Baidu posts better than expected Q1 report

Baidu posts better than expected Q1 report

One of the biggest network companies in the world gained more than expected.

Yesterday, the Chinese search giant Baidu posted a financial report that exceeded analyst expectations and made predictions about the 2nd trimester.

Analysts were expecting revenue of $21.93 billion and an EPS of $4. Baidu wiped off the consensus and posted a revenue of $22.55 billion, and an EPS of $8.84. Although the results were good, they are still 7% lower than the same period last year.

In March, the number of users increased by 28% to 222 million daily active users. For the American depositary receipt, it had an adjusted EPS of $1.25, and $3.18 billion in revenue.

The pandemic made the Baidu’s usage remain satisfactory, with its app DAU “reaching 222 million, up 28% year-over-year, in-app search queries up 45%, and feed time spent up 51%," Robin Li, CEO, stated.

For the current quarter, Baidu envisions a $3.5 billion up to $3.9 billion in revenue, and a 4% yearly increase. Wall Street expects $3.6 billion in revenue.

In after-hours trading, the stock price gained 8% to $116.75. Overall, the stock fell by 10% from the start of 2020.

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Sources: thestreet.com, cnbc.com, marketwatch.com


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