Iqiyi members, Baidu cloud services and smart devices have grown substantially.
After the US stock market on May 18, Baidu (BIDU.US) released its first quarter 2020 performance report.
The financial report shows that in the first quarter of 2020, Baidu ’s revenue was 22.5 billion yuan (except for the stock price, the currency units in the text are all “RMB”), a year-on-year decrease of 7%, but exceeding market expectations of 21.91 billion yuan; under Non-GAAP Net profit was 3.1 billion yuan, a year-on-year increase of 219%. 1.484 billion yuan that exceeded market expectations.
After the financial report was released, Baidu rose more than 10% after the market. As of press time, Baidu’s after-hours share price was $ 116.2, an increase of 8%.
Li Yanhong, Chairman and CEO of Baidu, said: “In the first quarter, affected by the epidemic, people’s homes were segregated, and Baidu’s revenue fell only 7% year-on-year during this period. This is mainly due to the diversified income sources, including Marketing services, new AI business and iQiyi. As the domestic epidemic is gradually controlled, offline activities are gradually recovering, and Baidu will also benefit from China ’s economic recovery. “
Baidu CFO Yu Zhengjun said: “The operational efficiency of Baidu ’s core business is mainly benefited from the enhancement of the mobile ecosystem, making in-end search faster than browser search growth and stronger monetization ability. Moreover, new AI services Better development. “
In terms of specific business, in Q1, revenue from Baidu Core (including search stream advertising and AI) reached 15.3 billion yuan, a year-on-year decrease of 13%; adjusted profit before tax depreciation and amortization was 4.6 billion yuan , An increase of 38% year-on-year. Revenue from iQiyi was 7.6 billion yuan, a year-on-year increase of 9%.
In terms of revenue type, Baidu ’s largest source of revenue is online advertising (including Baidu ’s own and iQiyi ’s advertising revenue). This quarter ’s revenue was 14.2 billion yuan, a year-on-year decline. This is mainly because the epidemic has a certain impact on the entire advertising industry.
However, Baidu mobile user data ushered in an outbreak during the epidemic, as of 2020In March, the number of monthly active users of Baidu App reached 222 million, an increase of 28% year-on-year, and the search volume on the App side increased by 45% year-on-year; the number of content creators of Baijiahao exceeded 3 million, an increase of 44% year-on-year; Users reached 354 million, an increase of 96% year-on-year.
In addition to online advertising, Baidu ’s other business, Q1 revenue was 8.3 billion yuan, an increase of 28% year-on-year, mainly driven by the growth of iQiyi members, cloud services and smart devices. In Q1, the number of iQiyi subscribers increased by 23% year-on-year to 118.9 million. Small assistants and Apollo autonomous driving have grown steadily. As of March 2020, the total number of small assistant interactions reached 6.5 billion, nearly three times the same period last year. In the first quarter, Apollo Intelligent Transportation won successive bids for new infrastructure projects such as Chongqing, Hefei and Yangquan.
Baidu ’s Q1 profits rose thanks to the reduction in costs and expenses. Baidu’s cost and expenses in the first quarter were 23 billion yuan, a year-on-year decrease of 8%. Among them, the cost of revenue was 14.7 billion yuan, a year-on-year decrease of 1%, mainly due to the decrease in traffic acquisition costs. In terms of expenses, sales and administrative expenses decreased by 36% year-on-year to 3.85 billion yuan, and research and development expenses increased by 7% year-on-year to 4.44 billion yuan.
JPMorgan Chase believes that Baidu ’s core business is expected to resume in the second quarter of 2020. In the financial report, Baidu made an outlook for the next quarter’s results, and it is expected that revenue in the second quarter of 2020 will be between 25 billion and 27.3 billion yuan. At the same time, Baidu said that in view of the ever-changing domestic epidemic situation, the above expectations reflect Baidu’s preliminary view, which is still very uncertain.