Chinese tech giant Baidu's shares rise 2% after revenue beat

BEIJING — Chinese tech elephantine Baidu reported Tuesday third-quarter gross that bushed expectations, though maturation was slower than during the erstwhile 3 months.

The company's U.S.-listed shares were up astir 2% successful pre-market commercialized astatine 5:00 a.m. ET. The banal is down astir 3% implicit the twelvemonth truthful far.

Revenue grew by 6% year-on-year to 34.45 cardinal yuan ($4.72 billion) successful the 4th that ended Sept. 30. That was somewhat higher than expert expectations of 34.33 cardinal yuan, according to Refinitiv.

Online selling gross astatine the hunt motor supplier was up by 5% from a twelvemonth ago, portion non-online selling gross was 6% higher implicit the aforesaid period.

It comes aft gross successful the erstwhile 4th surged 15% from a twelvemonth ago, with online and non-online selling gross increasing by treble digits.

"Baidu reported coagulated third-quarter fiscal results, demonstrating resilience successful a challenging economical climate," Robin Li, Baidu CEO and co-founder of Baidu, said successful a release.

Adjusted net per American Depositary Share were 20.40 yuan successful the 3rd quarter, down from 22.55 yuan successful the erstwhile 3 months, but up from 16.87 yuan successful the year-ago period.

Baidu reported nett income of 6.68 cardinal yuan for the 4th ended Sept. 30, up from 5.21 cardinal yuan successful the erstwhile quarter.

The institution said higher selling walk contributed to an 11% year-on-year summation successful selling, wide and administrative expenses which came successful astatine 5.8 cardinal yuan.

Research and improvement expenses rose by 6% to 6.1 billion year-on-year, partially owed to accrued server fees to enactment Ernie bot research, the institution said. That's a pickup from 1% maturation successful the 2nd 4th from a twelvemonth ago.

Ernie bot is Baidu's mentation of the artificial intelligence-powered chatbot ChatGPT. Baidu lone started charging for Ernie bot successful November.

"Baidu Core maintained unchangeable margins successful the quarter," Rong Luo, Baidu CFO, said successful a release. "Our ongoing investments successful AI person underpinned technological and merchandise innovations. Moving forward, portion we volition proceed prioritizing investments successful AI, particularly successful generative AI and instauration models, we volition bash truthful with an unrelenting absorption connected ratio and strategical assets allocation."

The institution said its Apollo Go robotaxi concern operated 821,000 rides successful the 3rd quarter, up from 714,000 rides successful the 2nd 3 months of the year.

In September, the suburban Beijing metropolis territory of Yizhuang officially fto section robotaxi operators complaint fares for afloat autonomous taxis, with nary drivers inside.

Baidu besides announced that Sandy Xu, erstwhile CFO of JD.com, would articulation the institution arsenic an autarkic manager of the committee starting Jan 1, 2024.