Baidu reported EPS of $0.96 per share on revenue of $3.84 billion, compared to consensus estimates for earnings of $0.88 and revenue of $3.66 billion, according to FactSet. For the third quarter, Baidu guided for revenue to be between $3.84 billion to $4.07 billion, which at its midpoint would be slightly below the $3.99 billion consensus estimate.
Shares of Baidu were jumping more than 9% to $113.97 in after-hours trading after already having risen almost 8% during the regular trading session, likely on momentum from strong second-quarter earnings reported before the market open by fellow Chinese internet giant Sina (SINA) - Get Report . Shares of Baidu were down 34% this year heading into earnings.
The company attributed the strong quarter to improvements to its mobile platform that have led to stronger traffic and higher conversion.
"Our focus on strengthening Baidu's mobile ecosystem through knowledge-based content, [content network] accounts, smart mini programs and managed pages on Baidu's platform is translating into better user experience, stronger traffic growth, and, we believe, ultimately higher conversion for our customers," said Robin Li, Baidu co-founder and CEO, in a press release.
The company reported that in June, its Baidu app daily average users grew 27% year-over-year to 188 million, its in-app search queries grew over 20% year-over-year and its smart mini program monthly average users grew 49% sequentially to 270 million.
"As mobile internet penetration in China slows, we are excited about the huge opportunity to provide content and service providers a cross-platform distribution channel beyond mobile, into smart homes and automobiles," Li said.
Baidu also noted that its Baidu Core revenues grew 12% sequentially despite the weaker macroeconomic environment, policy changes that affected its industry and a significant influx of ad inventory.
"With Baidu traffic growing robustly and our mobile ecosystem continuing to expand, we are in a good position to focus on capitalizing monetization and ROI improvement opportunities to deliver shareholder value," said Baidu CFO Herman Yu in the press release.
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