Baidu net worth is a key indicator of its financial health and market standing. In 2024, Baidu saw significant shifts in its core financial performance.
At Ando Money, we break down Baidu’s financial position, revenue streams, and growth areas to provide a clear analysis of its performance.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Baidu, Inc. |
| Full Name | Baidu, Inc. |
| Industry | Artificial Intelligence (AI), Internet Services |
| Traded as | NASDAQ: BIDU, HKEX: 9888, 89888 |
| ISIN | N/A |
| Founded | 2000 |
| Founders | Robin Li, Eric Xu |
| Country/Territory | China |
| Headquarters | Beijing, China |
| Chief Executive Officer | Robin Li |
| Number of Employees | N/A |
| Market Cap | $36.27 billion |
| Total Assets | RMB 415.5 billion ($57.18 billion) |
| Total Equity | RMB 262.8 billion ($36.17 billion) |
| Revenue | RMB 33.9 billion ($4.67 billion) |
| Net Income | RMB 5.5 billion ($755 million) |
What is the Net Worth/Market Cap of Baidu in 2024?
As of September 2024, Baidu’s net worth, reflected in its market capitalization, stands at approximately $36.27 billion. This figure places Baidu among some of the leading tech giants globally.
For context, it is always insightful to compare Baidu with other tech-focused companies and entities.
Below is a list of several notable firms that have relevance or similarity in terms of industry, operations, or financial performance:
- Alibaba
- Tencent
- JD.com
- Huawei
- ByteDance
- NetEase
- iQIYI (Baidu’s subsidiary)
- Xiaomi
- Meituan
- Ping An
If you want to explore how Baidu compares to the world’s wealthiest enterprises, consider reading more about the most valuable companies globally.
Financial Performance Overview
Baidu has shown a balanced financial standing in 2024. The total revenues reached RMB 33.9 billion ($4.67 billion), with Baidu Core being the primary driver, contributing RMB 26.7 billion ($3.67 billion).
This figure showcases a 1% year-over-year growth, indicating steady performance. Importantly, the AI Cloud services provided a growth boost despite macroeconomic headwinds.
The firm’s net income is recorded at RMB 5.5 billion ($755 million), reinforcing its profitable operations.
Breakdown of the Firm’s Revenue Sources
Baidu’s revenue is sourced primarily from two streams: online marketing and non-online marketing. While the online marketing revenue was RMB 19.2 billion ($2.64 billion), it experienced a 2% decline year-over-year.
However, the non-online marketing revenue rose by 10%, reaching RMB 7.5 billion ($1.03 billion). This uplift is largely driven by Baidu’s AI Cloud business, which has become a focal point for growth.
Role of the Core Business Unit in Revenue Generation
The Baidu Core business is a significant contributor to the firm’s financial health, showing RMB 26.7 billion ($3.67 billion) in revenue for Q2 2024.
This division is primarily responsible for online marketing and AI-driven services, which help Baidu maintain a competitive edge.
The core unit’s operational income hit RMB 5.6 billion ($772 million), displaying a healthy operating margin of 21%.
Performance of Subsidiary Units and Their Impact on Revenue
Baidu’s subsidiary, iQIYI, added RMB 7.4 billion ($1.02 billion) to the overall revenue.
Although there was a 5% decline year-over-year, it remains a substantial component of Baidu’s financial picture.
The diversity of Baidu’s business portfolio helps maintain stability, balancing out fluctuations in subsidiary performance.
Cost Structure and Its Effect on Financial Performance
Cost management remains a key area for Baidu.
The cost of revenues was RMB 16.4 billion ($2.26 billion), experiencing a slight 1% increase year-over-year, mostly due to traffic acquisition costs and AI Cloud-related expenses.
However, selling, general, and administrative expenses saw a 9% decrease, and research and development costs fell by 8%, reflecting efficient financial practices.
Investment in AI and Technology for Revenue Growth
Investments in AI technologies like Apollo Go and the ERNIE model play an essential role in Baidu’s revenue development.
The AI Cloud business is a key growth driver, offering scalable AI solutions for external clients and Baidu’s own products.
The firm’s focus on technology innovation contributes significantly to both revenue growth and operational efficiency.
Financial Health Indicators
In 2024, Baidu achieved an adjusted EBITDA of RMB 9.1 billion ($1.26 billion), maintaining an EBITDA margin of 27%.
Baidu Core, specifically, reported an adjusted EBITDA margin of 32%, showing the unit’s operational strength. Such indicators demonstrate Baidu’s profitability and strong financial position.
Liquidity and Cash Flow Analysis
Baidu’s financial stability is further affirmed by its substantial cash reserves.
As of June 2024, the firm held RMB 162.0 billion ($22.29 billion) in cash, cash equivalents, and short-term investments.
Additionally, Baidu’s free cash flow stands at RMB 6.3 billion ($862 million), a reflection of its liquidity and ability to fund future growth initiatives.
FAQs about Baidu
What are Baidu’s main revenue sources?
Baidu’s revenue primarily comes from online marketing services and non-online marketing. The core business unit, focusing on AI Cloud and technology, significantly contributes to revenue growth.
How did Baidu’s net income perform in 2024?
Baidu reported a net income of RMB 5.5 billion ($755 million) in Q2 2024. This figure highlights the company’s profitability amidst macroeconomic challenges.
How much did Baidu invest in AI technology?
Baidu made significant investments in AI, especially in its AI Cloud business and autonomous technologies like Apollo Go and the ERNIE model, driving revenue growth in 2024.
What is the significance of Baidu’s operating margins?
The firm’s operating margins are robust, with Baidu Core holding a 21% operating margin and a non-GAAP margin of 26%. This emphasizes operational efficiency and profitability.
How does Baidu’s cost structure impact its financials?
With costs of revenue rising by just 1% and decreases in administrative and R&D expenses, Baidu maintains a well-balanced cost structure, positively affecting net income and profitability.
Conclusion
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