Baidu Inc posted a less-than-expected 52 % surge in third-quarter revenue, at the same time as cellular traffic for China’s dominant web search engine persisted to grow.
On Wednesday, the company known as “China’s Google” forecast a 45.4 to 49.6 % upward push in earnings this quarter, in most cases consistent with Wall street projections however a marginal deceleration in its %. Of growth.
Baidu confirmed it has been spending extra on advertising and content, and on buying customers. Site visitors acquisition costs grew to 12.9 % of general income, or 1.742 billion yuan in the 0.33 quarter. That used to be up from 11.7 % a yr prior.
The corporate can be investing on content material for iqiyi, its on-line video platform. Content costs grew to 3.7 % of general income, or 498.1 million yuan. That used to be up from 2.5 % a year previous.
China’s Baidu Posts Q3 Revenue Below Analysts’ Targets
Baidu has struggled to maintain up with rivals on cellular devices corresponding to smartphone, as all race to invest in apps and content material to keep customers engaged. It is usually grappling with intensified competition by itself search turf from the likes of Qihoo 360 technology Co Ltd and Sohu.com Inc’s Sogou search engine, which is 36.5 % owned with the aid of 10 cent Holdings.
However the firm is making headway on rising its general cellular visitors, now accounting for 36 % of complete traffic versus 30 % within the second quarter.
Baidu mentioned gross sales of 13.52 billion yuan or $2.203 billion in the 1/3 quarter, lagging the 13.56 billion yuan that analysts had expected on average.
Net income jumped 27.2 % to 3.876 billion yuan or $631.5 million.
Shares within the firm have been down 1.6 % at $221.01 in extended trading, from a close of $224.55 on the Nasdaq.