Baidu Reports Q2 2024 Financial Results, Driven by AI and Autonomous Innovation

BEIJING, China – August 22, 2024 – Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) announced its financial results for the second quarter of 2024, showcasing solid performance across key segments. The company’s continued focus on AI-driven solutions and autonomous driving innovation helped maintain stability despite global economic challenges.

Q2 2024 Financial Highlights

Baidu reported:

• Total Revenues: RMB 33.9 billion (US$4.67 billion), representing flat growth year-over-year but an 8% increase from Q1 2024.
• Operating Income: RMB 5.9 billion (US$818 million), up 14% year-over-year and 8% quarter-over-quarter.
• Net Income: RMB 5.5 billion (US$755 million), representing a 5% year-over-year increase.
• Non-GAAP Net Income: RMB 7.4 billion (US$1.02 billion), up 5% quarter-over-quarter.
• Adjusted EBITDA: RMB 9.1 billion (US$1.26 billion), with a stable EBITDA margin of 27%.

These results highlight Baidu's strong position as a leader in AI technology and autonomous driving, despite facing macroeconomic headwinds in the online marketing sector.

Baidu Core Segment Performance

The Baidu Core segment performed exceptionally well, driven by its AI Cloud and autonomous driving businesses:

• Total Revenues: RMB 26.7 billion (US$3.67 billion), a 1% increase year-over-year.
• Operating Income: RMB 5.6 billion (US$772 million), up 23% year-over-year.
• Non-GAAP Operating Income: RMB 7.0 billion (US$964 million), a 25% quarter-over-quarter increase.
• Net Income for Baidu Core: RMB 5.5 billion (US$752 million), with a net margin of 20%.
• Adjusted EBITDA Margin: 32%, reflecting Baidu’s effective cost management and strong AI-driven growth.

Operational and AI Highlights

AI Cloud Growth

Baidu's AI Cloud business continued its upward trajectory, contributing significantly to the company’s overall revenue. Baidu’s AI initiatives, including the launch of ERNIE 4.0 Turbo in June 2024, have shown promising results. The developer community for PaddlePaddle and ERNIE grew to 14.7 million members by the end of the quarter, demonstrating widespread adoption of Baidu’s AI solutions.

Autonomous Driving Milestones

Baidu's autonomous driving service, Apollo Go, achieved remarkable success in Q2 2024:

• Apollo Go provided 899,000 rides, up 26% year-over-year.
• Baidu also launched 100% fully driverless operations in Wuhan, marking a significant breakthrough for autonomous ride-hailing in China.
• Baidu's sixth-generation autonomous vehicle, the RT6, is undergoing scalable testing, paving the way for future growth in intelligent driving.

Mobile Ecosystem Growth

Baidu’s mobile ecosystem also saw positive developments, with its app reaching 703 million monthly active users (MAUs) in June 2024, up 4% year-over-year. Managed Page accounted for 51% of Baidu Core's online marketing revenue, reflecting its strong mobile presence.

Cost Management and Profitability

Baidu’s strong financial discipline helped maintain profitability despite challenges:

• Cost of Revenues: RMB 16.4 billion (US$2.26 billion), up 1% year-over-year due to increased costs associated with AI Cloud.
• Selling, General, and Administrative Expenses: RMB 5.7 billion (US$784 million), down 9% year-over-year, driven by reduced credit losses, marketing expenses, and personnel costs.
• Research and Development: RMB 5.9 billion (US$810 million), down 8% year-over-year, mainly due to lower personnel-related expenses.

Shareholder Returns and Sustainability

Baidu returned US$301 million to shareholders through its share repurchase program in Q2 2024, bringing the total buyback to US$1.2 billion under its 2023 authorization. Additionally, Baidu earned a spot in the China edition of the S&P Global Sustainability Yearbook, recognizing its exceptional environmental, social, and governance (ESG) performance.

Source: BIDU