Baidu sales beat analyst estimates despite challenge from ByteDance

A man walks past a sign for Baidu Inc. at the entrance to the Baidu Technology Park in Beijing. Photographer: Qilai Shen/Bloomberg

Baidu Inc.’s quarterly revenue beat analysts’ estimates after China’s biggest search giant managed to hold onto advertising despite a challenge from aggressive rivals like ByteDance Inc.

Revenue rose 1.4% to 26.33 billion yuan ($3.84 billion) for the three months ended June 30, beating the 25.8 billion yuan average of analysts’ estimates. The company’s shares rose 8.4% in extended trading.

Baidu’s better-than-expected results will soothe investors’ worries that the 19-year-old company is losing steam as China’s internet evolves from desktop to mobile. Rivals like ByteDance have increasingly chipped away at Baidu’s core ad sales via increasingly popular news and social media apps. ByteDance also recently launched a general search engine, posing a direct challenge to Baidu’s core business.

But the search leader kept ByteDance at bay thanks to “years of search engine research and development, 174 million daily active users, and strong content ecosystem,” Bloomberg Intelligence analysts Vey-Sern Ling and Tiffany Tam wrote in an Aug. 12 note.

Net income dropped to 2.41 billion yuan. In May, Baidu posted its first loss since going public in 2005.

Baidu has fallen off the list of China’s five most valuable internet companies, trailing Meituan and NetEase Inc., after shedding more than 40% of its market value this year. Once touted as a member of China’s tech triumvirate alongside Alibaba Group Holding Ltd. and Tencent, Baidu has been left behind as the country’s internet evolves.

Bloomberg  

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.