China’s largest search engine operator Baidu topped market estimates for quarterly revenue on Thursday, as strong growth in its cloud business helped cushion the hit from persistent weakness in its mainstay advertising business.
Baidu, like other tech giants in China, has invested heavily in building out its artificial intelligence capabilities, helping the tech firm capture enterprise demand as companies increasingly adopt AI to speed up operations and productivity.
Strength in its cloud business has helped Baidu offset weakness in its advertising unit — its primary revenue generator — which has struggled to rebound in a highly competitive ad market. Weak consumer demand and a prolonged property-sector crisis have hobbled China’s economy, denting advertiser spending.
Revenue from Baidu‘s core AI-powered business, which includes its cloud infrastructure unit, AI applications and robotaxi division, jumped to 11 billion yuan ($1.61 billion) in the fourth quarter and accounted for 43% of the company’s general business revenue.
The company reported total revenue of 32.74 billion yuan for the quarter ended December, compared with analysts’ average estimate of 32.62 billion yuan, according to data compiled by LSEG.
Reuters
