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Baidu Beats Revenue Forecasts, Reports Net Loss as Ad Sales Fall and AI Cloud Grows

The company is leaning on expanding AI-led cloud services to counter a pullback in advertising.

Overview

  • Total revenue declined 7% to 31.17 billion yuan, topping analyst expectations of 30.7 billion yuan.
  • Online advertising revenue dropped 18% to 15.3 billion yuan as companies curtailed marketing budgets in a weak spending environment.
  • Cloud and AI services rose 21% to 9.3 billion yuan, driven by demand for large language models and development tools.
  • Baidu posted a net loss of 11 billion yuan due largely to asset write-downs, while earnings per share of 11.12 yuan beat the 8.37 yuan consensus.
  • U.S.-listed shares were little changed in premarket trading as Baidu highlighted new AI chips for training and inference and continued upgrades to its Ernie model.