Revenue in the quarter that ended Sept. 30 grew 6% year-on-year to 34.45 billion yuan ($4.72 billion), which was above analyst predictions. This comes after a 15% rise in revenue in the preceding quarter, including double-digit growth in both online and non-online marketing income. Baidu CEO and co-founder Robin Li noted the sturdy third-quarter financial results, indicating an ability to withstand an intricate economic environment, in a statement.On Tuesday, Baidu reported that its third-quarter revenue exceeded expectations, albeit growth was slower than during the preceding quarter. The American-listed shares of the Chinese tech giant gained around 2% in pre-market trading at 5:00 a.m. ET, although they have dropped by nearly 3% in the year thus far. Revenue was 6% higher year-on-year at 34.45 billion yuan ($4.72 billion), slightly more than the expected 34.33 billion yuan forecasted by Refinitiv. Online marketing income was raised by 5%, while non-online marketing went up 6% year-on-year. This followed revenue in the earlier quarter that jumped 15%, with online and non-online marketing revenue increasing by double digits. Baidu's CEO and co-founder, Robin Li, commented on the solid third-quarter financials, saying that they “demonstrated resilience in a challenging economic climate.”
American Depositary Shares of Baidu reported a 20.40 yuan per share adjusted earnings for the third quarter, recording a decrease from the 22.55 reported in the previous quarter, yet higher than the 16.87 reported in similar quarter a year ago. The Chinese tech giant posted a net income of 6.68 billion yuan in the September quarter, signalling an increase from the 5.21 billion yuan of the prior quarter. To the effect of higher marketing campaigns, Selling, General and Administrative expenses rose 11% year-over-year to 5.8 billion yuan. In addition, Research and Development expenses spiked 6% year-over-year to 6.1 billion yuan, largely attributed to increased server fees related to their AI-powered chatbot ChatGPT (Ernie bot). In light of these investments, Baidu CFO Rong Luo commented on their commitment to maintain stable margins in the following quarter. As seen in their turning to Ernie bot fees, Baidu is concentrating on AI investments, yet with an emphasis on efficiency and strategic allocation of resources. On a related note, their Apollo Go robotaxi venture recorded 821,000 rides in the previous three months, an increase over the 714,000 rides from the preceding quarter. Meanwhile, Yizhuang City district officially allowed local autonomous taxi operators to charge fares from customers with no drivers present. Lastly, the company recently welcomed Sandy Xu, former JD.com CFO, as an independent director of the board starting January 2024.
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