Baidu (BIDU) posts blow-out Q2 earnings as revenues surge 15%, amps up AI bets

Baidu (NASDAQ: BIDU) gained over 4% in pre-open trading Tuesday after posting blow-out results on the top and bottom line in its second quarter, benefiting form its early investments in AI.

Revenue in U.S. dollars for the quarter was up 15% from last year to $4.697 billion, versus the consensus of $4.57 billion.

Non-GAAP earnings per ADS was $3.11, up 43% from last year, and well above the consensus of $2.32.

Baidu Core non-GAAP operating profit grew by 27% from last year, with non-GAAP operating margin expanding to 25% from 22% last year.

The company said the improvement in profit and margins as well as strong cash generation were primarily driven by revenue acceleration and efficiency gain.

"In the second quarter of 2023, Baidu Core accelerated revenue and profit growth, driven by the solid performance of online marketing business and operating leverage," said Robin Li, Co-founder and CEO of Baidu. "Generative AI and large language models hold immense transformative power in numerous industries, presenting a significant market opportunity for us."

CFO, Rong Luo added, "Baidu has invested in AI for over a decade and is well-positioned to capitalize on the opportunities arising from generative AI and LLM. As we look ahead, we remain steadfast in investing in AI, in particular large language models and generative AI in the upcoming quarters."

By StreetInsider.com Staff

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