Baidu Misses on Revenue; Shares Slide 10% After-hours
The online search engine giant reported lower-than-expected revenue and mounting losses, seeing its share sliding nearly 10 percent to $138.30 apiece.
Baidu Inc. (Nasdaq: BIDU) posted lower-than-expected revenue for the first quarter, sending its shares down Thursday evening.
Baidu's American depository shares closed at $153.70, up 1 percent on the day. After-hours, its shares slid nearly 10 percent to $138.30 apiece.
The Beijing-based online search engine reported a loss of $49 million, or 15 cents per share, for the first three months of this year, down 105 percent, in contrast to income of approximately $973 million a year ago.
Robin Li, the chairman and chief executive officer of Baidu, said it achieved "solid" results, with revenues reaching $3.6 billion, up 15 percent year-over-year.
"Baidu's mobile foundation continues to strengthen with search-powered AI, and our new AI businesses are making strong progress," Li said.
"In March, Baidu's mobile reach expanded to 1.1 billion monthly active devices, while DuerOS voice assistant installed base reached 275 million devices and generated 2.37 billion monthly voice queries," he added.
Baidu said its revenue from iQiyi Inc. (Nasdaq: IQ) reached $1.04 billion, growing 43 percent year over year, as a result of iQiyi membership services. The search engine giant holdsa controlling stake in iQiyi.
Additionally, Baidu highlighted its developments in its mobile businesses, including the Baidu app, Haokan short video app and Baidu smart mini program. The daily active users of Baidu app in March 2019 reached 174 million, seeing a yearly growth rate of 28 percent, Haokan with increase of users of 768 percent from a year ago, according to the report.
Baidu also reported the resignation of Hailong Xiang, senior vice president of the company who has been with the a fourteen-year experience. Dou Shen is taking over his role.
The company also announced its board has authorized a $1 billion share repurchase program, effective until July 1, 2020.
The search engine said it expects to generate revenue between $3.7 billion and $4 billion in the second quarter, representing a change between -3 percent to 2 percent from a year ago.