Baidu beats Q2 result expectations due to AI cloud tech

APD NEWS

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The Baidu logo atop the company's R&D Center in Shanghai, China, August 11, 2021. /CFP

China's tech giant Baidu reported a 20-percent increase in its second quarter revenue on Thursday, driven by artificial intelligence (AI) cloud business.

Its unaudited total revenue in the three months ending June 30 was up to 31.35 billion yuan ($4.86 billion), achieving its internal estimation of 30.9 billion yuan, according to its financial results.

The company's non-online marketing revenuestood at $771 million in the second quarter, up 80 percent year on year, driven by cloud and other services, per the earnings report.

"...we continue to execute and lead on our new AI business, including AI cloud, autonomous driving and smart assistant," said Baidu CFO Herman Yu.

The revenue of Baidu's AI cloud grew 71 percent compared to the same period last year, said Yu.

According to data agency IDC's 2020 China's public cloud market report, Baidu was ranked the top AI cloud provider.

However, the Beijing-based company also posted a 583-million yuan net loss, primarily due to value losses in long-term investments and market adjustment in its stake in Kuaishou Technology, according to its financial results.

Baidu said it expects its current-quarter revenues to be between 30.6 and 33.5 billion, representing a growth rate of 8 to 19 percent year-on-year.

Its U.S.-listed shares dropped around 2 percent in pre-market trading.