BIDU(HK:09888)2023-05-16 09:23Financial Performance - Baidu's total revenue for Q1 2023 was RMB 31,144 million, a 10% increase year-over-year but a 6% decrease quarter-over-quarter[3]. - The operating profit for Q1 2023 was RMB 4,980 million, representing a 91% increase year-over-year and an 8% increase quarter-over-quarter[3]. - Baidu's adjusted EBITDA for Q1 2023 was RMB 8,145 million, with an adjusted EBITDA margin of 26%[3]. - The net profit attributable to Baidu (non-GAAP) for Q1 2023 was RMB 5,727 million, a 48% increase year-over-year and a 7% increase quarter-over-quarter[3]. - Total revenue for Q1 2023 was RMB 31.1 billion (USD 4.54 billion), representing a year-over-year growth of 10%[6]. - Baidu's core revenue was RMB 23.0 billion (USD 3.35 billion), an 8% increase year-over-year; online marketing revenue was RMB 16.6 billion (USD 2.42 billion), up 6% year-over-year[6]. - Operating profit was RMB 5.0 billion (USD 725 million), with Baidu's core operating profit at RMB 4.1 billion (USD 596 million) and a core operating profit margin of 18%[6]. - Net profit attributable to Baidu was RMB 5.8 billion (USD 848 million), with diluted earnings per ADS at RMB 15.92 (USD 2.32)[7]. - Adjusted EBITDA was RMB 8.1 billion (USD 1.19 billion), with an adjusted EBITDA margin of 26%[7]. - Total revenue for Baidu Group was RMB 28,411 million for the quarter ending March 31, 2023, representing a 10% decrease year-over-year and a 6% decrease quarter-over-quarter[17]. - Operating profit for Baidu Group was RMB 2,601 million for the quarter, with an operating margin of 9%[17]. - Net profit attributable to Baidu was a loss of RMB 885 million for the quarter, compared to a profit of RMB 4,773 million in the same quarter last year[17]. User Engagement and Growth - Monthly active users of the Baidu app reached 657 million in March 2023, a 4% year-over-year increase[5]. - The number of autonomous driving orders from Baidu's service, Apollo Go, reached approximately 660,000 in Q1 2023, marking a 236% year-over-year increase and an 18% quarter-over-quarter increase[5]. - The company reported a significant increase in user engagement, with a 15% year-over-year growth in daily active users on its platform[21]. Research and Development - Research and development expenses for the quarter were RMB 828 million, a decrease from RMB 1,233 million in the previous year[14]. - Research and development expenses for Q1 2023 were RMB 1,177 million, up from RMB 864 million in Q1 2022[18]. - The company is focusing on research and development of new products, particularly in autonomous driving and smart cloud solutions[21]. Cash Flow and Assets - As of March 31, 2023, cash, cash equivalents, restricted cash, and short-term investments totaled RMB 194.0 billion (USD 28.25 billion)[7]. - Free cash flow was RMB 4.5 billion (USD 661 million), excluding iQIYI, free cash flow was RMB 3.5 billion (USD 515 million)[7]. - Cash and cash equivalents decreased to RMB 23,638 million as of March 31, 2023, down from RMB 53,156 million at the end of 2022[15]. - Total assets increased to RMB 400,979 million as of March 31, 2023, compared to RMB 390,973 million at the end of 2022[15]. - Cash and cash equivalents were reported at RMB 39,670 million, indicating a significant liquidity position[16]. - Baidu's net cash and cash equivalents at the end of Q1 2023 were RMB 36,020 million, down from RMB 57,374 million at the end of Q4 2022[20]. Strategic Initiatives - Baidu plans to integrate its generative AI model, Wenxin Yiyan, into all its business lines to enhance products and services[2]. - Baidu plans to expand its market presence by investing in new AI technologies and enhancing its cloud services[21]. - The company provided a positive outlook for the next quarter, expecting continued revenue growth driven by increased advertising and cloud service demand[21]. - Baidu's strategic initiatives include potential mergers and acquisitions to bolster its technology portfolio and market share[21]. Shareholder Actions - Baidu repurchased shares worth USD 195 million in Q1 2023[4]. - The company completed a repurchase obligation of USD 1,198 million for its 2.00% convertible preferred shares due in 2025 in April 2023[16].