On the afternoon of February 28, Beijing time, Sina Technology News reported that Baidu (Nasdaq: BIDU; HKEX: 9888) today released financial results for the fourth quarter and full year of 2023 ending December 31. In the fourth quarter, total revenue was 35 billion yuan, an increase of 6% over the previous year. Net profit attributable to Baidu was 2.6 billion yuan. Net profit attributable to Baidu without US GAAP was 7.8 billion yuan.

Total revenue for 2023 was 134.6 billion yuan, an increase of 9% over the previous year. Net profit attributable to Baidu was 20.3 billion yuan. Net profit attributable to Baidu without US GAAP was 28.7 billion yuan.

“Baidu Core once again showed solid quarterly results.” Li Yanhong, co-founder and CEO of Baidu, said, “In 2023, we made major breakthroughs in Wenxin's model, product remodeling, and commercialization. At the same time, our core business has also maintained resilience and healthy development. Looking ahead, we will continue to firmly invest in generative AI and basic models to lay the foundation for the gradual creation of new growth engines.”

Fourth quarter operating results:

ventures

Since the fourth quarter of 2023, Baidu has returned US$318 million to shareholders, bringing the cumulative repurchase amount under the 2023 share repurchase plan to US$669 million.

AI cloud

By the end of 2023, the Baidu PaddlePaddle (PaddlePaddle) developer community had grown to 10.7 million people, providing services to 235,000 businesses. By the end of 2023, developers had created 860,000 models on flying paddles.

Intelligent driving

In the fourth quarter of 2023, Apollo Go provided 839,000 rides, up 49% year over year. As of January 2, 2024, Apollo Go has accumulated more than 5 million rides.

In the fourth quarter of 2023, orders for autonomous driving accounted for 45% of Wuhan's overall order mix, up from 40% in the third quarter of 2023.

Mobile ecosystem

In December 2023, Baidu App's MAU (monthly active users) reached 667 million, an increase of 3% over the previous year.

In the fourth quarter, managed page (managed page) revenue accounted for 51% of “Baidu Core” online marketing revenue.

iQiyi

In the fourth quarter, iQiyi had an average daily subscription of 100.3 million, compared with 111.6 million in the fourth quarter of 2022 and 107.5 million in the third quarter of 2023.

More importantly, iQiyi contributed an average monthly income (ARM) of 15.98 yuan per member in the current quarter, compared to 14.17 yuan in the fourth quarter of 2022 and 15.54 yuan in the third quarter of 2023.

Fourth quarter financial results:

Total revenue was 35 billion yuan (approximately US$4.92 billion), an increase of 6% over the previous year.

Baidu's fourth quarter revenue from “Baidu Core” reached 27.5 billion yuan (about US$3.87 billion), an increase of 7% over the previous year.

Internet marketing revenue was 19.2 billion yuan (approximately US$2.7 billion), an increase of 6% over the previous year.

Non-online marketing revenue was 8.3 billion yuan (approximately US$1.17 billion), an increase of 9% over the previous year.

Revenue from iQiyi was 7.7 billion yuan (approximately US$1.09 billion), an increase of 2% over the previous year.

Revenue costs were 17.4 billion yuan (approximately US$2.45 billion), an increase of 3% over the previous year.

Sales, general affairs and administrative expenses were 5.9 billion yuan (approximately US$825 million), which was basically the same as the previous year.

R&D expenditure was 6.3 billion yuan (about 886 million US dollars), an increase of 11% over the previous year.

Operating profit was 5.4 billion yuan (approximately $759 million). Baidu Core's operating profit for the fourth quarter was 4.7 billion yuan (approximately US$657 million), and the operating margin was 17%.

Operating profit was 7.1 billion yuan (approximately $996 million) without US GAAP (non-GAAP). Baidu Core's operating profit for the fourth quarter was 6.2 billion yuan (approximately US$873 million), and the operating margin was 23%.

Net other losses amounted to $2.5 billion (approximately US$356 million), compared with net other income of $1.8 billion for the same period last year.

Income tax revenue was 96 million yuan (about 14 million US dollars), while income tax expenses for the same period last year were 1.3 billion yuan.

Net profit attributable to Baidu was 2.6 billion yuan (approximately US$366 million), with diluted earnings of 6.77 yuan (approximately $0.95) per share of American Depositary Shares (ADS). Baidu Core's net profit for the fourth quarter was 2.4 billion yuan (approximately US$344 million), with a net profit margin of 9%.

Net profit attributable to Baidu without US GAAP was 7.8 billion yuan (approximately US$1.09 billion), with diluted earnings of 21.86 yuan (approximately US$3.08) per share of American Depositary Shares (ADS). Baidu Core's net profit for the fourth quarter was 7.5 billion yuan (approximately US$1.06 billion), with a net profit margin of 27%.

Excluding US GAAP (non-GAAP), the adjusted EBITDA (profit before interest, tax, depreciation and amortization) was $9.1 billion (approximately US$1.28 billion), and the adjusted EBITDA margin was 26%. The adjusted EBITDA of “Baidu Core” was 8.1 billion yuan (about 1.14 billion US dollars), and the adjusted EBITDA profit margin was 30%.

As of December 31, 2023, the total value of cash, cash equivalents, restricted cash, and short-term investments held by Baidu was 205.4 billion yuan (approximately US$28.93 billion). If iQiyi is excluded, the total value of cash, cash equivalents, restricted cash, and short-term investments held by Baidu as of December 31, 2023 is 200 billion yuan (approximately US$28.17 billion).

Free cash flow was $7 billion (approximately US$980 million); excluding iQiyi, free cash flow was $6.3 billion (approximately US$894 million).

Results for the full year of 2023:

Total revenue was 134.6 billion yuan (approximately US$18.96 billion), up 9% from 2022.

Revenue from “Baidu Core” reached 103.5 billion yuan (approximately US$14.57 billion), an increase of 8% compared with 2022.

Internet marketing revenue was 75.1 billion yuan (approximately US$10.58 billion), an increase of 8% over 2022.

Non-marketing revenue was $28.4 billion (approximately US$3.99 billion), up 9% from 2022.

Revenue from iQiyi was 31.9 billion yuan (approximately US$4.49 billion), an increase of 10% over 2022.

The cost of revenue was 65 billion yuan (approximately US$9.16 billion), an increase of 2% over 2022.

Sales, general and administrative expenses were $23.5 billion (approximately US$3.31 billion), an increase of 15% over 2022.

R&D expenditure was 24.2 billion yuan (approximately US$3.41 billion), an increase of 4% over 2022.

Operating profit was $21.9 billion (approximately US$3.08 billion). The operating profit of “Baidu Core” was 18.8 billion yuan (about 2.65 billion yuan)