When it comes to finance, keeping up with the latest news and trends is crucial for investors. Recently, Baidu, Inc. (NASDAQ: BIDU) reported its fiscal second-quarter earnings, revealing some interesting developments in the company’s performance.
Despite reporting flat year-on-year revenue of $4.67 billion, Baidu’s adjusted earnings per ADS of $2.89 beat analyst consensus estimates. The company saw an increase in its Core revenue by 1% year over year to $3.67 billion, while online marketing revenue declined by 2% to $2.64 billion. Non-online marketing revenue, however, grew by 10% to $1.03 billion, driven by the AI Cloud business.
Interestingly, revenue from IQIYI, Inc (NASDAQ: IQ) decreased by 5% year over year to $1.00 billion, missing analyst consensus estimates. Baidu’s SG&A expenses decreased by 9% year over year to $784 million, while R&D expenses declined by 8% to $810 million. The company’s adjusted EBITDA margin remained firm at 27%, with its Core adjusted EBITDA margin increasing by 100 bps to 32%.
As of June 30, 2024, Baidu held $22.29 billion in cash and equivalents and generated $862 million in free cash flow. CEO Robin Li highlighted the company’s focus on accelerating its AI Cloud business, renovating Baidu search, and achieving breakthroughs with Apollo Go, which offers fully driverless ride-hailing services in Wuhan.
Despite these developments, BIDU stock traded lower by 0.80% at $89.02 in the premarket session. Investors can use tools like Benzinga Pro to stay updated on the latest news and analysis in the stock market.
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