Baidu posts net loss in third quarter due to loss of long-term investments
By Clarence Leong
Baidu Inc. recorded a net loss of 16.56 billion yuan ($ 2.59 billion) for the third quarter due to a large non-cash loss in long-term investments.
The Chinese search engine giant’s quarterly net loss on Wednesday largely missed the consensus estimate of CNY 2.86 billion in net income in a FactSet survey of analysts. During the period of the previous year, Baidu posted net profit of CNY 13.68 billion.
The net loss included CNY 18.9 billion of non-monetary mark-to-market losses in long-term investments due to a quarterly fair value adjustment, he said. In the second quarter, the company recorded a fair value loss of CNY 3.1 billion on long-term investments, mainly due to a mark-to-market adjustment on Kuaishou Technology.
The loss per US custodian share was CNY 48.18, compared to CNY 39.79 per share in the previous year.
Revenue increased 13% year-on-year to CNY 31.92 billion, beating analysts’ estimate of CNY 31.52 billion.
Baidu’s core business revenue increased 15% to CNY 24.66 billion. Online marketing revenue grew 6% to CNY 19.5 billion, while non-online marketing revenue jumped 76% to CNY 5.2 billion, thanks to cloud and other segments related to artificial intelligence. Revenue from cloud AI, a key revenue driver for Baidu, increased 73% in the quarter.
“Baidu brings innovation to the consumer, business and public sectors through our commitment to AI,” said Robin Li, CEO of Baidu.
Baidu said it expects fourth-quarter revenue to be between CNY 31.0 billion and CNY 34.0 billion, a growth of 2-12% from the previous year. Business visibility is limited amid the evolving Covid-19 situation in China, he added.
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(END) Dow Jones Newswires
November 17, 2021 04:32 ET (09:32 GMT)
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