August 14, Beijing time, Baidu (NASDAQ：BIDU) released its unaudited second-quarter financial report as of June 30,2020. The results show, Second quarter 2020, Baidu achieved revenue of 26.03 billion yuan, Operating profit (Non-GAAP)5.6 billion yuan, Up 187% year on year, 5.08 billion yuan net profit (Non-GAAP), An increase of 40% over the same period last year. Revenue, profit indicators are supermarket average expectations.
In the second quarter, although the repeated impact of the epidemic and macro-environment challenges are still there, Baidu's performance is still steadily improving. Baidu's core rebounded significantly, achieving revenue of 18.93 billion yuan, up 24 percent from the previous quarter; Baidu's App end revenue rose against the trend for two consecutive quarters; new infrastructure accelerated AI commercialized landing, and Baidu AI new business revenue achieved double-digit year-on-year growth.
Baidu chairman and CEO Li Yanhong said:
Baidu Chief Financial Officer Yu Zhengjun said:
Further consolidation of mobile foundations Diversified Liquidity Period
In the mobile strategic direction, baidu is committed to building a strong ecosystem composed of 1 billion users, millions of creators, partners and customers.
In June, after the epidemic eased and people were isolated at home, the number of active Baidu app users per day still reached 204 million. The three pillars of mobile ecology, which are composed of baijiahao, applet and hosting page, maintain a high growth trend: in June 2020, the number of content creators of baijiahao is about 3.4 million, with a year-on-year increase of 52%; the number of active users of smart apps reaches 339 million, with a year-on-year growth of 25%, and the number of smart apps has reached more than 5 times of the same period last year; the revenue from Baidu hosting pages accounts for about the core of Baidu 30% of online marketing service revenue.
Based on the three pillars of mobile ecology, Baidu App aggregates more content and services, and forms a unique closed-loop experience by perfecting the infrastructure construction of account system, user portrait, e-commerce transaction and so on. Second quarter, Baidu will be 100 accounts and Baidu knowledge products to open, PGC creators registration, certification after authorization can be multi-business direct reuse, fan data can also be multi-scene to maximize private traffic; at present, Baidu App online
As a leading content distribution and Internet integrated service platform, Baidu has attracted a large number of knowledge-based short video and live content. In the second quarter, baidu knowledge products organized more than 800 live broadcasts, with more than 40 million people watching. In the future, with the potential demand of live broadcast, members and games continuously cultivated and strengthened, Baidu's diversified realization road will become more smooth.
AI new business income double-digit growth year on year
In the second quarter, baidu AI's new business revenue achieved double-digit year-on-year growth, becoming an important engine for future revenue growth. The state vigorously promotes the new infrastructure construction and accelerates the landing of AI commercialization.
Thanks to the leading AI capability and brand influence, small smart devices still sell well in the second quarter. According to the preliminary forecast of strategy analytics, the number of small smart speakers in China in the second quarter was the largest. In June, the number of voice interaction between the first party hardware equipment of small assistant reached 2.8 billion times, nearly double that of the same period last year; the total number of voice interaction of small assistant reached 5.8 billion, an increase of 57% over the same period of last year. The small assistant skills store provides more than 4000 skills, including education, video, online games and live broadcast, with a wide variety. The number of developers has also exceeded 42000.
In the new infrastructure good, baidu Apollo intelligent transportation and intelligent cloud also accelerated the landing. In the second quarter, covering an area of 13500 square meters, Apollo Park, the world's largest automatic driving and vehicle road collaborative application test base, was completed in Beijing; Baidu Apollo's automatic driving taxi operation scope in Beijing, Changsha and Cangzhou expanded to more complex road conditions such as downtown streets. Cctv.com has also accelerated the pace of intelligent industry in the Baidu. In the second quarter, Baidu intelligent cloud has been working with the State Grid, China Southern Power Grid, CCTV network, China Building Materials Group, etc. At present, Baidu AI open platform relies on Baidu intelligent cloud, has opened more than 260 kinds of AI capabilities, services about 2100000 developers.
The second quarter financial report shows that Baidu's strategic business development is stable and its performance is picking up. As of June 30, 2020, baidu held cash, cash equivalents, restricted funds and short-term investment of 154.1 billion yuan. The capital advantage provides a strong guarantee for Baidu's long-term growth.