China‘s search engine big Baidu Inc surpassed quarterly revenue estimates on Thursday as a resurgence of COVID-19 in China and accompanying limits boosted demand for its cloud and artificial intelligence (AI) products and solutions.
The information drove Baidu’s U.S.-stated shares a lot more than 5% up in pre-current market trading even as the firm cautioned that the second quarter would be extra demanding.
Income for the 3 months to March 31 rose 1% to 28.41 billion yuan ($4.22 billion), the slowest expansion in 6 quarters, but topped an analysts’ normal estimate of 27.82 billion, IBES data from Refinitiv showed.
It posted a web reduction of 885 million yuan, or 2.87 yuan for every American Depository Share (Advertisements), amid an economic downturn and pandemic resurgence in China.
A calendar year before it experienced posted a profit of 25.65 billion yuan, or 73.76 yuan for every Advertisements.
“Considering the fact that mid-March, our business enterprise has been negatively impacted by the the latest COVID-19 resurgence in China,” Robin Li, Baidu’s founder and chief executive, reported in a assertion, including that challenges related to the virus will keep on to pressure its operations in the around term.
Profits for Baidu Core, which consists of on the internet advert revenue and non-advertisement income from its AI-driven goods including AI cloud, rose 4% to 20.48 billion yuan.
Its on line ad revenue dropped 4% year-on-year to 15.7 billion yuan.
The second quarter will be far more challenging for the organization, in comparison with the 1st quarter, Baidu’s Chief Fiscal Officer Luo Rong reported for the duration of a convention simply call.
Gross sales from Baidu AI cloud, portion of the non-ad earnings and a single of its speediest-developing sectors, jumped 45%, in accordance to Luo.
Founded as a search engine software, the corporation has expanded into cloud solutions, autonomous driving and robotaxis in modern a long time as competitors rises for its main lookup platform and ad organization.
Very last month Baidu received permits to deploy robotaxis without the need of people in the driving seat on open Chinese roads for the to start with time.
Apollo Go, Baidu’s robotaxi services, presently accessible in 10 Chinese towns, operated about 196,000 rides during the quarter.