Baidu’s revenue grew by 20% in second quarter boosted by its AI business
Baidu‘s revenue grew 20% year on year during the June quarter compared to the corresponding period a year ago, boosted by its artificial intelligence business, announced the company. The Chinese search giant posted a revenue of US$4.8 billion during the quarter.
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Photo credit: Baidu
It registered a net loss of US$90 million in the June-ended quarter, primarily due to marking down the value of its stake in livestreaming app Kuaishou. Shares of Kuaishou sank 28% in the quarter and are currently trading below its initial public offering price, pointed out a Bloomberg report.
“Baidu Core delivered another strong quarter, powered by the fast growth of our new AI business. We are excited about the opportunities to help different industries transform their business with AI and support our goal to become carbon neutral by 2030,” said Robin Li, the company’s co-founder and CEO.
Baidu’s monthly active users reached 580 million in June. Subscribers to its Netflix-style service iQiyi crossed the 100 million mark during the month.
For the third quarter of 2021, Baidu expects revenues to hit between US$4.7 billion and US$5.2 billion, representing a growth rate of 8% to 19% year on year, which assumes that Baidu Core revenue will grow between 9% and 20% year-on-year.
“The Covid-19 situation in China is evolving and business visibility is limited. The above forecast reflects Baidu’s current and preliminary view, which is subject to substantial uncertainties,” the company stated as a precautionary outlook.
Baidu also appointed chief financial officer Herman Yu as its chief strategy officer. He will continue to serve as CFO until a successor is found.
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