Baidu Reports Total Revenues of $4.43B, Driven by Baidu AI Cloud up 31% YoY

Beijing-based AI giant Baidu, Inc announced on August 30 its unaudited financial results for the second quarter ended June 30, 2022.

Baidu’s total revenues were 29.6 billion yuan ($4.43 billion), down 5% year-on-year. The non-GAAP net income attributable to Baidu was 5.5 billion yuan, increasing 3% year-over-year and 43% quarter-over-quarter.

The company continues to invest heavily in R&D as Baidu Core’s R&D expenses account for more than 20% of the division’s revenue for 7 consecutive quarters. The non-GAAP Baidu Core operating margin was 22%, up from 17% in last quarter.

Baidu Core generated 23.2 billion yuan in revenues in the second quarter, while Baidu AI Cloud revenues maintained rapid growth totalling over 31% year-over-year and 10% quarter-over-quarter.

Apollo Go further solidified its position as a leading autonomous ride-hailing service provider. The company completed 287K rides in the second quarter and had accumulated one million rides by July 20. The service now covers more than 10 cities across China including Beijing, Shanghai, Shenzhen, Chongqing and Hefei.

Baidu ACE (Autonomous Driving, Connected Road, Efficient Mobility) smart transportation has been adopted by 51 cities, up from 20 cities a year ago, based on contract value of over 10 million yuan, as of the end of the second quarter of 2022.

SEE ALSO: Baidu’s Apollo Go Launches Pilot Autonomous Driving Services in Hefei

Baidu unveiled its 6th generation robotaxi vehicle Apollo RT6 in July 2022. The RT6 is the first steering wheel-free, all electric model designed for fully driverless autonomous driving. The Apollo RT6 is distinct from the previous generations that had otherwise been retrofitted on conventional vehicles.

Apollo RT6 (Source: Baidu)

In June, Baidu App’s MAUs reached 628 million, up 8% year-over-year, and daily logged-in users reached 84%. Xiaodu continued to be ranked No.1 in smart speaker shipments in China for 1Q22, according to IDC and Canalys.

After the financial report was released, Robin Li, chairman and CEO of Baidu, issued an internal letter, saying, “I believe everyone has felt the difficulties and challenges in the macro environment. We must fully recognize the difficulties and  consider this in every work decision. But in difficult times, we must also have reasonable confidence. Over the years, Baidu has been working hard to use technology to change the world and to make the complex world simpler. The value that technology brings to people’s lives and the productivity of society is clear. Our years of accumulation and long-term investment in technology have made people feel much more than before that Baidu can provide unique value.”