Baidu, Inc.

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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
Revenue	15,544.90M	15,544.90M
Gross Profit	6,449.19M	6,449.19M
Operating income	912.75M	912.75M
Income before tax	132.27M	132.27M
Net income	286.54M	286.54M
EBITDA	3,676.92M	3,676.92M
Diluted EPS	0.80	0.80
Dividends Per Share	0	0
Total Assets	43,257.10M	43,257.10M
Total liabilities	18,447.67M	18,447.67M
Total equity	23,486.36M	23,486.36M
Operating cash flow	4,118.46M	4,118.46M
	Currency in USD	Currency in USD

Historical Data

USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 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 2015	Dec 2016	Dec 2017	Dec 2018	Dec 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
PER	153.65
ROA	0.66%
ROE	1.21%
Operating margin	5.87%
Profit margin	1.84%

Key executives

Chairman & Chief Executive Officer: Yan Hong Li
Chief Financial Officer: Herman Yu
Chief Technology Officer: Hai Feng Wang
Senior Vice President & General Counsel: Zhi Xiang Liang
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

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Competitors

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BEC World Public Co., Ltd.
Business-Intelligence of Oriental Nations Corporation Ltd. Class A
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21Vianet Group, Inc. Sponsored ADR Class A
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Babylon Ltd
Booking Holdings Inc.
Cathay Media and Education Group Inc.

Last Updated on 9 Jul, 2020