Sou Hu Cai Jing·2025-08-21 05:38Core Insights - Baidu's Q2 total revenue reached 32.7 billion RMB, with a net profit of 7.4 billion RMB, marking a 35% year-on-year increase, exceeding market expectations [1][2] - AI-driven new business revenues, including smart cloud services, grew significantly, surpassing 10 billion RMB for the first time, with a 34% year-on-year increase [1][8] - The company's core online marketing revenue declined by 15% to 16.2 billion RMB, reflecting challenges in monetizing its AI transformation in the short term [3][7] Financial Performance - Total revenues for Q2 2025 were 32.7 billion RMB, a 4% year-on-year decline, aligning closely with market estimates [2][7] - Adjusted (non-GAAP) net profit was 4.8 billion RMB, down 35% year-on-year, while adjusted operating profit fell 41% to 4.45 billion RMB, exceeding market expectations [2][3] - Free cash flow turned negative at 4.7 billion RMB, primarily due to increased investments in AI business [7] Business Segments - The online marketing segment, a key revenue driver, saw a significant decline, which the management attributed to intensified AI transformation efforts in search [7][9] - Non-online marketing revenue, driven by AI cloud services, grew by 34% year-on-year, marking a shift towards a more diversified revenue structure [8][9] - iQIYI's revenue was 6.6 billion RMB, down 11% year-on-year, indicating challenges in the streaming segment [3] Strategic Developments - Apollo Go, Baidu's autonomous driving service, completed over 2.2 million rides in Q2, a 148% year-on-year increase, and has established global partnerships with Uber and Lyft [3][8] - Baidu's AI cloud business has been recognized as the leading public cloud provider in China for six consecutive years, indicating strong market positioning [1][8] - The company is focusing on enhancing its AI capabilities and expanding its global footprint in autonomous driving, aiming for long-term value creation [9][10]