I. Overall situation and personal opinion
Just now $BIDU-SW (09888.HK)$ Financial results for the fourth quarter of 2022. I watched it for the first time,Overall, Baidu Group's revenue in the fourth quarter was RMB 33.08 billion, which is basically the same as the same period last year; net profit (non-GAAP) attributable to Baidu was 5.37 billion yuan, an increase of 31.5% over the previous year. Both revenue and net profit exceeded market expectations。
Referring to this, let's first take a look at Baidu's main business situation, as shown in the following figure. Among the core businesses, the advertising business accounts for about 70% of revenue. The innovative business is the future. It depends on how much room Baidu has in the future. Currently, it accounts for close to 30% of revenue. In addition to this, iQiyi is a non-core business.
First, let me just talk about my personal opinion:
1. The overall financial report exceeded expectations and revenue remained flat, but through cost reduction and efficiency, as well as iQiyi's profit, adjusted net profit increased 31.5% year-on-year.
2. Baidu's biggest source of revenue is also the advertising business. Revenue accounts for 70% of its total core revenue, which is also the main shared source of Baidu's profits. This quarter all declined month-on-month, and performance fell short of expectations. It is related to the epidemic in the fourth quarter. Currently, it depends on whether it can start up this year.
3. The growth rate of smart cloud and other businesses has slowed to 10%. Personally, I think the input-output ratio related to AI is still relatively low, but this revenue accounts for close to 30% of Baidu's core revenue, which is a good phenomenon...