• Baidu Inc (NASDAQ:BIDU) reported third-quarter FY21 revenue growth of 13.1% year-on-year to $4.95 billion, missing the consensus of $4.97 billion. 
• Segments: Baidu Core revenue increased 15% Y/Y to $3.83 billion as AI cloud grew 73% Y/Y, Online marketing revenue expanded 6% Y/Y to $3.02 billion, Non-online marketing revenue jumped 76% Y/Y to $806 million, driven by cloud and other services, and Revenue from iQIYI increased 6% Y/Y to $1.18 billion. 
• The SG&A rose 56% Y/Y, and R&D expenses increased 35% Y/Y from higher channel spending, promotional, and personnel-related expenses.  
• Margins: Baidu's adjusted EBITDA margin contracted 1,300 bps to 19%. Baidu Core's adjusted EBITDA margin declined 1,800 bps to 28%.
• Baidu's Non-GAAP earnings per ADS of $2.28 beat the consensus of $2.01. 
• Baidu held $30.2 billion in cash and equivalents and generated $108 million in free cash flow. 
• "Baidu Core delivered another solid quarter, powered by our AI cloud revenue growing 73% year over year," CFO Rong Luo said. "With a diversified AI portfolio, including cloud services, smart transportation, smart devices, self-driving, smart EV and robotaxi, we are well-positioned for long-term growth."
• Outlook: Baidu sees Q4 revenues of $4.81 billion - $5.27 billion, representing 2% - 12% Y/Y growth versus the consensus of $5.10 billion. It implies that Baidu Core revenue will grow 5% - 16% Y/Y.
• Price Action: BIDU shares traded higher by 1.93% at $174.57 in the premarket session on the last check Wednesday.