Baidu Beats Revenue Expectations as Mobile Growth Offsets Profit Drop
Baidu surpasses analyst estimates with $3.73 billion in Q2 revenue, driven by strong user growth in its mobile app and iQiyi streaming service. Despite the positive top-line momentum, the Chinese tech giant's net income falls 62% compared to last year.
Baidu reports second-quarter revenue of 26.33 billion yuan ($3.73 billion), beating analyst estimates as its video streaming service iQiyi continues to see strong growth. The Chinese technology firm, often called the Google of China, sees its shares jump more than 9% in extended trading following the announcement.
Core business revenue grows 12% compared to the same period last year, driven by a robust increase in mobile app usage. Baidu's app reaches 188 million daily users, reflecting a 27% increase, while its video platform iQiyi amasses 100.5 million subscribers and generates 7.11 billion yuan in revenue.
Despite the positive revenue momentum, Baidu's net income drops 62% to 2.41 billion yuan ($344 million) from the same period last year. This profit decline provides some relief compared to the previous quarter, where the company posted its first quarterly loss since going public in 2015.