Baidu, Inc. (NASDAQ:BIDU) Q3 2018 Earnings Conference Call - Preliminary Transcript

Oct 30, 2018 • 09:15 pm ET

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Baidu, Inc. (NASDAQ:BIDU) Q3 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Hello, and thank you for standing by for Baidu's Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session.

Today's conference is being recorded. And if you have any objections, you may disconnect at this time.

I would now like to turn the meeting over to your host for today's conference, Ms. Sharon Ng, Baidu's Director of Investor Relations. Thank you.

Executive
Sharon Ng

Hello, everyone, and welcome to Baidu's Third Quarter 2018 Earnings Conference Call. Baidu's earnings release was distributed earlier today and you can find a copy on our website, as well as on Newswire services.

On the call today, we have Robin Li, Baidu's Chief Executive Officer, and Herman Yu, Baidu's Chief Financial Officer. After our prepared remarks, we will hold a Q&A session.

Please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include, but are not limited to those outlined in our public filings with the SEC, including our Annual Report on Form 20-F. Baidu does not undertake any obligation to update any forward-looking statements except as required under applicable law.

Our earnings press release and this call include discussions of certain unaudited non-GAAP financial measures. Our press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures and is available on our IR website at ir.baidu.com.

As a reminder, this conference is being recorded. In addition, a webcast of this conference will also be available on the Baidu IR website.

I'll now turn the call over to our CEO, Robin.

Executive
Robin Li

Hello, everybody. And thank you for joining our call today. We delivered solid revenue growth in the third quarter, driven by AI powered search, continued robust growth from Baidu feed, as well as strong and increasingly significant growth from new AI businesses, such as ABC cloud.

Baidu has made incredible progress on strengthening our mobile foundation over the past two years, with our efforts to improve the user experience for Baidu's family of apps with AI, such as search, maps, mobile keyboard, and launching feed with AI powered algorithms.

QuestMobile, a third-party research firm, recently cited Baidu's family of apps together generates 980 million monthly active users, putting Baidu in the top three of MAUs in China in its Autumn Report on Mobile Internet.

Our own internal data actually indicate that the MAUs of the Baidu family apps reached 990 million in September and growing 28% year-over-year, excluding overlaps, as many users have multiple touchpoints with us.

With massive reach on mobile in hand, we are well positioned for the shift in Internet usage in China. App developers are placing greater reliance on super apps to direct user traffic and provide native-app integration, bypassing the