Baidu’s business is rebounding; Q2 results reveal

Baidu's co-founder and CEO, Robin Li said that with COVID-19 becoming more manageable in China, Baidu’s business is steadily rebounding.

Baidu’s business is rebounding; Q2 results reveal
Baidu’s business is rebounding; Q2 results reveal

Baidu’s business is rebounding; Q2 results reveal

Baidu announced its unaudited financial results for the second quarter ended June 30, 2020. Robin Li, co-founder and CEO of Baidu, said that with COVID-19 becoming more manageable in China, Baidu’s business is steadily rebounding.

They are delighted that in-app revenue grew in the second quarter, despite a challenging macro environment, further validating their strategy to make Baidu App a super app through AI-powered building blocks and marketing cloud platform.

He added that Baidu’s new AI businesses, including cloud, smart devices and smart transportation, saw double-digit growth in the second quarter and stand to become an important revenue driver in the years to come.

Herman Yu, CFO of Baidu said that in addition to investing in new AI businesses, Baidu is also diversifying their revenue streams through membership, online games and others to increase the ARPU of their existing traffic.

The positive growth of Baidu App and new AI businesses have enabled Baidu Core’s adjusted EBITDA margin to reach 41% in the second quarter. They plan to continue heavy investments in technology to maximize Baidu’s future growth potential.

Second Quarter 2020 Financial Highlights
 
Baidu, Inc.
(In millions except per ADS, Q2 Q1 Q2
unaudited) 2019 2020 2020 YOY QOQ
RMB RMB RMB US$
Total revenues 26,326 22,545 26,034 3,685 (1%) 15%
Operating income (loss) 233 (437) 3,644 516 1464%
Operating income (non-GAAP) 2 1,955 1,437 5,605 793 187% 290%
Net income to Baidu 2,412 41 3,579 507 48% 8629%
Net income to Baidu (non-GAAP) 2 3,635 3,082 5,082 719 40% 65%
Diluted earnings per ADS 6.57 0.02 10.31 1.46 57% 51450%
Diluted earnings per ADS (non-GAAP) 2 10.11 8.84 14.73 2.08 46% 67%
Adjusted EBITDA 2 3,355 2,852 7,015 993 109% 146%
Adjusted EBITDA margin 13% 13% 27% 27%

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