Baidu, the most popular search engine company in China, has just announced the company's Q3 2021 revenues.
The company generated over $4.9 billion in sales for the quarter, but posted a net loss of $180 million.
About Baidu's Q3 2021 Revenues
- Baidu's revenues grew 13% year-on-year for the quarter that ended September 30, 2021.
- A large part of Baidu's loss was attributed to its long-term investments (non-cash loss), which amounted to $2.6 billion.
- A large part of the company's growth is attributed to its its rapidly expanding AI cloud business.
- Baidu's AI cloud revenue grew 73% year on year, according to its chief financial officer, Rong Luo.
What to expect for Baidu's Q4 2021
- Baidu expects to drive increased revenues for Q4 2021, with estimate figures ranging between $4.8 billion to $5.3 billion.
- This represents a growth of 2% to 12% from 2020 figures.
- The company is also in the midst of building its autonomous driving platform, Baidu Apollo, which is expected to reduce traffic congestion, accelerate the transition to electric vehicles (EV), and bring down the number of traffic accidents.
- Baidu also expects a 5% to 16% year-on-year growth for its core business, which consists of its search app, AI businesses, and cloud services.
- Baidu also added on Wednesday that the pandemic situation in China is evolving, which could impact its business particularly in the advertising sector.