Baidu’s revenue in the third quarter was 31.9 billion yuan, a year-on-year increase of 13%

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On November 17, baidu released its unaudited financial report for the third quarter ended September 30, 2021. In the third quarter, baidu achieved a revenue of 31.9 billion yuan, a year-on-year increase of 13%. The net profit attributable to Baidu (non US GAAP) was 5.09 billion yuan, exceeding the average market expectation, down 27% year-on-year.
In the third quarter, the monthly life of Baidu app reached 607 million, a year-on-year increase of 12%, and the proportion of daily login users reached 79%.
“Baidu has been working hard in the field of AI for many years, and has always been committed to pioneering and innovating in user services, enterprise services and public services,” said Robin Li, chairman and chief executive of Baidu. “Baidu intelligent cloud can help enterprises improve quality and efficiency in customer service. At the same time, Baidu Apollo’s active investment in intelligent transportation and intelligent driving can not only improve traffic efficiency, ease traffic congestion, reduce traffic accidents, but also boost the development of electric vehicle industry.”
Baidu’s chief financial officer, rojung, said: “in the third quarter, Baidu Intelligent Cloud revenue increased by 73% compared to the same period last year, driving Baidu’s core revenue to achieve good results again. Intelligent cloud services, intelligent transportation, intelligent equipment, intelligent electric vehicles and automatic driving services and other AI business multidimensional layout will lay a solid foundation for Baidu to achieve long-term growth.”
Summary of third quarter results
The total revenue was 31.9 billion yuan (US $4.95 billion), a year-on-year increase of 13%.
The revenue from Baidu’s core business was 24.7 billion yuan ($3.83 billion), a year-on-year increase of 15%; the online marketing revenue was 19.5 billion yuan ($3.02 billion), a year-on-year increase of 6%; the non online marketing revenue was 5.2 billion yuan ($806 million), a year-on-year increase of 76%, which was mainly driven by cloud and other artificial intelligence services.
Iqiyi’s revenue was 7.6 billion yuan ($1.18 billion), a year-on-year increase of 6%.
The revenue cost was 16.1 billion yuan (US $2.5 billion), a year-on-year increase of 26%, mainly due to the increase of traffic acquisition cost, content cost and commodity sales cost related to the new artificial intelligence business.
Sales, general and administrative expenses were 7.3 billion yuan (US $1.14 billion), an increase of 56% year-on-year, mainly due to the increase in channel expenses, promotion and marketing, personnel related expenses and contingent losses in legal proceedings involving former advertising companies.
R & D expenses amounted to 6.2 billion yuan (US $957 million), a year-on-year increase of 35%.
The operating profit was 2.3 billion yuan ($358 million). The operating profit of Baidu’s core business was 3.7 billion yuan ($577 million), and the operating profit margin of Baidu’s core business was 15%.
Under non GAAP, the operating profit is RMB 4.7 billion (US $731 million). The operating profit of Baidu’s core business is RMB 5.8 billion (US $904 million), and the operating profit margin of Baidu’s core business is 24%.
Baidu’s net loss was 16.6 billion yuan ($2.57 billion), and its net profit under non GAAP was 5.1 billion yuan ($790 million), a year-on-year decrease of 27%.
As of September 30, 2021, cash, cash equivalents, restricted cash and short-term investments were 194.6 billion yuan (US $30.2 billion), excluding iqiyi’s cash, cash equivalents, restricted cash and short-term investments were 183.6 billion yuan (US $28.49 billion). Free cash flow was 691 million yuan (US $108 million) Excluding iqiyi, the free cash flow was RMB 2.9 billion (US $449 million).