6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2023

Commission File Number: 000-51469

BAIDU, INC.

Baidu Campus

No. 10 Shangdi 10th Street

Haidian District, Beijing 100085

The People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Exhibit 99.1 — Press Release

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BAIDU, INC.
By	:	/s/ Rong Luo
Name	:	Rong Luo
Title	:	Chief Financial Officer

Date: May 16, 2023

EX-99.1

Exhibit 99.1

Baidu Announces First Quarter 2023 Results

BEIJING, China, May 16, 2023 — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) (“Baidu” or the “Company”), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the first quarter ended March 31, 2023.

“In the first quarter of 2023, Baidu Core delivered a solid performance, with year-on-year revenue growth accelerating from previous quarters, supporting operating margin improvement through operating leverage,” said Robin Li, Co-founder and CEO of Baidu. “We believe the emergence of generative AI and large language model presents a transformative potential of AI in various industries, to help people and organizations to achieve more and to place a positive impact on society. In light of this trend, Baidu has introduced its ERNIE Bot in China, which we plan to steadily incorporate into all our businesses. This will empower our products and offerings, drawing in a larger user and customer base, while allowing us to establish a new ecosystem around the ERNIE Bot for the new era. It will also enable us to drive long-term, sustainable growth”.

“Non-GAAP operating margin of Baidu Core expanded to 23% in the quarter, up from 17% in the same period last year and 21% in the previous quarter, driven by our ability to leverage our operations effectively,” said Rong Luo, CFO of Baidu. “Generative AI represents a new paradigm shift in the AI, and Baidu is poised to take advantage of this massive market opportunity. Baidu will continue to invest unwaveringly in this area in the coming quarters.”

First Quarter 2023 Financial Highlights^1^

	Baidu, Inc.
(In millions except per	Q1 2022			Q4 2022			Q1 2023					YOY			QOQ
ADS, unaudited)	RMB			RMB			RMB			US
Total revenues		28,411			33,077			31,144					10	%		(6	%)
Operating income		2,601			4,593			4,980					91	%		8	%
Operating income (non-GAAP)^2^		3,996			6,497			6,428					61	%		(1	%)
Net (loss) income to Baidu		(885	)		4,953			5,825					—			18	%
Net income to Baidu (non-GAAP)^2^		3,879			5,371			5,727					48	%		7	%
Diluted (loss) earnings per ADS		(2.87	)		13.59			15.92					—			17	%
Diluted earnings per ADS (non-GAAP)^2^		11.22			15.25			16.10					43	%		6	%
Adjusted EBITDA^2^		5,499			8,231			8,145					48	%		(1	%)
Adjusted EBITDA margin		19	%		25	%		26	%		%

All values are in US Dollars.

1	Unless otherwise noted, RMB to USD was converted at an exchange rate of RMB6.8676 as of March 31, 2023, as set<br>forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.
2	Non-GAAP measures are defined in the<br>Non-GAAP Financial Measures section (see also “Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures” for more details).<br>
---	---

1

	Baidu Core
(In millions, unaudited)	Q1 2022			Q4 2022			Q1 2023					YOY			QOQ
	RMB			RMB			RMB			US
Total revenues		21,378			25,654			22,998					8	%		(10	%)
Operating income		2,524			3,782			4,091					62	%		8	%
Operating income (non-GAAP)^2^		3,686			5,491			5,363					45	%		(2	%)
Net (loss) income to Baidu Core		(963	)		4,773			5,513					—			16	%
Net income to Baidu Core (non-GAAP)^2^		3,804			4,915			5,268					38	%		7	%
Adjusted EBITDA^2^		5,106			7,146			7,003					37	%		(2	%)
Adjusted EBITDA margin		24	%		28	%		30	%		%

All values are in US Dollars.

Operational Highlights

Corporate

•	Baidu returned US$195 million to shareholders in Q1 2023.
•	Baidu released its annual ESG Report on May 12, 2023, which details Baidu’s latest ESG policies and<br>sustainability initiatives (https://esg.baidu.com/ESG/Baidu_2022_ESG_Report.pdf).
---	---

Intelligent Driving

•	Apollo Go, Baidu’s autonomous ride-hailing service, provided around 660K rides in the first quarter of 2023,<br>up 236% year over year and 18% quarter over quarter.
•	Apollo Go received Beijing’s first permits to operate ride-hailing services with no driver or safety<br>operator in the vehicles, on March 17, 2023.
---	---

Other Growth Initiatives

•	Xiaodu ranked No.1 in smart display shipments and smart speaker shipments in China for 2022, according to IDC and<br>Canalys.

Mobile Ecosystem

•	In March, Baidu App’s MAUs reached 657 million, up 4% year over year.
•	Managed Page accounted for 49% of Baidu Core’s online marketing revenue in the first quarter of 2023.<br>
---	---

2

iQIYI

•	iQIYI’s average daily number of total subscribing members for the quarter was 129 million, compared to<br>101 million for the first quarter of 2022 and 112 million for the fourth quarter of 2022.

First Quarter 2023 FinancialResults

Total revenues were RMB31.1 billion ($4.54 billion), increasing 10% year over year.

•	Revenue from Baidu Core was RMB23.0 billion ($3.35 billion), increasing 8% year over year; onlinemarketing revenue was RMB16.6 billion ($2.42 billion), up 6% year over year, and non-online marketing revenue was RMB6.4 billion ($928 million), up 11% year over year.<br>
•	Revenue from iQIYI was RMB8.3 billion ($1.22 billion), increasing 15% year over year.<br>
---	---

Cost of revenues was RMB15.2 billion ($2.21 billion), decreasing 3% year over year, primarily due to a decrease in content costs, bandwidth costs and cost of goods sold, partially offset by the increase of traffic acquisition costs.

Selling, general and administrativeexpenses were RMB5.6 billion ($814 million), increasing 20% year over year, primarily due to an increase in channel spending and promotional marketing expenses.

Research and development expense was RMB5.4 billion ($790 million), decreasing 3% year over year, primarily due to a decrease in personnel related expense.

Operating income was RMB5.0 billion ($725 million). Baidu Core operating income was RMB4.1 billion ($596 million), and Baidu Core operating margin was 18%. Non-GAAP operating income was RMB6.4 billion ($936 million). Non-GAAP Baidu Core operating income was RMB5.4 billion ($781 million), and non-GAAP Baidu Core operating margin was 23%.

Total other income, netwas RMB2.6 billion ($378 million), which mainly included a fair value gain of RMB1.5 billion from long-term investments. Total other loss, net was RMB3.0 billion for the same period last year, which mainly included a fair value loss of RMB3.0 billion from long- term investments. A significant portion of long-term investments, including but not limited to investments in equity securities of public and private companies, private equity funds, is subject to quarterly fair value adjustments, which may contribute to net income volatility in future periods.

Income tax expense was RMB1.2 billion ($174 million), increasing 205% year over year, primarily due to an increase in profit before tax.

3

Net income attributable to Baidu was RMB5.8 billion ($848 million), and diluted earnings per ADS was RMB15.92 ($2.32). Net income attributable to Baidu Core was RMB5.5 billion ($803 million), and net margin for Baidu Core was 24%. Non-GAAP net income attributable to Baidu was RMB5.7 billion ($834 million). Non-GAAP diluted earnings per ADS was RMB16.10 ($2.34). Non-GAAP net income attributable to Baidu Core was RMB5.3 billion ($767 million), and non-GAAP net margin for Baidu Core was 23%.

Adjusted EBITDA was RMB8.1 billion ($1.19 billion) and adjusted EBITDA margin was 26%. Adjusted EBITDA for Baidu Core was RMB7.0 billion ($1.02 billion) and adjusted EBITDA margin for Baidu Core was 30%.

As of March 31, 2023, cash, cash equivalents, restricted cash and short-term investments were RMB194.0 billion ($28.25 billion), and cash, cashequivalents, restricted cash and short- term investments excluding iQIYI were RMB188.8 billion ($27.49 billion). Free cash flow was RMB4.5 billion ($661 million), and free cash flow excluding iQIYI was RMB3.5 billion ($515 million).

Conference Call Information

Baidu’s management will hold an earnings conference call at 8 AM on May 16, 2023, U.S. Eastern Time (8 PM on May 16, 2023, Beijing Time).

Please register in advance of the conference call using the link provided below. It will automatically direct you to the registration page of “Baidu Inc Q1 2023 Earnings Conference Call”. Please follow the steps to enter your registration details, then click “Register”. Upon registering, you will then be provided with the dial-in number, the passcode, and your unique access PIN. This information will also be emailed to you as a calendar invite.

For pre-registration, please click

https://s1.c-conf.com/diamondpass/10030497-jz1rwg.html

In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), the passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.

Additionally, a live and archived webcast of this conference call will be available at https://ir.baidu.com.

About Baidu

Founded in 2000, Baidu’s mission is to make the complicated world simpler through technology. Baidu is a leading AI company with strong Internet foundation, trading on NASDAQ under “BIDU” and HKEX under “9888”. One Baidu ADS represents eight Class A ordinary shares.

Contacts

Investors Relations, Baidu, Inc.

Tel: +86-10-5992-8888

Email: [email protected]

4

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, Baidu’s and other parties’ 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 announcements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), 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 third parties. Statements that are not historical facts, including but not limited to 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: Baidu’s growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company’s revenues and certain cost or expense items as a percentage of its 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 and newsfeed 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 and elsewhere. Further information regarding these and other risks is included in the Company’s annual report on Form 20-F and other documents filed with the Securities and Exchange Commission, and announcements on the website of the Hong Kong Stock Exchange. 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 the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement Baidu’s consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. 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.

5

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding non-cash charges or non-operating in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its 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. The Company believes 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 certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. These non- GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. Baidu’s share of equity method investments for these non-GAAP reconciling items, amortization and impairment of intangible assets not on the investees’ books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization and impairment of intangible assets resulting from business combinations, and share- based compensation expenses.

For more information on non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measure.

6

Baidu, Inc.

Condensed Consolidated Statements of (Loss) Income

(In millions except for per share (or ADS) information, unaudited)

	Three Months Ended
	March 31,			December 31,			March 31,			March 31,
	2022			2022			2023			2023
	RMB			RMB			RMB			US(2)
Revenues:
Online marketing services		16,929			19,571			17,972
Others		11,482			13,506			13,172
Total revenues	****	28,411	****	****	33,077	****	****	31,144	****		****
Costs and expenses:
Cost of revenues^(1)^		15,546			16,945			15,152
Selling, general and administrative^(1)^		4,656			5,881			5,589
Research and development^(1)^		5,608			5,658			5,423
Total costs and expenses	****	25,810	****	****	28,484	****	****	26,164	****		****
Operating income	****	2,601	****	****	4,593	****	****	4,980	****		****
Other (loss) income:
Interest income		1,454			1,647			1,915
Interest expense		(710	)		(738	)		(804	)		)
Foreign exchange loss, net		(11	)		(338	)		(106	)		)
Share of losses from equity method investments		(408	)		(523	)		(48	)		)
Others, net		(3,286	)		1,733			1,638
Total other (loss) income, net	****	(2,961	)	****	1,781	****	****	2,595	****		****
(Loss) income before income taxes	****	(360	)	****	6,374	****	****	7,575	****		****
Income tax expense		391			1,254			1,193
Net (loss) income	****	(751	)	****	5,120	****	****	6,382	****		****
Net income attributable to noncontrolling interests		134			167			557
Net (loss) income attributable to Baidu	****	(885	)	****	4,953	****	****	5,825	****		****

All values are in US Dollars.

7

	Three Months Ended
	March 31,			December 31,		March 31,		March 31,
	2022			2022		2023		2023
	RMB			RMB		RMB		US(2)
(Loss) earnings per ADS (1 ADS representing 8 Class A ordinary shares):
— Basic		(2.87	)		13.73		16.17
— Diluted		(2.87	)		13.59		15.92
(Loss) earnings per share for Class A and Class B ordinary shares:
— Basic		(0.36	)		1.72		2.02
— Diluted		(0.36	)		1.70		1.99
Weighted average number of Class A and Class B ordinary shares outstanding (in<br>millions):
— Basic		2,767			2,789		2,798
— Diluted		2,767			2,801		2,837
(1)   Includes share-based compensation expenses as<br>follows:
Cost of revenues		82			158		98
Selling, general and administrative		377			450		463
Research and development		864			1,233		828
Total share-based compensation expenses		1,323			1,841		1,389

All values are in US Dollars.

(2)	All translations from RMB to U.S. dollars are made at a rate of RMB6.8676 to US$1.00, the exchange rate in<br>effect as of March 31, 2023 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

8

Baidu, Inc.

Condensed Consolidated Balance Sheets

(In millions, unaudited)

	December 31,2022		March 31,2023		March 31,2023
	RMB		RMB		US
ASSETS
Current assets:
Cash and cash equivalents		53,156		23,638
Restricted cash		11,330		11,252
Short-term investments, net		120,839		159,127
Accounts receivable, net		11,733		10,798
Amounts due from related parties		5,432		5,211
Other current assets, net^(1)^		10,360		19,179
Total current assets	****	212,850	****	229,205
Non-current assets:
Fixed assets, net		23,973		22,975
Licensed copyrights, net		6,841		6,701
Produced content, net		13,002		12,603
Intangible assets, net		1,254		1,183
Goodwill		22,477		22,589
Long-term investments, net		55,297		55,463
Long-term time deposits and<br>held-to-maturity investments		23,629		18,676
Amounts due from related parties		60		96
Deferred tax assets, net		2,129		2,091
Operating lease<br>right-of-use assets		10,365		10,183
Other non-current assets		19,096		19,214
Total non-current assets	****	178,123	****	171,774
Total assets	****	390,973	****	400,979

All values are in US Dollars.

9

	December 31,2022		March 31,2023		March 31,2023
	RMB		RMB		US
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Short-term loans		5,343		6,833
Accounts payable and accrued liabilities		38,014		34,043
Customer deposits and deferred revenue		13,116		13,913
Deferred income		72		142
Long-term loans, current portion		—		1
Convertible senior notes, current portion		8,305		8,265
Notes payable, current portion		6,904		6,865
Amounts due to related parties		5,067		5,211
Operating lease liabilities		2,809		2,797
Total current liabilities	****	79,630	****	78,070
Non-current liabilities:
Deferred income		159		116
Deferred revenue		331		375
Amounts due to related parties		99		94
Long-term loans		13,722		13,678
Notes payable		39,893		39,670
Convertible senior notes		9,568		11,668
Deferred tax liabilities		2,898		3,014
Operating lease liabilities		4,810		4,650
Other non-current liabilities		2,058		2,068
Total non-current liabilities	****	73,538	****	75,333
Total liabilities	****	153,168	****	153,403
Redeemable noncontrolling interests	****	8,393	****	8,709
Equity
Total Baidu shareholders’ equity		223,478		230,095
Noncontrolling interests		5,934		8,772
Total equity	****	229,412	****	238,867
Total liabilities, redeemable noncontrolling interests, and equity	****	390,973	****	400,979

All values are in US Dollars.

(1)	This includes payment of US$1,198 million to the paying agent to meet the iQIYI’s repurchase<br>obligation of the 2.00% Convertible Senior Notes due 2025. The repurchase was completed in April 2023.

10

Baidu, Inc.

Selected Information

(In millions, unaudited)

	Three months ended												Three months ended												Three months ended												Three months ended
	March 31, 2022 (RMB)												December 31, 2022 (RMB)												March 31, 2023 (RMB)												March 31, 2023 (US)
	Baidu						Elim &			Baidu,			Baidu						Elim &			Baidu,			Baidu						Elim &			Baidu,			Baidu				Elim &			Baidu,
	Core			iQIYI			adj^(2)^			Inc.			Core			iQIYI			adj^(2)^			Inc.			Core			iQIYI			adj(2)			Inc.			Core	iQIYI			adj^(2)^			Inc.
Total revenues	****	21,378	****	****	7,277	****		(244	)	****	28,411	****	****	25,654	****	****	7,593	****		(170	)	****	33,077	****	****	22,998	****	****	8,349	****		(203	)	****	31,144	****		****	1,216	****		(30	)	****	4,535
YOY																										8	%		15	%					10	%
QOQ																										(10	%)		10	%					(6	%)
Costs and expenses:
Cost of revenues ^(1)^		9,807			5,964			(225	)		15,546			11,712			5,405			(172	)		16,945			9,379			5,956			(183	)		15,152				867			(26	)		2,206
Selling, general and administrative ^(1)^		3,913			745			(2	)		4,656			4,969			939			(27	)		5,881			4,533			1,106			(50	)		5,589				161			(7	)		814
Research and development ^(1)^		5,134			474			—			5,608			5,191			467			—			5,658			4,995			428			—			5,423				62			—			790
Total costs and expenses	****	18,854	****	****	7,183	****		(227	)	****	25,810	****	****	21,872	****	****	6,811	****		(199	)	****	28,484	****	****	18,907	****	****	7,490	****		(233	)	****	26,164	****		****	1,090	****		(33	)	****	3,810
YOY
Cost of revenues																										(4	%)		(0	%)					(3	%)
Selling, general and administrative																										16	%		48	%					20	%
Research and development																										(3	%)		(10	%)					(3	%)
Cost and expenses																										0	%		4	%					1	%
Operating income (loss)	****	2,524	****	****	94	****		(17	)	****	2,601	****	****	3,782	****	****	782	****		29		****	4,593	****	****	4,091	****	****	859	****		30		****	4,980	****		****	126	****		3		****	725
YOY																										62	%		814	%					91	%
QOQ																										8	%		10	%					8	%
Operating margin		12	%		1	%					9	%		15	%		10	%					14	%		18	%		10	%					16	%
Add: total other (loss) income, net		(3,058	)		97			—			(2,961	)		2,271			(490	)		—			1,781			2,803			(208	)		—			2,595				(30	)		—			378
Less: income tax expense (benefit)		374			17			—			391			1,265			(11	)		—			1,254			1,168			25			—			1,193				4			—			174
Less: net income (loss) attributable to NCI		55			5			74	^(3)^		134			15			(1	)		153	^(3)^		167			213			8			336	^(3)^		557				1			49	^(3)^		81
Net (loss) income attributable to Baidu	****	(963	)	****	169	****	****	(91	)	****	(885	)	****	4,773	****	****	304	****	****	(124	)	****	4,953	****	****	5,513	****	****	618	****	****	(306	)	****	5,825	****		****	91	****	****	(46	)	****	848
YOY																										—			266	%					—
QOQ																										16	%		103	%					18	%
Net margin		(5	%)		2	%					(3	%)		19	%		4	%					15	%		24	%		7	%					19	%

All values are in US Dollars.

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	Three months ended										Three months ended										Three months ended										Three months ended
	March 31, 2022 (RMB)										December 31, 2022 (RMB)										March 31, 2023 (RMB)										March 31, 2023 (US)
	Baidu						Elim &	Baidu,			Baidu						Elim &	Baidu,			Baidu						Elim &	Baidu,			Baidu			Elim &	Baidu,
	Core			iQIYI			adj^(2)^	Inc.			Core			iQIYI			adj^(2)^	Inc.			Core			iQIYI			adj(2)	Inc.			Core	iQIYI		adj^(2)^	Inc.
Non-GAAP financial measures:
Operating income (non-GAAP)	****	3,686	****	****	327	****		****	3,996	****	****	5,491	****	****	977	****		****	6,497	****	****	5,363	****	****	1,035	****		****	6,428	****		****	152		****	936
YOY																						45	%		217	%			61	%
QOQ																						(2	%)		6	%			(1	%)
Operating margin (non-GAAP)		17	%		4	%			14	%		21	%		13	%			20	%		23	%		12	%			21	%
Net income attributable to Baidu(non-GAAP)	****	3,804	****	****	162	****		****	3,879	****	****	4,915	****	****	856	****		****	5,371	****	****	5,268	****	****	940	****		****	5,727	****		****	138		****	834
YOY																						38	%		480	%			48	%
QOQ																						7	%		10	%			7	%
Net margin (non-GAAP)		18	%		2	%			14	%		19	%		11	%			16	%		23	%		11	%			18	%
Adjusted EBITDA	****	5,106	****	****	410	****		****	5,499	****	****	7,146	****	****	1,056	****		****	8,231	****	****	7,003	****	****	1,112	****		****	8,145	****		****	163		****	1,186
YOY																						37	%		171	%			48	%
QOQ																						(2	%)		5	%			(1	%)
Adjusted EBITDA margin		24	%		6	%			19	%		28	%		14	%			25	%		30	%		13	%			26	%
(1)   Includes share-based compensation as follows:
Cost of revenues		45			37				82			122			36				158			65			33				98				5			14
Selling, general and administrative		257			120				377			355			95				450			377			86				463				13			68
Research and development		804			60				864			1,177			56				1,233			778			50				828				7			120
Total share-based compensation		1,106			217				1,323			1,654			187				1,841			1,220			169				1,389				25			202

All values are in US Dollars.

(2)	Relates to intersegment eliminations and adjustments
(3)	Relates to the net income/(loss) attributable to iQIYI noncontrolling interests
---	---

12

Baidu, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)

	Three months endedMarch 31, 2022 (RMB)									Three months endedDecember 31, 2022 (RMB)									Three months ended<br>March 31, 2023 (RMB)									Three months endedMarch 31, 2023 (US)
	Baiduexcl.iQIYI			iQIYI			Baidu,Inc.			Baidu<br><br><br>excl.<br> <br>iQIYI			iQIYI			Baidu,Inc.			Baiduexcl.<br><br><br>iQIYI			iQIYI			Baidu,Inc.			Baiduexcl.<br>iQIYI		iQIYI			Baidu,Inc.
Net cash provided by (used in) operating activities	****	3,039	****	****	(1,167	)	****	1,872	****	****	6,999	****	****	854	****	****	7,853	****	****	4,838	****	****	1,002	****	****	5,840	****		****	****	146	****	****	850	****
Net cash (used in) provided by investing activities		(2,884	)		(67	)		(2,951	)		(5,902	)		579			(5,323	)		(32,816	)		167			(32,649	)		)		24			(4,754	)
Net cash (used in) provided by financing activities		(644	)		2,046			1,402			(5,124	)		2,862			(2,262	)		1,055			(3,357	)		(2,302	)				(489	)		(335	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(183	)		(4	)		(187	)		(1,420	)		(9	)		(1,429	)		(96	)		(9	)		(105	)		)		(1	)		(15	)
Net (decrease) increase in cash, cash equivalents and restricted cash	****	(672	)	****	808	****	****	136	****	****	(5,447	)	****	4,286	****	****	(1,161	)	****	(27,019	)	****	(2,197	)	****	(29,216	)		)	****	(320	)	****	(4,254	)
Cash, cash equivalents and restricted cash
At beginning of period		44,596			3,075			47,671			62,821			3,576			66,397			57,374			7,862			65,236					1,145			9,499
At end of period		43,924			3,883			47,807			57,374			7,862			65,236			30,355			5,665			36,020					825			5,245
Net cash provided by (used in) operating activities	****	3,039	****	****	(1,167	)	****	1,872	****	****	6,999	****	****	854	****	****	7,853	****	****	4,838	****	****	1,002	****	****	5,840	****		****	****	146	****	****	850	****
Less: Capital expenditures		(1,928	)		(51	)		(1,979	)		(1,920	)		(9	)		(1,929	)		(1,295	)		—			(1,295	)		)		—			(189	)
Free cash flow	****	1,111	****	****	(1,218	)	****	(107	)	****	5,079	****	****	845	****	****	5,924	****	****	3,543	****	****	1,002	****	****	4,545	****		****	****	146	****	****	661	****

All values are in US Dollars.

Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI’s consolidated cash flows.

13

Baidu, Inc.

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures

(In millions except for per ADS information, unaudited)

	Three months ended<br>March 31, 2022 (RMB)									Three months endedDecember 31, 2022 (RMB)									Three months endedMarch 31, 2023 (RMB)									Three months endedMarch 31, 2023 (US)
	BaiduCore			iQIYI			Baidu,Inc.			BaiduCore			iQIYI			Baidu,Inc.			BaiduCore			iQIYI			Baidu,Inc.			BaiduCore		iQIYI		Baidu,Inc.
Operating income	****	2,524	****	****	94	****	****	2,601	****	****	3,782	****	****	782	****	****	4,593	****	****	4,091	****	****	859	****	****	4,980	****		****	****	126	****	725	****
Add: Share-based compensation expenses		1,106			217			1,323			1,654			187			1,841			1,220			169			1,389					25		202
Add: Amortization and impairment of intangible<br>assets^(1)^		56			16			72			55			8			63			52			7			59					1		9
Operating income (non-GAAP)	****	3,686	****	****	327	****	****	3,996	****	****	5,491	****	****	977	****	****	6,497	****	****	5,363	****	****	1,035	****	****	6,428	****		****	****	152	****	936	****
Add: Depreciation of fixed assets		1,420			83			1,503			1,655			79			1,734			1,640			77			1,717					11		250
Adjusted EBITDA	****	5,106	****	****	410	****	****	5,499	****	****	7,146	****	****	1,056	****	****	8,231	****	****	7,003	****	****	1,112	****	****	8,145	****		****	****	163	****	1,186	****
Net (loss) income attributable to Baidu	****	(963	)	****	169	****	****	(885	)	****	4,773	****	****	304	****	****	4,953	****	****	5,513	****	****	618	****	****	5,825	****		****	****	91	****	848	****
Add: Share-based compensation expenses		1,101			217			1,210			1,654			187			1,748			1,220			169			1,297					25		189
Add: Amortization and impairment of intangible<br>assets^(1)^		50			16			59			50			8			55			49			7			53					1		8
Add: Disposal (gain) loss		—			(430	)		(216	)		(484	)		62			(453	)		(217	)		—			(217	)		)		—		(32	)
Add: Impairment of long-term investments		598			183			690			318			271			453			31			119			85					17		12
Add: Fair value loss (gain) of long-term investments		3,037			(1	)		3,037			(1,662	)		8			(1,658	)		(1,312	)		10			(1,307	)		)		1		(190	)
Add: Reconciling items on equity method<br>investments^(2)^		456			11			462			377			18			386			(122	)		18			(114	)		)		3		(16	)
Add: Tax effects on non-GAAP adjustments^(3)^		(475	)		(3	)		(478	)		(111	)		(2	)		(113	)		106			(1	)		105					—		15
Net income attributable to Baidu(non-GAAP)	****	3,804	****	****	162	****	****	3,879	****	****	4,915	****	****	856	****	****	5,371	****	****	5,268	****	****	940	****	****	5,727	****		****	****	138	****	834	****

All values are in US Dollars.

14

	Three months endedMarch 31, 2022 (RMB)					Three months endedDecember 31, 2022 (RMB)				Three months endedMarch 31, 2023 (RMB)					Three months endedMarch 31, 2023 (US)
	BaiduCore	iQIYI	Baidu,Inc.			Baidu<br><br><br>Core	iQIYI	Baidu,Inc.		BaiduCore	iQIYI	Baidu,Inc.			BaiduCore	Baidu,Inc.
Diluted (loss) earnings per ADS			****	(2.87	)			****	13.59			****	15.92	****		****	2.32	****
Add: Accretion of the redeemable noncontrolling interests				0.31					0.46				0.46				0.07
Add: Non-GAAP adjustments to (loss) earnings per<br>ADS				13.78					1.20				(0.28	)			(0.05	)
Diluted earnings per ADS (non-GAAP)			****	11.22	****			****	15.25			****	16.10	****		****	2.34	****

All values are in US Dollars.

(1)	This represents amortization and impairment of intangible assets resulting from business combinations.<br>
(2)	This represents Baidu’s share of equity method investments for other<br>non-GAAP reconciling items, amortization and impairment of intangible assets not on the investee’s books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the<br>issuance of shares by the investees at a price higher or lower than the carrying value per shares.
---	---
(3)	This represents tax impact of all non-GAAP adjustments.<br>
---	---

15