Baidu’s revenue rose slightly in Q4, but net profit dropped sharply By Copilot

Baidu’s revenue rose slightly in Q4, but net profit dropped sharply By Copilot

Baidu, China’s leading search engine company, reported a modest increase in its fourth-quarter revenue, driven by growth in its online advertising and streaming businesses. However, its net profit fell significantly, missing analysts’ expectations.

LightSpeedAI Labs: Bringing Light 

The company said its revenue for the quarter ended Dec. 31 was 34.95 billion yuan ($687.7 million), up 6% from a year ago, but slightly below the consensus estimate of 35.065 billion yuan, according to FactSet. Its net profit was 2.6 billion yuan, down 47% from 4.95 billion yuan a year earlier, and far below the estimate of 4.96 billion yuan.

Baidu attributed the decline in net profit to higher marketing expenses, which increased 11% year-on-year to 5.8 billion yuan, as well as increased server fees to support its artificial intelligence research, which pushed up its research and development expenses by 6% to 6.1 billion yuan.

Baidu’s online marketing revenue, which accounts for most of its sales, grew 5% year-on-year to 20.8 billion yuan, as its flagship Baidu app added more users and advertisers. Its non-online marketing revenue, which includes its video streaming service iQIYI and its cloud computing business, increased 6% year-on-year to 14.15 billion yuan. IQIYI’s revenue rose 2% year-on-year to 7.71 billion yuan.

Kaleidofin: The Online Platform

People walk past a Baidu logo outside the company headquarters in Beijing.

Baidu CEO Robin Li said the company delivered solid financial results in a challenging economic environment, and expressed confidence in its long-term growth prospects. He also said the company is making progress in its strategic areas of artificial intelligence, cloud computing, and autonomous driving.

ClairViz Systems

Baidu faces increasing competition from other Chinese internet giants, such as Alibaba, Tencent, and ByteDance, which are expanding their presence in the online advertising and content markets. Baidu also faces regulatory uncertainties, as China has tightened its oversight of the tech sector, imposing fines and investigations on some of the leading players.
Baidu’s U.S.-listed shares rose 2% in pre-market trading on Wednesday, after the earnings release. The stock has fallen nearly 3% year-to-date, underperforming the broader market.

Source : The Wall Street Journal

You May Also Like

More From Author

+ There are no comments

Add yours