- Baidu, Inc (NASDAQ:BIDU) reported first-quarter FY22 revenue growth of 1% year-on-year to $4.48 billion, beating the consensus of $4.18 billion.
- Segments: Baidu's Core revenue increased 4% Y/Y to $3.37 billion; Online marketing revenue declined 4% Y/Y to $2.47 billion, and Non-online marketing revenue jumped 35% Y/Y to $903 million, driven by cloud and other AI-powered businesses. Revenue from IQIYI, Inc. (NASDAQ:IQ) decreased 9% Y/Y to $1.15 billion, beating the consensus of $1.09 billion. iQIYI subscribers reached 101 million versus 105 million a year ago.
- The SG&A fell 11% Y/Y, and R&D expenses increased 10% Y/Y from lower channel spending, promotional, and higher personnel-related costs.
- Margins: Baidu's adjusted EBITDA margin contracted 200 bps to 19%. Baidu Core's adjusted EBITDA margin declined 800 bps to 24%.
- Baidu's Non-GAAP earnings per ADS of $1.77 beat the consensus of $0.81.
- Baidu held $30.13 billion in cash and equivalents and used $17 million in free cash flow.
- "Baidu delivered solid first quarter results, especially with regard to our cloud and intelligent driving businesses. Baidu AI Cloud reported another quarter of strong revenue growth, and Apollo Go was granted the first permit in China to provide driverless ride-hailing services on public roads in Beijing," said Robin Li, Co-founder, and CEO.
- "Revenues from Baidu Core remained healthy with non-ad revenues increasing by 35% year over year, driven by Baidu AI Cloud, which grew 45% year over year in the quarter," said Rong Luo, CFO.
- Price Action: BIDU shares traded higher by 5.62% at $126.02 in the premarket session on the last check Thursday.
- Photo Via Wikimedia Commons
