On February 18, baidu released its fourth quarter and full year unaudited financial reports. In the fourth quarter, baidu achieved revenue of 30.3 billion yuan and net profit of 6.9 billion yuan, exceeding market expectations for four consecutive quarters. In 2020, Baidu’s total revenue will be 107.1 billion yuan.
After the release of the earnings report, Robin Li, chairman and CEO of Baidu, issued a full letter. He revealed that Baidu is ready to carry out deep integration with the video social media YY Live. “We believe that there is still great development opportunity for live broadcasting in Baidu’s ecosystem. This will make Baidu mobile revenue diversification strategy a big step forward.
Robin Li said that the long-term commitment to technology development has enabled Baidu to become the leading AI eco company. In the future, Baidu will continue to work hard in basic research, basic technology and bottom innovation, “do not innovate” atmosphere group “, and do it as a” practical group “.
For a long time, Robin Li has been emphasizing Baidu’s belief in technology and the broad prospect of AI application. He also mentioned in the earnings letter that “this is an era of re crowning technological innovation.” We love this era. Let’s stand on tiptoe in the deep valley of technology, and look further, at the starry sky, and see the future. “
The following is the full text of Robin Li’s earnings letter.
Dear Baidu students
At the beginning of the new year, welcome back to the company. Early this morning, baidu released its unaudited financial report for the fourth quarter and the whole year ending December 31, 2020. With the rebound of China’s economy, Baidu business ushered in a comprehensive recovery. In the fourth quarter, baidu achieved revenue of 30.3 billion yuan and net profit (non US GAAP) attributable to Baidu reached 6.9 billion yuan. In 2020, Baidu’s total revenue will be 107.1 billion yuan.
The day arch one death, the merit does not Tang donate. Our long-term and firm investment in technology research and development has made Baidu a leading AI ecological company. In 2020, Baidu’s core R & D expenses will account for 21.4% of its revenue, and its R & D intensity will be in the forefront of China’s large technology Internet companies. Baidu ranked first in China in terms of AI patent applications and authorization for three consecutive years. Profound AI technology accumulation, full stack AI layout and prosperous and open AI ecology enable us to seize the huge market opportunities in cloud services, intelligent transportation, intelligent driving and other artificial intelligence fields. At the same time, we will give full play to the advantages of the leading Internet platform, and under the general trend of the integration of cloud, AI and Internet, we will accumulate strong potential energy to support the future development and form a new pattern of multi engine growth.
Our leading edge in computing power, algorithm, open platform and developer ecosystem is transforming into the competitive power of Baidu Intelligent Cloud “cloud intelligence integration”, making it enter the fast lane of strong growth. AI In the fourth quarter, Baidu Intelligent Cloud business increased by 67% compared to the same period last year, with an annual revenue of about 13 billion yuan. In terms of computing power, Kunlun 1, a cloud universal chip independently developed by Baidu, has been widely deployed in Baidu search engine and Intelligent Cloud ecological partners, with high performance and high cost performance. The next generation of 7Nm Kunlun 2 chip is about to be mass produced, and its performance is three times higher than that of Kunlun 1. In terms of algorithm, as an operating system in the era of artificial intelligence, flying oar is the largest open source deep learning platform in China; the number of developers gathered on Baidu AI open platform has reached 2.65 million; we have also invested in open source China, which is the most dynamic open source community in China.
Baidu intelligent cloud is the key exporter of Baidu AI capability. Finance, energy, industrial Internet, intelligent transportation and so on are our key fields. We will accelerate the intelligent transformation of all walks of life with greater investment. For example, in the field of intelligent transportation, Guangzhou Huangpu District and Baidu Apollo have jointly built the world’s first autonomous driving Maas platform to serve multiple trips. Ordinary citizens can call and obtain automatic driving transportation services through Baidu app and Baidu map. This is a milestone in the era of intelligent travel, which makes the automatic driving service further enter the daily life of the people. At the same time, it is also a benchmark case of digital transportation operator model, which greatly improves the operation and management efficiency of urban transportation.
Apollo is the world’s leading open platform for autonomous driving. On January 27, the California Vehicle Administration (DMV) of the United States issued the license for the open road driverless test to Baidu, which is a new breakthrough we have made in the most advanced field of driverless test. So far, baidu Apollo has conducted unmanned open road tests in Beijing, Changsha and California. We can see that the iteration of intelligent driving technology is accelerating. With each new generation, the cost will be reduced by about 30% – 50%. When the cost falls to a threshold, it will trigger the large-scale operation of robotaxi; on the other hand, vehicle road cooperation will greatly improve the safety of unmanned vehicles, making large-scale commercial possible.
At last year’s Apollo eco conference, we released a Lego style intelligent car driving solution, including AVP (Apollo valet parking) and ANP (Apollo navigation pilot) products. In January this year, Weima W6, which is equipped with Baidu AVP’s independent parking scheme, went off the production line. At present, we have signed strategic partnership with 10 Chinese and global automobile manufacturers to provide intelligent automobile services such as high-precision map, autonomous parking, pilot assisted driving, etc. In the future, we will, as always and unswervingly, invest in and implement Apollo’s open strategy to empower automobile manufacturers and promote the progress of the entire intelligent driving industry.
On January 11 of this year, we announced the formal establishment of a smart car company. The newly established automobile company will face the passenger car market, allowing users to purchase more extreme intelligent electric vehicles. We hope that by building our own cars, we can bring advanced intelligent driving technology to the market at the first time and bring the best experience to users. Extreme innovation needs end-to-end integration and fast and powerful feedback mechanism.
Xiaodu assistant is another frontier business of Baidu in the intelligent era. In 2020, Xiaodu assistant launched the “breaking the circle” offensive. We launched more smart screen products, launched Xiaodu smart headphones, and won the recognition of users. The shipment volume of small smart screen continues to be the first in the world. The total number of monthly voice interaction of small assistant reached 6.2 billion, and the number of monthly voice interaction of first-party hardware devices reached 3.7 billion, an increase of 66% over the same period last year.
Our mobile ecosystem is more prosperous and open, and the strategy of income diversification is accelerated. Baijiahao, smart app and hosting page are the three pillars of Baidu mobile ecology, and also the important foundation to open the service closed loop. The number of monthly active users of our flagship product Baidu app will reach 544 million in December 2020, with daily login users accounting for more than 70%. We will introduce more products and services for Baidu mobile ecology to meet the diversified needs of users. For example, live broadcasting includes both entertainment and professional knowledge. We are ready to conduct in-depth integration with video social media YY live. We think that live broadcasting still has great development opportunities in Baidu’s ecology. This will make Baidu mobile revenue diversification strategy a big step forward.
Facing the future, we should further strengthen the consensus of strategy and strategic path, CO create, further break the muscle memory of seeking stability and perfection, concentrate superior resources, and win the war of innovation. We will continue to invest in “two bases and one base” and work hard on basic research, basic technology and bottom-up innovation. We don’t do the “atmosphere group” of innovation, but we do the “practical group” if we want to do it. We will continue to promote the opening and sharing of technology, so that the whole industry can avoid building wheels repeatedly, and accelerate the speed of industrial innovation. With the convergence, superposition and integration of exponential technologies in frontier fields such as quantum computing, artificial intelligence, blockchain and biological computing, we are about to usher in an era of innovation.
This era rewards climbers, this era favors dreamers, this is an era of re crowning scientific and technological innovation. We love this era, let’s stand on tiptoe in the deep valley of technology, and then look a little further, look at the starry sky, and see the future.