The China-based technology giant, Baidu on Monday made their quarterly posting for June and the results are staggering. As per their reports, the company has been able to secure a revenue of nearly 26.33 billion yuan or $3.63 billion. Please note that this is only for the quarter that ended in June. With this, it is safe to state that they have been able to surpass the predictions made by expert analysts. As reported previously, expert analysts had predicted that Baidu would only be able to secure a revenue of 25.77 billion yuan or $3.65 billion.
According to numerous reports online, it appears like one of the main reasons for Baidu’s unexpected growth is its video streaming service, iQiyi. It appears that the video streaming service has been able to showcase great amount of growth over the past couple of months. It certainly is a great deed as the company is merely 19 years old and they have been able to sustain their shares to remain high up by approximately 9 percent, as far as the extended trading is concerned. In a statement to the media, the company revealed the reasons behind its quick revenue growth. While explaining that it’s core business is the reason behind 12 percent of its revenue growth since last year. Also popularly known as the ‘Google of China,’ the company further stated that despite the weak macro-environment, it was their healthcare initiative that was self-directed by nature as well as several changes in policies that there industry-specific, which led in a large rise of ad inventory.
While traffic was growing at a rapid speed for Baidu, their mobile ecosystem was also expanding at the same time. They found themselves to be in a good enough position, wherein they could generate greater focus on ensuring the monetary and ROI improvement opportunities were being capitalized. They were emphasizing on this as it would lead them to deliver value to their stakeholders as well, as it had become vital that they prioritize this aspect.
The latest results revealed by Baidu will certainly give the investors a sigh of relief as the former had not always been having a good time. In fact, in recent years, more and more number of users have been found to be switching from desktop to mobile devices and consequently applications, wherein they are choosing Baidu’s rivals such as ByteDance over Baidu itself. Users have expressed major concerns over Baidu’s ability to hold grip on the advertising business or even sustain its growth. This should definitely help in answering all the users however, it remains to be seen whether the company is able to ensure that this progress continues to stay.