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Dec 31, 2024
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Baidu Q4 2024 Earnings Report
Baidu reported a slight revenue decline in Q4 2024, with strong AI Cloud growth offsetting weaknesses in online marketing.
Key Takeaways
Baidu's Q4 2024 revenue decreased by 2% YoY to ¥34.124 billion, mainly due to a 7% decline in online marketing revenue. However, AI Cloud business showed strong growth, increasing by 26% YoY. Net income doubled YoY, driven by favorable FX gains and lower investment losses. Operating income declined 27% due to increased costs and one-time losses.
Total revenue fell 2% YoY, primarily due to a decline in online marketing.
AI Cloud revenue surged 26% YoY, driving non-online marketing revenue growth.
Net income doubled YoY due to foreign exchange gains and lower investment losses.
Operating margin decreased to 11.5% from 15.4% due to higher costs and one-time write-downs.
Baidu
Baidu
Baidu Revenue by Segment
Revenue by Segment
Baidu Core Revenue
CapyFin.comiQIYI Revenue
CapyFin.com Forward Guidance
Baidu expects AI Cloud and autonomous driving to drive future growth while navigating continued online marketing weakness.
Positive Outlook
- AI Cloud expected to continue strong growth in 2025.
- Apollo Go expanding globally, with new permits in Hong Kong.
- Baidu remains committed to AI-native search transformation.
- Continued investment in generative AI and cloud computing.
- Cost optimizations expected to improve margins in 2025.
Challenges Ahead
- Online marketing revenue faces continued pressure.
- One-time costs may continue to impact operating margins.
- R&D expenses remain high due to AI investments.
- Global economic uncertainty may affect advertising demand.
- Competitive pressures in AI Cloud and autonomous driving.
Revenue & Expenses
Visualization of income flow from segment revenue to net income