© Reuters. FILE PHOTO: A logo of Baidu is seen during the World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, November 23, 2020. REUTERS/Aly Song
(Reuters) -China’s Baidu Inc (NASDAQ:) on Wednesday reported quarterly revenue above Wall Street estimates, helped by stronger advertising sales and demand for its artificial intelligence and cloud products.
A recovering domestic economy encouraged higher marketing spending, helping Baidu’s ad sales, even as it faces tough competition from e-commerce giant Alibaba (NYSE:) and ByteDance. Baidu’s foray into artificial intelligence (AI), cloud and autonomous driving has also helped its growth.
In a bid to expand its portfolio, the company last year introduced robotaxi vehicles and entered into a partnership with Chinese auto manufacturer Geely to develop electric vehicles, a fast-evolving sector where many tech companies are looking to make a mark.
“Baidu Core delivered another solid quarter, powered by our AI cloud revenue growing 73% year-over-year,” said Rong Luo, chief financial officer of Baidu.
The company’s results come amid a wide-ranging regulatory crackdown by China on its technology sector that includes heavyweights like Tencent and Alibaba in a bid to keep a check on their monopolistic practices.
Baidu said total revenue was 31.92 billion yuan ($5.00 billion) in the third quarter, slightly above analysts’ average estimate of 31.71 billion yuan, according to IBES data from Refinitiv.
($1 = 6.3811 renminbi)
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.