Baidu, Inc. (NASDAQ: BIDU) reported financial results for the second quarter ended June 30th, 2020. Total revenues amounted to USD 3.69 Billion while revenue from Baidu Core segment reached USD 2.68 Billion. Cost of revenues fell 19% year over year to USD 1.86 Billion. R & D expenses reached USD 685 Million. For the third quarter of 2020 the company expects revenues to range from USD 3.7 Billion and USD 4.1 Billion.
“With COVID-19 becoming more manageable in China, Baidu’s business is steadily rebounding. We are pleased that in-app revenue grew in the second quarter, despite a challenging macro environment, further validating our strategy to make Baidu App a super app through AI-powered building blocks and marketing cloud platform.” said Robin Li, Co-founder and CEO of Baidu. “Baidu’s new AI businesses, including cloud, smart devices and smart transportation, saw double-digit growth in the second quarter and stand to become an important revenue driver in the years to come.”
“In addition to investing in new AI businesses, Baidu is also diversifying our revenue streams through membership, online games and others to increase the ARPU of our existing traffic.” said Herman Yu, CFO of Baidu. “The healthy growth of Baidu App and new AI businesses have enabled Baidu Core’s adjusted EBITDA margin to reach 41% in the second quarter. We plan to continue heavy investments in technology to maximize Baidu’s future growth potential.”