China’s largest search engine Baidu (NASDAQ: BIDU) generated RMB 26 billion (USD 3.7 billion) in revenue in the second quarter of this year, down by 1% year-on-year (YoY).
Online marketing revenues reached RMB 17.7 billion (USD 2.5 billion), decreasing 8% year YoY, while other revenues amounted to RMB 8.3 billion (USD 1.2 billion), increasing 18% YoY, driven by strong membership growth at its video unit iQiyi, as well as cloud and smart transportation solutions. IQiyi (NASDAQ: IQ), however, disclosed Thursday that the US Securities and Exchange Commission (SEC) was probing the firm, seeking the production of certain financial and operating records dating from January 1, 2018.
Despite the decline in revenue, Baidu disclosed that it generated RMB 3.6 billion (USD 507 million) in net income, up 48% year-on-year, without explaining the reasons for the increase.
Baidu expected its revenues to be between RMB 26.3 billion (USD 3.7 billion) and RMB 28.7 billion (USD 4.1 billion), representing a 6% YoY decrease, or 2% YoY increase at best, adding that the COVID-19 situation in China is evolving, and business visibility is very limited.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.