Baidu, a Chinese technology corporation, saw its revenue escalation by 15% in the second quarter as compared to one year ago, with the increment produced by the expansion in advertising. "During the second quarter of 2023, Baidu Core saw an uplift in revenue and earnings by virtue of the outstanding outcome of online marketing operations and operational leverage," said Robin Li, Co-founder and CEO of Baidu, in a statement.
On Tuesday, Chinese tech firm Baidu reported income exceeding expectations, with a 15% year-on-year increase in the second quarter due to improvement in advertising. The rate of growth was the quickest in two years, according to Refinitiv data. Pre-market trading of Baidu's US-traded shares showed an increase of more than 4%. The following results were recorded for the June quarter versus the Refinitiv consensus estimates: revenue being 34.1 billion yuan ($4.7 billion) rather than 33.28 billion yuan anticipated; online marketing revenue rising 15% to 19.6 billion yuan for the second quarter; and non-online marketing revenue increasing 12% to 6.8 billion yuan. Additionally, non-GAAP Earnings per American Depositary Share amounted to 22.55 yuan compared to 15.79 yuan in the preceding year. Regarding the second quarter of 2023, Baidu Core CEO, Robin Li mentioned in a release that the development of revenue and profit was boosted by the impressive performance of online marketing and operating leverage. He added that utilizing AI and large language models holds potential for extensive alteration in various industries, indicating a good market opportunity for Baidu.
Baidu recently released Ernie bot, an open Chinese-language ChatGPT alternative that became available in March. In comparison, OpenAI's widely-used rival chatbot is not available in the nation. To this end, Baidu announced last week that five Ernie bot plugins – including ones for text-to-video transformation and PDF search – would be made more accessible. Additionally, users will be able to employ three plugins at the same time. Furthermore, Baidu unveiled an AI-supported assistant for activities such as booking air tickets, hotels and meetings; however, it is still unclear how to access the assistant. Moreover, the corporation is also aiming to spread the usage of AI into the automobile sector, having signed an agreement with Changan Automobile to construct autonomous driving abilities based on Ernie bot's AI model. Other Chinese tech companies have also been vigorously engaging in the development of AI-based items. For instance, Alibaba reported "strong demand" for training AI models on the cloud and its related business opportunities. Tencent, meanwhile, declared during its earnings release that they plan to launch their own AI model later this year, which can be used in various products like gaming and advertising.
Baidu runs self-driving taxis under the Apollo Go brand in China. During Q2 they saw an increase in robotaxi rides, from 660,000 in Q1 to 714,000. Beijing approved charging fares for public robotaxi rides in November 2021, which can be booked via an app. Most of these taxis, found in major cities, still have human staff onboard. In June, the company was permitted to operate robotaxis without employees in a Shenzhen suburb. This followed the approval to remove human staff in parts of Wuhan and Chongqing in August 2022.
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