China’s Internet search giant Baidu announced on the 17th that its sales and adjusted profits exceeded market expectations in the third quarter. Advertising revenue and demand for artificial intelligence (AI) and cloud products were strong.
The recovery of the domestic economy has prompted increased marketing spending and boosted advertising revenue. Entry into the AI, cloud, and autonomous driving fields also contributed to business results.
Chief Financial Officer Rong Luo said sales in the AI and cloud business increased 73% year-on-year.
Baidu launched a robotaxi service in Beijing last year and partnered with automobile giant Geely to develop an electric vehicle (EV).
Sales in the third quarter were 31.92 billion yuan ($ 5 billion), which was slightly higher than the market forecast of 31.71 billion yuan.
The adjusted profit is 14.66 yuan per ADS. The market forecast was 12.81 yuan.
Baidu expects sales in the fourth quarter to be 31 billion to 34 billion yuan. The market forecast is 32.6 billion yuan.
The number of subscribers to its affiliated video distribution service “iQIYI” reached 104 million in September, and sales increased by 6% in the third quarter.