Baidu’s total revenues reached RMB 20.9 billion ($3.33 billion) in Q1 2018, increasing 31% year over year. Mobile revenue represented 78% of total net revenues, compared to 70% in Q1 2017.
Baidu’s online marketing revenues were RMB 17.2 billion ($2.74 billion), representing a 23% increase year over year. Baidu had approximately 475,000 active online marketing customers, representing a 5% increase year over year. Revenue per online marketing customer was approximately RMB 36,100 ($5,800), a 19% increase year over year.
Revenue from Baidu core reached RMB 16.1 billion, up 26% year over year, while revenue from iQIYI reached RMB 4.9 billion, up 57% year over year.
Baidu’s operating income was RMB 4.6 billion ($728 million), increasing 128% year over year. Operating margin reached 22%, compared to 13% for Q1 2017. Net income attributable to Baidu was RMB 6.7 billion ($1.1 billion), increasing 277% year over year.
Diluted earnings per ADS was RMB 19 ($2.98). Non-GAAP net income attributable to Baidu was RMB 4.6 billion ($731 million), increasing 91% year over year. Non-GAAP diluted earnings per ADS was RMB 13 ($2.08).
Adjusted EBITDA was RMB 6.1 billion ($979 million), or 29% of total revenues, increasing 69% year over year.
iQIYI, Baidu’s online entertainment subsidiary, raised US$2.25 billion through its initial public offering of 125,000,000 American Depositary Shares (“ADS”) at US$18.00 per ADS. IQIYI’s ADSs trade on the NASDAQ Global Market under the symbol “IQ”.
Baidu raised US$1.5 billion through a public bond offering consisting of US$1 billion of 3.875% notes due 2023 and US$500 million of 4.375% notes due 2028, the proceeds from which will mostly be used to repay a US$1.0 billion bond maturing in August 2018.
Baidu signed a cooperation memorandum with the Haidian municipality of Beijing to jointly develop smart government administration, smart transportation, and smart city management. The two parties will work together to develop an AI-based “Smart City Brain” to handle traffic management, environmental protection and public safety.
Baidu established a Quantum Computing Research Lab in Beijing to perform research and development in quantum computing. TIME magazine featured Robin Li as “The Innovator” on the cover page of its January 29, 2018 Asia edition.
Baidu received the first batch of licenses to conduct open road test for autonomous vehicles in Beijing and Chongqing municipalities and Fujian province.
Baidu held a successful Apollo 2.5 Launch Event in Beijing on April 19, which also marked Apollo’s one year anniversary. At the event, Baidu released Apollo 2.5, which supports high-speed road conditions, improves cost efficiency, enhances developer support and provides Apollo Scape open datasets.
Baidu showcased its Level 4 autonomous driving technology during the Chinese Spring Festival Gala on CCTV, one of the most watched TV shows in China. More than a dozen Apollo-powered vehicles drove across the Hong Kong-Zhuhai-Macau Bridge in choreographed swerving formation, depicting a “robotic parade.”
Baidu formed a strategic partnership with Great Wall Motor, the largest sport utility vehicle and pick-up truck manufacturer in China, to collaborate on autonomous driving, big data, mobility and networking solutions.
Baidu formed a strategic partnership with BYD, one of the leading auto manufacturers in China, on autonomous driving. BYD plans commercial production of Level 3 autonomous vehicles using Apollo around 2020.
Baidu formed a strategic partnership with Sokon Group, an automobile manufacturer in China, for commercial production of Level 3 vehicles around 2020 and Level 4 vehicles around 2021. Baidu and Sokon will collaborate on autonomous driving, Internet-connected vehicles, cloud services and marketing.
Baidu joined Berkeley DeepDrive, a research alliance that studies state-of-the-art technologies in computer vision and machine learning for automotive applications.
Ainemo launched “Xiaodu @ Home” Touchscreen Smart Speaker powered by DuerOS Assistant and 10,000 units were sold within the first minute of launch online.
Baidu formed a strategic partnership with Hong Kong Skyworth Digital Holdings, a leading television manufacturer in China. DuerOS Assistant will be integrated into Skyworth’s smart TVs to provide users with a conversational AI service.
TCL, a leading consumer electronics manufacturer, launched three new television models (X5, C6 and P5) powered by DuerOS Assistant.
Baidu formed a strategic partnership with XGIMI, a leading smart projector manufacturer, to integrate DuerOS Assistant in its products.
Baidu formed a strategic partnership with BroadLink Electronic Technology, a leading smart plug and remote manufacturer, to integrate DuerOS Assistant in its home electronics control devices.
Baidu formed a strategic partnership with Xiaotiancai, a manufacturer of wearables for kids, to integrate DuerOS Assistant in its smart watches.
Baidu formed a strategic partnership with Haier, a leading home electronics and appliance manufacturer, to collaborate on DuerOS and Haier’s U+ smarthome platform.
Baidu PyramidBox, a deep learning algorithm for face recognition, reached the highest score of WIDER FACE, a highly challenging face detection benchmark globally.