Event: Baidu, Inc. released his unaudited first-quarter 2022 earnings report on May 26, 2022 (Beijing time).
Comments:
The new AI business promotes the long-term development of Baidu, Inc., and the core business growth driven by intelligent cloud is strong. 22Q1 Baidu, Inc. 's core business achieved revenue of 21.4 billion yuan, up 4.4% from the same period last year, of which non-online marketing revenue was 5.7 billion yuan, up 35% from the same period last year, and its contribution to revenue rose sharply to 27% from 21% in the same period last year. Baidu, Inc. Smart Cloud grew 45% this quarter compared with the same period last year, mainly driven by cloud computing and other artificial intelligence businesses. Through AI standardization solutions, AI Cloud brings drivers to traditional industries, public sectors, and related verticals of the real economy, providing digital transformation and efficiency gains for the development of these industries. As of May 20, 2022, the cumulative number of PaddlePaddle developers has increased to 4.77 million, serving 180000 enterprises and creating 560000 models. ACE intelligent transportation solutions have been deployed in 41 cities, up from 16 last year.
Radish fast order volume is growing geometrically, and the commercialization process is expected in the future. In the first quarter of 2022, radish fast run supplied 196,000 unmanned car orders. According to the results, Apollo series solutions remain in the leading position in the world. Radish fast running travel orders make Baidu, Inc. the largest unmanned shared travel provider in the country. The number of travel orders has increased by about 11 times compared with a year ago, and now covers Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Changsha, Cangzhou, Yangquan, Wuzhen and Wuhan. And open to the public in Wuzhen and Wuhan. At the same time, Baidu, Inc. 's smart driving is attractive to the whole car factory. After working with BYD at the beginning of the year, he received an offer from Dongfeng Motor, the third-largest domestic carmaker, in April. In addition, Jidu will initially introduce the first production car in early June and accept orders to the market as planned in 2023. We believe that Baidu, Inc. has achieved an absolute leading position in the field of intelligent driving, and there is still room for further development. with the charging of radish fast running in some cities one after another, the process of commercialization is accelerated and can be realized.
The basic market is still solid, and interconnection continues to benefit. 22Q1 Baidu, Inc. 's core online marketing income is 15.7 billion yuan, down 4% from the same period last year. Under the pressure of the macro environment, Baidu, Inc. 's basic performance is still stable. Although Q1 online marketing business is under short-term pressure, the overall mobile ecology is thriving to users. Baidu, Inc. 's three major engines of mobile ecology-- Smart Mini Program, escrow Page and Baijia account, provided diversified experiences for users during the epidemic and realized the closed loop of mobile ecology. As of March 22, the number of monthly active users of Baidu, Inc. APP reached 632 million, an increase of 13% over the same period last year, and the proportion of daily login users reached 83%. The number of monthly active users of Baidu, Inc. 's intelligent Mini Program reached 508 million, an increase of 22% over the same period last year, and the number of Mini Program also increased significantly. At the same time, in terms of platform interconnection, Baidu, Inc. platform has facilitated more transactions, and e-commerce GMV has increased more than ten times year-on-year.
The cost structure is optimized and healthy, and the small degree continues to take the lead. 2022Q1, the company's sales management expenses were 4.66 billion yuan, down 11.2% from the same period last year, and the expense rate was 16.4%, mainly due to the reduction of channel expenditure, marketing and expected credit loss; R & D expenses were 5.61 billion yuan, up 10% from the same period last year, and the expense rate was 19.7%, mainly due to an increase in R & D personnel-related expenditure. In terms of smart hardware, according to Strategy Analytics, IDC and Canalys data, Xiaodu continued to rank first in global smart screen shipments in 2021 and once again ranked first in China's smart speaker shipments. With the gradual progress of Baidu, Inc. in the fields of smart cloud, AI, intelligent hardware and digital human, he has the opportunity to become the basic platform in the field of meta-universe.
IQIYI, Inc. made a profit for the first time, and the number of members and ARM reached a new high. IQIYI, Inc. made a net profit of 162 million yuan on Non-GAAP this quarter, making a profit for the first time, with a net profit margin of 2%. Revenue from membership services was 4.5 billion, up 4% from the same period last year, the average number of daily subscribers reached 101 million, a net increase of 4.4 million, and the average monthly single member income (ARM) was 14.69 yuan, an increase of 8% over the same period last year. High-quality new content and rich film library content are the main drivers behind the performance, and the higher value provided to members promotes the acquisition, retention and ARM of member customers, and according to the company's public results meeting, member revenue is expected to continue to grow steadily year-on-year in the coming quarters.
Investment advice: although online marketing is under short-term pressure, Baidu, Inc. 's overall online marketing performance is robust, while smart cloud, self-driving and other non-online marketing businesses are growing rapidly and strongly. With the promotion of deep cooperation in interconnection and the further development of AI and cloud technology, it is expected to further consolidate the leading position. According to the consensus forecast of Bloomberg, as of May 26, the company's net profit of Non-GAAP for 22-24 years was 146.44, 206.27, 25.47 billion, a year-on-year increase of-22.2%, 40.9, and 23.5%, respectively, for 18.58X/13.19X/10.68X and PS, respectively. It is recommended that you pay attention to it.
Risk factors: online marketing competition intensifies; smart cloud business growth is not as expected; autopilot process is not as expected.