- Revenue in the quarter ending on September 30 saw a 6% year-over-year increase to 34.45 billion yuan ($4.72 billion), slightly surpassing analysts’ expectations.
- This growth follows a 15% revenue increase from the previous quarter compared to the same period last year, with significant growth in both online and offline marketing revenue.
- Baidu’s CEO and co-founder, Robin Li, described the third-quarter financial results as robust, showcasing resilience in a challenging economic environment.
Despite a slower growth rate compared to the previous quarter, the Chinese tech giant Baidu reported third-quarter earnings that outperformed projections.
At 5:00 a.m. ET, the company’s U.S.-listed shares rose by approximately 2% in pre-market trading. Year-to-date, the stock has experienced a nearly 3% decline.
In the quarter ending on September 30, revenue grew by 6% year over year to 34.45 billion yuan ($4.72 billion). This figure slightly exceeded the projected 34.33 billion yuan, as reported by Refinitiv.
The company’s online marketing revenue increased by 5% compared to the previous year, while non-online marketing revenue saw a 6% rise during the same period.
This growth follows a 15% revenue increase from the previous quarter over the same period last year, with double-digit growth in both online and offline marketing revenue.
Baidu reported gross income of 6.68 billion yuan for the quarter ending on September 30, up from the previous quarter’s 5.21 billion.
Increased marketing expenditures led to an 11% year-over-year rise in selling, general, and administrative costs, totaling 5.8 billion yuan.
Research and development costs rose by 6% annually to 6.1 billion, attributed in part to higher expenses related to the Ernie app study. This marks a decrease from the 1% increase in the second quarter compared to the same period last year.
Baidu’s AI-powered chatbot, Ernie Bot, is a variant of ChatGPT. The company recently began charging for the Ernie app in November.
Rong Luo, Baidu’s CFO, stated in a release that “Baidu Core maintained stable profits in the third quarter.” Continued investments in AI have supported technological and product innovations. Future investments will prioritize AI, particularly in fundamental AI and foundational models, with a strong emphasis on efficiency and resource allocation.
The company reported that its Apollo Go robotaxi business generated 821,000 rides in the second quarter, up from 714,000 in the previous three months.
In September, Yizhuang, a suburb of Beijing, authorized local robotaxi operators to charge fares for fully autonomous taxis without drivers.
Baidu announced that Sandy Xu, former CFO of JD.com, will join the company as an independent board director starting on January 1, 2024.
