Baidu announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. The company continued to exhibit solid performance, with notable advancements in AI technology and substantial growth in its AI cloud and autonomous driving sectors.
Robin Li, Co-founder and CEO of Baidu, highlighted the company’s significant strides in advancing its ERNIE and ERNIE Bot technologies, reinventing products and services, and achieving monetization breakthroughs. The core business remained robust, underscoring Baidu’s commitment to Gen-AI and foundational models as new growth engines.
Rong Luo, CFO of Baidu, emphasized the company’s focus on enhancing operational efficiencies, aiming for high-quality growth in 2024.
Financial and Operational Milestones
- Shareholder Returns: Baidu returned $318 million to shareholders in Q4 2023, with a cumulative repurchase of $669 million under the 2023 share repurchase program.
- AI Cloud Expansion: The PaddlePaddle developer community grew to 10.7 million, serving 235,000 businesses and creating 860,000 models by the end of 2023.
- Autonomous Rides: Apollo Go provided approximately 839K rides in Q4 2023, a 49% increase year over year. Driverless orders in Wuhan reached 45%, up from 40% in Q3 2023.
- Mobile Ecosystem Growth: Baidu App’s MAUs reached 667 million in December 2023, a 3% increase year over year. Managed Page contributed to 51% of Baidu Core’s online marketing revenue in Q4 2023.
- iQIYI’s Performance: Average daily subscribing members stood at 100.3 million, with a monthly average revenue per membership of RMB15.98, indicating a focus on quality over quantity.
Financial Highlights
- Q4 2023 Revenues: Total revenues hit RMB35.0 billion ($4.92 billion), a 6% year-over-year increase. Baidu Core revenues rose to RMB27.5 billion ($3.87 billion), driven by AI Cloud business growth.
- 2023 Fiscal Year: Total revenues reached RMB134.6 billion ($18.96 billion), a 9% increase from the previous year. Baidu Core’s operating margin stood at 18%, with non-GAAP operating margin at 24%.
- Net Income: 2023 net income attributable to Baidu was RMB20.3 billion ($2.86 billion), with Baidu Core contributing significantly to this profitability.
- Investment in R&D: Research and development expenses surged to RMB24.2 billion ($3.41 billion), highlighting Baidu’s commitment to innovation.
Looking Ahead
Baidu’s continued investment in AI and cloud technologies, alongside its robust financial performance, positions the company for sustained growth. With a focus on operational efficiency and innovation, Baidu is well-equipped to navigate the evolving digital landscape in 2024 and beyond.