Baidu teleconference record: Baidu will benefit from the opening of Internet Ecology


On November 17, baidu (NASDAQ: BIDU) released its financial statements for the third quarter ended September 30, 2021 on Wednesday. According to the financial report, Baidu’s total revenue in the third quarter was 31.921 billion yuan, a year-on-year increase of 13%; The net loss attributable to Baidu was 16.559 billion yuan, expanding by about 27 times month on month. [the reality is too cruel, the dream is too far away, baidu is too difficult!]
After the release of the earnings report, Baidu co founder and CEO (CEO) Robin Li, CFO (chief financial officer) Luo Rong, senior vice president Shen Zhen and CSO (chief strategy officer) Yu Zhengjun attended the earnings call conference and answered the analyst’s questions at the scene.
The following is the record of the earnings conference call:
Analyst: for the revenue outlook of Baidu’s core business in the fourth quarter, you provided a broader range, that is, 5% to 16%. Can management elaborate on what the 5% scenario means? What if we compare the revenue growth of core business with that of AI cloud business? Under what circumstances can it reach 16%? Is it a better environment? Or are more cloud projects coming to an end?
In addition, in the case of changes in the regulatory environment, has Baidu discussed with other Internet peers about opening up the content on social platforms, so that search engines can search such topics? In this way, will it bring some benefits to Baidu? In addition, have you discussed with e-commerce giants the content related to Baidu’s core business going deep into e-commerce products?
Yu Zhengjun: Generally speaking, when we provide future prospects, we expect that we will at least reach the middle of the target. As Robin Li said, 20% of Baidu’s core business has nothing to do with advertising, and 80% is related to advertising. At present, we are trying to control COVID-19’s risk in a certain range.
In addition, another part of our business is cloud business. We need to ensure that the software is installed correctly, which is more complex than advertising. In response to your question, in terms of software delivery, the risk is that the software has not been opened for use, and we cannot know the specific performance in the future. This has always been the characteristic of the business facing the company (2b), so our AI cloud business, transportation business and other risks are the main risks. Overall, we believe that we will eventually achieve the middle level of the scope mentioned in the outlook.
Shen Shuan: search itself should be open. We believe that cross platform search and content sharing between platforms can bring users a better user experience, which will be the general trend in the future. We have seen many examples that can prove that the industry is developing in this direction. For example, some developers are more willing to open their ecosystem because it is also beneficial to their own business. In Baidu’s ecosystem, we have achieved some success. Nearly 1 billion e-commerce products are searched on our search engine. The total volume of commodity transactions on Baidu platform increased by 90% month on month.
I would also like to share another example. China’s major smartphone manufacturers are using our open source smart Mini applet framework on their own browsers. As more of these frameworks are adopted, users will have a better user experience. These developers can expand their browser audience in China. We firmly believe that we will benefit from the opening of the Internet, and we also see that this trend is moving forward.
(continuously updated)