© Reuters. FILE PHOTO: A emblem of Baidu is seen in the course of the World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, November 23, 2020. REUTERS/Aly Song
(Reuters) -China’s Baidu Inc (NASDAQ:) beat analysts’ estimates for quarterly income and adjusted revenue on Wednesday, helped by stronger demand for its synthetic intelligence (AI) and cloud merchandise.
Baidu, referred to as China’s Google (NASDAQ:), has forayed into AI, cloud and autonomous driving to complement its core search enterprise that has been pressured by competitors and a regulatory crackdown. Last yr, it launched robotaxi providers in Beijing.
“Baidu Core delivered another solid quarter, powered by our AI cloud revenue growing 73% year-over-year,” mentioned Rong Luo, chief monetary officer of Baidu.
Baidu’s U.S.-listed shares, which have slumped 21% this yr, have been up 1.4% at $173.8 premarket.
The firm’s outcomes come amid a wide-ranging regulatory crackdown by China on its expertise sector that features heavyweights like Tencent and Alibaba (NYSE:) in a bid to maintain a verify on their monopolistic practices.
Earlier this month, Tencent Holdings (OTC:) warned the outlook for the promoting sector would stay weak into subsequent yr.
Baidu’s largest phase, on-line advertising and marketing, rose 6% this quarter. However, the expansion fee has been slowing within the final two quarters.
In a bid to develop its portfolio, the corporate has entered right into a partnership with Chinese auto producer Geely to develop electrical autos, a fast-evolving sector the place many tech corporations want to make a mark.
Baidu expects current-quarter income to be between 31 billion yuan and 34 billion yuan, largely in step with analysts’ expectation of 32.60 billion yuan, in keeping with Refinitiv IBES information.
Its streaming affiliate, iQIYI, which noticed its subscribers attain 104 million in September, additionally reported a 6% rise in income in the course of the quarter.
Baidu’s third-quarter income was 31.92 billion yuan ($5.00 billion) versus estimates of 31.71 billion yuan.
On an adjusted foundation, the corporate earned 14.66 yuan per ADS, in comparison with 12.81 yuan per ADS estimates.
($1 = 6.3811 renminbi)
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