Benzinga - by Anusuya Lahiri, Benzinga Editor. Baidu, Inc (NASDAQ: BIDU) reported a second-quarter FY23 revenue growth of 15% year-on-year to $4.697 billion, beating the consensus of $4.570 billion.
Baidu's Non-GAAP earnings per ADS of $3.11 beat the consensus of $2.32.
Segments: Baidu's Core revenue increased 14% Y/Y to $3.64 billion; Online marketing revenue improved 15% Y/Y to $2.71 billion. Non-online marketing revenue grew 12% Y/Y to $937 million, driven by cloud and other AI-powered businesses.
Revenue from IQIYI, Inc (NASDAQ: IQ) increased 17% Y/Y to $1.1 billion, beating the consensus of $1.07 billion. iQIYI subscribers reached 111.2 million, up from 98.3 million a year ago.
Baidu's SG&A increased by 32% Y/Y primarily due to increased channel spending and promotional marketing expenses. R&D expenses grew 1% Y/Y, primarily due to the rise in server depreciation and cloud-related expenses.
Baidu's adjusted EBITDA margin expanded by 300 bps to 27%. Baidu's Core adjusted EBITDA margin increased by 300 bps to 31%.
Baidu held $27.8 billion in cash and equivalents and generated $1.09 billion in free cash flow.
CFO Rong Luo said, "Baidu has invested in AI for over a decade and is well-positioned to capitalize on the opportunities arising from generative AI and LLM. As we look ahead, we remain steadfast in investing in AI, in particular large language models and generative AI in the upcoming quarters."
Price Action: BIDU shares traded higher by 4.07% at $130.00 in the premarket session on the last check Tuesday.
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