China’s search engine and artificial intelligent (AI) giant Baidu Inc. (NASDAQ: BIDU) on Thursday posted a 1% year over year decrease in its total revenue to 26 billion yuan (3.69 billion) for the second quarter of 2020 ending June 30, falling slightly below the Wall Street estimates of $3.7 billion.
Revenue from its Baidu Core segment offering keyword-based marketing and transaction services reached 18.9 billion yuan, a 3% decrease from a year ago, while its online marketing revenues decreased 8% year over year.
“Baidu’s new AI businesses, including cloud, smart devices and smart transportation, saw double-digit growth in the second quarter and stands to become an important revenue driver in the years to come,” said Robin Li, co-founder and CEO of Baidu.
Baidu’s AI open platform, built on top of Baidu Cloud, offers over 260 AI capabilities. In addition, Baidu announced in April the complete implementation of its Apollo robotaxi self-driving service in Changsha. It also introduced the 145,000 square feet Apollo Parkin Beijing, an autonomous driving and V2X facility that supports testing, and includes an operational command center, cloud control system, among other features.
“In addition to investing in new AI businesses, Baidu is also diversifying our revenue streams through membership, online games and others to increase the ARPU of our existing traffic.” said Herman Yu, CFO of Baidu. “We plan to continue heavy investments in technology to maximize Baidu’s future growth potential.”