China’s Baidu surpassed analysts’ estimates for revenue and adjusted earnings for the quarter, according to data released on Wednesday (17) aided by increased demand for its artificial intelligence (AI) and cloud products.
Called ‘China’s Google’, Baidu has invested in AI, cloud and autonomous driving to complement its core search business, which has been pressured by competition and regulatory repression. In 2020, it launched robot taxi services in Beijing.
Third-quarter revenue was 31.92 billion yuan ($5 billion) against estimates of 31.71 billion yuan. On an adjusted basis, earnings were 14.66 yuan per ADS, above expectations of 12.81 yuan.
“Baidu Core delivered another solid quarter, driven by our cloud and IA revenue growing 73 percent year-over-year,” said Rong Luo, the company’s vice president of finance.
Baidu’s biggest segment, online marketing, grew 6% this quarter. However, the growth rate has been slowing in the last two quarters.
The company expects current quarter revenue to be between RMB 31 billion and RMB 34 billion, close to analysts’ expectations of RMB 32.60 billion, according to Refinitiv IBES data.
Its streaming affiliate, iQIYI, which saw subscribers reach 104 million in September, also posted a 6% increase in revenue during the quarter.
Reference: CNN Brasil