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Technology Services

Baidu, Inc.

Company Background

Baidu is the largest Internet search engine in China. The company's strength lies in its domestic market share, controlling 70% of Chinese online searches. The company is one of China's three biggest Internet companies, together with Alibaba Group and Tencent, collectively known as BAT. These three lead the Chinese information and technology industry.

 

Robin Li, who studied in the U.S. and worked at search engine company Infoseek, established Baidu after returning to China. Li is CEO. The company is largely dependent on his insight and ability for launching new businesses and expanding overseas.

 

Baidu has been actively diversifying its areas of business by entering speech translation, artificial intelligence and autonomous driving systems for cars. The expansion comes as domestic competition heats up, due in part, to Alibaba Group, which launched its own mobile app search engine.

 

Baidu is also trying to diversify its revenue by actively acquiring operations at home and abroad, including Japanese and American startups.

 

Li is Baidu's leading shareholder owning some 20% of the company's shares. Baidu is a private enterprise but is known to have close ties with the Chinese government. The company is taking a cooperative stance toward government restrictions on freedom of speech.

 

Also, Li is a member of the Chinese People's Political Consultative Conference, a political advisory body in China.

 

It was discovered at the end of 2013 that its free Japanese-language input software had been sending data to Baidu without the consent of its users.

 

Business Summary

Baidu, Inc. engages in the provision of internet search and online marketing solutions. The firm's products and services include Baidu App, Baidu Search, Baidu Feed, Haokan, Quanmin, Baidu Post Bar, Baidu Knows, Baidu Encyclopedia, Baidu Input Method Editor or Baidu IME and Overseas Products. It operates through the following segments: Baidu Core and iQIYI. The Baidu Core segment offers keyword-based marketing services. The iQiyi segment provides online advertising services. The company was founded by Yanhong Li and Xu Yong on January 18, 2000 and is headquartered in Beijing, China.

Financial Highlights

Dec 2019 USD
Revenue15,544.90M15,544.90M
Gross Profit6,449.19M6,449.19M
Operating income912.75M912.75M
Income before tax132.27M132.27M
Net income286.54M286.54M
EBITDA3,676.92M3,676.92M
Diluted EPS0.800.80
Dividends Per Share00
Total Assets43,257.10M43,257.10M
Total liabilities18,447.67M18,447.67M
Total equity23,486.36M23,486.36M
Operating cash flow4,118.46M4,118.46M
Currency in USDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 10,561.72M 10,619.21M 12,549.01M 15,456.67M 15,544.90M
Gross Profit 6,141.02M 5,252.28M 6,116.25M 7,636.83M 6,449.19M
Operating income 1,857.01M 1,512.60M 2,321.76M 2,346.98M 912.75M
Income before tax 6,031.16M 2,183.95M 3,158.52M 4,141.44M 132.27M
Net income 5,303.79M 1,666.93M 2,710.47M 4,147.34M 286.54M
EBITDA 2,789.51M 2,766.08M 4,052.98M 4,795.21M 3,676.92M
Diluted EPS 15.13 4.79 7.75 11.79 0.80
Dividends Per Share 0 0 0 0 0
Total Assets 22,769.08M 26,188.55M 38,656.01M 43,340.95M 43,257.10M
Total liabilities 9,800.04M 12,123.89M 18,635.74M 17,742.40M 18,447.67M
Total equity 12,359.19M 13,277.72M 17,712.83M 23,726.20M 23,486.36M
Operating cash flow 3,338.97M 3,384.43M 4,857.49M 5,435.53M 4,118.46M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 10,561.72M 10,619.21M 12,549.01M 15,456.67M 15,544.90M
Gross Profit 6,141.02M 5,252.28M 6,116.25M 7,636.83M 6,449.19M
Operating income 1,857.01M 1,512.60M 2,321.76M 2,346.98M 912.75M
Income before tax 6,031.16M 2,183.95M 3,158.52M 4,141.44M 132.27M
Net income 5,303.79M 1,666.93M 2,710.47M 4,147.34M 286.54M
EBITDA 2,789.51M 2,766.08M 4,052.98M 4,795.21M 3,676.92M
Diluted EPS 15.13 4.79 7.75 11.79 0.80
Dividends Per Share 0 0 0 0 0
Total Assets 22,769.08M 26,188.55M 38,656.01M 43,340.95M 43,257.10M
Total liabilities 9,800.04M 12,123.89M 18,635.74M 17,742.40M 18,447.67M
Total equity 12,359.19M 13,277.72M 17,712.83M 23,726.20M 23,486.36M
Operating cash flow 3,338.97M 3,384.43M 4,857.49M 5,435.53M 4,118.46M

Valuation Measures

Dec 2019
PER153.65
ROA0.66%
ROE1.21%
Operating margin5.87%
Profit margin1.84%

Key executives

  • Chairman & Chief Executive Officer: Yan Hong Li
  • Chief Financial Officer: Herman Yu
  • Chief Technology Officer: Hai Feng Wang
  • Senior Vice President: Lee Liu
  • Senior Vice President: Dou Shen

Shareholders

  • The Vanguard Group, Inc. (3.4%)
  • BlackRock Fund Advisors (3.1%)
  • Harding Loevner LP (3.1%)
  • Artisan Partners LP (2.7%)
  • PRIMECAP Management Co. (2.6%)
  • Causeway Capital Management LLC (2.4%)
  • Dodge & Cox (2.3%)
  • SSgA Funds Management, Inc. (2.3%)
  • Renaissance Technologies LLC (2.0%)
  • Baillie Gifford & Co. (1.9%)

Contact Details

  • Website:http://www.baidu.com
  • Address: Baidu Campus, No. 10 Shangdi, 10th Street, Beijing, 100085, China
  • Phone: +86.10.5992.8888

Related Companies

  • Baidu Ventures (United States)
  • Baidu Inc /Financial Services Business/
  • iQIYI, Inc.
  • Baidu USA LLC
  • Baidu Ventures
  • xPerception Technology, Inc.
  • Baidu Times Netmedia Technology (Beijing) Co. Ltd.
  • Baidu Games
  • Baidu Capital Co. Ltd.
  • Hummingbird Computation LLC
  • Beijing Raven Tech, Inc.
  • Baidu Music
  • Baidu Online Network Technology (Beijing) Co. Ltd.
  • PhotoWonder KK
  • Baidu Holdings Ltd.
  • 91 Wireless Websoft Ltd.
  • TrustGo Mobile, Inc.
  • Anquanbao Co. Ltd.
  • Baidu Japan, Inc.
  • PPStream.com Co., Ltd.
  • Hao123.com

Competitors

  • Alphabet Inc. Class A
  • Sohu.com Limited Sponsored ADR
  • Microsoft Corporation
  • Tencent Holdings Ltd.
  • Alibaba Group Holding Ltd.
  • Facebook, Inc. Class A
  • Xiaomi Corp. Class B
  • 360 Security Technology, Inc. Class A
  • Sogou, Inc. Sponsored ADR
  • Mail.ru Group Ltd. Sponsored GDR
  • SINA Corp.
  • Remark Holdings, Inc.
  • NetEase, Inc
  • Phoenix New Media Ltd. Sponsored ADR Class A
  • Cerence Inc
  • Weibo Corp Sponsored ADR Class A
  • Digital Turbine, Inc.
  • iflytek Co., Ltd. Class A
  • 58.com Inc. Sponsored ADR Class A
  • Xunlei Ltd. ADR
  • BEC World Public Co., Ltd.
  • Business-Intelligence of Oriental Nations Corporation Ltd. Class A
  • Borqs Technologies, Inc.
  • Reply S.p.A.
  • 21Vianet Group, Inc. Sponsored ADR Class A
  • 51job Inc Sponsored ADR
  • Anhui Xinhua Media Co., Ltd Class A
  • Aurora Mobile Ltd. Sponsored ADR Class A
  • Babylon Ltd
  • Booking Holdings Inc.
Last Updated on 2 Jul, 2020

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