Baidu’s Q1 performance exceeded expectations, traffic growth increased significantly

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Baidu’s Q1 performance exceeded expectations, traffic growth increased significantly
On May 19th, Beijing time, Baidu announced its first quarter results this year.The financial report shows that Baidu reported a level of revenue of US $ 22.5 billion, a year-on-year decrease of 7%, exceeding market expectations of 219.$ 3.1 billion; under US accounting standards, the net profit attributable to shareholders of listed companies was 41 million yuan, and the company suffered a loss of 3 during the same period last year.27 billion.  As performance is better than market expectations, Baidu is expected to surge more than 8% after the market.As of May 19, Baidu has decreased by 14 this year.88%, city average 372.One billion dollars.  From the perspective of revenue composition, Baidu’s core revenue, mainly online marketing services, fell by 13% to US $ 15.3 billion after the first quarter of this year, while iQiyi revenue increased by 9% to US $ 7.6 billion, of which membership revenue was 35% and advertising revenueDown 27%.  “Even affected by the new coronary pneumonia epidemic, Baidu ‘s total revenue in the first quarter fell only 7% from the same period last year, which was due to our diversified revenue sources, including marketing services for a wide range of industries, new artificial intelligence business and iQiyi.”As China’s epidemic is about to be brought under control and offline activities are recovering, Baidu will benefit from the restart of the Chinese economy.”Baidu founder Li Yanhong said that in the three months after the peak period of confirmed cases of new coronary pneumonia, Baidu’s traffic remained strong, and Baidu App’s DAU reached 2.22 billion, an annual increase of 28%; in-app search volume increased by 45%, and information flow increased by 51%.”We strengthen Baidu’s mobile ecosystem and promote in-app search strategies so that users are increasingly accessing Baidu’s key and reliable information.”In terms of user operation indicators, Baidu said that Baidu App’s daily active volume reached Dada in the first quarter.2.2.2 billion, an increase of 28% a year; the number of creators of Baijia number reached 3 million, an increase of 44% a year; the monthly active users of smart applets reached 3.54 billion, an increase of 96% a year.”Considering the unfavorable factors of New Coronary Pneumonia, Baidu focuses on the expected revenue growth and continues to strictly control the return on investment to maximize shareholder long-term value.In the first quarter, although Baidu ‘s core revenue decreased by 13% to US $ 2.2 billion, Baidu ‘s core adjusted EBITDA increased by 38% to US $ 700 million, and adjusted EBITDA margin reached 30%, an increase of 11% from last year.“Baidu CFO Yu Zhengjun said,” Baidu ‘s core operational efficiency can be attributed to the strengthening of Baidu ‘s mobile ecosystem, resulting in a reduction in the growth rate and profitability of in-app search compared to browser search, and the company is driving newAI business growth.”Baidu maintains a pessimistic outlook for the second-quarter performance. The company expects second-quarter revenue to be between 25 billion and 27.3 billion, which is equivalent to a growth of -5% to 4%, and assumes that Baidu ‘s core revenue will increase in one year-8% to 2%.  Obviously, Baidu said in the financial report that the company’s board of directors recently approved the 2020 share repurchase plan, which is valid until July 1, 2021. According to the plan, the company can repurchase shares not exceeding 1 billion US dollars.In the first quarter of this year, Baidu repurchased 1 from shareholders.8.5 billion shares, so the scale of incremental repurchase in 2018 and 2019 reached about 1.4 billion US dollars.Reporter Lu Yifu edited Sun Yong proofreading Chen Diyan