© Financial Eye. FILE PHOTO: People stand by a sign of Baidu during World Artificial Intelligence Conference, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, September 1, 2022. REUTERS/Aly Song
(Financial Eye) -Baidu Inc’s third-quarter revenue beat Wall Street estimates on Tuesday, as China’s search engine giant benefited from a recovery in online advertising sales and growth in its cloud and artificial intelligence (AI) business.
Baidu (NASDAQ:), which generates most of its revenue from ads on its Google-like search engine, has seen a recovery since the second quarter, before which strict zero-COVID policies in China had led to frequent snap lockdowns and hurt economic activity.
The company has been looking to grow its cloud and AI business, which includes autonomous driving, to diversify its revenue sources.
Baidu’s revenue rose 2% to 32.54 billion yuan ($4.56 billion) in the three months ended Sept. 30, beating the 31.79 billion yuan average estimate of 20 analysts, according to Refinitiv data.
The company’s operating income rose to 5.32 billion yuan from 2.31 billion yuan a year earlier.
Excluding items, it earned 16.87 yuan per American Depository Share (ADS). ($1 = 7.1388 renminbi)