LATEST PERFORMANCE

1Q24's overall revenue was $31.5 billion (yoy 1.2%, qoq -9.8%), net profit (non-GAAP) of $7 billion (yoy 22.4%, qoq -9.6%), and operating margin (non-GAAP) of 21.2%. 1Q24 Baidu's core revenue was 23.8 billion yuan (yoy 3.5%, qoq -13.4%), and Baidu's core net profit (non-GAAP) was 6.6 billion yuan (yoy 25.8%, qoq -11.6%).

Smart Cloud: Launching a variety of lightweight big language models

1Q24 Baidu expanded the Wenxin series of models and launched a variety of lightweight models. At the same time, Baidu launched MaaS (Model as a Service) platform tools for enterprise customers to promote the development of artificial intelligence native applications and intelligent software, and create customized models on its MaaS platform. Furthermore, as of mid-April 2024, Baidu's propeller platform had gathered 13 million developers.

Intelligent driving: orders for autonomous driving increased 25% year over year

In 1Q24, Baidu's autonomous driving service platform Radish Express had 826,000 orders for autonomous driving, an increase of 25% over the previous year. As of April 19, 2024, the total number of orders for autonomous driving travel services provided by Radish Express has exceeded 6 million.

Mobile ecosystem: Baidu App reaches 676 million active users

Baidu App reached 676 million active users in 1Q24, an increase of 3% over the previous year. Among them, hosted page revenue accounted for 50% of Baidu's core business online marketing revenue during the same period.

Investment advice

We expect the company's 24/25/26 net profit (non-GAAP) to be 300.03/321.60/34.638 billion yuan, yoy 4.4%/7.2%/7.7%, which is basically in line with the previous forecast, corresponding to P/E 12.1/11.2/10.5, maintaining a “buy” rating.

Risk warning

AIGC technological changes disrupt the existing competitive landscape; competition in the Internet advertising industry intensifies