BEIJING, Feb. 9 /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, 2009(1). (Logo:
http://www.newscom.com/cgi-bin/prnh/20081103/BAIDULOGO ) Fourth
Quarter and Fiscal Year 2009 Highlights -- Total revenues in the
fourth quarter of 2009 were RMB1.261 billion ($184.7 million), a
39.8% increase from the corresponding period in 2008. -- Total
revenues in fiscal year 2009 were RMB4.448 billion ($651.6
million), a 39.1% increase from 2008. -- Operating profit in the
fourth quarter of 2009 was RMB462.2 million ($67.7 million), a
51.7% increase from the corresponding period in 2008. -- Operating
profit in fiscal year 2009 was RMB1.605 billion ($235.1 million), a
46.3% increase from 2008. -- Net income in the fourth quarter of
2009 was RMB427.9 million ($62.7 million), a 48.2% increase from
the corresponding period in 2008. Diluted earnings per share
("EPS") for the fourth quarter of 2009 was RMB12.27 ($1.80);
diluted EPS excluding share-based compensation expenses (non-GAAP)
for the fourth quarter of 2009 was RMB12.80 ($1.88). Costs and
expenses related to Baidu's Japan operations for the fourth quarter
of 2009 were RMB43.2 million ($6.3 million), which reduced diluted
EPS by RMB1.24 ($0.18). -- Net income in fiscal year 2009 was
RMB1.485 billion ($217.6 million), a 41.7% increase from 2008.
Diluted EPS for fiscal year 2009 was RMB42.70 ($6.26); diluted EPS
excluding share-based compensation expenses (non-GAAP) for fiscal
year 2009 was RMB45.19 ($6.62). Costs and expenses related to
Baidu's Japan operations for fiscal year 2009 were RMB162.7 million
($23.8 million), which reduced diluted EPS by RMB4.68 ($0.69). (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 RMB6.8259 to US$1.00, the effective
noon buying rate as of December 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. "The year ended on a positive
note as Phoenix Nest's better than anticipated performance helped
us to exceed expectations for the fourth quarter," said Robin Li,
Baidu's chairman and chief executive officer. "This encouraging
performance is a reflection of Baidu's relentless focus on
execution and innovation. With a solid base of users and customers,
our foundation is stronger than ever and we will continue to drive
innovation to capture market opportunities ahead." Jennifer Li,
Baidu's chief financial officer, commented, "With the transition to
Phoenix Nest now behind us, we will focus on investing in both
sales and marketing and R&D as we work on fulfilling user
needs, enhancing monetization and driving the development of online
marketing with our leading pay-for-performance platform." Fourth
Quarter 2009 Results Baidu reported total revenues of RMB1.261
billion ($184.7 million) for the fourth quarter of 2009,
representing a 39.8% increase from the corresponding period in
2008. Online marketing revenues for the fourth quarter of 2009 were
RMB1.260 billion ($184.6 million), representing a 39.8% increase
from the corresponding period in 2008. Baidu had about 223,000
active online marketing customers in the fourth quarter of 2009,
representing a 13.2% increase from the corresponding period in 2008
and a 3.2% increase from the previous quarter. Revenue per online
marketing customer for the fourth quarter was approximately
RMB5,700 ($828), a 23.9% increase from the corresponding period in
2008 and a 3.4% decrease from the previous quarter, primarily due
to the effects of the transition from Baidu Online Marketing
Classic Edition to Phoenix Nest. Traffic acquisition cost (TAC) as
a component of cost of revenues was RMB201.9 million ($29.6
million), representing 16.0% of total revenues, as compared to
14.6% in the corresponding period in 2008 and 15.3% in the third
quarter of 2009. The increases in TAC as a percentage of total
revenues reflect normal fluctuation. Bandwidth costs as a component
of cost of revenues were RMB54.4 million ($8.0 million),
representing 4.3% of total revenues, compared to 5.5% in the
corresponding period in 2008. Depreciation costs as a component of
cost of revenues were RMB67.6 million ($9.9 million), representing
5.4% of total revenues, compared to 6.4% in the corresponding
period in 2008. Selling, general and administrative expenses were
RMB221.8 million ($32.5 million), representing an increase of 26.5%
from the corresponding period in 2008. Research and development
expenses were RMB124.4 million ($18.2 million), a 45.4% increase
from the corresponding period in 2008. The increase was primarily
due to the increased number of research and development personnel.
Share-based compensation expenses, which were allocated to related
operating costs and expense line items, were RMB18.7 million ($2.7
million) in the fourth quarter of 2009, compared to RMB21.3 million
in the previous quarter and RMB21.5 million in the corresponding
period in 2008. Operating profit was RMB462.2 million ($67.7
million), representing a 51.7% increase from the corresponding
period in 2008. Operating profit excluding share-based compensation
expenses (non-GAAP) was RMB480.9 million ($70.5 million), a 47.4%
increase from the corresponding period in 2008. Income tax expense
was RMB70.9 million ($10.4 million), compared to an income tax
expense of RMB41.8 million in the corresponding period in 2008. The
effective tax rate for the fourth quarter of 2009 was 14.2% as
compared to 9.1% in the previous quarter and 12.7% for the
corresponding period in 2008. The effective tax rate for the full
year 2009 was 11.8%. Net income was RMB427.9 million ($62.7
million), representing a 48.2% increase from the corresponding
period in 2008. Basic and diluted EPS for the fourth quarter of
2009 amounted to RMB12.33 ($1.81) and RMB12.27 ($1.80),
respectively. Net income excluding share-based compensation
expenses (non-GAAP) was RMB446.6 million ($65.4 million), a 44.0%
increase from the corresponding period in 2008. Basic and diluted
EPS excluding share-based compensation expenses (non-GAAP) for the
fourth quarter of 2009 amounted to RMB12.87 ($1.89) and RMB12.80
($1.88), respectively. As of December 31, 2009, the Company had
cash, cash equivalents and short-term investments of RMB4.581
billion ($671.1 million). Net operating cash inflow and capital
expenditures for the fourth quarter of 2009 were RMB779.1 million
($114.1 million) and RMB146.3 million ($21.4 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 RMB568.7 million ($83.3 million) for the
fourth quarter of 2009, representing a 42.6% increase from the
corresponding period in 2008. Fiscal Year 2009 Results Total
revenues in 2009 were RMB4.448 billion ($651.6 million),
representing a 39.1% increase from 2008. Online marketing revenues
in 2009 were RMB4.445 billion ($651.2 million), representing a 39.2
% increase from 2008. The growth was driven by increases in both
the number of active online marketing customers and revenue per
customer. Baidu had more than 317,000 active online marketing
customers in 2009, representing an 11.6% increase from 2008.
Revenue per online marketing customer for 2009 was RMB14,000
($2,051), an increase of 25.0% from 2008. Traffic acquisition costs
in 2009 were RMB697.7 million ($102.2 million), representing 15.7%
of total revenues, compared to 13.1% in 2008. The increase in TAC
as a percentage of total revenues reflects the continued growth of
revenue contribution from Baidu Union members. Selling, general and
administrative expenses in 2009 were RMB804.0 million ($117.8
million), representing an increase of 21.9% from the previous year,
mainly due to the increase in marketing expenses and compensation.
Research and development expenses totaled RMB422.6 million ($61.9
million) in 2009, representing a 47.6% increase from 2008 primarily
due to increased spending on research and development staff.
Operating profit in 2009 was RMB1.605 billion ($235.1 million), a
46.3% increase from 2008. Operating profit excluding share-based
compensation expenses (non-GAAP) in 2009 was RMB1.691 billion
($247.8 million), representing a 43.2% increase from 2008. Net
income in 2009 was RMB1.485 billion ($217.6 million), representing
a 41.7% increase from 2008. Basic and diluted EPS for 2009 amounted
to RMB42.96 ($6.29) and RMB42.70 ($6.26), respectively. Net income
excluding share-based compensation expenses (non-GAAP) in 2009 was
RMB1.571 billion ($230.2 million), reflecting a 38.8% increase from
2008. Basic and diluted EPS excluding share-based compensation
expenses (non-GAAP) in 2009 were RMB45.46 ($6.66) and RMB45.19
($6.62), respectively. Full year net operating cash inflow and
capital expenditures were RMB2.279 billion ($333.9 million) and
RMB399.3 million ($58.5 million), respectively. Adjusted EBITDA
(non-GAAP) was RMB2.008 billion ($294.2 million) in 2009,
representing a 37.4% increase from 2008. Outlook for First Quarter
2010 Baidu currently expects to generate total revenues in an
amount ranging from RMB1.200 billion ($176 million) to RMB1.235
billion ($181 million) for the first quarter of 2010, representing
a 48% to 52% 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 PM on February 9, 2010 U.S. Eastern
Time (9 AM on February 10, 2010 Beijing/Hong Kong time). Dial-in
details for the earnings conference call are as follows: US:
+1-617-786-2905 UK: +44-207-365-8426 Hong Kong: +852-3002-1672
Passcode for all regions: 19218446 A replay of the conference call
may be accessed by phone at the following number until February 17,
2010: International: +1-617-801-6888 Passcode: 82003079
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 the first 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 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 February 9,
2010, 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 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 or 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 April 1, 2006. We believe 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 the non-GAAP financial measures. For
investor and media inquiries, please contact: China Baidu, Inc.
Victor Tseng Tel: +86-10-5992-7244 Email: Brunswick Group LLC
Cynthia He Tel: +86-10-6566-2256 Email: U.S. Brunswick Group LLC
Ms. Kate Tellier Tel: +1-212-333-3810 Email: Baidu, Inc. Condensed
Consolidated Balance Sheets December 31 September 30 December 31
(in RMB thousands) 2009 2009 2008 Unaudited Unaudited Audited
ASSETS Current assets: Cash and cash equivalents 4,199,889
3,418,572 2,362,171 Short-term investments 381,149 546,084 301,244
Accounts receivable, net 161,610 164,396 92,777 Other
assets,current 91,067 88,372 80,007 Receivables from a shareholder
-- -- 10,697 Deferred tax assets, net 9,157 16,726 5,580 Total
current assets 4,842,872 4,234,150 2,852,476 Non-current assets:
Fixed assets, net 997,557 941,430 789,714 Intangible assets, net
122,595 125,162 125,783 Goodwill 63,691 63,691 51,082 Long-term
investments, net 14,308 13,575 12,281 Deferred tax assets, net
33,799 27,679 26,537 Other assets,non-current 82,153 81,972 80,118
Total non-current assets 1,314,103 1,253,509 1,085,515 TOTAL ASSETS
6,156,975 5,487,659 3,937,991 LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities: Accounts payable and accrued liabilities,
current 749,861 665,092 423,029 Customer advances and deposits,
current 607,828 494,967 422,526 Deferred revenue 42,035 20,675
3,441 Deferred income -- -- 332 Total current liabilities 1,399,724
1,180,734 849,328 Non-current liabilities: Long-term payable for
business acquisition 4,150 4,150 -- Total non-current liabilities
4,150 4,150 -- Total liabilities 1,403,874 1,184,884 849,328
Shareholders' equity Class A Ordinary Shares, Par value US$0.00005
per share, 825,000,000 shares authorized, and 25,641,847 shares and
26,298,960 shares issued and outstanding as at December 31, 2008
and December 31, 2009 11 11 11 Class B Ordinary Shares, Par value
US$0.00005 per share, 35,400,000 shares authorized, and 8,873,986
shares and 8,454,332 shares issued and outstanding as at December
31, 2008 and December 31, 2009 4 4 4 Additional paid-in capital
1,426,070 1,400,790 1,218,356 Accumulated other comprehensive loss
(113,513) (110,695) (109,552) Retained earnings 3,440,529 3,012,665
1,979,844 Total shareholders' equity 4,753,101 4,302,775 3,088,663
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 6,156,975 5,487,659
3,937,991 Baidu, Inc. Condensed Consolidated Statements of Income
For the Three Months Ended (in RMB thousands except for share,
December December September per share information) 31, 2009 31,
2008 30, 2009 Unaudited Unaudited Unaudited Revenues: Online
marketing services 1,260,301 901,389 1,278,192 Other services 593
731 511 Total revenues 1,260,894 902,120 1,278,703 Operating costs
and expenses: Cost of revenues (note 1, 2) (452,559) (336,543)
(442,851) Selling, general and administrative (note 2) (221,767)
(175,313) (197,717) Research and development (note 2) (124,402)
(85,541) (116,691) Total operating costs and expenses (798,728)
(597,397) (757,259) Operating profit 462,166 304,723 521,444 Other
income: Interest income 9,313 15,320 6,637 Exchange loss, net (40)
(2) (1) Other income, net 27,507 10,451 13,989 Loss from Equity
Method Investments (167) -- (62) Total other income 36,613 25,769
20,563 Income before income taxes 498,779 330,492 542,007 Income
taxes (70,915) (41,826) (49,145) Net income 427,864 288,666 492,862
Earnings per share for Class A and Class B ordinary shares: Basic
12.33 8.39 14.23 Diluted 12.27 8.31 14.14 Weighted average
aggregate number of Class A and Class B ordinary shares
outstanding: Basic 34,702,168 34,392,036 34,639,268 Diluted
34,877,586 34,740,057 34,849,020 (1) Cost of revenues are detailed
as follows: Business tax and surcharges (78,822) (58,215) (80,357)
Traffic acquisition costs (201,880) (131,352) (196,229) Bandwidth
costs (54,403) (49,245) (51,194) Depreciation costs (67,628)
(57,908) (63,619) Operational costs (48,298) (38,317) (49,880)
Share-based compensation expenses (1,528) (1,506) (1,572) Total
cost of revenues (452,559) (336,543) (442,851) (2) Includes
share-based compensation expenses as follows: Cost of revenues
(1,528) (1,506) (1,572) Selling, general and administrative (7,472)
(10,220) (9,142) Research and development (9,728) (9,765) (10,539)
Total share-based compensation expenses (18,728) (21,491) (21,253)
Twelve Months Ended (in RMB thousands except for share, December
December per share information) 31, 2009 31, 2008 Unaudited Audited
Revenues: Online marketing services 4,445,310 3,194,461 Other
services 2,466 3,791 Total revenues 4,447,776 3,198,252 Operating
costs and expenses: Cost of revenues (note 1, 2) (1,616,236)
(1,155,457) Selling, general and administrative (note 2) (803,988)
(659,804) Research and development (note 2) (422,615) (286,256)
Total operating costs and expenses (2,842,839) (2,101,517)
Operating profit 1,604,937 1,096,735 Other income: Interest income
32,661 47,677 Exchange loss, net (42) (1,920) Other income, net
45,794 21,687 Loss from Equity Method Investments (229) -- Total
other income 78,184 67,444 Income before income taxes 1,683,121
1,164,179 Income taxes (198,017) (116,071) Net income 1,485,104
1,048,108 Earnings per share for Class A and Class B ordinary
shares: Basic 42.96 30.63 Diluted 42.70 30.19 Weighted average
aggregate number of Class A and Class B ordinary shares
outstanding: Basic 34,570,790 34,217,443 Diluted 34,776,366
34,717,489 (1) Cost of revenues are detailed as follows: Business
tax and surcharges (275,924) (200,085) Traffic acquisition costs
(697,673) (418,474) Bandwidth costs (203,927) (178,651)
Depreciation costs (250,969) (225,799) Operational costs (181,369)
(127,906) Share-based compensation expenses (6,374) (4,542) Total
cost of revenues (1,616,236) (1,155,457) (2) Includes share-based
compensation expenses as follows: Cost of revenues (6,374) (4,542)
Selling, general and administrative (38,681) (41,651) Research and
development (41,263) (37,784) Total share-based compensation
expenses (86,318) (83,977) Reconciliations of non-GAAP results of
operations measures to the nearest comparable GAAP measures (*) (in
RMB thousands, unaudited) Three months ended December 31, 2008
Non-GAAP GAAP Result Adjustment 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 (*)
The adjustment is only for share- based compensation. Three months
ended September 30, 2009 GAAP Result Adjustment Non-GAAP Results
Operating profit 521,444 21,253 542,697 Three months ended
September 30, 2009 GAAP Result Adjustment Non-GAAP Results Net
income 492,862 21,253 514,115 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
Twelve months ended December 31, 2009 GAAP Result Adjustment
Non-GAAP Results Operating profit 1,604,937 86,318 1,691,255 Twelve
months ended December 31, 2009 GAAP Result Adjustment Non-GAAP
Results Net income 1,485,104 86,318 1,571,422 Twelve months ended
December 31, 2008 GAAP Result Adjustment Non-GAAP Results Operating
profit 1,096,735 83,977 1,180,712 Twelve months ended December 31,
2008 GAAP Result Adjustment Non-GAAP Results Net income 1,048,108
83,977 1,132,085 Reconciliation from net cash provided by operating
activities to adjusted EBITDA(*) (in RMB thousands, unaudited)
Three months ended As a % of December 31, 2008 total revenues Net
cash provided by operating activities 611,773 68% Changes in assets
and liabilities, net of effects of acquisitions (228,942) -25%
Income taxes expenses 41,826 4% Interest income and other, net
(25,769) -3% Adjusted EBITDA 398,888 44% Three months ended As a %
of September 30, 2009 total revenues Net cash provided by operating
activities 733,866 57% Changes in assets and liabilities, net of
effects of acquisitions (140,338) -11% Income taxes expenses 49,145
4% Interest income and other, net (20,563) -1% Adjusted EBITDA
622,110 49% Three months ended As a % of December 31, 2009 total
revenues Net cash provided by operating activities 779,079 62%
Changes in assets and liabilities, net of effects of acquisitions
(244,723) -20% Income taxes expenses 70,915 6% Interest income and
other, net (36,613) -3% Adjusted EBITDA 568,658 45% Twelve months
ended As a % of December 31, 2009 total revenues Net cash provided
by operating activities 2,279,435 51% Changes in assets and
liabilities, net of effects of acquisitions (391,002) -9% Income
taxes expenses 198,017 5% Interest income and other, net (78,184)
-2% Adjusted EBITDA 2,008,266 45% Twelve months ended As a % of
December 31, 2008 total revenues Net cash provided by operating
activities 1,746,199 55% Changes in assets and liabilities, net of
effects of acquisitions (333,401) -11% Income taxes expenses
116,071 4% Interest income and other, net (67,444) -2% Adjusted
EBITDA 1,461,425 46%
http://www.newscom.com/cgi-bin/prnh/20081103/BAIDULOGODATASOURCE:
Baidu, Inc. CONTACT: Baidu, Inc., Victor Tseng , +86-10-5992-7244,
or Brunswick Group LLC, Cynthia He, +86-10-6566-2256, and Ms. Kate
Tellier, +1-212-333-3810, , both for Baidu, Inc. Web site:
http://www.baidu.com/
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