BIDU(HK:09888)2024-02-28 09:01Financial Performance - Total revenue for Q4 2023 was RMB 34,951 million, representing a 6% year-over-year increase[3] - Operating profit for Q4 2023 was RMB 5,392 million, a decrease of 17% compared to Q4 2022[3] - Net profit attributable to Baidu for Q4 2023 was RMB 2,599 million, down 48% year-over-year[3] - Baidu's core business revenue for Q4 2023 was RMB 27,488 million, an increase of 7% year-over-year[4] - Total revenue for the fiscal year 2023 was RMB 134.6 billion ($18.96 billion), a year-over-year increase of 9%[9] - Net profit attributable to Baidu was RMB 20.3 billion in 2023, a significant increase of 169% compared to the previous year[22] - Baidu's operating profit (non-GAAP) for the year ended December 31, 2022, was RMB 20,948 million, representing an 18% year-over-year increase to RMB 23,186 million for the year ended December 31, 2023[23] - The net profit attributable to Baidu (non-GAAP) increased by 38% year-over-year from RMB 19,935 million to RMB 27,418 million for the same periods[23] User Engagement - Monthly active users of Baidu APP reached 667 million in December 2023, a 3% increase year-over-year[6] - Baidu reported a significant increase in user engagement, with daily active users reaching 600 million, representing a 10% year-over-year growth[12] - The company reported a significant increase in user engagement metrics, with a 10% growth in active users year-over-year[21] Research and Development - R&D expenses increased by 11% year-over-year to RMB 6.3 billion ($886 million), primarily due to depreciation costs related to generative AI[7] - Research and development expenses for Q3 2023 were RMB 6,101 million, up from RMB 5,658 million in Q3 2022, reflecting a focus on innovation[16] - Research and development expenses totaled RMB 24.2 billion, representing a 4% increase year-over-year[22] - Baidu plans to invest $500 million in research and development for new AI technologies over the next fiscal year, aiming to enhance its product offerings[12] - The company is focusing on the development of new technologies, particularly in AI and autonomous driving, to drive future growth and innovation[29] Profitability Metrics - The adjusted EBITDA for Q4 2023 was RMB 9,057 million, a 10% increase year-over-year[3] - Adjusted EBITDA for Q4 2023 was RMB 9.1 billion ($1.28 billion), with an adjusted EBITDA margin of 26%[8] - The adjusted EBITDA margin, including stock-based compensation, was 28% in 2023[22] - Baidu's operating profit margin improved to 25%, up from 20% in the same quarter last year, indicating enhanced operational efficiency[14] - Baidu's operating profit margin improved to 16% in 2023, up from 13% in 2022[22] - Baidu's operating profit margin (non-GAAP) improved to 24% for the year ended December 31, 2023, compared to 22% in the previous year[23] Strategic Initiatives - Baidu plans to expand its market presence through strategic acquisitions and new product launches in the upcoming fiscal year[21] - Baidu is expanding its market presence in Southeast Asia, targeting a 20% increase in user acquisition in the region by the end of the fiscal year[12] - The company has initiated a strategic partnership with a leading cloud service provider, aiming to enhance its cloud computing capabilities and market reach[12] - Baidu plans to expand its market presence through strategic partnerships and potential acquisitions in the AI and cloud computing sectors to enhance its competitive edge[29] Cash Flow and Assets - Free cash flow for the fiscal year was RMB 25.4 billion ($3.58 billion), excluding iQIYI it was RMB 22.1 billion ($3.11 billion)[10] - Cash and cash equivalents decreased to RMB 25,231 million as of December 31, 2023, down from RMB 53,156 million as of December 31, 2022[18] - Total assets increased to RMB 406,759 million as of December 31, 2023, compared to RMB 390,973 million as of December 31, 2022[18] - The company's cash and cash equivalents at the end of December 31, 2023, were RMB 32,293 million, a decrease from RMB 57,374 million at the end of December 31, 2022[25] Future Guidance - The company anticipates a revenue growth of 12% to 15% for the next quarter, projecting total revenue between $4.8 billion and $4.9 billion[12] - Baidu's guidance for the next fiscal year indicates continued revenue growth, with expectations of reaching RMB 35,000 million in operating profit[29]