Baidu reported a 3% decline in revenue for the third quarter of 2024, totaling 33.6 billion yuan (approximately US$4.6 billion). This drop was primarily attributed to a 4% decrease in online marketing revenue, which fell to 18.8 billion yuan, reflecting the broader economic woes impacting advertising spending [ed0e0382].
Despite the revenue decline, Baidu's net income rose by 14% year-on-year to 7.6 billion yuan, indicating some resilience in its overall financial health. However, the growth in artificial intelligence (AI) services, including Baidu's AI model Ernie, which handled 1.5 billion daily API calls in November, was not sufficient to offset the downturn in advertising revenue [ed0e0382].
CEO Robin Li emphasized the company's commitment to continued investment in AI technologies, suggesting that Baidu aims to leverage its AI capabilities to enhance future revenue streams. Additionally, Baidu's autonomous ride-hailing service, Apollo Go, achieved a notable milestone by providing 988,000 rides in Q3, marking a 20% increase compared to the same period last year [ed0e0382].
The mixed results from Baidu highlight the ongoing challenges faced by tech companies in China, particularly in the advertising sector, while also showcasing the potential for growth in AI and autonomous driving services as key areas of focus for the company moving forward [ed0e0382].