2025-11-18 13:32Financial Data and Key Metrics Changes - In Q3, total revenues were RMB 31.2 billion, a decrease of 7% year-over-year [27] - Baidu Core reported total revenue of RMB 24.7 billion, also down 7% year-over-year [27] - Baidu Core's online marketing revenue decreased by 18% year-over-year to RMB 15.3 billion, while non-line marketing revenue increased by 21% year-over-year to RMB 9.3 billion [27] - Operating loss was RMB 15.1 billion, with a non-GAAP operating income of RMB 2.2 billion [29][30] Business Line Data and Key Metrics Changes - AI Cloud revenue reached RMB 6.2 billion, increasing by 21% year-over-year [27] - Revenue from AI Cloud infrastructure was RMB 4.2 billion, up 33% year-over-year, with subscription-based AI accelerator infrastructure revenue growing 128% year-over-year [25][41] - Revenue from AI-native marketing services reached RMB 2.8 billion, representing a robust 262% year-over-year increase [27][15] Market Data and Key Metrics Changes - Apollo Go provided over 3 million fully driverless operational rides in Q3, marking a 212% year-over-year increase [9][19] - As of October, Apollo Go's global footprint expanded to 22 cities, up from 16 last quarter [11] - Baidu App's MAU reached 708 million, up 1% year-over-year, with daily average time spent per user increasing by 2.3% year-over-year [21] Company Strategy and Development Direction - The company is focusing on AI capabilities across its business lines, with a strong emphasis on AI Cloud and AI-native marketing services [22][23] - Apollo Go is entering a phase of rapid global expansion, with plans to scale operations and improve unit economics [60] - The company aims to enhance its AI search capabilities and integrate AI-generated content into its services [21][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the AI Cloud business, driven by strong demand for AI-centric services [41] - The company anticipates that the AI-native marketing services will continue to grow and offset traditional advertising weaknesses [66] - Management highlighted the importance of continuous investment in AI technologies to maintain competitive advantages [70] Other Important Information - The company has conducted a comprehensive review of its asset base, leading to a significant impairment of long-lived assets amounting to RMB 16.2 billion [29] - Total cash and investments as of September 30, 2025, were RMB 296.4 billion [31] Q&A Session Summary Question: How will Ernie 5.0 drive the next stage of application? - Management highlighted that Ernie 5.0 enhances digital humans and FM Agents, focusing on application-driven improvements [34][36] Question: What is the outlook for the cloud business? - Management noted that the cloud business is growing above industry averages, with strong demand for AI-centric services [40][41] Question: How is AI search monetization progressing? - Management reported that nearly 70% of mobile search result pages contain AI-generated content, with positive user engagement metrics [63][66] Question: What are the goals for Apollo Go next year? - Management outlined plans for geographic expansion and improving unit economics, with a focus on scaling operations [57][60] Question: What is the rationale behind the asset impairment? - Management explained that the impairment was due to a review of assets that no longer met current computing efficiency requirements [70]