Eros Stock – China’s Baidu beats quarterly revenue estimates on AI, cloud boost, Telecom News, ET Telecom
Also known as China’s Google, Baidu has diversified its revenue sources by expanding its cloud-computing, artificial intelligence, autonomous driving and smart transport technology footprint as competition for advertising sales heats up from local internet giants Alibaba and ByteDance.
The Beijing-based company said total revenue rose 25% to 28.13 billion yuan ($4.38 billion) in the first quarter, boosted by non-advertising revenue growth of 70%. Analysts on average had expected revenue of 27.25 billion yuan, according to IBES data from Refinitiv.
Baidu also benefited from its streaming affiliate, iQIYI, that posted a 25% increase in advertising revenue during the quarter ended March 31.
Sometimes known as China’s Netflix, iQIYI’s subscribers grew by 3.6 million in the quarter to a total of 105.3 million, helped by more original productions.
Baidu’s results also come amid regulatory clampdown on China’s internet giants to keep a check on anti-monopolistic practices. The company also completed its secondary listing on the Hong Kong bourse late March this year.
U.S.-listed shares of the company rose 3.5% in premarket trading. The shares had been on tear in the first quarter amid a series of block trades tied to the meltdown of hedge fund Archegos Capital Management.
Excluding items, Baidu earned 12.38 yuan per American Depository Share, above Wall Street estimates of 10.75 yuan.