Baidu beats quarterly revenue estimates on cloud business boom
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CHINA’S search engine giant Baidu beat quarterly revenue estimates on Tuesday (Aug 30), underpinned by demand for its cloud and artificial intelligence-powered offerings.
US-listed shares of the company rose 3.2 per cent in pre-market trade.
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.
Total revenue stood at 29.65 billion yuan (S$5.98 billion) in the second quarter, compared with analysts’ average estimate of 29.30 billion yuan, according to Refinitiv data.
Revenue at Baidu’s AI Cloud unit grew 31 per cent year-on-year in the reported quarter.
Compared with year-ago numbers, the topline came in 5 per cent lower, its first quarterly de-growth in two years.
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Baidu posted a net profit of 3.64 billion yuan, or 1.49 yuan per American Depository Share (ADS). AFP
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