On Thursday, Baidu, Inc (NASDAQ: BIDU) reported fiscal third-quarter income 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 inventory worth slid after the print.
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Segments: Baidu’s Core income remained flat 12 months over 12 months at $3.78 billion; On-line advertising income declined by 4% 12 months over 12 months to $2.68 billion. Non-online advertising income grew 12% 12 months over 12 months to $1.10 billion, pushed by the AI Cloud enterprise.
Income from IQIYI, Inc (NASDAQ: IQ) decreased 10% 12 months over 12 months to $1.03 billion, beating the analyst consensus estimate of $1.02 billion.
Baidu’s SG&A bills have been $836 million, up by 2% 12 months over 12 months, primarily as a result of a rise in channel spending and promotional advertising bills. R&D bills declined 12% 12 months over 12 months to $765 million, primarily as a result of a lower in personnel-related bills.
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 money and equivalents and generated $376 million in free money movement.
Co-founder and CEO Robin Li mentioned Baidu Core’s flat third-quarter income mirrored ongoing weak point within the on-line advertising enterprise, balanced by development within the AI Cloud section.
Robust AI capabilities gained broader market recognition, with ERNIE seeing elevated adoption. Apollo Go maintained its management within the world autonomous ride-hailing market, reaching a milestone because the sixth-generation autonomous car started working on public roads in a number of Chinese language cities.
Regardless of near-term challenges, Baidu stays dedicated to its AI-focused technique, aiming to scale AI and drive innovation for customers, enterprises, and society.
Interim CFO Junjie He mentioned Baidu’s strict price management measures supported secure working margins for Baidu Core within the third quarter, with additional price optimizations throughout enterprise items.
AI Cloud sustained wholesome development, and Apollo Go’s operational progress strengthened confidence within the totally autonomous ride-hailing enterprise mannequin.
Baidu inventory plunged 25% year-to-date because it grappled with a weak financial system, U..S. semiconductor sanctions on China.
Value Motion: On the final test on Thursday, BIDU inventory traded decrease by 2.25% at $84.80 within the premarket session.
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