China’s Baidu has beaten stakeholders expectations and forecasts, as it has sidestepped boost ad sales and censor sales. The company was able to bounce back from the hurtful medical advertising scandal that took place in 2016 and confirms it is going to take extra measures to ensure all contents are clean on its platforms.
Baidu expects its 2nd quarter revenues to be between 24.91-26.19 billion yuan, which is a 19.3 to 25.4 percent rise in estimates, a significant climb from 15.9 percent expectations.
Baidu’s earnings blew past the estimates as it sent its US-listed share priced skyrocketing during after hours of trading. Investors were hopeful of the company, particularly its advertising business.
Baidu’s stocks climbed their way back to 5.5 percent and settled to $252 during late hours of trading and its market revenue increased by 23 percent, as it ended at $3.30 billion. The company’s net profit increased 23.4 percent as compared to the 19.5 percent estimate.
Baidu’s news feed got an unexpected blow as there was a crackdown by the Chinese internet regulators on content that is lowbrow. This had a significant effect on many competing applications, and this happened during the critical client acquisition period.
However, it seems as if Baidu is recovering from this significant overhaul and is trying to put back its losses and managing to put back some gains. Baidu’s total revenue increased about 24 percent, as it settled at 20.91 billion yuan during the three months, leading up to March 31. Baidu, therefore, managed to outdo expectations.