Beijing time, February 18, baidu( NASDAQ:BIDU )The company has issued the unaudited financial reports for the fourth quarter and the whole year ended December 31, 2020. 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, exceeding market expectations for four consecutive quarters. In this quarter, baidu core rebounded strongly, achieving revenue of 23.1 billion yuan, a month on month growth of 8%, far higher than the month on month growth performance of the same period over the years. Among them, non advertising revenue was 4.2 billion yuan, up 52% year on year.

It is worth mentioning that in the fourth quarter, Baidu Intelligent Cloud revenue grew by 67% compared to the same period last year, compared with the two or three quarter, with an annual revenue of about 13 billion yuan.

Smart cloud has become an important driving force for the growth of non advertising revenue

In the trend of cloud services, AI solutions and the integration of the Internet, Baidu intelligent cloud has formed a differentiated competitive advantage of cloud and intelligence, and has entered a fast growing channel. It has become an important driving force for the growth of Baidu’s non advertising revenue.

In the past decade, Baidu has insisted on the layout of AI field and achieved remarkable results in AI new business represented by intelligent cloud. The report of China’s artificial intelligence Cloud Service Market Research Report (2020H1) released by IDC, a world-renowned consulting firm, shows that in the Chinese public cloud service market of AI, Baidu’s market share of intelligent cloud has ranked China’s first in three consecutive quarters, ranking first in many fields of human identification, image and video, NLP (Natural Language Processing) and so on, and the overall industry users have the highest awareness.

In 2020, Baidu Intelligent Cloud continued to improve its market influence in various industries such as intelligent transportation, industrial manufacturing and finance. In the field of intelligent transportation, Baidu has completed the first phase of the Guangzhou intelligent transportation project, launched the world’s first automatic driving travel service platform Maas, ordinary citizens can book automatic driving trips through Baidu map and Baidu app, and the Government Transportation Department can also realize fine traffic management. At present, Apollo intelligent transportation has reached strategic partnership with Beijing, Guangzhou, Shanghai, Chongqing and other cities.

In the industrial Internet field, Baidu Intelligent Cloud signed strategic cooperation with Guiyang municipal government of Guizhou province and Ji’nan City Bureau of industry and Commerce of Ji’nan Province in the fourth quarter of 2020 respectively, to build a local AI industrial Internet platform, and comprehensively promote the digitalization and intellectualization transformation of enterprises, helping the local economy form a new economic growth point.

In addition, baidu AI call center solution uses Baidu brain to process large-scale customer calls through conversational AI, which is becoming an industry standard to improve call service quality and operation efficiency. Its first customer, a major telecom operator, has repeatedly purchased Intelligent Cloud solutions for three times, which have been adopted by different industries including aviation, financial services, energy and automobile.

To further enhance the strength of Baidu’s Intelligent Cloud Computing, Baidu’s 2 Kunlun chip will soon be mass-produced and will be deployed in search, industrial Internet, intelligent transportation and other business areas.

Under the background of technology integration and innovation, intelligent cloud is expected to become a new growth point of Baidu in the future

At present, the development of science and technology has entered the era of integration and innovation, and cloud services, AI solutions and the Internet are showing a trend of continuous integration. Under this background, technology convergence will produce 1+1&gt, 2 of the subversive force, and the road of Baidu intelligent cloud will also become more open and broad.

In the past few years, the market scale of intelligent cloud has been expanding with a very high growth rate. According to IDC’s report, China’s AI cloud service market will reach US $166 million in 2019, with a compound annual growth rate of 93.6% from 2018 to 2024. Lu Yanxia, assistant research director of IDC China, said: “the AI cloud service market will maintain rapid growth in the next five years. Cloud service providers will also become an important force for AI technology breakthrough and application innovation. Technological innovation and breakthrough, application scenarios that can be replicated on a large scale, and perfect ecological cooperation will help manufacturers expand their market share. “

At present, Baidu intelligent cloud is in the leading position in China. Judging from the development in 2020, Baidu intelligent cloud has become an important contributor to Baidu’s revenue, especially Baidu’s non advertising revenue, with its leading AI technology. In the third quarter of 2020, thanks to the rising revenue of Intelligent Cloud business, Baidu’s core non online advertising revenue was 2.9 billion yuan, a year-on-year increase of 14%. In the fourth quarter, also driven by the smart cloud business, Baidu’s non advertising revenue soared to 4.2 billion yuan, up 52% year on year. It can be seen that driven by the Intelligent Cloud business, Baidu’s core non online advertising revenue is accelerating.

Robin Li, chairman and CEO of Baidu, said: “in the new year, Baidu, as the leading AI eco company, will seize huge market opportunities in cloud services, intelligent transportation, intelligent driving and other fields of artificial intelligence. At the same time, Baidu will give full play to its huge Internet user base and provide more non advertising services. “

Obviously, Baidu intelligent cloud is one of the most typical representatives. Whether from the future broad market space or the growing revenue, we can see that intelligent cloud is becoming a new growth point of Baidu in the future.