Why Baidu (BIDU) Shares Are Trading Higher Premarket Today - Baidu (NASDAQ:BIDU)

Baidu, Inc BIDU reported a second-quarter FY22 revenue decline of 5% year-on-year to $4.43 billion, beating the consensus of $4.20 billion.
Segments: Baidu's Core revenue decreased 4% Y/Y to $3.46 billion; Online marketing revenue declined 10% Y/Y to $2.55 billion due to the Covid-19 resurgence in China Non-online marketing revenue jumped 22% Y/Y to $906 million, driven by cloud and other AI-powered businesses.
Revenue from IQIYI, Inc. IQ decreased 13% Y/Y to $994 million, missing the consensus of $970.6 million. iQIYI subscribers reached 98 million versus 99 million a year ago.
The SG&A fell 16% Y/Y, and R&D expenses were flat Y/Y.
Margins: Baidu's adjusted EBITDA margin expanded 100 bps to 24%. Baidu Core's adjusted EBITDA margin declined 500 bps to 28%.
Baidu's Non-GAAP earnings per ADS of $2.36 beat the consensus of $1.63.
Baidu held $28.3 billion in cash and equivalents and generated $823 million in free cash flow.
"Apollo Go further solidified its position as the world's largest autonomous ride-hailing service provider. Apollo Go completed 287K rides in the second quarter and accumulated one million rides on July 20, becoming an important alternative means of people's everyday travel in the Yizhuang region of Beijing," Co-founder and CEO Robin Li said.
Price Action: BIDU shares traded higher by 3.96% at $153.15 in the premarket session on the last check Tuesday.

Baidu Beats Q2 Earnings Expectations, Sees Strong Cloud and AI Growth