Baidu, the Chinese Internet major this week claimed that its overall revenue had jumped by 83% in the quarter two of this fiscal. This is a strong recovery from dipping profits as compared to last year. All thanks to radical cuts in the spending.
Even though profit of Baidu had dropped by 2/3rd in 2016 and dipped even more in the quarter one of 2017, the company managed itself together in quarter two. It made this possible by achieving an overall revenue of 4.4 Billion Yuan ($652 Million) in the quarter of April–June. The company witnessed an 82.9% increase as compared to last year in this fiscal, the unaudited financial results of the company revealed to the media in an interview.
The figure far goes beyond estimates of the analysts of 2.9 Billion Yuan. It is a symbol of recovery of Baidu after authorities slashed down on its online ad business, which was the primary revenue stream of the company. Net income in the quarter two was 20.9 Billion Yuan ($3.08 Billion), a 14.3% jump from the same period last year. Mobile income represented 72% of overall income, up from 62% the same period in 2016.
Earlier, Baidu made a panel association to promote self-driving cars. This was done in an attempt of pitting against Alphabet Inc.’s system by its Apollo platform. The company gave this information last week in expectations of receiving the vehicles in China on the road by 2019.
The alliance comprises partnerships with suppliers, automakers, universities, startups, and local governments and is made around Apollo self-driving platform of Baidu that was designed at its technology center in Silicon Valley of California. Apollo is targeted at Waymo self-driving package of Alphabet. Amongst the main development associates on Apollo are mapping expert TomTom NV, and Nvidia Corp, which concentrates in artificial intelligence and microprocessors.
Baidu has claimed that its aim is to get self-driving cars in China on the road, possibly by the end of 2019, and ultimately in other markets, comprising the U.S. Baidu is a sponsor in a Silicon Valley electric vehicle business venture, Nio, which is also supported by Lenovo and Tencent Holdings of China. Nio expects to launch its first self-driving car on roads of U.S. in 2020.