Beijing time on the morning of November 7, 2019, Baidu released the 2019 unaudited financial report after the close. Quarterly revenue reached 28.08 billion.
After the announcement of the Q1 earnings report in 2019, the share price plummeted by 30% due to the optimistic outlook for Baidu’s earnings. From June 2019, the market value was less than $40 billion for five months, and the latest market value was $37.4 billion.
low growth rate becomes the new normal
Baidu’s revenue has obvious seasonal fluctuations, and the trough appears in Q1 every year, Q2, Q3, and Q4 are rising quarter by quarter. In Q1 in 2018 and Q1 in 2019, revenues fell by 11% from the previous quarter.
Due to the negative impact of the slow growth of the real economy on the advertising industry, the quarter-on-quarter growth rate of revenues fell to a single place. In 2019, Q2 revenue was 26.3 billion, up 9.1% from the previous month; in 2019, Q3 revenue was 28.08 billion, up 6.7% from the previous month and down 0.4% from the previous year (Removing the divested business ).
Baidu divides revenue into two major segments – “online marketing” and “other income.” “Online Marketing” includes the advertising revenue of Dasou and iQiyi. “Other income” includes iQiyi membership fee, Baidu cloud and so on.
In recent years, the proportion of Baidu online marketing revenue has dropped significantly. In 2016, Q1 accounted for 94% of total revenue, and Q1 in 2018 has dropped to 80%. However, there was no decline after Q1 in 2019, and it remained at 73 in the first three quarters. % line.
