On Tuesday, Baidu, Inc (NASDAQ: BIDU) reported fiscal fourth-quarter income of $4.68 billion, down 2% year-on-year, topping the analyst consensus estimate of $4.56 billion.
Baidu’s adjusted earnings per ADS of $2.63 beat the analyst consensus estimate of $1.78. The inventory worth slid after the report.
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Segments: Baidu’s Core income grew by 1% 12 months over 12 months to $3.8 billion; On-line advertising and marketing income declined by 7% 12 months over 12 months to $2.46 billion.
Non-online advertising and marketing income grew 18% 12 months over 12 months to $1.34 billion, pushed by the AI Cloud enterprise. AI Cloud enterprise grew by 26% throughout the quarter.
Income from IQIYI, Inc (NASDAQ: IQ) decreased 14% 12 months over 12 months to $906.00 million, lacking the analyst consensus estimate of $909.96 million.
Baidu’s SG&A bills have been $915 million, up 14% 12 months over 12 months, primarily because of a rise in anticipated credit score losses, channel spending, and promotional advertising and marketing bills. R&D bills declined 12% 12 months over 12 months to $756 million.
Baidu’s adjusted EBITDA margin declined by 600 bps to twenty%, and its Core adjusted EBITDA margin decreased by 600 bps to 24%. As of December 31, 2024, Baidu had $19.1 billion in money and equivalents and generated $3 million in free money movement throughout the quarter.
Co-founder and CEO Robin Li mentioned 2024 marked a pivotal 12 months within the firm’s transformation from an internet-centric to an AI-first enterprise. AI Cloud gained momentum, fueled by broad market recognition of its full-stack AI capabilities.
Within the Cell Ecosystem, Li famous that it was steadfast in advancing the AI transformation. Apollo Go paved the way in which for world enlargement and scalable, asset-light methods. Li expects its AI investments to ship extra vital ends in 2025.
Baidu inventory declined 8% within the final 12 months as its AI fashions failed to realize traction, like Alibaba Group Holdings BABA, ByteDance, and DeepSeek. The Chinese language search engine big plans to launch Ernie 5.0 in late 2025 and supply Ernie Bot free to all customers. Baidu can also be a key Apple Inc AAPL companion because the latter goals so as to add AI options to its iPhones for China.
Value Motion: BIDU inventory traded decrease by 2.29% at $95.25 premarket on the final verify Tuesday.
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