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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 provides search-based, feed-based, and other online marketing services. The iQiyi segment is an online entertainment service provider, which offers original, professionally produced and partner-generated content on its platform. The company was founded by Yanhong Li and Xu Yong on January 18, 2000 and is headquartered in Beijing, China.

Financial Highlights

Dec 2020 USD
Revenue15,512.94M15,512.94M
Gross Profit7,521.62M7,521.62M
Operating income2,077.58M2,077.58M
Income before tax3,670.98M3,670.98M
Net income3,243.00M3,243.00M
EBITDA2,982.22M2,982.22M
Diluted EPS9.419.41
Dividends Per Share00
Total Assets50,874.33M50,874.33M
Total liabilities21,539.64M21,539.64M
Total equity27,936.02M27,936.02M
Operating cash flow3,506.11M3,506.11M
Currency in USDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 10,619.21M 12,549.01M 15,456.67M 15,544.90M 15,512.94M
Gross Profit 5,252.28M 6,116.25M 7,636.83M 6,449.19M 7,521.62M
Operating income 1,512.60M 2,321.76M 2,346.98M 912.75M 2,077.58M
Income before tax 2,183.95M 3,158.52M 4,141.44M 132.27M 3,670.98M
Net income 1,666.93M 2,710.47M 4,147.34M 286.54M 3,243.00M
EBITDA 2,766.08M 4,052.98M 4,795.21M 3,676.92M 2,982.22M
Diluted EPS 4.79 7.75 11.79 0.80 9.41
Dividends Per Share 0 0 0 0 0
Total Assets 26,188.55M 38,656.01M 43,340.95M 43,257.10M 50,874.33M
Total liabilities 12,123.89M 18,635.74M 17,742.40M 18,447.67M 21,539.64M
Total equity 13,277.72M 17,712.83M 23,726.20M 23,486.36M 27,936.02M
Operating cash flow 3,384.43M 4,857.49M 5,435.53M 4,118.46M 3,506.11M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 10,619.21M 12,549.01M 15,456.67M 15,544.90M 15,512.94M
Gross Profit 5,252.28M 6,116.25M 7,636.83M 6,449.19M 7,521.62M
Operating income 1,512.60M 2,321.76M 2,346.98M 912.75M 2,077.58M
Income before tax 2,183.95M 3,158.52M 4,141.44M 132.27M 3,670.98M
Net income 1,666.93M 2,710.47M 4,147.34M 286.54M 3,243.00M
EBITDA 2,766.08M 4,052.98M 4,795.21M 3,676.92M 2,982.22M
Diluted EPS 4.79 7.75 11.79 0.80 9.41
Dividends Per Share 0 0 0 0 0
Total Assets 26,188.55M 38,656.01M 43,340.95M 43,257.10M 50,874.33M
Total liabilities 12,123.89M 18,635.74M 17,742.40M 18,447.67M 21,539.64M
Total equity 13,277.72M 17,712.83M 23,726.20M 23,486.36M 27,936.02M
Operating cash flow 3,384.43M 4,857.49M 5,435.53M 4,118.46M 3,506.11M

Valuation Measures

Dec 2020
PER22.77
ROA6.89%
ROE12.61%
Operating margin13.39%
Profit margin20.90%

Key executives

  • Chairman & Chief Executive Officer: Yan Hong Li
  • Chief Financial Officer: Cheng-Chun Yu
  • Chief Technology Officer: Hai Feng Wang
  • Executive Vice President: Dou Shen
  • Senior Vice President & General Counsel: Zhi Xiang Liang

Shareholders

  • PRIMECAP Management Co. (3.5%)
  • Renaissance Technologies LLC (3.2%)
  • BlackRock Fund Advisors (3.0%)
  • The Vanguard Group, Inc. (3.0%)
  • Artisan Partners LP (2.8%)
  • SSgA Funds Management, Inc. (2.2%)
  • Credit Suisse Securities (USA) LLC (Broker) (2.1%)
  • Morgan Stanley & Co. LLC (1.6%)
  • Baillie Gifford & Co. (1.4%)
  • Dodge & Cox (1.4%)

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 Kunlun Chips
  • Baidu.com Times Technology (Beijing) Co., Ltd.
  • Baidu Ventures (United States)
  • Baidu India Internet Pvt Ltd.
  • Baidu International Technology (Shenzhen) Co., Ltd
  • 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
  • Beijing Perusal Technology Co., Ltd.
  • Baidu Holdings Ltd.
  • 91 Wireless Websoft Ltd.
  • TrustGo Mobile, Inc.
  • Anquanbao Co. Ltd.
  • Baidu Japan, Inc.
  • Baidu (China) Co., Ltd.
  • PPStream.com Co., Ltd.
  • Hao123.com

Competitors

  • Alphabet Inc. Class A
  • Microsoft Corporation
  • Tencent Holdings Ltd.
  • Alibaba Group Holding Ltd.
  • Facebook, Inc. Class A
  • Xiaomi Corp. Class B
  • Sogou, Inc. Sponsored ADR
  • Sohu.com Limited Sponsored ADR
  • Phoenix New Media Ltd. Sponsored ADR Class A
  • Weibo Corp Sponsored ADR Class A
  • Cerence Inc.
  • Xunlei Ltd. ADR
  • BEC World Public Co., Ltd.
  • Business-Intelligence of Oriental Nations Corporation Ltd. Class A
  • Borqs Technologies, Inc.
  • Remark Holdings, Inc.
  • Dreamus Company
  • 21Vianet Group, Inc. Sponsored ADR Class A
  • 51job Inc Sponsored ADR
  • Airbnb, Inc. Class A Class A
  • Aurora Mobile Ltd. Sponsored ADR Class A
  • Booking Holdings Inc.
  • Cathay Media and Education Group Inc.
  • Digital Turbine, Inc.
  • eBay Inc.
  • Gaumont SA
  • iClick Interactive Asia Group Ltd. Sponsored ADR
  • Liberty TripAdvisor Holdings Inc Class A
  • Lyft, Inc. Class A
  • OneConnect Financial Technology Co Ltd Sponsored ADR
Last Updated on 10 May, 2021

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