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Chinese search engine Baidu on Tuesday reported better-than-expected revenue, up by 15% year-on-year in the second quarter and bolstered by growth in advertising.
Baidu reported a revenue of 34.1 billion yuan for the second quarter of the year, rising by 15% from a year earlier and compared to estimated 33.29 billion yuan. This was the fastest quarterly year-on-year growth pace in two years.
Within Baidu’s core businesses, online marketing revenue rose by 15% to 19.6 billion yuan in the quarter, and non-online marketing revenue added 12% to 6.8 billion yuan.
Net profit reached 5.21 billion yuan for the period, surging 43% from a year earlier, compared to market expected 4.3 billion yuan. Non-GAAP net profit reached 8 billion yuan, surging by 44% from a year ago.
In the second quarter of 2023, Baidu Core accelerated revenue and profit growth, driven by the solid performance of online marketing business and operating leverage,” said Robin Li, Co-founder and CEO of Baidu, said in a release.
“Generative AI and large language models hold immense transformative power in numerous industries, presenting a significant market opportunity for us,” he said.
Baidu’s first-half revenue reached 65.2 billion yuan, rising by 12.3% from a year earlier, and net profit reached 11.035 billion yuan, surging by 301% year over year. Basic earnings per ordinary share was 3.82 yuan and basic earnings per ADS was 30.55 yuan.