Baidu posts fifth straight revenue drop as AI transition gathers pace
Baidu's Q2 revenue fell 4% year-on-year to US$4.6 billion, an unaudited financial report showed.
Baidu, China's prominent search engine provider, reported a fifth consecutive quarter of declining revenue on Tuesday. The tech giant attributed the drop to its transition towards artificial intelligence (AI) services as the primary driver of long-term growth. Baidu's online marketing services generated ¥13.1 billion in Q2, a 19% decrease compared to the same period a year earlier.
Revenue from the Q2 period totaled ¥31.3 billion, marking a 4% year-on-year decline. This represented the fifth straight quarter of revenue contraction. Operating income stood at ¥3 billion during the three-month period ending June 30, down from ¥3.3 billion in the same period last year. Despite the revenue dip, Baidu's chief executive, Robin Li, expressed confidence in the company's growth potential, citing the growing momentum in its AI-powered business.
AI applications and supporting infrastructure contributed ¥12.5 billion in Q2 revenue, a 25% increase year-on-year. The company's ongoing struggle with declining consumer spending in China was highlighted by slower retail sales growth in July, according to official data.
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