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Baidu’s Q3 total revenue hits $4.95 billion, driven by ad sales, AI, cloud products

November 18, 2021 9:30 am

Chinese tech giant Baidu today announced its unaudited financial results for the third quarter ended September 30. In the report, its total quarterly revenues reach 31.92 billion yuan ($4.95 billion), a 13% increase year on year and slightly above the market estimate of 31.71 billion yuan. The company’s quarterly net profit was $790 million.

Market insiders consider stronger advertising sales and demand for its artificial intelligence and cloud products as the driving forces for the company’s latest growth.

“Baidu Core delivered another solid quarter, powered by our AI cloud revenue growing 73% year over year,” said Rong Luo, CFO of Baidu. “With a diversified AI portfolio, including cloud services, smart transportation, smart devices, self-driving, smart EV and robotaxi, we are well positioned for long-term growth.”

In its intelligent driving sector, Baidu’s Apollo L4 has accumulated over 10 million test miles, up 189% year over year, and has received 411 autonomous driving permits.

Besides, in smart home market, Xiaodu ranks No.1 in smart display shipments globally and smart speaker shipments in China for Q2 2021, according to Strategy Analytics, IDC and Canalys.

Baidu’s streaming affiliate, iQIYI also saw its subscribers reach 104 million in September, and reported a 6% rise in revenue during the quarter.

In China, Baidu faces strong competition with Alibaba, Tencent and Meituan. Its market valuation remains at a disadvantageous position. It previously was largely confined to ads as the income source and hadn’t developed a relatively comprehensive business ecosystem, according to an analysis by CHReview.

In 2020, Baidu CEO Robin Li betted on auto driving sector, noting that by 2025, auto driving technologies will be put into commerce scenarios.

In the same year, Baidu introduced robotaxi services in Beijing and entered into a partnership with Chinese auto manufacturer Geely to develop electric vehicles, according to Reuters.