Baidu, the Chinese multinational technology company, announced its second-quarter results on Tuesday, demonstrating impressive growth and success. Here are the key highlights from the report:
Net Profit Surges
Baidu reported a significant increase in net profit, with a rise of 43% from the previous year. The net profit for the quarter ending in June reached an impressive 5.21 billion yuan ($719.3 million). This figure aligns closely with the estimate of CNY5.24 billion determined by analysts in a FactSet poll.
The company also experienced remarkable revenue growth, with second-quarter revenue climbing 15% compared to the previous year. The total revenue for the quarter amounted to CNY34.06 billion, once again meeting expectations set by analysts in the FactSet poll, who estimated CNY33.91 billion.
Online Marketing Success
Baidu's online-marketing services played a significant role in driving revenue growth. Revenue from these services saw a 15% increase compared to the previous year, reaching CNY21.08 billion. The growth can be attributed, in part, to the impressive 8% rise in monthly active users for Baidu's flagship app, which now stands at 677 million as of June.
Autonomous Ride-Hailing Service Flourishes
Baidu's autonomous ride-hailing service, Apollo Go, had a remarkable quarter, providing over 714,000 rides. This number more than doubled compared to the previous year, showcasing significant growth and customer adoption. The company has also secured permission to offer fully driverless ride-hailing services to the public in several major cities, including Beijing, Shenzhen, Wuhan, and Chongqing.
Baidu continues to invest in research and development to drive innovation. Research-and-development expenses increased by 1.4% from the previous year, totaling CNY6.38 billion. While server depreciation and cloud-related expenses saw an uptick, personnel-related expenses experienced a decline.
These impressive second-quarter results reflect Baidu's commitment to growth and innovation. With its online marketing services thriving and its autonomous ride-hailing service gaining momentum, Baidu remains a key player in the technology industry.