Updated February 28th, 2024 at 17:05 IST

Baidu reports 6% revenue growth in Q4 led by AI, advertising success

The company reported revenue of 34.95 billion yuan ($4.92 billion) for the three months ending in December.

Reported by: Business Desk
Baidu reports 6% revenue growth in Q4 | Image:Shutterstock
Advertisement

Baidu's revenue growth: Baidu, the Chinese search engine, has reported a 6 per cent growth in revenue during the fourth quarter, attributing the rise to the success of its artificial intelligence (AI) applications and advertising ventures. The company reported revenue of 34.95 billion yuan ($4.92 billion) for the three months ending in December, which closely aligns with the average estimate of analysts.

Notably, Baidu's adjusted net income surged by 44 per cent to 7.76 billion yuan, surpassing the anticipated figure of 6.32 billion yuan. The company's core revenue driver remains advertising, but it has strategically diversified its portfolio by investing in AI technologies. Last year, Baidu unveiled its ERNIE Bot, reminiscent of ChatGPT, as part of its initiative to leverage AI's potential.

Advertisement

ERNIE revenue impact

According to Baidu, ERNIE AI services have already begun contributing to the company's revenue streams. CEO and co-founder Robin Li stressed upon the importance of advancements made in enhancing ERNIE and its associated services, as well as notable breakthroughs in monetisation achieved throughout 2023.

Advertisement

In pre-market trading, Baidu's US-listed shares experienced a modest 0.4 per cent increase, reflecting investor confidence in the company's performance and future prospects.

Baidu's online marketing revenue also witnessed a 6 per cent growth, reaching 19.2 billion yuan for the quarter. Furthermore, the company's adjusted profit per American Depositary Share (ADS) amounted to 21.86 yuan, surpassing the previous year's figure of 15.25 yuan per share and beating analyst expectations, which averaged at 17.87 yuan per ADS, according to LSEG data.

Advertisement

(With Reuters Inputs)

Advertisement

Published February 28th, 2024 at 16:57 IST