The company’s flat revenue growth for the quarter, combined with operating in a relatively slow economy, negatively impacted them. Baidu ( BIDU -4.40% ) On Thursday, the American depositary shares (ADSs) of the seasoned Chinese tech company fell by over 4% after its most recent quarterly earnings were released. In contrast, the S&P 500 The index experienced a modest decline of 0.9% for the day.
Decreases in both revenue and net income during the second quarter
In the second quarter, Baidu reported revenue of 33.9 billion yuan ($4.8 billion), which was slightly less than the just over 34 billion yuan ($4.8 billion) it generated in the same quarter of 2023. A contributing factor to this decrease was a drop in online marketing revenue, a crucial segment for the company, which declined by 2% to a little over 19 billion yuan ($2.7 billion).
Non- GAAP The (adjusted) net income experienced a more significant decline compared to those two line items, decreasing by 8% compared to the previous year to just below 7.4 billion yuan ($1 billion). On a per ADS basis, the company’s adjusted profit was 21.02 yuan ($2.95).
This resulted in a varied quarter for the expansive tech company. Analysts had collectively predicted a revenue of 34.14 billion yuan ($4.8 billion) and an adjusted net income of 18.54 yuan ($2.60) per ADS.
Regarding AI and autonomous taxis
In its earnings report, Baidu dedicated significant attention to the prominent technology of 2024, artificial intelligence (AI). Despite advancements in this area, they couldn’t offset the slow performance in other parts of the business. On a more positive note, Baidu’s robotaxi service, Apollo Go, experienced a substantial increase in activity, with approximately 899,000 rides in the quarter, marking a 26% improvement compared to the previous year.
