Baidu’s net income almost triples in Q4

Photo credit: Baidu

China-based tech major Baidu has nearly tripled its Q4 2022 net income to US$718 million from a year ago. The company had posted a net loss in the preceding quarter.

However, the company’s Q4 net revenue stayed flat at roughly US$4.8 billion, compared both to its results last year and the previous quarter.

Meanwhile, operating income saw a 135% year-over-year surge to US$666 million, while adjusted EBITDA was up 43% at US$1.2 billion.

Rong Luo, CFO of Baidu, said the results follow the company’s cost-cutting measures during the earlier stages of the Covid-19 pandemic, which led to a leaner firm today.

“In 2023, we believe we have a clear path to reaccelerate our revenue growth, and we are now well positioned to make use of the opportunities that China’s economic recovery offers us,” he added.

Baidu has been pushing hard on the AI front. The company said it will fully integrate Ernie, its ChatGPT-like bot, across all of its operations, including Baidu Search and Baidu AI Cloud.

For the full year, Baidu’s operating income jumped 51% to US$2.3 billion, while its net income dipped 26% to US$1.1 billion. Its adjusted EBITDA grew 19% to US$4.3 billion in FY2022.

See also: Baidu’s financial health in 5 charts