China’s internet search giant Baidu Inc. (NASDAQ: BIDU) on Thursday reported revenue and earnings that beat analysts’ estimates, sending its stock up more than 4 percent.
The company said total revenue rose 31 percent to RMB 20.9 billion ($3.33 billion) in the first quarter, topping analysts’ estimates of $3.1 billion, according to analysts polled by S&P Capital IQ.
Net income was RMB 6.7 billion ($1.1 billion) in the quarter ended March 31, 2018. Excluding certain items, the company posted earnings of $16.30 yuan per American depositary share.
"We had a strong start in 2018, with our core business exhibiting robust growth, and we continue to execute on our strategy to strengthen Baidu's mobile foundation and lead in AI. Through innovation, search plus feed is powering strong monetization, DuerOS is showing accelerated momentum with hardware partners and Apollo has a great potential to become a world-class technology platform," said Robin Li, Chairman and CEO of Baidu. "I would also like to congratulate iQIYI on a successful IPO and hope to incubate more businesses with large market opportunities and strong synergies with Baidu."
Baidu’s core business marketing revenue grew 23 percent to 17.2 billion yuan ($3.30 billion). The Chinese search giant had been investing new businesses in order to drive future growth. It sold its Deliveries and mobile games businesses to better focuses on autonomous driving, AI and its news feed product.
Baidu’s video streaming service iQiyi Inc. raised US$2.27 billion through its IPO in Nasdaq.
The company now expected expects second-quarter revenues of between 24.91 billion yuan to 26.19 billion yuan ($3.93 billion to $4.13 billion) beating the 24.3 billion yuan average of estimates.