IT Home News August 20 Today, Baidu announced its second quarter earnings, which showed that Baidus revenue in the quarter was 26.3 billion yuan, and its net profit fell 62% year-on-year. In response to these circumstances, Baidu chairman and CEO Robin Li sent an internal letter, saying that during this time, faced with severe external challenges and a weak macro environment, the company has driven a series of disruptive changes from top to bottom, involving organizational structure, personnel changes, business consolidation and so on. These changes will bring phases of pain, but also will bring positive and far-reaching impact, so that Baidu go more stable and farther.
Robin Li said in his internal letter that from the earnings report, some good signs are showing, and the companys performance has stabilized and rebounded. It also proves that Baidus core business is still solid and dynamic.
The following is the full text of Robin Lis internal letter:
Earlier this morning, Beijing time, the company released its second quarter of this years results: total revenue of 26.3 billion yuan, net profit of 2.4 billion yuan. From todays earnings report, some good signs are showing that the companys performance has steadily rebounded. This also proves that Baidu still has a strong and dynamic position in the core business areas.
During this period, facing severe external challenges and weak macro environment, the company has pushed a series of disruptive changes from top to bottom, involving organizational structure, personnel changes, business consolidation and so on. These changes will bring phases of pain, but also will bring positive and far-reaching impact, so that Baidu go more stable and farther.
Search is the foundation of Baidu and the core value of Baidu. In the past 20 years, Baidu Search has been focusing on meeting usersneed for equal and convenient access to information. It is the concern of users and the continuous investment in core technology to build our competitive barriers and maintain the leading position of Baidu Search. Today, we are redefining search with AI. Because the evolutionary history of search engine is the evolutionary history of artificial intelligence technology. Intelligent search is evolving in the direction of more accurate answers, even the only ones. At present, the first satisfaction rate of Baidus search results has reached 51%. Intelligent search has broken through the box restriction, extending from mobile phones to smart speakers, smart cars and other scenarios, and will become a ubiquitous super intelligent interactive entrance. We should always be firmly committed to doing the best search.
Based on a solid search foundation, Baidu is building an unprecedented prosperous mobile ecosystem. In June, the average daily users of Baidu App reached 188 million, an increase of 27% over the previous year. The dual-engine consisting of search + information flow and Baijianuo + small program have further consolidated the status of Baidu App Super Entrance, and promoted the userstime and search traffic of Baidu App to achieve strong growth. Smart applets help us build a new content and service ecosystem. On the one hand, Baidu searchs unique centralized distribution, long tail distribution and other characteristics can help developers to get traffic and make smart applet ecology grow rapidly; on the other hand, rich smart applet products are also an important grasp to enhance the search experience, so that the ability to search and connect information and services is greatly enhanced. Thanks to the benign interaction between search and smart widgets, the number of active users of smart widgets per month reaches 270 million, and the number of resident widgets reaches 150,000, covering 271 subcategories.
In the field of AI, we have been laying out ahead and investing for many years. At the advent of the wave of industrial intelligence, Baidu is in an unprecedented best position. Baidu Intelligent Cloud develops rapidly with the strategy of cloud + AI. Baidu Intelligent Cloud ranked among the top four public cloud service providers of PAAS (Platform as a Service) and IAAS (Infrastructure as a Service) in China in the first quarter of 2019, according to Canalys and Synergy Research. This is attributed to Baidus long-term first-mover advantage in AI basic capabilities and the opportunities for industrial restructuring brought by AI to cloud services. As the worlds largest open platform for self-driving, Apollo continues to consolidate and strengthen industry leadership. In early August, Robotaxi, the first L4 self-driving taxi manufactured jointly by Baidu and FAW Red Flag, launched a large-scale test in Changsha. Xiaodu Assistants continued to maintain strong momentum this quarter, with more than 400 million devices activated, an increase of 4.5 times over the same period last year, and more than 3.6 billion voice queries per month, an increase of 7.5 times over the same period last year. In different scenarios such as mobile, home and automobile, it provides users with ubiquitous intelligent interactive services. Small Intelligent speakers ranked first in the Chinese market for two consecutive quarters, and together with Amazon and Google ranked the top three in the global market.
Tamping the Mobile Foundation to Win the AI Age is our core strategy. We have a great opportunity to put Baidu back on the top of the industry in the distance ahead. We have plenty of food and grass. We have built some important bridgeheads in key positions. We need more generals who dare to set up military commands and more soldiers who dare to fight hard. When Baidu is about to celebrate its 20th birthday, before making the complex world simpler with technology, I believe we can make Baidu a simple, dream-driven company, just as it was when it was born 20 years ago.
Source: Editor-in-Charge of IT Home: Qiao Junjing_NBJ11279