Baidu Stock Gains On Q1 Earnings Beat, Margin Expansion

Image Source: Baidu


Baidu Inc (BIDUreported first-quarter FY21 revenue growth of 25% year-on-year to $4.29 billion (RMB 28.1 billion), beating the analyst consensus of $4.22 billion.

Online marketing revenue rose 27% Y/Y to $2.48 billion (RMB 16.3 billion); Non-marketing revenue rose 70% Y/Y to $646 million (RMB 4.2 billion) driven by cloud and other services. Revenue from iQIYI rose 4% Y/Y to $1.22 billion (RMB 8 billion).

Non-GAAP operating income rose 204% Y/Y to $666 million (RMB4.4 billion). Non-GAAP net income rose 39% Y/Y to $656 million (RMB4.3 billion), with the adjusted EPS of $1.89, beating the analyst consensus of $1.66. Adjusted EBITDA rose 107% Y/Y to $901 million (RMB5.9 billion). The margin expanded 800 basis points to 21%.

Revenue from Baidu Core rose 34% Y/Y to $3.13 billion (RMB 20.5 billion). Non-GAAP Baidu Core operating income rose 51% Y/Y to $773 million (RMB 5.1 billion) with a margin of 25%. Non-GAAP Baidu Core net income rose 8% Y/Y to $743 million (RMB 4.9 billion).

Baidu Core Adjusted EBITDA rose 40% Y/Y to $990 million (RMB 6.5 billion), and the margin expanded 200 basis points to 32%. Baidu held $26.4 billion (RMB 172.9 billion) in cash and equivalents and generated $628 million in operating cash flow.

Guidance: Baidu sees a Q2 revenue outlook of $4.5 billion (RMB 29.7 billion) - $5 billion (RMB 32.5 billion) compared to the analyst consensus of $4.67 billion.

Price action: BIDU shares traded higher by 3.59% at $196 in the premarket session on the last check Tuesday.

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