Baidu App traffic continues to grow with DAUs reaching 189 million, up 25% year over year, in September 2019, according to Baidu’s announced financial results.
Baidu’s in-app search continues to gain market share. Its focus to combine search and feed and expand Baidu App’s content and services offerings is drawing publishers and service providers to place more content and services on Baidu’s hosted platform, which in turn attracts more users.
Baijiahao (“BJH accounts”), Baidu’s newsfeed content network, grew to 2.4 million publisher accounts, up 57% year over year in September 2019. BJH accounts allow publishers to share content to Baidu’s newsfeed and search.
Baidu Smart Mini Program‘s monthly active users (“MAUs”) reached 290 million, up 157% year over year. Top mini-program platforms compared: WeChat vs. Alipay vs. Baidu
DuerOS voice assistant
On Baidu’s new AI businesses, DuerOS voice assistant continues to experience strong momentum with monthly voice queries surpassing 4.2 billion in September 2019, up over 4.5 fold year over year.
Xiaodu smart speakers powered by DuerOS ranked first in China’s smart speaker shipments in Q2 2019, according to leading technology market analytics firms, Canalys, IDC and Strategy Analytics. China overtook the U.S. as the largest smart speaker market in Q1 2019.
Xiaodu Smart Display ranked first globally in smart display shipments for the same period, according to IDC.
DuerOS skills store now offers over 3,200 skills in wide-ranging genres, including ABC Reading (education), Kuaishou (live streaming), Mango TV (online video), Douyu (game broadcasting) and Tile Matching Puzzle (casual game).
DuerOS developer community has expanded to over 36,000 members. Upgraded DuerOS on Xiaodu smart speakers enables hand gesture control and full-duplex continued conversation (multi-round conversation without wake words) through eye gesture detection.
In September 2019, Baidu Maps enhanced its voice feature, allowing users to customize Baidu Maps’ voice with their own voice by recording 20 sentences. Over 280 million Baidu users have used Baidu Maps’ voice feature as of September 2019, doubling from the previous year.
Apollo: autonomous driving
In September 2019, China’s first robotaxi pilot program was made available to the public in Changsha, Hunan, with an initial fleet of 45 autonomous driving vehicles powered by Apollo.
The city of Changsha installed Baidu’s V2X solutions to help Apollo-powered vehicles map out traffic conditions in their parameters, overcoming blind spots and increasing traffic efficiency and safety.
Baidu recently received 15 autonomous driving licenses in Wuhan, Hubei, and 30 licenses in Cangzhou, Hebei, increasing Baidu’s total autonomous driving licenses to 150, which accounts for more than half of the total autonomous driving licenses granted in China.
iQIYI subscribers reached 105.8 million, up 31% year over year, in September 2019, further strengthening iQIYI’s foundation to produce entertainment-based blockbuster originals.
Baidu Finance Results in Q3 2019
Baidu total revenues reached RMB 28.1 billion in Q3 2019, up 7% sequentially on top of the 9% sequential growth from the prior quarter.
Online marketing revenues were RMB20.4 billion ($2.86 billion), decreasing 9% year over year and increasing 6% quarter over quarter. Other revenues were RMB 7.6 billion ($1.07 billion), increasing 34% year over year, driven mainly by the strong growth in iQIYI membership, cloud services, and smart devices.
Revenue from Baidu Core reached RMB 21.0 billion ($2.94 billion), decreasing 3% year over year, or increasing 2% year over year, excluding the impact of announced divestures2, and increasing 8% quarter over quarter. Revenue from iQIYI reached RMB 7.4 billion ($1.04 billion), up 7% year over year. iQIYI membership revenue grew 30% year over year, offset by online advertising revenue declining 14% year over year.
Content costs were RMB 7.0 billion ($985 million), increasing 4% year over year. iQIYI’s content costs increased 3% year over year, which rose slower than iQIYI’s revenue growth.
Traffic acquisition costs were RMB 3.2 billion ($453 million), increasing 5% year over year, as a result of increasing TAC prices and expansion into connected offline screens and other areas.
Bandwidth costs were RMB 2.0 billion ($284 million), increasing 20% year over year, mainly due to increasing demand from newsfeed, video and cloud services.
Net loss attributable to Baidu for Q3 2019 was RMB 6.4 billion, which included a non-cash impairment loss of RMB 8.9 billion on equity investments that have experienced an other-than-temporary decline in valuation.
Non-GAAP net income attributable to Baidu, excluding share-based compensation, fair value changes of equity investments and other adjustments, for Q3 2019 was RMB 4.4 billion.