Financial Data and Key Metrics Changes - Baidu's total revenue for Q4 2024 was RMB34.1 billion, a decrease of 2% year-over-year, while full-year revenue was RMB133.1 billion, also down 1% year-over-year [43] - Baidu Core's Q4 revenue was RMB27.7 billion, an increase of 1% year-over-year, with full-year revenue at RMB104.7 billion, also up 1% year-over-year [43][44] - Operating income for Q4 was RMB3.9 billion, down from RMB5.4 billion year-over-year, with a Baidu Core operating margin of 13% [47] - Non-GAAP operating income for Q4 was RMB5 billion, with a non-GAAP Baidu Core operating margin of 17% [48] Business Line Data and Key Metrics Changes - The AI Cloud business saw revenue growth of 26% year-over-year in Q4, reaching RMB7.1 billion, contributing to a full-year growth of 17% [34][92] - Baidu Core's online marketing revenue decreased by 7% year-over-year to RMB17.9 billion in Q4, accounting for 65% of total revenues [44] - Non-online marketing revenue increased by 18% year-over-year to RMB9.8 billion in Q4, driven primarily by the AI Cloud business [44] Market Data and Key Metrics Changes - ERNIE's daily API costs surged to approximately RMB1.65 billion, reflecting a 178% quarter-over-quarter growth in external demand [12][13] - Baidu Wenku's subscription revenue grew 21% year-over-year in Q4, with monthly active users of AI-enabled features reaching 94 million [18] Company Strategy and Development Direction - Baidu aims to solidify its leadership in AI by investing in AI capabilities and enhancing its product portfolio, particularly in search and cloud services [10][37] - The company plans to open source the upcoming ERNIE 4.5 series and make ERNIE Bot free to drive broader adoption and market awareness [14][60] - Baidu's autonomous ride-hailing service, Apollo Go, is set for global expansion, having secured testing permits in Hong Kong [32][116] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the AI Cloud market's growth, anticipating increased enterprise spending on AI services as foundation models become more accessible [92][96] - The advertising business is expected to gradually improve in 2025, driven by AI transformation and macroeconomic recovery [88] - Management emphasized the importance of maintaining operational efficiency and exploring innovative models in the autonomous driving sector [105] Other Important Information - Baidu's cash position as of December 31, 2024, was RMB139.1 billion, with free cash flow of RMB13.1 billion for the year [53] - The company repurchased over $1 billion in shares since the beginning of 2024, with plans to accelerate the buyback program [125] Q&A Session Summary Question: What is the strategic thinking behind open sourcing ERNIE 4.5 and making ERNIE Bot free? - Management believes open sourcing will drive broader adoption and showcase ERNIE's capabilities, enhancing market recognition and user engagement [60][62] Question: What is the current mix of AI-generated content in search results? - Currently, 22% of search result pages contain AI-generated content, with ongoing efforts to enhance user experience and engagement [71][74] Question: What is the outlook for core ads growth in 2025? - Management expects gradual improvement in advertising revenue, driven by AI transformation and macroeconomic factors [88] Question: Can we expect continued growth in the AI Cloud business? - AI Cloud revenue growth is anticipated to maintain strong momentum, driven by rising demand for ERNIE and a diverse customer base [92][98] Question: What are the plans for the Robotaxi business heading into 2025? - Apollo Go aims to expand its fleet and ride volumes, with a focus on partnerships and maintaining operational efficiency [117][118]

Financial Performance - Total revenues for Q4 2024 were RMB 34.1 billion ($4.68 billion), a decrease of 2% year over year[9]. - Total revenues for the fiscal year 2024 were RMB 133.1 billion ($18.24 billion), a decrease of 1% year over year[20]. - Total revenues for Baidu in Q4 2023 were RMB 34,951 million, representing a year-over-year increase of 1% and a quarter-over-quarter increase of 4%[49]. - Total revenues for Baidu, Inc. reached RMB 134,598 million for the twelve months ended December 31, 2024, representing a year-over-year decrease of 1%[50]. - Online marketing services revenue reached RMB 20,804 million for the three months ended December 31, 2024, compared to RMB 19,340 million in the same period last year, reflecting a year-over-year growth of 7.6%[46]. Net Income - Net income attributable to Baidu for Q4 2024 was RMB 5.2 billion ($711 million), representing a 100% increase year over year[17]. - Net income attributable to Baidu for the twelve months ended December 31, 2024, was RMB 23,760 million, an increase from RMB 20,315 million in the previous year, representing a growth of 12.0%[46]. - Net income attributable to Baidu in Q4 2023 was RMB 2,599 million, showing a significant year-over-year increase of 100%[49]. - Net income attributable to Baidu for the twelve months ended December 31, 2023, was RMB 19,401 million, which increased to RMB 23,431 million in 2024, showing a significant growth of 20.5%[57]. Cash Flow - Free cash flow for FY 2024 was RMB 13.1 billion ($1.80 billion), and free cash flow excluding iQIYI was RMB 11.1 billion ($1.52 billion)[30]. - Net cash provided by operating activities for Baidu was RMB 10,618 million for the three months ended December 31, 2024[51]. - For the twelve months ended December 31, 2023, Baidu reported net cash provided by operating activities of RMB 33,263 million, while for the same period in 2024, it increased to RMB 36,615 million, representing a growth of 7.5%[53]. - Baidu's free cash flow for the twelve months ended December 31, 2023, was RMB 22,109 million, which increased to RMB 25,425 million in 2024, indicating a growth of 15.5%[53]. Expenses - Adjusted EBITDA for FY 2024 was RMB 33.1 billion ($4.53 billion), with an adjusted EBITDA margin of 25%[29]. - Research and development expenses for the three months ended December 31, 2024, were RMB 6,287 million, up from RMB 5,515 million in the previous quarter, marking an increase of 14%[46]. - Research and development expenses for Baidu were RMB 22,133 million for the twelve months ended December 31, 2024, reflecting a year-over-year decrease of 9%[50]. - The company reported a total cost of revenues of RMB 17,418 million for the three months ended December 31, 2024, compared to RMB 18,014 million in the previous quarter, showing a decrease of 3.3%[46]. Shareholder Returns - Baidu returned US$356 million to shareholders since Q4 2024, bringing cumulative repurchases to over US$1 billion since 2024[8]. - Baidu's total shareholders' equity increased from RMB 243,626 million in December 2023 to RMB 263,620 million in December 2024[48]. - Baidu's share-based compensation expenses for the twelve months ended December 31, 2023, were RMB 5,708 million, which decreased to RMB 4,239 million in 2024, a decline of 25.8%[57]. Operational Metrics - Baidu's AI Cloud business saw revenue growth of 26% year over year in Q4 2024, offsetting declines in the online marketing segment[3]. - The MAU of Baidu Wenku's AI-enabled features reached 94 million in December 2024, with a 216% year over year increase[8]. - Apollo Go provided over 1.1 million rides in Q4 2024, a 36% increase year over year, and surpassed 9 million total rides by January 2025[8]. Asset and Liability Changes - Total current assets decreased from RMB 230,255 million in December 2023 to RMB 168,849 million in December 2024[48]. - Total non-current assets increased from RMB 176,504 million in December 2023 to RMB 258,931 million in December 2024[48]. - Total liabilities remained relatively stable, with a slight increase from RMB 144,151 million in December 2023 to RMB 144,168 million in December 2024[48]. - Baidu's cash and cash equivalents decreased from RMB 25,231 million in December 2023 to RMB 24,832 million in December 2024[48].

Financial Performance - Total revenues for Q4 2024 were RMB 34.1 billion ($4.68 billion), a decrease of 2% year over year[9]. - Net income attributable to Baidu for Q4 2024 was RMB 5.2 billion ($711 million), representing a 100% increase year over year[17]. - Total revenues for the fiscal year 2024 were RMB 133.1 billion ($18.24 billion), a decrease of 1% year over year[20]. - Baidu's total revenues for the twelve months ended December 31, 2024, were RMB 134.6 billion, a slight increase from RMB 133.1 billion in the previous year[46]. - The company's net income attributable to Baidu for the twelve months ended December 31, 2024, was RMB 23.8 billion, compared to RMB 20.3 billion in the previous year, reflecting a year-over-year increase of 17.3%[46]. - Total revenues for Baidu, Inc. reached RMB 134,598 million for the twelve months ended December 31, 2024, representing a year-over-year decrease of 1%[50]. - The net income attributable to Baidu for the same period was RMB 23,760 million, reflecting a year-over-year increase of 17%[50]. Operating Income and Margins - Baidu's operating income for Q4 2024 was RMB 3.9 billion ($537 million), down 27% year over year due to one-time losses[13]. - Operating income for Baidu in Q4 2023 was RMB 5,392 million, with an operating margin of 15%[49]. - Operating income (non-GAAP) was RMB 28,433 million, with a year-over-year decrease of 8%[50]. - The operating margin (non-GAAP) for Baidu was 20% for the twelve months ended December 31, 2024[50]. - The operating income (non-GAAP) for Baidu for the twelve months ended December 31, 2023, was RMB 24,748 million, while it decreased to RMB 23,890 million in 2024, reflecting a decline of approximately 3.5%[57]. Cash Flow and Shareholder Returns - Free cash flow for FY 2024 was RMB 13.1 billion ($1.80 billion), and free cash flow excluding iQIYI was RMB 11.1 billion ($1.52 billion)[30]. - Baidu returned $356 million to shareholders since Q4 2024, bringing cumulative repurchases to over $1 billion since 2024[8]. - The company reported a free cash flow of RMB 6,344 million for the three months ended December 31, 2023[51]. - Baidu's free cash flow for the twelve months ended December 31, 2023, was RMB 22,109 million, which increased to RMB 25,425 million in 2024, indicating a growth of about 15.5%[53]. Research and Development - Research and development expenses for the twelve months ended December 31, 2024, totaled RMB 24.2 billion, compared to RMB 22.1 billion in the previous year, indicating a 9.5% increase[46]. - Research and development expenses for Baidu in Q4 2023 were RMB 6,287 million, reflecting a year-over-year decrease of 13%[49]. - Research and development expenses totaled RMB 22,133 million for the twelve months ended December 31, 2024, a decrease of 9% year-over-year[50]. - Baidu's share-based compensation expenses for the twelve months ended December 31, 2024, were RMB 4,239 million, down from RMB 5,708 million in 2023, indicating a reduction of approximately 25.8%[57]. User Engagement and AI Growth - Baidu's AI Cloud business saw revenue growth of 26% year over year in Q4 2024, offsetting declines in the online marketing segment[3]. - The MAU of Baidu Wenku's AI-enabled features reached 94 million in December 2024, with a 216% year over year increase[8]. - Apollo Go provided over 1.1 million rides in Q4 2024, a 36% increase year over year, and surpassed 9 million total rides by January 2025[8]. Assets and Liabilities - Baidu's total current assets decreased from RMB 230,255 million in 2023 to RMB 168,849 million in 2024, a decline of approximately 26.7%[48]. - Total non-current assets increased from RMB 176,504 million in 2023 to RMB 258,931 million in 2024, an increase of approximately 46.6%[48]. - Total liabilities remained relatively stable, with a slight increase from RMB 144,151 million in 2023 to RMB 144,168 million in 2024[48]. - Baidu's cash and cash equivalents decreased from RMB 25,231 million in 2023 to RMB 24,832 million in 2024, a decline of approximately 1.6%[48]. - Baidu's cash, cash equivalents, and restricted cash at the end of the period decreased from RMB 32,293 million on December 31, 2023, to RMB 32,999 million on December 31, 2024[53].

Core Insights - Baidu, Inc reported fiscal fourth-quarter revenue of $4.68 billion, a 2% year-on-year decline, but exceeded analyst consensus estimates of $4.56 billion [1] - Adjusted earnings per ADS were $2.63, surpassing the analyst consensus estimate of $1.78 [1] - The stock price experienced a decline following the earnings report [1] Revenue Breakdown - Core revenue increased by 1% year over year to $3.8 billion [1] - Online marketing revenue fell by 7% year over year to $2.46 billion [1] - Non-online marketing revenue rose by 18% year over year to $1.34 billion, driven by the AI Cloud business, which grew by 26% during the quarter [2] Expense and Profitability Metrics - SG&A expenses were $915 million, up 14% year over year, attributed to increased expected credit losses, channel spending, and promotional marketing expenses [3] - R&D expenses decreased by 12% year over year to $756 million [3] - Adjusted EBITDA margin declined by 600 basis points to 20%, while Core adjusted EBITDA margin also decreased by 600 basis points to 24% [3] - As of December 31, 2024, Baidu had $19.1 billion in cash and equivalents and generated $3 million in free cash flow during the quarter [3] Strategic Direction - CEO Robin Li indicated that 2024 is a pivotal year for Baidu's transformation from an internet-centric to an AI-first business, with AI Cloud gaining momentum [4] - The company is advancing its AI transformation in the Mobile Ecosystem, with Apollo Go facilitating global expansion and scalable strategies [4] - Li anticipates that AI investments will yield more significant results in 2025 [4] Market Performance - Baidu's stock declined 8% over the last 12 months, as its AI models struggled to gain traction [5] - The company plans to launch Ernie 5.0 in late 2025 and will offer Ernie Bot free to all users [5] - Baidu is a key partner for Apple Inc as it aims to integrate AI features into its iPhones for the Chinese market [5] - BIDU stock traded lower by 2.29% at $95.25 in premarket trading following the report [5]

Core Insights - Baidu is transitioning from an internet-centric model to an AI-first business, with significant growth in its AI Cloud segment and advancements in its Mobile Ecosystem [2][3] - The company anticipates that its AI investments will yield substantial results in 2025, following a year of strategic validation [2] Financial Highlights for Q4 2024 - Total revenues for Q4 2024 were RMB 34.1 billion ($4.68 billion), a decrease of 2% year over year [3][7] - Operating income was RMB 3.9 billion ($537 million), down 27% from the previous year [3][11] - Net income attributable to Baidu was RMB 5.2 billion ($711 million), reflecting a 100% increase year over year [3][14] - Diluted earnings per ADS were RMB 14.26 ($1.95), up 111% year over year [3][14] - Adjusted EBITDA was RMB 7.0 billion ($953 million), with an adjusted EBITDA margin of 20% [3][15] Financial Highlights for Fiscal Year 2024 - Total revenues for FY 2024 were RMB 133.1 billion ($18.24 billion), a decrease of 1% year over year [17] - Operating income for FY 2024 was RMB 21.3 billion ($2.91 billion) [19] - Net income attributable to Baidu for FY 2024 was RMB 23.8 billion ($3.26 billion), with diluted earnings per ADS of RMB 65.91 ($9.03) [21] - Adjusted EBITDA for FY 2024 was RMB 33.1 billion ($4.53 billion), with an adjusted EBITDA margin of 25% [22] Operational Highlights - Baidu returned $356 million to shareholders since Q4 2024, totaling over $1 billion in repurchases since 2024 [6] - ERNIE, Baidu's AI model, handled approximately 1.65 billion API calls daily in December 2024, with a 178% increase in external API calls quarter over quarter [6] - Apollo Go, Baidu's autonomous ride-hailing service, provided over 1.1 million rides in Q4 2024, marking a 36% year-over-year increase [6] Segment Performance - Revenue from Baidu Core was RMB 27.7 billion ($3.80 billion) in Q4 2024, a 1% increase year over year [24] - Online marketing revenue decreased by 7% year over year to RMB 17.9 billion ($2.46 billion), while non-online marketing revenue increased by 18% year over year to RMB 9.8 billion ($1.34 billion) [24] - Revenue from iQIYI was RMB 6.6 billion ($906 million), down 14% year over year [24]

Group 1 - Baidu Inc. closed at $97.48, marking a +0.92% move from the prior day, outperforming the S&P 500 which lost 0.01% [1] - Over the past month, Baidu's shares gained 19.65%, significantly outpacing the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 4.88% [1] Group 2 - Baidu is scheduled to release its earnings report on February 18, 2025, with an expected EPS of $1.78, indicating a 42.21% decline compared to the same quarter last year [2] - The consensus estimate anticipates revenue of $4.56 billion, reflecting a 7.31% decrease from the same quarter last year [2] Group 3 - Recent changes to analyst estimates for Baidu reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which includes estimate changes, has a track record of success, with 1 stocks delivering an average annual return of +25% since 1988 [4][5] Group 4 - Baidu currently has a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate shifting 1.74% downward over the past month [5] - Baidu is trading with a Forward P/E ratio of 10.47, which is a discount compared to the industry's average Forward P/E of 24.04 [6] Group 5 - The Internet - Services industry, which includes Baidu, has a Zacks Industry Rank of 82, placing it in the top 33% of all industries [7] - The Zacks Industry Rank assesses the strength of industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Baidu, Inc. (BIDU) is scheduled to report fourth-quarter 2024 results on Feb. 18.The Zacks Consensus Estimate for revenues is pegged at $4.56 billion, indicating a decline of 7.31% from the year-ago quarter’s reported figure.The Zacks Consensus Estimate for earnings is pegged at $1.73 per share, suggesting a 42.2% fall from the prior-year quarter’s reported figure. The estimated figure has moved south by 12.3% over the past 30 days.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.BIDU’ ...

Baidu's ChatGPT-like Ernie Chatbot will be free for users from April 1.CFOTO/Future Publishing via Getty ImagesShares in Chinese search giant Baidu surged as much as 11.7% in Hong Kong on Thursday after it announced it will make its AI chatbot free of charge starting April 1.Listed on both the Nasdaq and in Hong Kong, the company said users will have free access to the Ernie Bot thanks to continued technological upgrades and lowered costs, according to a Thursday press statement. Fees will no longer be char ...

Core Insights - Baidu plans to release its next-generation AI model, Ernie 5.0, in the second half of the year, amid increasing competition from new players like DeepSeek [1][3] - Ernie 5.0 will feature significant enhancements in multimodal capabilities, allowing it to process and convert various types of media, including text, video, images, and audio [2] - The AI landscape in China is rapidly evolving, with companies striving to innovate and compete against established U.S. firms like OpenAI [3] Company Developments - Baidu's CEO, Robin Li, highlighted that the inference cost of foundation models could be reduced by over 90% within a year, indicating a potential for increased productivity through cost reduction [4][5] - Baidu was the first major Chinese tech company to launch a ChatGPT-like chatbot, Ernie, in March 2023, but it has since faced stiff competition from other AI chatbots developed by startups and larger companies like Alibaba and ByteDance [5] - Year-to-date stock performance shows Baidu's shares have increased by 6%, while Alibaba's shares have surged by 33%, and Tencent's by approximately 4% [6]

SINGAPORE, Feb. 11, 2025 /PRNewswire/ -- Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) ("Trip.com Group" or the "Company"), a leading one-stop travel service provider of accommodation reservation, transportation ticketing, packaged tours, and corporate travel management, today announced that Mr. Junjie He, a director nominated by Baidu Inc. (Nasdaq: BIDU; HKEX: 9888) ("Baidu"), has tendered his resignation as a director of the Company, effective on February 11, 2025, and that Mr. Rong Luo, the executive ...