Revenue growth slowed but exceeded expectations, and Baidus stock price rose more than 5%.

category:Internet
 Revenue growth slowed but exceeded expectations, and Baidus stock price rose more than 5%.


NetEase technology news April 27th, according to Reuters reports, Baidu released the first quarter of fiscal year 2018 as of March 31st, unaudited financial results. Baidus first quarter earnings exceeded analysts expectations, driven by the growth of its online advertising business, according to financial reports. In the regular trading on NASDAQ on Thursday, the US listed Baidu shares closed at $238.69, up 3.15% from the previous trading day. In the after hours trading, its share price rose by 5.8% to $252.50 after the deadline. In the first quarter, Baidus revenue was 20 billion 910 million yuan (US $3 billion 300 million), an increase of about 24% over the same period last year. Baidus growth rate in the first quarter was the slowest in the last three quarters, but higher than the average 19.8% expected by analysts surveyed by Thomson Reuters. Baidu has been trying to regain its revenue growth since China launched a stricter Interim Regulation on Internet advertising in 2016. The approach has led Baidu to a major strategic shift, after which the company has sold a number of businesses and withdrew numerous investment projects, focusing on autopilot, artificial intelligence and information flow. The company expects revenue in the second quarter to be 24 billion 910 million yuan (US $3 billion 930 million) to 26 billion 190 million yuan (US $4 billion 130 million). Baidus newly listed online video department, Iqiyi, has a high cost of buying content and a huge amount of money needed to buy Artificial Intelligence start-ups. It is expected to pressure Baidus profit margins for some time. In the first quarter of this year, Baidus net profit was 6 billion 690 million yuan (about $1 billion 60 million), and the US depository stock (ADS) diluted earnings per share was 18.68 yuan. In contrast, the net profit of the same period last year and the ADS per share were 1 billion 780 million yuan (about $281 million) and 4.63 yuan respectively. The growth of Baidus net profit has also been affected by the new accounting standards of the United States. The new guidelines require enterprises to report their valuation of Private Companies investments.