Baidu, the Chinese technology company, is set to announce its second-quarter results on Tuesday. Here are the important details:
Net Profit Forecast
According to a poll of analysts by FactSet, Baidu is expected to report a 44% increase in net profit from the previous year, reaching 5.24 billion yuan ($719.6 million) for the quarter ended June 30. This compares to a net profit of CNY3.64 billion in the same period last year.
Revenue Forecast
The FactSet poll also indicates that Baidu’s second-quarter revenue is estimated to have grown by 14% compared to the previous year, reaching CNY33.91 billion.
Key Points to Watch
Online Marketing
In March, the number of monthly active users for Baidu’s flagship app increased by 4% to reach 657 million compared to the previous year. Revenue from online marketing services in the first quarter showed a growth of 6.2% compared to the same period last year, reaching CNY17.97 billion. However, it dropped by 8.2% from the previous quarter. Given the slowdown in the Chinese economy, investors are closely monitoring online marketing revenue trends.
Video Streaming
Robotaxi
Baidu’s autonomous ride-hailing service, Apollo Go, provided approximately 660,000 rides in the first quarter, a more than triple increase compared to the previous year. It also experienced an 18% increase from the previous quarter. The latest updates from Baidu’s robotaxi business are of particular interest to investors.