Chinese tech company Baidu reported better-than-expected revenue for the second quarter of the year, with a 15% year-on-year increase. This marks the fastest quarterly growth pace in two years, according to Refinitiv data. Baidu's U.S.-traded shares also saw a rise of over 4% in pre-market trading.
During the June quarter, Baidu generated 34.1 billion yuan ($4.7 billion) in revenue, surpassing the expected 33.28 billion yuan. Earnings per American Depositary Share on a non-GAAP basis were 22.55 yuan, compared to 15.79 yuan in the same period last year.
Baidu's core businesses, including online marketing and non-online marketing, experienced growth in the second quarter. Online marketing revenue rose by 15% to 19.6 billion yuan, while non-online marketing revenue increased by 12% to 6.8 billion yuan.
The company attributed the growth in online marketing sales to its use of AI technology, which helps match ads to Baidu search queries more effectively. Robin Li, co-founder and CEO of Baidu, expressed optimism about the market opportunities presented by generative AI and large language models in various industries.
Baidu, known for operating China's primary internet search engine and popular consumer apps, has seen accelerated revenue and profit growth in the second quarter of 2023. The solid performance of its online marketing business and operating leverage contributed to this positive outcome.