Chinese Internet company Baidu reported quarterly earnings and revenues that exceeded expectations. Baidu generated a profit of 14.90 CNY per share (2.29 USD), compared to 13.38 CNY per share, predicted by analysts. The company’s revenue for the reporting period reached 23.56 billion CNY (3.62 billion USD), while analysts expected the amount to be 23.053 billion CNY.
As a result of the news, the company’s shares increased by 4%.
The finance results of Baidu surpassed expectations for the entire 2017. For the fiscal year, the company reported a profit of 64 CNY per share (9.79 USD) at 84.8 billion CNY (13.03 billion USD) revenue, which outpaced the projected 60.06 CNY per share profit and 84.66 billion CNY earnings.
Baidu’s revenue for the last quarter rose by 29% yoy, and for the year rose by 20% yoy.
The company directors say growth is due to efforts to develop artificial intelligence and optimize mobile search. The company plans to continue investing in these areas in the new year by also betting on newer projects such as Apollo and DuerOS.
“Starting in 2018, we are planning to continue our strategy to exit from non-core business and to increase investment in mobile and artificial intelligence business”, said Baidu’s chief financial officer, Herman Yu.
In the past quarter, the company has dedicated its Baidu Deliveries and Mobile Games units to focus more resources on artificial intelligence and on a number of other projects. Over the same period, Baidu exceeded its earnings expectations due to its large margin, but failed to meet the consensus forecast of its earnings.
In October, Baidu announced it plans to release a full autonomous bus in China in 2018.