Chinese internet search engine Baidu (BIDU) reported better-than-expected Q4 earnings and revenue figures. Baidu had earned $1.92 per share on revenue of $3.96 billion. Analysts had expected the company to report earnings of $1.79 per share on revenue of $3.88 billion. The stock was up about 3% during the extended trading hours.
Revenue rose 22% year-over-year and GAAP earnings attributable to Baidu per ADS declined 52% to $0.86.
For Q1 2019, Baidu expects revenues to be between RMB 23.5 billion ($3.42 billion) and RMB 24.7 billion ($3.60 billion), representing year-over-year growth of 12% to 18%, or 18% to 24% excluding revenues from announced divestitures.
“We are excited to enter the new year on strong footing with Baidu 2018 revenues reaching RMB 102 billion, up 28% annually. The growth rate of Baidu App DAUs has been accelerating over the past year, up 24% year over year to 161 million in December 2018, while Haokan short video app grew to 19 million DAUs from 1 million a year ago,” stated Robin Li, CEO of Baidu.
The company stated that diversifying Baidu’s business from mobile internet into the smart home, smart transportation, cloud and autonomous driving markets will require heavy investments and it hopes these investments to bear fruit and accelerate Baidu’s revenue growth in the future.
Baidu App daily active users (DAUs) reached 161 million in December 2018, increasing 24% year-over-year. Baidu Smart Mini Program monthly active users (MAUs) reached 147 million in December 2018, up 30% sequentially.
Baidu’s subsidiary iQIYI added 36.6 million subscribers in 2018 to reach 87.4 million at year end, further solidifying their leadership in original entertainment blockbuster content.
Baidu stock, which hit a yearly low ($153.78) on January 3, 2019, edged up 0.37% to $171.81 when the markets closed on Thursday.
Baidu’s subsidiary iQiyi also reported its Q4 earnings results after the bell today. iQiyi stock fell 1% during after-hours as it missed the earnings estimates while topping revenue projections.