Baidu Announces First Quarter 2024 Results

Core Insights - Baidu's online marketing revenue remained stable, while AI Cloud revenue grew due to the optimization of its AI technology stack [1][4] - The company aims to make its ERNIE family of models more affordable and efficient, positioning itself for greater opportunities in the Gen-AI era in China [1][3] - Baidu Core's non-GAAP operating margin expanded to 23.5%, reflecting improved operational efficiency [1][3] Financial Highlights - Total revenues for Q1 2024 were RMB 31.5 billion ($4.37 billion), a 1% increase year-over-year but a 10% decrease quarter-over-quarter [2][4] - Operating income was RMB 5.5 billion ($760 million), with a non-GAAP operating income of RMB 6.7 billion ($924 million) [2][5] - Net income attributable to Baidu was RMB 5.4 billion ($755 million), a 6% decrease year-over-year but a 110% increase quarter-over-quarter [2][6] - Diluted earnings per ADS were RMB 14.91 ($2.07), down 6% year-over-year but up 120% quarter-over-quarter [2][6] Operational Highlights - Baidu returned $229 million to shareholders in Q1 2024, with a cumulative repurchase of $898 million under the 2023 share repurchase program [3] - The PaddlePaddle developer community grew to 13 million by mid-April 2024 [3] - Apollo Go, Baidu's autonomous ride-hailing service, provided approximately 826,000 rides in Q1 2024, a 25% increase year-over-year [3] Revenue Breakdown - Revenue from Baidu Core was RMB 23.8 billion ($3.30 billion), a 4% increase year-over-year, with online marketing revenue at RMB 17.0 billion ($2.36 billion), up 3% year-over-year [4] - Revenue from iQIYI was RMB 7.9 billion ($1.10 billion), a 5% decrease year-over-year [4] Cost and Expenses - Cost of revenues was RMB 15.3 billion ($2.12 billion), a 1% increase year-over-year [5] - Selling, general and administrative expenses were RMB 5.4 billion ($745 million), accounting for 17% of total revenues, down from 18% in the same period last year [5] - Research and development expenses were RMB 5.4 billion ($742 million), a 1% decrease year-over-year [5]