BIDU(HK:09888)2022-05-26 09:37Financial Performance - Baidu's total revenue for Q1 2022 was RMB 28,411 million, representing a 1% year-over-year increase but a 14% quarter-over-quarter decline[4]. - Baidu's core revenue for Q1 2022 was RMB 21,378 million, a 4% increase year-over-year but an 18% decrease quarter-over-quarter[5]. - Baidu's net profit attributable to the company was a loss of RMB 885 million in Q1 2022, compared to a profit of RMB 25,653 million in Q1 2021[4]. - Baidu's adjusted EBITDA for Q1 2022 was RMB 5,499 million, with an adjusted EBITDA margin of 24%[5]. - Baidu's operating profit for Q1 2022 was RMB 2,601 million, reflecting a 7% decrease year-over-year but a 33% increase quarter-over-quarter[4]. - Baidu's total revenue for Q1 2022 was RMB 28.4 billion (USD 4.48 billion), a year-over-year increase of 1%[7]. - Online marketing services revenue was RMB 16,929 million, down 6.5% from RMB 18,094 million in the same quarter of 2021[16]. - The company reported a net profit margin of 10% for Q1 2022, down from 12% in the previous year[20]. - Baidu's total costs and expenses for the quarter were RMB 25,810 million, a decrease of 1.4% from RMB 25,345 million in the same quarter of 2021[16]. User Engagement - The number of monthly active users for Baidu APP in March reached 632 million, a 13% increase year-over-year, with daily login users accounting for 83%[7]. - Baidu's smart mini-programs (SMPs) had 508 million monthly active users in March, a 22% year-over-year increase, with the number of smart mini-programs growing by 26%[7]. - The company reported a significant increase in user data, with daily active users on Baidu's mobile app reaching 600 million, up from 500 million a year ago[23]. Research and Development - Baidu's R&D expenses for Q1 2022 were RMB 5.6 billion (USD 885 million), a 10% year-over-year increase, primarily due to increased personnel-related expenses[7]. - Baidu's research and development expenses for Q1 2022 were RMB 5,608 million, an increase of 10% year-over-year[20]. - The company is focusing on new product development, particularly in autonomous driving and smart devices, with an expected investment of RMB 10 billion over the next three years[23]. Strategic Initiatives - Baidu plans to enhance overall operational efficiency to promote long-term growth despite challenges from the COVID-19 pandemic[3]. - Baidu plans to expand its market presence by investing in AI technology and enhancing its cloud services, aiming for a 30% growth in cloud revenue by the end of 2023[23]. - Baidu's strategic initiatives include potential mergers and acquisitions to enhance its technology portfolio and market share, with a target of completing at least two acquisitions by the end of 2022[23]. Future Outlook - The company has set a performance guidance for the next quarter, projecting revenue between RMB 32 billion and RMB 34 billion, indicating a growth rate of approximately 15% to 20% year-over-year[23]. - Baidu's management believes that non-GAAP financial indicators provide meaningful supplemental information regarding the company's performance and liquidity[14].