I. Overall situation and personal opinion
Baidu just released its financial report for the first quarter of 2023. Overall, Baidu Group's revenue in the first quarter was 31.1 billion yuan.Net profit (non-GAAP) attributable to Baidu reached 5.7 billion yuan, a sharp increase of 48% over the previous year, and a sharp increase of 48% over the previous year. Both revenue and profit exceeded market expectations.
Baidu's main business situation is shown in the figure below. 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, with revenue up 10% year over year, down 6% month on month, and adjusted net profit up 48% year over year.
2. Is Baidu's biggest source of revenue still in the advertising businessRevenue accounts for 70% of total core revenue and is also Baidu's main source of profit sharing. The year-on-year increase this quarter was 6%. Although it exceeded market expectations, the recovery was not obvious, and it was still down 8% month-on-month, so I'm not particularly optimistic.iQiyi contributed to the increase in total revenue.
3. The growth rate of smart cloud and other businesses is still only 12%. This is Baidu's hope for the future. The good news is that Baidu Smart Cloud was profitable this quarter (non-GAAP...