Baidu's Q2 revenues slightly decline, profit jumps 48%

Baidu posted total revenues of CNY 26 billion (approximately USD 3.69 billion) for the second quarter of 2020, which represents a decline of 1 percent year-on-year. Online marketing revenues amounted to CNY 17.7 billion, down 8 percent, while other revenues hit CNY 8.3 billion, up 18 percent year-on-year, driven by strong growth of iQIYI membership and Baidu's cloud and smart transportation services. 

The number oif iQIYI subscribers reached 104.9 million, up 4 percent year-on-year, and membership revenue was up 19 percent year-on-year.

Revenue from Baidu Core reached CNY 18.9 billion, down 3 percent year-on-year. Revenue from iQIYI stood at CNY 7.4 billion, up 4 percent year-on-year. iQIYI membership revenue grew 19 percent, partially offset by online advertising revenue declining 28 percent. 

Second-quarter net income reached CNY 3.6 billion, up 8,629 percent from CNY 41 million in the first quarter, and up 48 percent from CNY 2.4 billion in June 2019. Diluted earnings per ADS was CNY 10.31 (USD 1.46). Adjusted EBITDA amounted to CNY 7 billion, and adjusted EBITDA margin was 27 percent. Baidu ended June with cash, cash equivalents, restricted cash and short-term investments of CNY 154.1 billion. Free cash flow was CNY 7.3 billion. 

The Baidu App daily active users topped 204 million in June, following an addition of 16 million users in the last 12 months. In June 2020, DuerOS monthly voice queries on Xiaodu devices reached 2.8 billion, nearly doubling from last year, and DuerOS total monthly voice queries reached 5.8 billion, up 57 percent from last year.

Baidu expects revenues of up to CNY 28.7 billion for Q3

For the third quarter of 2020, Baidu expects revenues to range between CNY 26.3 billion and CNY 28.7 billion, representing a decline of 6 percent and a growth of 2 percent year-on-year, which assumes that Baidu Core revenue will see a decline of 7 percent up to a growth of 3 percent in the period.