Chinas Baidu Inc reported quarterly revenue that beat Wall Street estimates on Tuesday, as the company beefed up its cloud and artificial intelligence services to fend off competition in the advertising business.
The Beijingbased tech giant has diversified its revenue sources by expanding its cloud services, artificial intelligence, and smart transport technology footprint as competition for advertising sales heats up from local internet giants Alibaba and ByteDance.
The company, which obtained a secondary listing in Hong Kong in March, said total revenue rose 25 to 28.13 billion yuan 4.38 billion in the first quarter, boosted partly by the 70 yearonyear growth of its nonadvertising revenue, which includes the fastgrowing cloud business.
Analysts on average had expected revenue of 27.25 billion yuan, according to IBES data from Refinitiv.
Baidus online ad revenue hit 16.3 billion yuan, a 27 increase compared with the same period a year earlier, when Baidu swung to an operating loss due to Covid lockdowns in the country.
The companys flagship mobile Baidu App accumulated 558 million monthly active users as of March.
Baidus results also come amid a regulatory clampdown on Chinas internet giants to keep a check on the countrys big techs monopolistic practices.
U.S.listed shares of the company rose 3.5 in premarket trading. The shares had been on a tear in the first quarter amid a series of block trades tied to the meltdown of hedge fund Archegos Capital Management….