China’s Baidu reported a 6% increase in revenue for the fourth quarter, attributed to growth in its advertising business and profits from its AI applications.

According to LSEG statistics, the company generated sales of 34.95 billion yuan ($4.92 billion) for the three months ending in December, which was about in line with analysts’ average expectation of 34.97 billion yuan.

In comparison to the same period last year, the company’s adjusted net income increased by 44% to 7.76 billion yuan, exceeding analysts’ estimates of 6.32 billion yuan.

Baidu, the biggest internet search engine in China, mostly generates income from advertising. Baidu has been investing more in AI, though, as the Chinese economy weakens and customers cut back on their spending.

It debuted its ChatGPT-like ERNIE Bot in March of last year in an attempt to capitalise on the technology’s potential.

According to the corporation, Baidu’s revenue has already begun to benefit from ERNIE AI services.
“We achieved breakthroughs in monetization, reinvented our products and services, and advanced ERNIE and ERNIE Bot throughout 2023.” CEO and co-founder Robin Li stated in a statement.
The company’s U.S.-listed shares increased by 0.4% in pre-bell trading.

To 19.2 billion yuan, Baidu’s online marketing income increased by 6%.

Its adjusted profit for the quarter was 21.86 yuan per American Depositary Share (ADS), up from 15.25 yuan per share the previous year.

LSEG reports that this surpassed analysts’ average estimate of 17.87 yuan per ADS.

(Adapted from USNews.com)