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Baidu earned 33.1 billion yuan in revenue and 5.4 billion yuan in Non-GAAP net profit in the fourth quarter.

A picture to understand Baidu Q4 results: revenue and net profit are higher than expected

Sina Science and Technology News Beijing time on the evening of February 22nd news, Baidu (Nasdaq:BIDU) today released as of December 31, the fourth quarter of 2022 and full-year results. Baidu's total revenue in the fourth quarter was 33.1 billion yuan ($4.8 billion), roughly the same as a year earlier, according to the results. Net profit attributable to Baidu was 5 billion yuan ($718 million) and diluted income per American depositary share (ADS) was 13.59 yuan ($1.97). Excluding Non-GAAP, Baidu's net profit was 5.4 billion yuan ($779 million) and diluted income per American depositary share (ADS) was 15.25 yuan ($2.21).

After the announcement, Baidu Chairman and CEO Robin Li, CFO Luo Rong, Senior Vice President Shen Qiu and Senior Vice President and General Manager of Intelligent driving Group Li Zhenyu attended the subsequent earnings conference call to interpret the main points of the results and answer analysts' questions.

　　The following is the main content of the question and answer session:

　　JPMorgan Chase analyst Alex Yao:A question about the online advertising business. Could you tell me the growth of the company's business after February? Which industries are growing fastest and which are slower? How is the growth of offline industries, including tourism, local services, chain stores and health care? How do these areas contribute to the company's revenue? What is the recovery like? In addition, given the low base in the second quarter of last year, how does the company predict online advertising growth in the next few months of this year, especially in the second quarter?

　　Robin Li:The recovery of various vertical industries is closely related to the growth of the company's business. The peak of COVID-19 infection in China ended in the first quarter. At present, the number of infection cases is on a downward trend, and people's daily life is gradually returning to normal. The operation of the enterprise is also recovering. With the recovery of economic vitality, the revenue of our advertising business continues to improve, and the industries that make the greatest contribution to the company's advertising business, including health care, tourism, life services and chain stores, have also improved greatly. these are also representatives of the offline industry; the contribution of the online industry, such as online games, is still weak. From a regional point of view, because the peak of infection has already occurred in various places, the earlier the peak occurs, the faster it recovers. After the February festival, second-and third-tier cities recover faster than first-tier cities, because many people choose to spend more time with their families before returning to work in first-tier cities. The degree of recovery of the company's advertising business is also closely related to the recovery of those areas that contribute the most.

As for the first quarter and later this year, the company's advertising business will benefit from the macroeconomic recovery, and we look forward to seeing the growth of advertisers' demand, driving the growth of the company's advertising business. I would also like to emphasize that in the economic and business recovery phase, customers still prefer effect advertising to brand promotion, and search is the best platform for showing effect advertising, and users have a clear intention when using search. Search advertising connects users' intentions with the most relevant products and services, and we will get more advertising budget from our customers.

In the long run, the company will benefit from the continuous improvement in macroeconomic conditions, e-commerce and short videos will also drive the growth of the company's advertising business, and Baidu's advertising revenue growth should also be higher than the overall growth rate of GDP. In addition, we are also looking forward to the generative artificial intelligence technology. The integration of Wenxin word, Baidu APP, and Baidu search will enhance our user experience. The new function of Wenxin word will help us to obtain more new users, improve user participation, and enhance the attractiveness of the company's products to advertisers, thereby promoting the company's long-term revenue growth.

(constantly updating. )