Chinese tech firm Baidu sees revenue growth despite COVID measures

By Ovunc Kutlu

ANKARA (AA) - Chinese tech firm Baidu which specializes in internet services and artificial intelligence (AI) saw revenue growth in the first quarter of this year despite COVID-19 measures in the country, according to the firm's financial results statement.

Baidu Core, which includes keyword-based marketing and AI products and services, posted a revenue of 21.4 billion yuan ($3.18 billion) in the first quarter, up 4% from the same period last year, said the statement released Thursday.

"Revenues from Baidu Core remained healthy with non-ad revenues increasing by 35% year-on-year, driven by Baidu AI Cloud, which grew 45% year-on-year in the quarter," CFO Rong Luo noted in the statement.

Baidu CEO and co-founder Robin Li said the company's business has been negatively impacted by the COVID-19 resurgence in China since mid-March.

"Although challenges related to the virus continue to pressure our near-term business operations, we remain confident that our new AI businesses will boost the long-term growth of Baidu and contribute to China's innovation-driven economy and sustainable development," he added.

"Most notably, our new AI businesses are well aligned with China's priorities in tech innovation, green transition and digital economy," he later said during the firm's earnings call.

Li also noted that the company won the first permit in China for driverless ride-hailing services on open roads in April.

Baidu's search engine is the biggest in China, while its AI products and services are among the largest in the world.