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Baidu revenue slips 4% as ad slump outweighs AI cloud growth
Second-quarter revenue totaled 31.3 billion yuan, while online marketing revenue fell 19% to 13.1 billion yuan.
Baidu reported a 4% year-on-year decline in second-quarter revenue, as weakness in its online advertising business outweighed gains from its artificial intelligence related operations, according to SCMP Economy.
Revenue for the three months ended June came in at 31.3 billion yuan, or about US$4.62 billion, slightly below the 31.6 billion yuan consensus estimate cited by Bloomberg polls. Net profit was 2.3 billion yuan for the quarter.
Online marketing revenue, Baidu’s traditional mainstay, dropped 19% year on year to 13.1 billion yuan, reflecting advertisers’ cautious stance amid a sluggish macroeconomic environment.
AI related operations helped cushion the decline, with revenue up 25% year on year to 12.5 billion yuan. AI cloud revenue rose 50% to 7.3 billion yuan, AI applications increased 3% to 2.5 billion yuan, and AI marketing services were flat at 2.6 billion yuan, the company said. Baidu founder and CEO Robin Li Yanhong said the results reaffirm the company’s shift from an internet focused business to an AI first company.