Baidu Reports Q4 Earnings: Profit Up, Revenues Down

Baidu.com Inc. shows strong profit growth in Q4 despite revenue decline. Analysts note significant shifts as the company focuses on AI. This transformation marks a critical phase for Baidu as it navigates evolving markets.

Date: 18-02-2025

AI Rating: 5

The report indicates Baidu's strong performance in net income and earnings per share, yet highlights challenges in revenue growth and adjusted metrics.

Earnings Per Share (EPS): Baidu's earnings per ADS for Q4 was RMB14.26, up from RMB6.77 the previous year, signaling strong EPS growth despite other challenges. Rating: 8.

Net Income: The net income for the fourth quarter was RMB5.19 billion, a significant increase compared to RMB2.60 billion the year prior, reflecting a robust profitability trajectory. Rating: 8.

Total Revenues: Baidu reported revenues of RMB34.1 billion, down 2 percent from RMB34.95 billion last year, indicating a slight negative trend in revenue growth. Rating: 5.

Adjusted Net Income: Adjusted net income was RMB6.7 billion compared to RMB7.76 billion in the same quarter last year, indicating a decline. Rating: 5.

Adjusted EBITDA: The adjusted EBITDA was RMB7.0 billion, down 23 percent year-over-year, which is a significant decrease. Rating: 4.

Adjusted EBITDA Margin: The adjusted EBITDA margin at 20 percent, down from 26 percent, also indicates pressure on profitability. Rating: 4.

Overall Assessment: Baidu's fourth-quarter results show a mixed bag of substantial profit growth alongside revenue challenges. The focus on AI transformation indicates opportunities for future growth, yet current pressures on revenue and adjusted metrics may cause investor hesitation.

Stocks: BIDU