Baidu's Q3 Results: Revenue Dips Amid Advertising Slump, AI Initiatives Show Promise

Baidu Revenue Falls Again as Advertising Demand Remains Weak -- Update

Chinese search-engine giant Baidu reported lower revenue for the second straight quarter as advertising demand continued to be weak amid an economy struggling to regain momentum. The Beijing-based internet company said Thursday that third-quarter revenue fell 2.6% from a year earlier to 33.56 billion yuan, equivalent to $4.63 billion, roughly in line with analysts' estimates of 33.88 billion yuan. Net profit rose 14% to 7.63 billion yuan, exceeding the 5.02 billion yuan expected by analysts in a FactSet poll. Once considered one of China's important technology titans alongside Alibaba and Tencent, Baidu has been facing pressure on both the profit and revenue lines. China's biggest search-engine operator has been seeking new growth engines in fields such as artificial intelligence, cloud computing and self-driving technology. It unveiled a number of new AI applications earlier this month, including a text-to-image generation technology. Its Ernie Bot is one of China's most popular ChatGPT-style chatbots. "Baidu Core's flattish third quarter top line reflected the ongoing weakness in our online marketing business, offset by the growth of our AI Cloud business. Our strong AI capabilities are gaining broader market recognition, as evidenced by increasing adoption of ERNIE," said Robin Li, the company's co-founder and chief executive. Sales from online-marketing services, which make up more than half of overall revenue, fell 5.8%. Revenue from the company's iQIYI video-streaming service dropped about 10%. Adjusted net profit, which excludes the effects of share-based compensation expenses, fair-value changes in long-term investments, and disposal gains and losses, among other things, declined 19% to 5.89 billion yuan. Analysts had expected 6.27 billion yuan, according to FactSet. Alibaba last week reported a roughly 5% increase in revenue for the September quarter, below market expectations. Tencent also posted single-digit quarterly revenue growth, with net profit jumping 47%. Baidu's American depositary receipts were recently 2.65% lower in premarket trading after the results.

Baidu Profit Rises but Revenue Falls as Advertising Demand Remains Weak

Chinese search-engine giant Baidu reported a rise in quarterly profit but lower revenue as advertising demand continued to be weak. The Beijing-based internet company said Thursday that net profit for the third quarter rose 14% from a year earlier to 7.63 billion yuan, equivalent to $1.05 billion. That was better than the 5.02 billion yuan expected by analysts in a FactSet poll. Revenue fell 2.6% to 33.56 billion yuan, roughly in line with analysts' estimates of 33.88 billion yuan. Once considered one of China's important technology titans alongside Alibaba and Tencent, Baidu has been facing pressure on both the profit and revenue lines. China's biggest search-engine operator has been seeking new growth engines in fields such as artificial intelligence, cloud computing and self-driving technology. It unveiled a number of new AI applications earlier this month, including a text-to-image generation technology. Its Ernie Bot is one of China's most popular ChatGPT-style chatbots. "Baidu Core's flattish third quarter top line reflected the ongoing weakness in our online marketing business, offset by the growth of our AI Cloud business. Our strong AI capabilities are gaining broader market recognition, as evidenced by increasing adoption of ERNIE," said Robin Li, the company's co-founder and chief executive. Sales from online-marketing services, which make up more than half of overall revenue, fell 5.8%. Revenue from the company's iQIYI video-streaming service fell about 10%. Adjusted net profit, which excludes the effects of share-based compensation expenses, fair-value changes in long-term investments, and disposal gains and losses, among other things, fell 19% to 5.89 billion yuan. Analysts had expected 6.27 billion yuan, according to FactSet.

Baidu posts 3% drop in third-quarter revenues, beating market expectations

BEIJING -- Chinese tech giant Baidu on Thursday posted a 3% annual drop in third-quarter revenue, nevertheless beating market expectations amid AI cloud growth. The revenue print came in at $4.78 billion for the quarter ending on Sept. 30. Net income for the period rose by 14% to $1.09 billion. Baidu noted a 12% surge in its non-online marketing revenue to the equivalent of $1.1 billion, mainly driven by its artificial intelligence cloud business. Here's what analysts expected the company to report for the quarter, according to LSEG estimates: Beijing-based Baidu operates one of the major web browser search engines in China, along with a frequently used maps app. The company also sells cloud computing services. Online marketing drives a significant portion of the firm's revenue. In artificial intelligence, Baidu has promoted its Ernie chatbot as a local alternative to OpenAI's ChatGPT, which isn't available in China. Ernie bot now has 430 million users, Baidu said last week. The company this month also announced that its Xiaodu AI Glasses will begin sales in the first half of next year. The wearable has at least one camera and uses Ernie's AI capabilities and Baidu's maps and search functions. While Baidu hasn't revealed a price, the product is widely expected to be a Chinese alternative to Meta's popular Ray-Ban smart glasses. Baidu announced a management rotation last month, with Junjie He, formerly head of the mobile ecosystem group, becoming the company's interim Chief Financial Officer, while former CFO Rong Luo assumed leadership of the mobile division.

Baidu reports 3% third-quarter revenue decline, stock slides By Investing.com

Investing.com -- Baidu's US-listed shares fell around 3% in premarket trading Thursday after the Chinese internet giant reported a 3% decline in third-quarter revenue, though the figure surpassed analyst expectations. The company posted revenue of 33.56 billion yuan ($4.64 billion) for the quarter ending September 30, slightly ahead of the 33.43 billion yuan forecasted by analysts polled by LSEG. Net income rose sharply, climbing 14% to 7.63 billion yuan, significantly exceeding the consensus estimate of 4.67 billion yuan. Baidu (NASDAQ:BIDU) highlighted a 12% increase in its non-online marketing revenue, which reached $1.1 billion. This growth was primarily fueled by the expansion of its AI-driven cloud computing business. Baidu is known for its dominance in China's internet search engine market and its widely used mapping application. It also provides cloud computing services, with online marketing contributing a major share of its overall revenue. In the AI space, Baidu has positioned its Ernie chatbot as a homegrown rival to OpenAI's ChatGPT, which remains inaccessible in China. The company recently revealed that Ernie bot now boasts 430 million users. "Baidu Core's flattish third quarter top line reflected the ongoing weakness in our online marketing business, offset by the growth of our AI Cloud business," said Robin Li, Co-founder and CEO of Baidu in the earnings press release. "Despite the near-term pressures, we remain steadfast in our AI-focused strategy and are confident in our long-term trajectory. As we further scale AI, we are emboldened to find how it can drive innovations and create value for consumers, enterprises and society at large." This month, Baidu announced plans to launch its Xiaodu AI Glasses in the first half of next year. The smart glasses will feature at least one camera, leverage Ernie's AI technology, and integrate Baidu's search and mapping functions. Although pricing details have not yet been disclosed, the product is anticipated to be a local alternative to Meta (NASDAQ:META)'s popular Ray-Ban smart glasses.

Baidu's Q3 Earnings: Revenue Slides, Weak Online Ads Market Impact Margins - Baidu (NASDAQ:BIDU)

On Thursday, Baidu, Inc (NASDAQ: BIDU) reported fiscal third-quarter revenue of $4.78 billion, down 3% year-on-year, topping the analyst consensus estimate of $4.69 billion. Baidu's adjusted earnings per ADS of $2.37 beat the analyst consensus estimate of $2.35. The stock price slid after the print. Also Read: Qualcomm Targets $900 Billion Market by 2030: Big Bets on IoT and Automotive Segments: Baidu's Core revenue remained flat year over year at $3.78 billion; Online marketing revenue declined by 4% year over year to $2.68 billion. Non-online marketing revenue grew 12% year over year to $1.10 billion, driven by the AI Cloud business. Revenue from IQIYI, Inc (NASDAQ: IQ) decreased 10% year over year to $1.03 billion, beating the analyst consensus estimate of $1.02 billion. Baidu's SG&A expenses were $836 million, up by 2% year over year, primarily due to an increase in channel spending and promotional marketing expenses. R&D expenses declined 12% year over year to $765 million, primarily due to a decrease in personnel-related expenses. Baidu's adjusted EBITDA margin declined 200 bps to 26%, and its Core adjusted EBITDA margin decreased by 100 bps to 31%. As of September 30, 2024, Baidu had $20.59 billion in cash and equivalents and generated $376 million in free cash flow. Co-founder and CEO Robin Li said Baidu Core's flat third-quarter revenue reflected ongoing weakness in the online marketing business, balanced by growth in the AI Cloud segment. Strong AI capabilities gained broader market recognition, with ERNIE seeing increased adoption. Apollo Go maintained its leadership in the global autonomous ride-hailing market, achieving a milestone as the sixth-generation autonomous vehicle began operating on public roads in multiple Chinese cities. Despite near-term challenges, Baidu remains committed to its AI-focused strategy, aiming to scale AI and drive innovation for consumers, enterprises, and society. Interim CFO Junjie He said Baidu's strict cost control measures supported stable operating margins for Baidu Core in the third quarter, with further cost optimizations across business units. AI Cloud sustained healthy growth, and Apollo Go's operational progress reinforced confidence in the fully autonomous ride-hailing business model. Baidu stock plunged 25% year-to-date as it grappled with a weak economy, U..S. semiconductor sanctions on China. Price Action: At the last check on Thursday, BIDU stock traded lower by 2.25% at $84.80 in the premarket session. Also Read: STMicroelectronics Targets $20 Billion Revenue By 2030, Unveils 2027 Goals Image via Shutterstock Market News and Data brought to you by Benzinga APIs