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Economy· Business· Equity

Baidu’s revenue up 27% with increasing shares price amidst sluggish equity market

CKN
minutes 2018/10/31 03:33:03
2,595
China's Financial News, China News, Baidu

Oct 31, 2018 (China Knowledge) - Baidu Inc. <BIDU:NASDAQ> released its 3rd quarter financial report for 2018, yesterday. The company has reported a 27% growth in revenues for the third quarter, year over year, to RMB 28.2 billion (USD 4.11 billion).

Robin Li, Chairman and CEO of Baidu has attributed the growth in revenue to the ability of its search, feed, and new artificial intelligence (AI) businesses. Feed revenue has managed to drive Baidu’s revenue growth with robust user traffic growth in past months. Baidu’s video offerings are also slowly gaining traction in the market, encouraging users’ base growth.

Revenue from online marketing has accounted for 79.6% of the total revenue generated by the company, at USD 3.27 billion. This figure represents a 18% year over year increase. Baidu currently has approximately 522,000 active online marketing customers, an increase of 7%. The average spending by individual online marketing customer has also increased 12% to USD 6.3 thousand. 

The two main AI projects that the company is currently working on are DuerOS, and Apollo. DuerOS is an AI speech and image recognition technology developed by Baidu to assist enterprise developers to deploy their AI solutions. Baidu has seen a strong adoption growth with users’ installed base reaching 141 million and voice queries surpassing 800 million in September 2018.

Apollo, on the other hand, is a project by Baidu to develop autonomous driving technology in China and abroad. Apollo is able to provide a software platform for partners to develop their own autonomous driving systems. Apollo has managed to gain valuable L4 operational experiences with fully autonomous minibus powered by Apollo running in over 10 locations.

Baidu has joined Partnership on AI earlier this month, an open platform to study and formulate AI practices in order to help advance public understanding for AI. Besides that, the company has also formed strategic partnership with China Unicom and Intel to build up the 5G+AI innovations. Advancement made to 5G technology will help advance AI ability and credibility in products.

Baidu has estimated its revenue for the fourth quarter to be between USD 3.71 billion to USD 3.89 billion. The company shares price was up 0.89%, closing at USD 183.37.

Baidu shares price wasn’t sparred from the tech sell-off in the stock market. Shares price has fallen from USD 193.24 last Wednesday to one of its lowest at USD 179. 89, yesterday.

 

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