Baidu's Ad Revenue Shrinks In The Second Quarter

Baidu CEO Robin Li.

Baidu, the Chinese search engine giant, has announced its financial results for the second quarter of this year, reporting a 1% year-over-year shrink in advertising revenues. During the quarter, Baidu earned $507 million of net income on $3.7 billion in revenues. The company returned $540 million to shareholders via share repurchases, adding up the amount that it's spent on share buybacks over the last two years to $1.9 billion. During the quarter, Baidu added 16 million daily active users, with its total daily active user number count now standing at 204 million.

Baidu's board of directors recently approved a change to boost its share buyback allotment from $1 billion to $3 billion. The company's current share buyback program is set to run through 2022.

During the quarter, Baidu notably completed the construction of a 145,000 square feet facility to be used for its autonomous driving and testing programs. For the quarter, Baidu spent $685 million on research and development.

Forecast

For the third quarter of this year, Baidu is forecasting revenues of between $3.7 billion to $4.1 billion.






Photo credit: Stefen Chow/Fortune Global Forum, under Creative Commons license

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