Baidu beats quarterly revenue estimates


China’s Baidu Inc on Wednesday reported quarterly revenue above Wall Street estimates, helped by stronger advertising sales and demand for its artificial intelligence and cloud products.

A recovering domestic economy encouraged higher marketing spending, helping Baidu’s ad sales, even as it faces tough competition from e-commerce giant Alibaba and ByteDance. Baidu’s foray into artificial intelligence (AI), cloud and autonomous driving has also helped its growth.

In a bid to expand its portfolio, the company last year introduced robotaxi vehicles and entered into a partnership with Chinese auto manufacturer Geely to develop electric vehicles, a fast-evolving sector where many tech companies are looking to make a mark.

The company’s results come amid a wide-ranging regulatory crackdown by China on its technology sector that includes heavyweights like Tencent and Alibaba in a bid to keep a check on their monopolistic practices.

Baidu said total revenue was 31.92 billion yuan ($5.00 billion) in the third quarter, slightly above analysts’ average estimate of 31.71 billion yuan, according to IBES data from Refinitiv.