BIDU(US:BIDU) 美股IPO·2025-08-20 12:17Core Insights - Baidu's Q2 total revenue reached 32.7 billion RMB, with a net profit attributable to Baidu core of 7.4 billion RMB, representing a year-on-year growth of 35% [1][3] - AI-driven new business revenue, including smart cloud services, exceeded 10 billion RMB for the first time, showing a year-on-year increase of 34% [1][3][10] - The global ride-hailing service "Luobo Kuaipao" recorded over 2.2 million service instances in Q2, a significant year-on-year growth of 148%, making it the leader globally with cumulative service instances exceeding 14 million [1][2][13] Financial Performance - Total revenue for Q2 was 32.7 billion RMB, a year-on-year decline of 4%, aligning closely with market expectations [4][12] - Adjusted (Non-GAAP) net profit was 4.8 billion RMB, down 35% year-on-year, while GAAP net profit increased by 33% due to non-operational gains [4][12] - Free cash flow turned negative at 4.7 billion RMB, primarily due to increased investments in AI business [12] Core Business Developments - Online marketing revenue, a key component of Baidu's business, fell sharply by 15% to 16.2 billion RMB, reflecting challenges in monetizing AI-driven search transformations [10][12] - Non-online marketing revenue grew by 34%, driven by AI cloud services, and now accounts for 38% of Baidu's core revenue, indicating a shift towards a more diversified revenue structure [13][14] - Baidu's AI cloud services have been recognized as the leading public cloud provider in China for six consecutive years according to IDC [2][13] Strategic Initiatives - Baidu's Apollo Go service is expanding globally, having formed strategic partnerships with Uber and Lyft to deploy thousands of fully autonomous vehicles in various international markets [7][13][15] - The company is focusing on enhancing its full-stack AI capabilities and end-to-end AI products to alleviate pressures on its online marketing business and support long-term growth [14][15]