Baidu (NASDAQ:BIDU) reported its quarterly earnings results late today, bringing in a profit that missed Wall Street’s expectations, while revenue gained more than 10% and topped what analysts called for, yet BIDU stock fell sharply late Thursday afternoon.
The China-based search service provider announced that for its first quarter of its fiscal 2019, it posted adjusted earnings of RMB2.77 per ADS (USD$0.41 per ADS), which was down year-over-year, while also coming in below the mark. On an unadjusted basis, the brand’s net loss tallied in at RMB327 million ($49 million), or RMB98 cents per ADS (USD$0.15 per ADS), compared to a profit of RMB18.68 per share a year ago.
Baidu added that its revenue came in at RMB24.1 billion ($3.59 billion), which marked a 15% increase compared to the year-ago quarter, topping what Wall Street called for. Revenue from Baidu Core gained roughly 8%, while those of iQIYI surged 43% year-over-year.
At the end of March 2019, the business had roughly 174 million daily active users, which marked an increase of 28% when compared to the year-ago quarter. Total operating expenses also increased about 53% year-over-year to RMB25.1 billion ($3.73 billion).
BIDU stock is down about 8.6% after the bell Thursday off the heels of the company’s quarterly earnings results, due in part to its adjusted earnings taking a tumble and missing Wall Street’s guidance. Shares had been gaining about 0.8% during regular trading hours today.