Monthly voice queries on DuerOS surpassed 4.2 billion last
quarter, up more than 4.5 fold year-over-year. This momentum is expected to
have continued into the fourth quarter fuelling growth. Baidu’s investments in
artificial intelligence and cloud computing are also likely to have benefited
the results in the quarter.
In addition to this, Baidu’s initiatives in the autonomous vehicles
space are also likely to have helped the quarterly numbers. The company’s total
autonomous driving licenses currently stand at 150 and account for over half of
the total autonomous driving licenses granted in China.
Baidu is also likely to benefit from strength in its online entertainment service segment iQIYI, which saw a 31% increase in subscribers last quarter. However, higher costs are likely to weigh on the bottom line numbers. The company also continues to face tough competition from giants like Alibaba (NASDAQ: BABA).
Also read: Baidu Q3 2019 Earnings Conference Call Transcript
In the third quarter of 2019, Baidu beat revenue and earnings estimates. Revenues increased 3% year-over-year to $3.93 billion while adjusted earnings per ADS fell 36% to $1.76.
For the fourth quarter, Baidu expects revenue to increase
4-6% to a range of $4.06 billion to $4.15 billion. Baidu Core revenue is
expected to grow 4-6% year-over-year. Reported net income is expected to be
$0.89 billion to $0.97 billion while adjusted net income is estimated to come
in the range of $1.28 billion to $1.36 billion.
Shares of Baidu have declined 23% in the past one year and were down 1.1% in afternoon trade on Tuesday.