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

Baidu, Inc (NASDAQ: BIDU) reported a flat fourth-quarter FY22 revenue growth year-on-year to $4.796 billion, beating the consensus of $4.650 billion.
Segments: Baidu's Core revenue decreased 1% Y/Y to $3.72 billion; Online marketing revenue declined 6% Y/Y to $2.62 billion. Non-online marketing revenue grew 11% Y/Y to $1.10 billion, driven by cloud and other AI-powered businesses.
Revenue from IQIYI, Inc IQ increased 3% Y/Y to $1.10 billion, beating the consensus of $1.09 billion. iQIYI subscribers reached 111.6 million, up from 97 million a year ago.
Baidu's SG&A fell 9% Y/Y, and R&D expenses declined 23% Y/Y.
Margins: Baidu's adjusted EBITDA margin expanded by 800 bps to 25%. Baidu Core's adjusted EBITDA margin increased by 400 bps to 28%.
Baidu's Non-GAAP earnings per ADS of $2.21 beat the consensus of $2.00.
Baidu held $26.87 billion in cash and equivalents and generated $859 million in free cash flow.
Robin Li, Co-founder and CEO said, "With our long-term investments in AI, we are poised to capitalize on the imminent inflection point in AI, unlocking exciting new opportunities across our entire business portfolio - from mobile ecosystem to AI Cloud, autonomous driving, smart devices, and beyond."
Buyback: The board approved a buyback of up to $5 billion effective through December 31, 2025.
Price Action: BIDU shares traded higher by 6.65% at $150.20 in the premarket session on the last check Wednesday.

Why Baidu Shares Are Trading Higher Premarket Today