Chinese tech company Baidu announced Monday it can sell some robotaxi rides without any human staff in the vehicles.BEIJING — Chinese tech company Baidu is reporting slower growth in its Apollo Go robotaxi rides than in prior quarters.Figures Baidu reported Thursday showed the number of robotaxi rides operated publicly grew by 26% year-on-year in the first half of the year to a monthly average of 287,500 rides, according to CNBC calculations.That's down sharply from year-on-year growth of 184% in the first ...

Investment Rating - The report maintains a BUY rating for Baidu with a target price of US$180.50, down from the previous target of US$183.00, indicating an upside potential of 101.1% from the current price of US$89.74 [3]. Core Insights - Baidu's 2Q24 revenue was RMB33.9 billion, a slight decline of 0.4% year-over-year, aligning with Bloomberg consensus. Non-GAAP net income was RMB7.4 billion, exceeding consensus by 9% due to effective control over sales and marketing expenses [2]. - The company is focusing on enhancing user experience through Gen-AI generated results, prioritizing this over short-term monetization, which may temporarily hinder ad revenue growth but is expected to improve long-term monetization prospects [2][10]. - Non-ad revenue grew by 10% year-over-year to RMB7.5 billion, now accounting for 28.2% of Baidu Core revenue, driven by AI-related GPU cloud revenue and cross-selling of CPU cloud services [2]. Financial Performance - In 2Q24, Baidu Core's online ads revenue was RMB19.2 billion, down 2.2% year-over-year, but slightly better than consensus expectations. The company anticipates a further decline in ad revenue growth in the near term, projecting a 3.4% year-over-year decline to RMB19.0 billion in 3Q24E [2][7]. - Baidu Core's gross profit margin (GPM) was 59.4% in 2Q24, down 1.1 percentage points year-over-year, while non-GAAP operating profit margin (OPM) improved to 26.1%, exceeding consensus by 1.4 percentage points due to stringent cost control [2][7]. Valuation and Forecast - The SOTP-based target price of US$180.5 reflects a valuation of US$71.6 for Baidu Core, US$1.8 for Apollo ASD, US$32.2 for Baidu Cloud, and US$64.1 in net cash. The valuation for iQIYI and other investments is set at US$10.8 [10][11]. - Revenue forecasts for FY24E, FY25E, and FY26E are RMB135.8 billion, RMB146.9 billion, and RMB157.9 billion respectively, with adjusted net profit estimates of RMB27.96 billion, RMB28.72 billion, and RMB31.94 billion [6][9].

The company posted fairly unexciting and not particularly inspiring second-quarter results.Flat top-line quarterly growth and operating in a relatively sluggish economy put the hurt on Baidu (BIDU -4.40%) stock Thursday. The veteran Chinese tech company's American depositary shares (ADSs) declined by more than 4% following its latest quarterly earnings hitting the news feeds. By comparison, the S&P 500 index fell by a relatively light 0.9% on the day.Top- and bottom-line declines in the second quarterFor it ...

Financial Data and Key Metrics Changes - Total revenue was RMB33.9 billion, flat year-over-year, with Baidu Core revenue at RMB26.7 billion, increasing 1% year-over-year [30] - Baidu Core's online marketing revenue decreased by 2% year-over-year to RMB19.2 billion, while non-online marketing revenue increased by 10% year-over-year to RMB7.5 billion, primarily driven by AI Cloud [30] - Non-GAAP operating margin for Baidu Core improved by nearly 2 percentage points year-over-year to 26% [6] Business Line Data and Key Metrics Changes - AI Cloud revenue reached RMB5.1 billion, marking a 14% year-over-year growth, with GenAI-related revenue accounting for nearly 9% of total AI Cloud revenue, up from 6.9% in the previous quarter [21][22] - Mobile Ecosystem's online marketing revenue faced challenges, declining by 2% year-over-year due to macroeconomic factors and competition [24] - Intelligent Driving segment saw Apollo Go achieving 100% fully driverless operations in Wuhan, significantly reducing costs per vehicle [27] Market Data and Key Metrics Changes - Incremental ad revenue from GenAI and LLM enhancements continued to grow quarter-over-quarter, driven by the reconstruction of the monetization system [25] - The number of daily API calls for ERNIE surged from around 200 million to over 600 million, indicating strong demand for AI services [51] Company Strategy and Development Direction - The company is focused on scaling AI to address real-world problems and generate substantial value, with a commitment to making ERNIE more affordable and accessible [6][7] - The strategic move to make API costs free for lightweight ERNIE models aims to enhance adoption and integration into various industries [8] - The company is committed to transforming its advertising model from CPC to a more efficient CPS model through ERNIE Agent [26] Management Comments on Operating Environment and Future Outlook - Management acknowledged the competitive landscape in AI, emphasizing the importance of technological leadership and application-driven approaches to maintain market position [37][38] - The company is optimistic about the long-term growth potential of AI Cloud and expects to continue generating non-GAAP operating profit [24][50] - Management highlighted the need for patience in the transition to AI-driven search, focusing on user experience over immediate revenue [60] Other Important Information - Free cash flow was RMB6.3 billion, with cash and short-term investments totaling RMB162 billion as of June 30, 2024 [33] - The company has approximately 31,000 employees as of June 30, 2024 [33] Q&A Session Summary Question: AI development competition outlook - Management expects fierce competition in AI over the next two to three years, with a focus on monetization as a key survival factor [36][37] Question: Progress in AI and search renovation - Management reported that 18% of search results are now generated by AI, enhancing user experience and engagement [42][43] Question: Drivers behind cloud revenue growth - The growth in AI Cloud revenue is driven by strong demand for GenAI and LLMs, with significant increases in API usage [48][50] Question: Impact of soft advertising revenue - Management noted that advertising revenue is pressured by macroeconomic factors and competition, but technological innovation is seen as key for future success [55][56] Question: AI agent usage and monetization - ERNIE agents are being adopted across various sectors, improving user experience and driving potential monetization opportunities [62][63]

Baidu Announces Second Quarter 2024 Results Baidu, Inc. BEIJING, China, Aug 22, 2024 – Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2024. "AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline gr ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: Unsplash/CC0 Public Domain Chinese internet giant Baidu posted flat second-quarter revenue on Thursday, as an uncertain economic outlook in the country weighs on household consumption. Baidu, which operates China's top search engine, derives a large part of its sales from advertising -- a sector vulnerable to slumps i ...

Exhibit 99.1 Baidu Announces Second Quarter 2024 Results BEIJING, China, Aug 22, 2024 — Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2024. "AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline g ...

BEIJING, Aug. 22, 2024 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888 (HKD Counter) and 89888 (RMB Counter)), ("Baidu" or the "Company"), a leading AI company with strong Internet foundation, today announced its unaudited financial results for the second quarter ended June 30, 2024."AI Cloud continued to accelerate in the second quarter, offsetting the ongoing macro headwinds for online marketing revenue and resulting in modestly positive topline growth for Baidu Core. Operationally, we fast-track ...

Artificial intelligence could propel Baidu to the next level of its development. One of the biggest technology trends in the last few years is the rapid development and adoption of artificial intelligence (AI) technologies, capturing investors' attention and resources. However, when asked to name the leading AI companies, most investors will repeat the few leading names, such as Nvidia, Palantir, Microsoft, and Alphabet. While these companies are front runners in the AI revolution, they are not the only com ...

Baidu Inc BIDU will be reporting its second-quarter earnings on Thursday. Wall Street expects $2.76 in EPS and $4.4 billion in revenues as the company reports before market hours.The stock is down about 28.5% over the past year, 22.6% YTD.Let’s look at what the charts indicate for Baidu stock and how the stock currently maps against Wall Street estimates.Bearish Momentum Driving Baidu Stock Ahead of Q2 EarningsBaidu’s stock is currently navigating through a mixed technical landscape, with several indicators ...