Baidu (Nasdaq: BIDU; HKEX: 9888) today released its fourth quarter and full-year financial results for 2024 as of December 31. In the fourth quarter, revenue was 34.1 billion yuan, down 2% year-on-year. Net profit belonging to Baidu was 5.2 billion yuan. Not according to U.S. GAAP, the net profit attributable to Baidu was 6.7 billion yuan. Throughout 2024, total revenue will be 133.1 billion yuan, a year-on-year decrease of 1%. Net profit attributable to Baidu was 23.8 billion yuan. Not according to U.S. GAAP, the net profit attributable to Baidu was 27 billion yuan.
When asked about the business of Luobo Kuaibao, Robin Li said that Baidu has invested in the field of autonomous driving technology for more than ten years, and through Luobo Kuaibao, it has established the company's global leading position in the field of autonomous driving technology. "Our successful operations in China demonstrate Baidu's outstanding technical and operational capabilities, including our design of the new sixth-generation mass-produced autonomous vehicle RT6, which is the most cost-effective self-driving taxi in the world's history."
Robin Li said that this year is crucial for the business expansion of Luobo Kuaipao. As the business advances, the fleet size and travel service volume are expected to grow faster than ever before. At the same time, Baidu is also actively looking for cooperation opportunities. "We have identified various potential partners, including travel service providers, local taxi companies, third-party fleet operators, and other potential partners. This asset-light model will enable us to expand scale efficiently while maintaining flexibility."
Robin Li pointed out that by cooperating with different types of partners, Baidu's market position can be strengthened and more people can experience autonomous driving services.
He also believes that since the market is still in its infancy, competition can actually help accelerate market development and create a regulatory environment more conducive to innovation. “In this growing market, our mission has always been clear, which is to provide more users with a safer, more convenient and comfortable travel experience,” he said.
The following is a transcript of the Q&A:
Miranda Zhuang, analyst at Bank of America Merrill Lynch: I have a question about the Carrot Run business. Can management describe the progress of this business in 2025, including fleet size targets, what unique economic benefits it can contribute, and what is the value proposition of the business? What stage does management believe the industry is currently at? Are we approaching a turning point? Given that competitors in the domestic self-driving taxi market are adopting ecosystem strategies by partnering with automakers and ride-hailing platforms, what is management's view on the competitive landscape of the industry going forward? What is Baidu’s competition and scaling strategy?
Robin Li:We have invested in the field of autonomous driving technology for more than ten years. Through Luobo Kuaipao, we have turned our grand vision into reality and established the company's global leading position in the field of autonomous driving technology.. China's self-driving market environment is very challenging. Due to China's large population, diverse road conditions, dynamic changes in traffic scenes, and complex urban layout, its traffic conditions are very complex. The price of taking a self-driving taxi in China is about one-seventh of that in the United States. As such, our successful operations in China demonstrate Baidu's superior technology and operational capabilities, including our design of the new sixth-generation mass-produced autonomous vehicle RT6, the most cost-effective self-driving taxi the world has ever built. With these advantages of ours, this business model has been successfully proven and laid a solid foundation for further scale development and global expansion.
In the fourth quarter, Luobo Kuaipao provided approximately 1.1 million rides nationwide, a year-on-year increase of 36%. By January, the cumulative number of travel services provided to the public had exceeded 9 million. In addition, as I mentioned before, we have achieved 100% fully driverless operations in China, which means there are no longer safety personnel on the vehicles, which is a new industry benchmark and consolidates our leading position in this field. As I mentioned before, in November last year, the autonomous driving business was approved to start open road testing in Hong Kong, which is a very important step because Hong Kong is our first right-hand drive and left-hand driving traffic market. This demonstrates our ability to adapt autonomous driving technology to different transportation systems, opening the door to expansion into other markets with similar driving setups.
This year is crucial for our business expansion, as the business advances, fleet size and travel service volume are expected to grow faster than ever before. At the same time, we are also actively looking for cooperation opportunities. We have identified various potential partners, including travel service providers, local taxi companies, third-party fleet operators and other potential partners. This asset-light model will enable us to expand scale efficiently while maintaining flexibility. By working with different types of partners, we aim to strengthen our market position and allow more people to experience autonomous driving services. Looking at the broader market, as I mentioned in the last earnings call, since the market is still in its infancy, competition can actually help accelerate market development and create a regulatory environment that is more conducive to innovation. In this growing market, our mission has always been clear, which is to provide more users with a safer, more convenient and comfortable travel experience.