Baidu Announces Solid Fourth Quarter and Fiscal Year 2023 Results

BEIJING, China – Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), a leading AI company with a strong foundation in the Internet sector, has announced its unaudited financial results for both the fourth quarter and the fiscal year ended December 31, 2023. The results showcase the company's continuous growth and resilience in its core business sectors, alongside significant advancements in AI technologies and monetization strategies.

Shortly

• Q4 Revenue: Up 6% YOY to RMB 34.951 billion.
• 2023 Revenue: Up 9% YOY to RMB 134.598 billion.
• Q4 Operating Income: Up 17% YOY to RMB 5.392 billion.
• 2023 Operating Income: Up 37% YOY to RMB 21.856 billion.
• Q4 Net Income: Down 48% YOY to RMB 2.599 billion.
• 2023 Net Income: Up 169% YOY to RMB 20.315 billion.
• Advancements: Significant progress in AI (ERNIE Bot), growth in PaddlePaddle community, and Apollo Go rides.
• Future Focus: Gen-AI, operational efficiencies, and new growth engines.

Fourth Quarter Highlights

In the fourth quarter of 2023, Baidu reported total revenues of RMB 34.951 billion ($4.923 billion), marking a 6% increase year over year. The company's operating income also saw a healthy growth, standing at RMB 5.392 billion ($759 million), up by 17% from the previous year. Notably, Baidu's net income to Baidu was RMB 2.599 billion ($366 million), despite a 48% decrease from the previous year. However, the non-GAAP net income to Baidu showed a more positive trend, reaching RMB 7.755 billion ($1.092 billion), a 44% increase year over year.

Diluted earnings per ADS were reported at RMB 6.77 ($0.95), down by 50% from the previous year, while the non-GAAP diluted earnings per ADS stood at RMB 21.86 ($3.08), marking a 43% increase. The adjusted EBITDA was RMB 9.057 billion ($1.276 billion), with a 10% increase from the previous year, and the adjusted EBITDA margin was stable at 26%.

Fiscal Year 2023 Performance

For the fiscal year 2023, Baidu's total revenues reached RMB 134.598 billion ($18.958 billion), showing a 9% increase over the previous year. The operating income for the year was significantly higher at RMB 21.856 billion ($3.078 billion), reflecting a 37% increase. The company's net income to Baidu surged to RMB 20.315 billion ($2.861 billion), an impressive 169% increase from the previous year.

The diluted earnings per ADS for the fiscal year were remarkable, at RMB 55.08 ($7.76), representing a 177% increase. The non-GAAP diluted earnings per ADS also saw a substantial rise, reaching RMB 80.85 ($11.39), up by 37% from the previous year. The adjusted EBITDA for the fiscal year stood at RMB 35.823 billion ($5.046 billion), a 21% increase, with the adjusted EBITDA margin slightly improving to 27%.

Operational Highlights and Strategic Achievements

Throughout 2023, Baidu made significant strides in advancing its AI technologies, particularly ERNIE and ERNIE Bot, which have been central to reinventing the company's products and services. The company also focused on enhancing operational efficiencies and paving the way for high-quality growth into 2024.

Key operational highlights include the growth of the PaddlePaddle developer community to 10.7 million, serving 235,000 businesses with over 860,000 models created by the end of 2023. Baidu's Apollo Go autonomous ride-hailing service provided approximately 839K rides in the fourth quarter, a 49% increase year over year, with accumulated rides surpassing 5 million as of January 2, 2024.

Baidu App's monthly active users (MAUs) reached 667 million in December 2023, a 3% increase year over year. Additionally, iQIYI, Baidu's online video platform, reported an average daily number of total subscribing members for the quarter at 100.3 million, with the monthly average revenue per membership (ARM) for the quarter increasing to RMB 15.98.

Looking Ahead

Baidu remains committed to its focus on Gen-AI and foundation models, aiming to create new growth engines through innovation and strategic advancements in AI technology. The company's emphasis on operational efficiency and quality growth sets a positive outlook for 2024 and beyond.

In conclusion, Baidu's fourth quarter and fiscal year 2023 results demonstrate the company's solid performance and strategic positioning for future growth, underpinned by significant achievements in AI development and operational enhancements.