Companies /Communication Services

Baidu Inc

NASDAQ: BIDU Internet Content & Information
$96.70
â–² $3.44 (+3.69%) today
Markets open · 3:34pm ET

Q3 2024 Earnings

Reported Nov 21, 2024, 9:11am ET · SEC source
$2.37
Miss −86.76%
EPS · est. $17.90
$4.8B
Miss −85.78%
Revenue · est. $33.6B
+6.6%
Beating market
BIDU vs S&P since report
7 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−6%−3%0Nov 21Nov 22report 9:11am ETearnings+0.3%−4.0%
−6%−3%0Nov 21Nov 22earnings+0.3%−4.0%
BIDU −4.0%S&P 500 +0.3%
−6%−3%0Nov 21Nov 22report 9:11am ETearnings−0.2%−4.0%
−6%−3%0Nov 21Nov 22earnings−0.2%−4.0%
BIDU −4.0%NASDAQ −0.2%
−4%0+4%+8%Nov 20Nov 29report 9:11am ETearnings+2.0%+4.3%
−4%0+4%+8%Nov 20Nov 29earnings+2.0%+4.3%
BIDU +4.3%S&P 500 +2.0%
−4%0+4%+8%Nov 20Nov 29report 9:11am ETearnings+1.5%+4.3%
−4%0+4%+8%Nov 20Nov 29earnings+1.5%+4.3%
BIDU +4.3%NASDAQ +1.5%
−5.90%
Day of report
−1.59%
Next session
+4.19%
One week
+7.86%
30 days

S&P 500 over the same 30 days: +1.29%.

Did BIDU Beat Earnings? Q3 2024 Results

Baidu delivered a stark disappointment in Q3 2024, with revenue of $4.78 billion missing the $33.63 billion consensus estimate by 85.78% and falling 86.1% year over year, while non-GAAP diluted earnings per ADS of $2.37 fell far short of the $17.90 consensus by 86.76%. The primary drag came from persistent weakness in online marketing, which weighed heavily on Baidu Core results and contributed to a 19% year-over-year decline in non-GAAP net income once investment gains were stripped away. Free cash flow also contracted sharply to $2.63 billion from $6.00 billion a year ago, underscoring the operational headwinds the company faces. Against that backdrop, management pointed to AI Cloud momentum and Apollo Go's autonomous ride-hailing growth, with daily ERNIE API calls reaching roughly 1.5 billion by November, as evidence that its long-term strategy remains intact. Baidu signaled continued cost discipline and efficiency improvements across business units as it works to convert its AI investments into durable revenue growth.

Key Takeaways
  • AI Cloud business growth driving 12% YoY increase in non-online marketing revenue
  • Cost control and personnel-related expense reductions supporting operating margins
  • Fair value gains on long-term investments boosting total other income by 40% YoY
  • R&D expenses decreased 12% YoY due to lower personnel costs

“Baidu Core's flattish third quarter top line reflected the ongoing weakness in our online marketing business, offset by the growth of our AI Cloud business. Our strong AI capabilities are gaining broader market recognition, as evidenced by increasing adoption of ERNIE. In intelligent driving, Apollo Go continues to lead the global autonomous ride-hailing market, hitting another milestone with our sixth-generation autonomous vehicle now operating on public roads across multiple cities in China.”

Baidu CEO, on the earnings call

Forward Guidance & Outlook

Baidu acknowledged near-term pressures from ongoing weakness in online marketing but expressed confidence in its long-term AI-focused strategy. Management highlighted AI Cloud's healthy and sustainable development and Apollo Go's operational strides as validating the fully autonomous ride-hailing business model. The company signaled continued focus on cost optimization and efficiency gains across business units while scaling AI capabilities to drive innovation across consumer, enterprise, and societal applications.

BIDU YoY Financials

Q3 2024 vs Q3 2023 · SEC filings Q3 2023 Q3 2024
$0$10.0B$20.0B$30.0B$34.5B$4.8BRevenue$18.2B$2.4BGross Profit$6.3B$844.0MOperating Income$6.7B$1.1BNet Income
$0$10.0B$20.0B$30.0BRevenueGross ProfitOperating IncomeNet Income

BIDU Revenue by Segment

Baidu Core$3.8B+0.0%
Baidu General Business
Online Marketing Services$2.9B
Baidu Core Online Marketing
Others (Non-Marketing)
Legacy Business
Baidu Core Non-Online Marketing
iQIYI$1.0B−10.0%

Figures from SEC filings and company reports. Not investment advice.