Baidu (BIDU) Gross Margin %

: 50.16% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Baidu's Gross Profit for the three months ended in Dec. 2023 was $2,456 Mil. Baidu's Revenue for the three months ended in Dec. 2023 was $4,895 Mil. Therefore, Baidu's Gross Margin % for the quarter that ended in Dec. 2023 was 50.16%.

The historical rank and industry rank for Baidu's Gross Margin % or its related term are showing as below:

BIDU' s Gross Margin % Range Over the Past 10 Years
Min: 41.49 Med: 49.32 Max: 61.5
Current: 51.68

During the past 13 years, the highest Gross Margin % of Baidu was 61.50%. The lowest was 41.49%. And the median was 49.32%.

BIDU's Gross Margin % is ranked worse than
60.12% of 519 companies
in the Interactive Media industry
Industry Median: 60.86 vs BIDU: 51.68

Baidu had a gross margin of 50.16% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Baidu was 2.00% per year.

Baidu Gross Margin % Historical Data

The historical data trend for Baidu's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Baidu Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

41.49

48.49

48.34

48.30

51.69

Baidu Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																48.77	51.35	52.53	52.70	50.16

Competitive Comparison

For the Internet Content & Information subindustry, Baidu's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Baidu Gross Margin % Distribution

For the Interactive Media industry and Communication Services sector, Baidu's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Baidu's Gross Margin % falls into.

Baidu Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Baidu's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	9743	/	18850.732
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(18850.732 - 9107.728)	/	18850.732
	=	51.69 %

Baidu's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2455.5	/	4894.961
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4894.961 - 2439.428)	/	4894.961
	=	50.16 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Baidu (NAS:BIDU) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Baidu had a gross margin of 50.16% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Baidu Gross Margin % Related Terms

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Baidu (BIDU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Baidu Inc (NAS:BIDU) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

BAIDF:USA BIDU80:Thailand BIDU:Peru BIDUN:Mexico 09888:Hong Kong 0HL1:UK B1CB:Germany B1CB:Germany B1CB:Germany B1C:Germany B1C:Germany B1C:Germany BIDU34:Brazil BIDU:Austria BIDU:Argentina

Address

No. 10 Shangdi 10th Street, Baidu Campus, Haidian District, Beijing, CHN, 100085

Website

https://ir.baidu.com

Baidu is the largest internet search engine in China with 84% share of the search engine market in September 2021 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2022. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.