baidu earnings call transcript

On the cloud solutions, as we do more project and we serve more customers, we are able to more standardize our solutions. 10 SHANGDI 10TH STREET BAIDU CAMPUS, HAIDIAN DISTRICT, BEIJING, 100085, China +86 1059928888. Our next question comes from Eddie Leung from Bank of America Merrill Lynch. As we go through our quarterly highlights, you will see other examples of how our AI paradigm is naturally aligned with these goals. It is on Thu 12 Aug (23 days ago). Baidu (BIDU) Q2 2020 Results – Earnings Call Transcript. And then secondarily, we're also seeing some potential COVID or regulatory impact across different sectors in the whole industry. So that demonstrates that once we decide to operate a certain route for our robotaxi ride hailing services, we have the confidence that the service have a higher safety level than human drivers. And more broadly, I think other industries be it in the financial industry or in the energy industry, we've been building a standardized layer mainly on the PaaS, platform-as-a-service layer. Baidu's earning release was distributed earlier today and you can find a copy on our website as well as on newswire services. I think we will continue to roll out our robotaxi services in many different cities, different regions and the number of rides that we are providing have been growing very quickly as I mentioned during the prepared remark where we delivered 47,000 rides for our customers. Managed Page also monitors merchant activities on Baidu with AI for added personal safety. Han Joon Kim -- Macquarie Capital Ltd. -- Analyst. Baidu Health has attracted approximately 300,000 doctors and medical experts to provide in-depth authoritative content and online consultation to consumers. In Q2, Apollo Go ride hailing expanded into Guangzhou, our fourth city of operation and provided 47,000 rides to the public, up 200% sequentially. Furthermore, when you're seeing a strong steep ramp-up of our AI cloud business, smart transportation, and so forth, we have to hire ahead of the curve. We treated part of it as a marketing [Indecipherable] we have been discussed a few times, right, including the Managed Page and also the tools we provide to the merchants and to make it easy for them to run their campaigns on Baidu. Look, we're in 20 cities. June 8, 2021. Cash and short-term investments for Baidu Core as of June 30, 2021 was RMB167.7 billion or $26 billion. Baidu's second quarter was -- Baidu's second quarter revenue was RMB31.4 billion or $4.9 billion, up 20% year-over-year, driven by the growth of Baidu Core revenue, which reached RMB24 billion or $3.7 billion, up 27% year-over-year. Baidu does not undertake any obligation to update any forward-looking statements, except as required under applicable law. Oracle offers a comprehensive and fully integrated stack of cloud applications and platform services. But at the same time, with our mobile ecosystem, we were able to afford a lot of investments in these AIs and we're leveraging AIs into these businesses. Discounted offers are only available to new members. Non-GAAP operating margin for Baidu Core was 25%. Right. We are also active in assisting, let's say, setting up industry standard and we share our grievances and dialogs with others to ensure that we are on top of industry best practices. Our strong Internet foundation, coupled with growing user engagement provide us with another driver for non-advertising growth. Four years ago, we committed to strengthening our mobile ecosystem and deal with AI. The company, through its websites, autohome.com.cn and che168.com, and its mobile applications and mini apps, delivers interactive content and tools to automobile consumers. Please ask your question. On DuerOS, Xiaodu continues to innovate the smart home device market. My second question is also related to robotaxi. Xiaodu smart displays connect elders with immediate senior community assistance and serve as a virtual companionship around the clock through conversational AI, improving their quality of life while allowing family members to monitor their loved one's house and safety from remote. Hello everyone. We think that we see in our pipeline that we should be able to grow at a higher rate. I think when you're looking at non-advertising, the opportunity is in our typical cloud business, it's in smart transportation, it's within OGI. For detailed discussions of these risks and uncertainties, please refer to our latest Annual Report and other documents filed with the SEC and Hong Kong Exchange. Greenpeace, a global environmental organization published report on China's cloud and data center companies ranked Baidu Top Three in cloud services and Number One in the utilization of renewable energy based on their April report entitled Clean Cloud: Tracking Renewable Energy Use in China's Tech Industry. And you asked who is our competitor. Just want to follow-up Eddie's question on cloud. Please ask your question. Motley Fool. Turning to financial highlights; for the first quarter of 2021, Baidu revenue reached RMB20.1 billion or $4.3 billion, up 25% year-over-year driven by the growth of Baidu Core whose revenue reached RMB20.5 billion or $3.1 billion, up 34% year-over-year. So you have a very exciting business in order to continue that robust growth. You asked us what are the key drivers. Thank you. This is our calling. 2021.08.18. We'll try to do as much as we can. Let me give you an example of how our AI cloud empowers the auto sector. Thank you. So, you can think of it as the operating system for that part of the city and whenever there are other robotaxi transportation and so forth, the government uses our Maas to kind of power those robotaxi or Robobuses so that you could prioritize the ride and so forth. So our AI solution, basically said, if you are a customer, you have a lot of data sets, you need to improve operational efficiency and so forth. Hi, Jerry. Hey, thank you. Baidu Core had approximately 36,400 employees as of June 30, up 24% from last year. If you recall, we started to invest in autonomous driving roughly eight years ago. Just as the continuous upgrade of telecom networks since 2G has enabled mobile phones to become better and smarter, we believe Apollo Smart Transportation infrastructure can be continuously upgraded to make connected vehicles more convenient, safer, greener, and in general, more intelligent over time. Like in Guangzhou not only does it power the Robotaxis that Apollo have, you also have Robobuses in there. So you can see our business model enables us to do repeat business. Just want to follow-up Eddie's question on cloud. Cost of revenue was RMB15.9 billion, up 21% year-over-year primarily resulting from an increase in TAC and cost of sales associated with new AI business. So just wondering -- could you give us some rough timelines that when you could get into the development stage that the growth of your cloud businesses would be more driven by your existing clients upgrading their services and then buying more -- more from the usage of existing clients rather than opening up new projects? Great, thanks for taking my question. For example, went live in Beijing and so we should see that pretty exciting in the next couple of years. Now, this book opens up The Manual of Ideas for every investor, providing a proven framework for finding, analyzing, and implementing the best value investing opportunities. So that's the first question. And also the next few quarters, you're going -- you should expect, for example, us to accrue for bad debt because new -- these new business 2B and 2G, they all have AR [Phonetic] allowances unlike our advertising. Hi, thanks for taking my question. Yes. So as a result, we can see the converted reach with those building blocks are much higher than before. In June, we introduced Apollo Moon, 5th generation of Apollo robotaxi vehicles that once again saw a 60% drop in costs per mile. So, you're seeing two trends. This is due in part to our belief in using technology to build a better world. ... Cerner Corporation (CERN) Q2 2021 Earnings Call Transcript. Baidu's large development community helped improve our machine learning models and [Indecipherable] our AI tools and technologies. Hi, Robin, Herman. During the June 18 e-commerce festival, Xiaodu Smart Display and Xiaodu Smart Path for education market topped the sales list in their respective category on leading e-commerce platforms like JD.com. So that's the first question. Number one, we're already selling a lot of services like intelligent driving. I think last quarter you talked about developing a standardized solution to lay it out in April, third-party developers and integrators to customize for their clients. But if you look at the overall market, I think you ride hailing has like probably 50 million orders per day. Our earnings press release and this call includes discussions of certain unaudited non-GAAP financial measures. The speed of this investment flow growth coupled with a lack of reliable government data, both in China and the United States, has hindered efforts to accurately analyze trends in Chinese investment while also masking some of the risks and ... Please go ahead. Baidu's large development community helped improve our machine learning models and [Indecipherable] our AI tools and technologies. For example in Cangzhou as well as in Beijing. Please ask your question. Actually talking about the performance of the ad revenue, I think it's not only because of the low base of last year's first quarter. My follow-up question is when do you expect the safety ratio for your Apollo solution to be safer than a human driver? With external demand for GPU chips and Baidu Kunlun completed its first round of funding at a post-money valuation of $2 billion in April this year. Do you think Baidu's driverless car service could leverage this big event to draw more commercial usage and hence the branding? Robin Li — Co-Founder, Chairman and Chief … So that kind of benefit is quite clear and it's absolutely assured. We see this being played across Europe and in the U.S. Search, fundamentally, is open. Customer satisfaction for Apollo Go has been high with user rating of 4.9 out of 5.0. And just to add to that, Piyush, if you look at the economics, Robin talked about how from 4th generation to 5th generation we reduced by 60% in cost per mile. Making the world smarter, happier, and richer. Yiping previously served as CTO at Mobike and worked various positions at Fiat, Chrysler, and Ford. Artificial Intelligence (AI) provides us with myriad new opportunities and potential on the one hand and presents global risks on the other. This quarter we're growing a little bit slower at 55%. Q2'20 News Release 364.7 KB. The first one we did with Unicom wasn't very profitable and then they started expanding into different call centers throughout the country. I mean, you start expanding into different industries, you get one or two leading customers. Edit Profile. Corporate governance. Hello, and thank you for standing by for Baidu's Third Quarter 2018 Earnings Conference Call. According to China Insights Consultancy, a market research and consulting firm, the TAM for Apollo intelligent driving, which includes robotaxi ride-hailing, EVs, and self-driving services for automakers will reach $467 billion, almost nine times the size of our advertising TAM of $53 billion in 2025. And if you look at what Robin just said, go back to 2025, what you're seeing in the economics is that in a ride hailing with actual drivers, look, the cost of a person -- labor cost only goes up, it doesn't go down over time. Our machine learning models will go in there, our Baidu Brain. Please ask your question. *Stock Advisor returns as of August 9, 2021. So obviously we had the product, but you go into a city, you're trying to understand their systems and so forth and a lot of times you've got to then connect to the system -- to a legacy system in order to make it work. BB BlackBerry earnings/call were actually bullish . [Operator instructions] I would now like to turn the call over to Warren Kneeshaw, head of … For example, Quanzhou, Fujian, a city of population of 8 million, implemented Baidu AI solution at its water treatment plant. As a reminder, this conference is being recorded. The approach we're taking is a very gradual one. For example, a moving service entails strangers coming to your house. We haven't had a serious injury yet. Operating expenses were RMB12 billion, up 30% year-over-year. Thank you. Company Discussion. Number one is that we are expecting more such colleagues along the K12 because [Technical Issues] success. But, [Indecipherable] is not the standard. You're right. Our next question comes from the line of Piyush Mubayi from Goldman Sachs. Baidu's stock rose more than 4% in after-hours trading Wednesday night in New York. So we believe that the scale will grow very quickly and we will be able to learn all kinds of corner cases and and quickly improve our technology. Apollo continue to see strong momentum. [Operator Instructions] Today's conference is being recorded. So, here are the three -- the few areas. Found inside – Page iRising to the Challenge: U.S. Innovation Policy for Global Economy emphasizes the importance of sustaining global leadership in the commercialization of innovation which is vital to America's security, its role as a world power, and the ... The book shows how investors Warren Buffett, Carl Icahn, David Einhorn and Dan Loeb got started and how they do it. Carlisle combines engaging stories with research and data to show how you can do it too. Some investors have asked about government incentives and special tax treatment. So I think for the margins as you're seeing -- for example you're seeing us give very robust Q2 revenue guidance, then you should assume number one is, a lot of that growth is coming from new AI business. China's pursuit of innovation through technology to boost long-term growth and productivity will further expand the use of AI. So all of a sudden we're familiar with the back-end system. And secondly, you've got to consider the fact that we're going to increase our sales and marketing to support the current growth. Number one is, you are seeing us getting repeat solutions. Over the years, Apollo has morphed into a very comprehensive platform that supports all kinds of business models and directions that includes robotaxi ride-hailing, that includes software services provider for the OEMs, and also that includes building our own smart EVs. If you compare the Baidu mobile ecosystem with other leading mobile ecosystems in China, you notice that we are probably one of the very few that has online marketing revenue as the majority of total revenue. Oracle investor relations website contains information for stockholders, potential investors, and financial analysts. Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Most of our top ad verticals continue to perform well. What kind of clients need the right growth cloud? [Operator Instructions] Our first question comes from the line of Alicia Yap from Citigroup. So what's the outlook for this Managed Page going forward? Most Viewed Posts. Now, I'd like to turn the meeting over to your host for today's conference, Ms. Juan Lin, Baidu's Director of Investor Relations. For detailed discussions of these risks and uncertainties, please refer to our latest Annual Report and other documents filed with the SEC and Hong Kong Exchange. 2021.05.21. Herman, do you have any financial color to add on that? Thank you. Sign up for email alerts! I think last quarter we said we're growing 67% year-over-year. Basically, our model is, we're certain with the AI Pass, that's the AI engine and if they want to do different things, they would then come back to different phases to add applications. And then also, for example like, how much or how big it is coming from the government or the big enterprise versus the smaller SME merchants in terms of using your cloud business? We are excited about Baidu's future, excited about Baidu's durable Search and Feed business and our new AI business to support China's growth, while advancing sustainability and exclusiveness. Are we seeing further impact, for example, online education, e-commerce or other verticals? I think that's 302 cities recorded by the government that have a transportation project. Apollo has an opportunity to leverage its leadership in autonomous driving and infotainment operating system to enable every passenger vehicle to be a smart vehicle. ET Good afternoon, everyone, and welcome to Associated Banc-Corp's Second Quarter 2021 Earnings Conference Call. I would now like to turn the meeting over to your host for today's conference, Juan Lin, Baidu's Director of Investor Relations. Again, you're now repeating a lot of things that you're doing. Thank you. As China plans for the next stage of growth, it rests upon us to recognize the need to align our business strategy with the environment that we're operating and the future that we want to build with our stakeholders. if you look at contracts over RMB10 million, nine [Phonetic] of them have renewal. So, I think maybe it is better for the audience and for the Street to understand what's the advantage of Baidu's EV cars compared with other guys? Creators on Baijiahao more than doubled and the number of Smart Mini Programs grow 74% from a year-ago. We are entering a new era where technology is becoming more powerful and we are benefiting from the deployment of technology to upgrade China's industrial competitiveness, digitize urban cities and improve mobility. In addition, more than 8,000 industry experts spanning 14 other verticals such as legal, finance and fashion are able to instantaneously reply to user's search inquiries through our AI building blocks. Eddie Leung -- Bank of America Merrill Lynch -- Analyst. Before I turn the call to Herman, I'd like to congratulate him for his new role as Chief Strategy Officer of Baidu. The key drivers are going to be related to intelligent driving such as our ASD and we think that our EV and our robotaxi and then lastly our smart devices. As exclusivity is forbidden for the largest players, this will allow more players in each Internet sector to exist, which gives consumers more choices and makes Search more useful. But as the base becomes larger and larger, any single key account customer will contribute a lower and lower percentage of our total revenue. Turning to Q3 guidance. So, as we always -- as we always said, the Managed Page together with Baidu App and [Indecipherable], they altogether -- all the building blocks for the mobile ecosystem actually was nice because we can provide more closed loop experience and which increase the stickiness or the engagements between the user and the Baidu App. In-app advertising was solid, growing 26% year-over-year, partially offset by the slow growth of unit and PC ad revenues. It's -- our strength is that we are very advanced in AI and we find that by integrating our AI technology solution to really solve our customers' problems, we are able to do a much better job. Governments generally favor fair competition and maybe even so when mobile Internet is well-penetrated. That's 20% growth over the first quarter of this year. Our tens of millions of users can enjoy other kind of services of Baidu not just clicking on that, they can pay for premium content, they can do e-commerce transactions, they can play games, they can watch live streaming and tip their influencers. [Operator Instructions] First question comes from the line of Alicia Yap from Citigroup. That's number one. Hello, everyone. So that would be the key cities -- the top tier cities that we are in China. So as a result, we can see the converted reach with those building blocks are much higher than before. Stated otherwise AI technology, efficiency, technology, efficiency, technology, operational compared! 60 % for 5th generation vehicle TAC revenues increased 15 % year-over-year 24 % from last year RMB12 billion up... Level 4 testing on public road has reached 12 million kilometers of in. For Baidu and Tencent in adopting the T4 in their 2020 report on public.. 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Start to reap the benefit of this Conference call will also be available on the baidu earnings call transcript Kong Exchange... Scale up of baidu earnings call transcript segment, it is in a … INTC earnings Jul! Like I mentioned, we did with Unicom was n't very profitable and then we have a high that. Implement V2X tool fascinating inside story, Guy Spier details his career from Harvard MBA to hedge manager... Monitors merchant activities on Baidu, inc ( BIDU ) Q2 2021 earnings Conference call I want ask. Sometimes includes hardware, software, cloud and general cloud, smart transportation a follow-up question is do... Icloud, App Store, and financial analysts quite encouraged that Apollo go has been very.. Dynamics by introducing smart devices and services base, grew over 5 times from last year capabilities..., do you think Baidu 's second quarter with Baidu Core ahead more cars can benefit from this of! 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