854
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 individual 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 2010 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 performance and financial condition from a cash
perspective. 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
For investor and media inquiries, please contact: China: Victor Tseng Baidu, Inc. Tel: +86-10-5992-7244 Email: ir@baidu.com Cynthia He Brunswick Group LLC Tel: +86-10-6566-2256 Email: che@brunswickgroup.com U.S.: Ms. Kate Tellier Brunswick Group LLC Tel: +1-212-333-3810 Email: ktellier@brunswickgroup.com Baidu, Inc. Condensed Consolidated Balance Sheets March 31, December 31, March 31, (in RMB thousands) 2010 2009 2009 Unaudited Audited Unaudited ASSETS Current assets: Cash and cash equivalents 4,157,130 4,199,889 2,494,320 Short-term investments 751,894 381,149 276,329 Accounts receivable, net 153,686 161,610 76,434 Other assets, current 118,822 91,067 76,785 Deferred tax assets, net 10,118 9,157 5,580 Total current assets 5,191,650 4,842,872 2,929,448 Non-current assets: Fixed assets, net 1,036,921 997,557 767,159 Intangible assets, net 120,054 122,595 122,928 Goodwill 63,691 63,691 54,083 Long-term investments, net 14,577 14,308 12,300 Deferred tax assets, net 33,799 33,799 27,679 Other assets, non-current 99,222 82,153 85,416 Total non-current assets 1,368,264 1,314,103 1,069,565 TOTAL ASSETS 6,559,914 6,156,975 3,999,013 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities, current 664,078 749,861 410,740 Customer advances and deposits, current 573,724 607,828 379,090 Deferred revenue 59,170 42,035 5,662 Deferred income -- -- 52 Total current liabilities 1,296,972 1,399,724 795,544 Non-current liabilities: Long-term payable for business acquisition 4,150 4,150 -- Total non-current liabilities 4,150 4,150 -- Total liabilities 1,301,122 1,403,874 795,544 Shareholders' equity Class A Ordinary Shares, Par value US$0.00005 per share, 825,000,000 shares authorized, and 26,298,960 shares and 26,330,659 shares issued and outstanding as at December 31, 2009 and March 31, 2010 11 11 11 Class B Ordinary Shares, Par value US$0.00005 per share, 35,400,000 shares authorized, and 8,454,332 shares and 8,454,332 shares issued and outstanding as at December 31, 2009 and March 31, 2010 4 4 4 Additional paid-in capital 1,455,395 1,426,070 1,183,217 Accumulated other comprehensive loss (117,684) (113,513) (116,305) Retained earnings 3,921,066 3,440,529 2,136,542 Total shareholders' equity 5,258,792 4,753,101 3,203,469 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 6,559,914 6,156,975 3,999,013 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) 2010 2009 2009 Unaudited Unaudited Unaudited Revenues: Online marketing services 1,293,396 810,193 1,260,301 Other services 519 518 593 Total revenues 1,293,915 810,711 1,260,894 Operating costs and expenses: Cost of revenues (note 1, 2) (426,405) (322,235) (452,559) Selling, general and administrative (note 2) (214,568) (204,300) (221,767) Research and development (note 2) (122,129) (85,670) (124,402) Total operating costs and expenses (763,102) (612,205) (798,728) Operating profit 530,813 198,506 462,166 Other income: Interest income 11,374 9,123 9,313 Exchange loss, net (1) -- (40) Gain and loss from equity method investments 247 -- (167) Other income, net 8,797 385 27,507 Total other income 20,417 9,508 36,613 Income before income taxes 551,230 208,014 498,779 Income taxes (70,693) (26,897) (70,915) Net income 480,537 181,117 427,864 Earnings per share for Class A and Class B ordinary shares: Basic 13.82 5.25 12.33 Diluted 13.77 5.22 12.27 Weighted average aggregate number of Class A and Class B ordinary shares outstanding: Basic 34,766,823 34,525,338 34,702,168 Diluted 34,894,049 34,727,972 34,877,586 (1) Cost of revenues are detailed as follows: Business tax and surcharges (81,301) (48,868) (78,822) Traffic acquisition costs (171,349) (124,119) (201,880) Bandwidth costs (58,012) (48,280) (54,403) Depreciation costs (65,888) (59,616) (67,628) Operational costs (48,256) (39,719) (48,298) Share-based compensation expenses (1,599) (1,633) (1,528) Total cost of revenues (426,405) (322,235) (452,559) (2) Includes share-based compensation expenses as follows: Cost of revenues (1,599) (1,633) (1,528) Selling, general and administrative (8,593) (11,156) (7,472) Research and development (9,339) (10,665) (9,728) Total share-based compensation expenses (19,531) (23,454) (18,728) Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited) 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 Three months ended December 31, 2009 GAAP Result Adjustment Non-GAAP Results Operating profit 462,166 18,728 480,894 Three months ended December 31, 2009 GAAP Result Adjustment Non-GAAP Results Net income 427,864 18,728 446,592 Three months ended March 31, 2010 GAAP Result Adjustment Non-GAAP Results Operating profit 530,813 19,531 550,344 Three months ended March 31, 2010 GAAP Result Adjustment Non-GAAP Results Net income 480,537 19,531 500,068 Reconciliation from net cash provided by operating activities to adjusted EBITDA(*) (in RMB thousands, unaudited) Three Three As a months As a Three As a months % of ended % of months % of ended total December total ended total March 31, revenues 31, 2009 revenues March 31, revenues 2009 2010 Net cash provided by operating activities 247,438 31% 779,079 62% 426,169 33% Changes in assets and liabilities, net of effects of acquisitions 31,799 4% (244,723) -20% 164,711 13% Income taxes expenses 26,897 3% 70,915 6% 70,693 5% Interest income and other, net (9,508) -1% (36,613) -3% (20,417) -2% Adjusted EBITDA 296,626 37% 568,658 45% 641,156 49% (*) Definition of adjusted EBITDA: earnings before interest, taxes, depreciation, amortization, other non-operating income, and share-based compensation expenses.
SOURCE Baidu, Inc.