BIDU - Earnings call transcript Q4 2024

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Operator

Hello, and thank you for standing by for Baidu's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. [Operator Instructions] I would like to turn the meeting over to your host for today's conference, Juan Lin, Baidu's Director of Investor Relations.

Juan Lin

Hello, everyone, and welcome to Baidu's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. Baidu's earnings release was distributed earlier today, and you can find a copy on our website as well as on Newswire services.

our we our Li, Baidu and EVP, Group, Dou today, CEO; Co-Founder Mobile Junjie call of MEG; Luo, charge CFO. Rong in Shen, He, the our have Cloud, our Robin and Ecosystem Baidu Interim On AI in ACG; EVP charge of

of hold Litigation remarks, provisions made Please under XXXX. safe Q&A harbor note Reform contain that After our a will statements prepared the the forward-looking Securities U.S. of Act we will session. discussion today the

subject expectations. are uncertainties may statements and Forward-looking to materially that cause risks differ to from actual results our current

For and documents as obligation any forward-looking our filed law. to under of does Kong detailed other SEC to latest update applicable the Baidu discussions any Hong and these uncertainties, please required undertake except with and statements Stock risks annual report Exchange. refer not

call Our discussions include of earnings certain and release non-GAAP measures. press this financial unaudited

non-GAAP audited on GAAP Our the a reconciliation contains of unaudited website IR the and be measures measures ir.baidu.com. at press to comparable directly is release most available

this As be will a conference recorded. reminder,

In of our conference be this CEO, call over will Baidu's the website. on I Robin. available webcast IR now to addition, turn will the call

Yanhong Li

increase, the core everyone. revenue Hello, slight XX.X quarter RMB for total a saw year-over-year Baidu reaching billion. fourth

by the will which revenue we sure forefront market demonstrated Cloud in our driven invest robust growth recognition at accelerating AI capabilities in Our year-over-year, to technology of AI we momentum growth broad of the The megatrend. to XX% primarily stay was softness with our offsetting to online continue business. this make marketing

and genuine through as AI this We demonstrated Gen-AI for products and our XXXX momentum customers year strong our marked as created pivotal reflected the in we demand. see value well solutions market a across enterprises scenarios, capabilities services. cloud shows in growth expertise. adoption affirming transformative AI's AI as potential, Baidu's while the catalyzing technical broader AI trust have weakened market's diverse how to This

gradually coming innovator, an fronts. multiple to to is our leadership fruition position continue vision our cement as on we AI As

strategic our meaningful are progress AI investments across Our showing key businesses.

towards the and margin expansion. the revenue cloud demonstrated Our end momentum with both robust year strengthening of business growth

As mobile ecosystem notably of exploring AI, service, proven in model, and Meanwhile, the strengthening we of search. Baidu's in continue product models. Go portfolio Apollo most pursuing ride-hailing our its global autonomous rebuild viability entire to our has asset-light the with business Baidu business confidence expansion

adoption a as external capabilities in rapid XXX% We e-commerce, by RAG external reasons. strong in with external industry-leading demonstrated growing to technology business witnessed best-in-class following particularly This significantly leading demand approximately API education, sectors various X.XX scenarios, saw across is The December, has recruitment. state-of-the-art API such handled robust costs. hallucination. two growth API ERNIE costs and widespread daily. that growing ERNIE quarter-over-quarter. and across instruction capabilities billion have minimizes various driven API cost entertainment costs driven growth We In

are from value businesses integrating their ERNIE enough into operations. finding First, daily

matters. price Second,

users, source of series industries. As adoption made which increasing goes X.X ERNIE the and we end free bot significant recently We quite enable awareness quickly. upcoming of strategic up will an inference ERNIE market across make goes open ERNIE's decision to and cost broader expand for believe further adoption array capabilities down, our a

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horizon we continue novel potential, possibilities enterprises to harness us. an unfolding discover ever-expanding of before to As foresee our AI Cloud ways and ERNIE

a On AI-enabled the monthly of users. quarter-over-quarter, features doubling Wenku year-over-year. Wenku's one almost world's of million, reached the grew products paying In of Wenku XX% revenue product, subscription making Baidu Wenku's AI by QX, user largest XX active is consumer-facing the shining In example. number December,

and save and existing even Wenku we files AI combine enabling to of with integrated format users and creating to enhancing PowerPoint search their accessing to sharing AI-powered on are via storage integrates Wenku Canvas This which also introduced streamline This share AI to creation unified searching, AI access while Campus desired links Furthermore, Drive. in from platform. Baidu creativity text, Wenku Wenku's Baidu capabilities, capabilities, Campus. App the a cloud quarter, free within with platform. work by editor creation personal enabling Baidu to seamless and Drive, or allowing and their and Wenku in document including features, audio, our organize content AI-powered workflow allows website users diverse with users full integration tools editing Free transforms slides, formats, AI-powered any January, a suite videos unified

is their transforming how and redefines ideas create, intelligent into life. next-generation platform that users Wenku collaborate a bring ERNIE creativity Leveraging to

our largest stands another transformation. Now turning search, to our to AI consumer-facing which as compelling testament product,

results. uncertainties territories. path in exploration, forward we aggressively leveraging have come several transform have challenging extensive unfamiliar to the that the search of journey defined to language This multimedia starting crossing leveraged been the our search. embraced a new meaningful in Over but past pioneers we ERNIE the has quarters, power we with models deeply like waters, present After content

contain our AI-generated of content. XX% pages search Currently, result

redefining During the in AI-generated high-quality vastly capabilities focused we search demand, generation, the of advanced and and breadth deliver quarter, content results. enhancing our on depth we the our unlimited results. expanding mainly Through content can quality ERNIE's search of on

combinations, expanded engaging more we ways preferences. with generate quarter, that diverse this streaming. of beyond generation and nodes, formats, now that's users range inaccessible, live was videos, in to aligned varied short information can This text agents, presented humans previously discover Through including a more and digital user broader dynamic content evolving content

substantial across three of diversity. our have achieved As In quantity search dimensions results. we improvements a result, and

further and queries short Alongside this, the showed improved levels, App, AI-generated receive rates optimizing ensures the and enhanced content of By we the search how results. for AI the this retention our can comparative by On most dynamically format. higher spent. style. results not nature matching to the for engagement the This search Gen-AI-enabled delivering charts matching in conducted analysis-focused most determine search of query, presentation optimal users generated each is in that sequences. effective queries, just analyzing intent generating intelligent the but content organizing videos results search and between experience and format transformation and and searches, exposed higher relevant metrics. longer reflected users easy-to-understand to search Baidu The queries user demonstrated time more and effectiveness

to increased search year-over-year encouraged are X% by queries in We daily see per December. user

applications. AI During strong important native our of one placed of forms agents most of transformation we AI we envision agents as search, the on emphasis become will

in improve intelligent Our interact with This now represents agents users. significant conversion. formats newly for powerful create a also multimodel Moreover, content, into at entities thanks user generate digital pioneering embodied introduced lawyer videos. our as path an high-quality agents know-how have transcended personal transform feed to lawyers expertise vivid we content with lawyers' value content Taking engaging and evolving appearance by innovative streaming brands, engagement and these agents, initial Baidu search them can innovation Through presence, lawyer AI-generated visual helping origins clients and how authoritative lead pioneered, agents new chatbot of digital these our for into we while technology. actual breaking build scale example. can efficiently industry-leading agents potential embodied industry enhance with through and legal their convergence short in agents human live with human featuring engagement. technology, ground and This

autonomous becoming provider. continued are investments reinforced compelling In intelligent new Such our field ride-hailing agents creating the results business. content while significant are progress also remarkable delivered content a of our the landscape. in new to AI our world's our Apollo ecosystem, addition as Baidu's QX, Go that driving, in service position diversifying Robotaxi further top propelling In possibilities

to established successfully have we of Our continue business profitability domestic autonomous momentum, through and industry. pioneering and driving to path model in operations years robust show the our operations validated a

remains as track than Mainland further the million of scaling This has we our at core Importantly, the company next and testing operational secured Kong, receive accumulated testing our XXXX, only services. to and Apollo enter industry-leading in Go we our China autonomous our more unrelenting the Hong on are focus record phase Robotaxi with conduct record, growth. this making efforts have on standards. underscoring the we kilometers date, outstanding way in XXX To expanding feeds roads of Apollo safety an Go open operational expand safety as confident November achievement, safety permits for In enhancement. beyond Building on us paved to

[Audio Gap]

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go turn over With financial Jackson to call the that, let to the results. me through

Junjie He

Thank you, Robin.

full in increasing details Now decreasing RMB were XXXX the billion, quarter XXXX billion, Core's RMB RMB in Baidu billion non-online revenue, Core our year-over-year. In X% X% XXXX. decreased for billion, let year to Core in walk online QX revenues XXX.X the Baidu Baidu results. XXX.X XX% increasing revenues. decreased X% up Baidu marketing Baidu RMB QX, X.X me total XXX.X through billion, revenue XXXX, Core XX% year-over-year. and were full XX.X fourth year year-over-year decreasing financial year-over-year. revenue revenue were the in generated X% year-over-year of quarter of Baidu year-over-year. billion online RMB was Total marketing marketing year-over-year. fourth accounting XX.X core's X% X% Total revenues revenues for RMB by Core's

the increase AI in year-over-year. marketing was non-online increased by year Cloud For XXXX, business The full driven business. XX% business non-online mainly marketing

decrease due Core personnel-related expenses. research Gen-AI custody and fees, channel a X% the personnel-related expenses offset X.X is which RMB due RMB expenses from costs. was to operating XXX period RMB year-over-year. depreciation of server partially spending million to credit in same including from RMB year. and RMB the Revenue losses, onetime QX, margin Operating period to compared billion, QX, credit billion, revenues remained a decrease in costs period RMB marketing the and XX% content by increase XX year-over-year server losses content to same [ billion X.X RMB costs. by RMB costs, pertaining a to year-over-year. personnel-related billion and billion loss to XXXX, increasing Cost ] in were onetime to acquisition income to Baidu increasing custody RMB the XXX costs billion increase related last in compared in QX, and X% IT RMB billion of input an in for billion in in expenses. expected due to decrease inventories XX.X promotional partially X.X year, was for year-over-year, in write-down and primarily flat which of revenue was expenses onetime the and in same increase to decreasing for server primarily Cost RMB of billion IHG XX% XXXX, was in offset partially offset primarily RMB of acquisition RMB write-down X% in X.X Operating billion expected decreasing last XX.X credit XXX a business AI XXXX, in QX X% billion last billion expenses XX.X costs, inventories, Core Revenue in in development year-over-year, due due income were expenses, compared a a year. fees, Operating and The was traffic personnel-related the Baidu of in expenses losses, XX and bandwidth XX.X and and accrual an primarily increase decrease by decreasing was decrease QX was operating of others.

billion -- loss Baidu mainly in significant billion. in RMB dollar. losses QX. pickup to Operating XX% was same last total arising RMB income operating Core billion gain Core was certain income was of income other QX Non-GAAP Non-GAAP U.S. XX.X in billion, the Core margin was billion non-GAAP In preferred net in billion RMB method between and the Core RMB expense QX, which period operating increase Baidu was X.X result margin XXXX. shares in RMB was billion RMB decrease other 'XX. of loss and operating a Core operating RMB and in was investment, due income X.X foreign a to XXXX. rate from Non-GAAP RMB income Baidu modified Core from exchange for and was X.X pickup in XX% Baidu non-GAAP tax year, margin was Baidu was X.X in XX% XX.X was due XX.X renminbi non-GAAP income billion, total in net terms XX.X compared RMB And in operating Income income and net exchange fluctuation operating XXXX. its Baidu XXXX. equity X operating billion

X.X per was Baidu X.X XXXX, income earnings RMB a net to up tax In due X.X was and Baidu RMB non-GAAP margin is Baidu billion, to per diluted primarily total year-over-year, was income billion. was decrease XXX% XX.XX. was and pickup for ADS attributable margin income billion, diluted was XX.X X.X other In losses. net Baidu XX.XX. margin And In Income billion XXXX, net was RMB QX, RMB increasing for billion. Baidu Non-GAAP ADS RMB net Baidu is non-GAAP was in Baidu to to net income attributable net net Net and expense net XX non-GAAP Non-GAAP ADS XX%. net attributable Baidu RMB per Non-GAAP Net XX.XX income Non-GAAP X.X net Net Core attributable to RMB for XX%. Baidu was earnings to income XX%. RMB attributable RMB RMB income XX.X Core Baidu billion. was Core and X.X XX.XX. billion. for Baidu XX%. is to billion, Core income is Non-GAAP billion Baidu Core diluted was XX.X RMB RMB attributable RMB net income earnings Core was to to Core and earnings diluted are per Core attributable margin ADS was billion. billion

XXXX. Free billion. cash total RMB and As cash were convertible cash XXX.X equivalents cash RMB restricted position and short-term excluding short-term and total of equivalents, billion net others, and was restricted December RMB billion, flow flow, free and notes in cash less as cash cash, cash cash, senior and notes and excluding We XXX.X XX.X investments cash, billion plus define XXXX, equivalents, deposits were RMB XX, IT, investments, payable. cash XX.X cash loans, was

XX, billion. December net XX,XXX as XXXX, Baidu cash of employees of As XX, XXXX. RMB December Baidu XXX.X position Core had was for approximately

operator, questions. let's call With that, open now to the

Operator

first question comes from with Your Instructions] Yap [Operator Citigroup. Alicia

Alicis a Yap

My is topic. question on hot latest the

the So and ERNIE and the recent ERNIE announcement free. lot making a gaining seen for we lately of attention sourcing, do for X.X-series bot upcoming DeepSeek also by have a open

the us stay also management could we view behind does share competitive market? current Baidu the to And How of how plan with So evolving strategic this ahead of this landscape do foundations the thinking models? move?

Yanhong Li

me let The Gen-AI is moving questions. pace. DeepSeek story will of foundation at your accelerate adoption Alicia, nascent, rate but The answer and fast the market model foundation a still success very models. certainly

accessible affordable, As more phase. entering believe and foundation are we become I truly transformative models a

sourcing cases AI what's We are seeing possible greatly opportunities of use an learned naturally source, that AI. customers the is our explosion curiosity, to up to ERNIE our boundaries which will push thing with DeepSeek from be try that applications the X.X it and before. open like best model When open incredible than best And have the open models is and people try models of new users helps will One of them help adoption. can would and we more adoption. drive want ever. broader easily we out out

confidence our also source technology backed series open to leadership. to ERNIE investment. R&D decision our our is commitment stems decade-long So from in our This conviction by X.X deep

traction few of AI just API to ERNIE our X-stack innovation with from costs in strong demonstrated companies year. technological million one with and billion position already Our the X capabilities. X.XX daily market surging as XX continuous unique worldwide has

apple-to-apple value, bot impact ERNIE driving expanding developers we and will scenarios. a was models don't ERNIE's to recognize with charge. its enable they through models making time true more other had October ERNIE even foundation sourcing, free of will believe open and across So adoption users on XXXX. because an major in broader more users we more upgrade compare Similarly, basis Last our

So ago. it's a long time

for of tuned ERNIE So the next stay couple months. X.X in

crucial to only when at foundation source, or point. the No effectively matter address open that, valuable source close on scale. I root Having they said one models want truly become can emphasize problems

like application capabilities enabled we approach our various renovate products their enterprise wide ERNIE in been industry-leading augmented consumer-facing platform, committed our experience enhancing model this Baidu minimizes have an continuously With scenarios. customers. enterprise to MaaS application tool have development successfully application-driven we and Wenku. state-of-the-art Internally, ERNIE. comprehensive any Search are to following been customize mindset, across ERNIE's Externally have our in ERNIE scenarios. technology, our customers since and for adoption generation for through And products clients. iterating hallucinations, using to leveraged transform Baidu the serving while we've launching, chain instruction allows We own model and to

plan we forward, the ERNIE's cutting based to and cost Going accelerate potential. on iteration improvement performance

real-world it evolving We greatest will impact. for in areas the potential with continue

We for we AI chapter bring and technology are excited Thank value AI have applications lasting groundbreaking about seeing more forward of you. society. the that the new development, look to

Operator

Your question next from Sachs. Goldman Kong Lincoln from comes

Unknown Analyst

search So my question the is business. about

quarters search also mix following could what's the DeepSeek the share Gen-AI about color changes? capability. And mix? deepen, of AI and Given around So current offering Doba also integration such metrics? revamp, AI we or So And user adjustment the search think recent more that what's you to chatbot target future our of as continued result? as so how should the

and you the Baidu view do the chatbots? competition those search or dynamics between AI how are So competitiveness

Rong Luo

currently, content. pages have which questions. And XX% around answer me search let Lincoln, contained of result all AI-generated

more much there However, is premium listing.

expanding formats search and text, transforming search a videos, before. have fundamentally efficient remarks, including agents, plays. and personalized search different making live said offer with Robin have beyond prepared And then And the more than links combined content ERNIE, can these dynamically ever we nodes to experiences. powerful formats, to streaming, as We be diverse the shop create and in short

are developing we adapting search, to for preference. transform capabilities which the to personalization and also user's allow each deep continue we As

December, What's user continuous queries can In values user is per see Baidu XX% expanding can And to experiences, search positive do advertisers. the agents Our on results. led have grew we the in active see year-over-year. January, X% search AI increasingly efforts more monthly users create this, content. for a on amount user our how even generative let on we in with case the of can user App as a that engaged the who AI's Building role share better small the encouraging we me focus engagement. on improvement ERNIE by the

medium this are and X this During our demand and holiday, actually for New small closed Chinese week customer certain ERNIE enterprises past Year bridge in while gap. effectively many industry peak, agents

here customers example, the should their holiday. kind our inquiries early serve own even a enabling products, For to represent were is reunited believe all customers potential. question up reduced ERNIE or stage Through because in needs. it's that the the a company chatbot DeepSeek still family efficiently AI but of we driven search, with chat them and parents we Whether AI are on this AI different your they identify increase have this a the their sales AI -- health holiday. their away we about on as But AI-driven native to and elderly and agents, customer regarding and company service the revolution flow chatbots team ways efforts. highly of very actually like leads, financial the And effectively And were seamlessly relevant qualify models. by explore

incorporating search best placing to in AI market millions agility this As the features. by truly market and with innovations maintain of the innovative and of hundreds leader holistic users the view

its in one by but model to to to provides empower guides answers users an in As into that languaging text smart evolving tasks which our aligns completing in-depth capabilities, providing solutions. the from with which services the enhancing beyond large experiences only platform transformation. perfectly ultimately the language search search nature and not integrated answers deeply we comprehensive and finding is the rooted search in chatbots. delivering Also believe is also that penetration understanding, go search We position and base. AI the their the through lead massive and to well us And to continue AI for analysis user journey

for discovering the the yet maintain one focusing AI represents truly and what Lincoln. not AI next the rapid phase While transformation, And of of AI emerged. application you, key today and determined us, early Thank users to from has generation important pace chatbot search. is need development, the on this an

Operator

Your Alex next comes from question from Yao JPMorgan.

Alex Yao

So and 'XX truly what the XXXX? you started outlook lastly, on 'XX core assumptions year for monetizing as to search recover? the macro bottomed made quarter full What comment are are this outlook the and is out And growth underlying potential could in business for first expected and timing? the opportunities ad you XQ Gen-AI advertising what

Rong Luo

they like easing, you, Let benefit me seeing few answer and of This similars different Alex. the while months. the Thank in Yes, we question. on past to believe these trading And through. rolling that seamless the are measures is eventually kinds policies your And we economy some monetary physical need and will time policies. will flow

to Despite new a AI who near-term efforts seen we yet. Given our financial with this QX continue believe haven't transformation models that pressures, to the macro any sensitive in that experiences improvements create our And landscape. enhance search competitive are user advertising And and progressing transform conditions, opportunities. the really are steadily. to enterprises business is will challenging medium plus is persistently highly correlated and with the particularly small we

that deepen With quality the we refined, the user will products, opportunities scale, in in transformation monetization improvements new think user drive and are this AI-powered we reaching monetizations. features believe results point of further as with quarter, we such metrics forward search, about growth. of for Once we are This businesses. higher seeing which queries. we of is we growth help future encouraging we remarks. our AI Also, opportunities haven't these sufficiently such at advertisement our XX% in open move revenue seeing we total and And the are factors, our are monetize talked around Based will prepared on we

year app improvement better the to you, We second half with Alex. showing performing than our improve the of businesses of first first the further year half Thank QX and expect gradually, the the over half.

Operator

Your Morgan Stanley. next Yu Gary comes from question from

Gary Yu

question cloud. AI is my So regarding

going could this and trajection incremental we Cloud management AI of momentum? the strong and additionally, the in growth terms outlook what drivers the demand revenue share in this XXXX, positive should of XXXX? does on cloud can AI behind are your approach quarter, continued into How business What enterprise profitability? we market Given opportunities And this Cloud main bring expect also to segment? your and both a AI

Dou Shen

Gary, your for you, Thank question.

to Robin revenue tripled accelerated growth our in in XXXX. contributing year as year-over-year to Cloud growth of 'XX. revenue Notably, full XX% So Gen-AI-related mentioned, in AI XX% nearly year-over-year revenue QX, a

for market's of scoring recognition demand this growth by was strong our So and ERNIE our technical leadership. the rising fueled and AI infrastructure,

attracted So we build opportunities. diverse have of robust pipeline successfully as a base and a result, a customer

partnerships AI established So and devices, we sectors, AI energy, including start-ups. of the automotive, smart finance, manufacturing, utilities for across Internet, diverse GC infrastructure, have lots

continues Our with gains demonstrating healthily customers, expanding China's share our both customer grow cloud and market mid-tier market. in strong top-tier base among to

comprehensive Sanpan, performance. and On it platform, the MaaS provides industry-leading models foundation with the

offer diverse foundation competitive ERNIE range our Thanks stack DeepSeek we of can RX we high-quality the and models VX hosted models. to capabilities presence. and And meet besides we of designed wide flagship for and our needs. performance while maintaining from optimal ensure platform, full highly third-party including optimization, a family on to variants to to So lightweight provide ERNIE, access also models, end-to-end stability

own and customers out So full building models to solutions sight specific provides for fine-tuning for easily needs. their tools that, native our apps, that catering work in addition of AI a so can

discussed to large rapidly grow about but we more holiday, recent improve AI XXXX. Year it of New people one in own the widely to think only them not awareness This will simply leverage a models in the businesses. hand, their Chinese further encourage how models, became XXXX public foundation terms increased -- So language topic. to On during market, believe also Cloud

foundation hand, while improve, to Surely, On are the of will to cost other that steadily this continue utilize the we decline. performance further models confident will the the models. will lower these barrier

from of So cost. API more into business explosive the enterprises as believe every drive and operations foundation in will which will a to models we result, R&D integrate to their production growth aspect

our on a foundation tended our Shanshan trend spending Thereafter, observed AI also that API in MaaS services. through to AI on Cloud, we clear who adopted we Baidu have the Cloud spending the models platform anticipate on increased costs consumers past increase their as

expand our on opportunities align which On priorities, with margin strategic continued as QX our in operating that drives side, robust focused we the sustainable profit to non-GAAP year-over-year growth. high-value

strong our growth cloud confident generate So will positive operating air continuing into XXXX, we maintain profit. while momentum are to looking revenue that

Operator

from Your comes UBS. next from question Zhengyu

Unknown Analyst

I want trend. to ask about our margin

And near-term year how any there So should to revenue, operating also, we given that any plans there in the we the also should quarter headwinds the and mix year cloud our core are ads the the think margin levels full room of efficiency? increasing core aware XXXX? full about of? for investment in optimize further first Is and . be

Junjie He

Thank This your question. you is Jackson. for

optimistic near-term investment deliver sustainable strategic that so So AI despite our we remain will the pressure, impact. more

see resilience our aspects our So we improving all of businesses. business across on encouraging focused operations stay across and progress

capture also for marketing growth revenue improve, online gradually by macro to improvement. search scale expect to opportunities at our our to First, driven plan our revenue our business, results and the advertising when monetize AI-generated we our

the Secondly, has growth business, first capabilities. demonstrated continued in and for our and driven advantage self-developed architecture step with our Cloud it growing improvement, competitive our margin AI market unique presence by X-layer already AI AI robust

we confident maintaining momentum So strong forward. this in going remain

with particularly Go, on Robotaxi, improved operational our business, for losses Third, focused better narrowing remain UE. efficiency we and Apollo

are We models. operational models, exploring asset-light innovative also including

strategy. the to align optimal maintain will investments in and growth high allocation asked XXXX, for you we resource optimization they with our while opportunities, As long-term

and potential, ROI advancing offerings our driving Cloud search, ERNIE's initiatives transformation further Our and tremendous initiatives. AI to our focus capabilities, investments offer strong expanding will the continue that opportunities autonomous including deepening AI both on future enhancing

fostering strategic forward with impact to we committed maximize investments. business of Thank the efficiency across move enhancing initiatives, synergies we and these these you. operational group remain to As

Operator

Zhuang next Your from of comes Bank from question America Securities.

Xiaomeng Zhuang

unit strategies And proposition point? view is question the Robotaxi what's and about for Robotaxi other business -- about industry business? platforms. management fleet we targets My your the an with heading do the that of approaching the XXXX? competition into ecosystem are provide Can dynamics? and is What the ride-hailing think leveraging you value Robotaxi are seeing progress economies updates business. inflection also China's As our Robotaxi to competitors for we automakers size reaching What

approach compete what So is Baidu's scale? to and we're doing

Yanhong Li

invested driving for is technology Robin. this autonomous We've a decade. Yes, over in

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area. this benchmark industry in our leadership is this new it and a reinforces So

in As I we market. right-hand Hong systems, to our markets for grow mentioned to to technology autonomous our similar paramount is Apollo other open traffic with our is Go fleet to expansion, for the And Kong. faster different drive and an and size traffic than It into year, Hong right-hand driving driving expect light start last adapt because This year in got earlier, will Kong a ever. of our ability opening ride setups. be this green doors stand our testing year November first volumes expansion shows important

we're forward, As also we push actively opportunities. seeking cooperation

have to strengthen diverse while with potential our of We By variety range even working maintaining and in third-party allow operators partners, driving will potential efficiently and partners, up autonomous providers, bring asset-light a including approach more taxi the local market identified other This people. partners. scale companies, flexibility. us fleet a position to to of service mobility we aim

broader at the Looking market.

in remains mentioned helps in foster its still clear, actually friendly more more more innovation call, infancy, a regulatory market our I for since mobility convenient pro growing experience accelerate is competition in earnings and the comfortable delivering this more market and environment. As And market, mission development our safer, last users.

Operator

Your next question comes from Thomas Jefferies. Chong from

Thomas Chong

focus be strategic investments. into Looking will XXXX, what for Baidu's business

Specifically, expenditures foundation outlook as full search, shareholders' returns. well year what how XXXX allocated will autonomous management's across resources driving, cloud is Additionally, models? capital as on services be and

Junjie He

This Jackson. Thomas. you, Thank is

evaluate we allocation our opportunities as strategic so in following by our considerations. guided So XXXX, capital approach are the

So we will our continue capabilities long-term advancing to a as invest AI in priority. strategic

product AI So the deepening search. portfolio, across transformation we with our further that, will particularly

Tianfeng and AI model For as we growing customers, to adoption focusing the and platform, well the meeting innovative solutions exploring domestic their our Cloud our among ERNIE aim AI demand scaling Cloud, services. infrastructure, our are AI international presence. In of we our drive enterprise as AI for operations, on and expanding driving, MaaS autonomous products operational

So ensuring disciplined management and effective ROI while control. loss

and the technology strengthening our drive accelerating adoption AI to across of leadership For sectors. decisions priorities AI CapEx, our and our two products key different services

billion in our USD for as you is of X beginning since significantly total shareholder than repurchased higher which over we buybacks the returns, So XXXX. XXXX, this ask

have USD which program, under through X.X we runs in purchase December repurchased total, billion $X So XXXX. our billion

plan efforts trust to for value you. So our enduring shareholders return as our to accelerate buyback part and forward, going we to Thank program ongoing support. of our their

Operator

gentlemen, for time conference all the That conclude participating. ladies we does is and for Thank today. our for have that you questions.

all You disconnect. may

Baidu (BIDU) 18 Feb 252024 Q4 Earnings call transcript