Home News Baidu revenue contracts but beats estimates on cloud business growth

Baidu revenue contracts but beats estimates on cloud business growth

by jcp
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
gawdo

(Reuters) -China’s search engine giant Baidu Inc beat quarterly revenue estimates on Tuesday, underpinned by growth in its cloud business, even as it reported its first year-on-year quarterly revenue contraction in two years.

Total revenue shrank by 5% to 29.65 billion yuan ($4.43 billion) in the second quarter, compared with analysts’ average estimate of 29.30 billion yuan, according to Refinitiv data.

U.S.-listed shares of the company rose 3.2% in premarket trading.

Even as Baidu’s core advertising sales continue to be soft, customers are signing up for its cloud services – a key area of growth globally – as demand for internet applications increase.

Revenue at Baidu’s AI Cloud unit grew 31% year-on-year in the quarter.

Baidu has also been doubling down on self-driving technologies, in which it has heavily invested over the past five years.

It started to charge fees for its robotaxi service Apollo Go on open roads from last year. Apollo Go operated 287,000 rides over the quarter and has so far accumulated a total of more than one million rides.

The Beijing-based company posted a net profit of 3.64 billion yuan, or 1.49 yuan per American Depository Share (ADS).

China’s tech companies reported weak results for the April-June period as they struggle with the economic slowdown and Beijing’s regulatory crackdown. Earlier this month, Alibaba Group reported its first-ever flat quarterly revenue and Tencent Holdings posted its first-ever quarterly revenue decline.

(1 Chinese yuan = $0.1449)

(Reporting by Yuvraj Malik in Bengaluru and Yingzhi Yang in Beijing; Editing by Sherry Jacob-Phillips and Bernadette Baum)

www.gawdo.com

You may also like