Executive Summary

• Baidu reported 3Q17 revenues reached ¥23.5 billion, up 28.7% year over year and in line with the consensus estimate. Non-GAAP diluted earnings per ADS of ¥25.94, up 161.5% year over year, to beat the consensus of ¥13.48..
• The significant rise in earnings was primarily driven by the disposal of Baidu Deliveries, as well as revenue growth and improvement in the operating margin.
• Management expects the topline for 3Q17 to be in the range of ¥22.23–¥23.41 billion, representing a year-over-year increase of 22%–29%.