Executive Summary

• Baidu reported 3Q16 non-GAAP diluted EPS of US$49, ahead of the US$1.08 consensus estimate and up 6.9% year over year. Revenues were US$2.74 billion, down 0.7% year over year and in line with estimates.
• Baidu’s gross merchandise value totaled ¥19.4 billion (US$2.9 billion) for 3Q16, an increase of 49% year over year. Mobile search monthly active users (MAU) and mobile maps MAUs for the month of September 2016 were up 3% YoY and 7% year over year,
• Management guided for 4Q16 total revenues of ¥17.84–¥18.38 billion (US$2.68–US$2.76 billion), representing a 1.7–4.6% year-over-year decrease.