Baidu (NSDQ: BIDU) posted big gains in revenue and net income during the quarter, as it continued to dominate the growing search engine market in China. The company’s revenue jumped 37 percent and net income was up 45 percent. Net income and revenue both came in ahead of analysts’ expectations.
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And the company expects bigger increases ahead, saying it is forecasting sequential revenue growth of 15 to 18 percent next quarter. The strong performance seems to confirm analysts’ beliefs that a two-week strike by Baidu’s salesforce during the quarter would not put a damper on the company’s performance.
Google (NSDQ: GOOG) was also expected to post similar gains in revenue in China during the quarter—although executives did not provide color about the company’s performance there during Google’s recent earnings report. According to Bernstein & Co., Baidu’s share of the Chinese search market increased to 64.5 percent from 62.3 percent during the quarter, while Google may have lost share.
By Joseph Tartakoff