Baidu Inc (ADR) (NASDAQ:BIDU), in a press release, stated that it will post first quarter financial results after the U.S. market close on April 24, 2014. The leading Chinese language Internet search provider will hold the earnings conference call at 8:00 PM on April 24, 2014, U.S. Eastern Time.
Robust mobile infrastructure
Baidu Inc (NASDAQ:BIDU) had a stellar performance in the mobile segment with good revenue growth, doubling from 10% in the second quarter of 2013 to 20% in the fourth quarter. According to a report from Seeking Alpha, last month, the growth is likely to continue this year, as well.
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Gamer stated in his report that Baidu’s mobile user base has expanded to 100 million, which is 40% of the market share. The company has the topmost distribution channel in China, and at present Baidu has 14 mobile products from diverse fields including app distribution, online searching, internet browsing, and video browsing. Baidu has a solid mobile infrastructure with which it could expand its market share.
Management of the Chinese company stated that advertising clients of the company are interested in investing in Baidu’s mobile platform. Baidu gained substantially in search traffic segment, rising from 71.4% in July 2013 to 72.9% in January 2014. Consumers are inclined more towards the mobile platform, which would drive the company to a higher growth.
Mobile gaming is also surging in China with a growth of 123% in 2013, and the company has a dominating presence in the segment through its No. 1 mobile app distribution platform. This segment will support Baidu Inc (NASDAQ:BIDU) to drive growth further.
Rising threats for Baidu
Management stated during its fourth quarter earnings call that the company is looking forward to increased investment this year, out of which a major amount will be focused on channel and marketing for mobile products including pre-installation of mobile apps and offline advertising. Baidu Inc (NASDAQ:BIDU) performed fairly well in the previous investment cycle, which supports the idea that further investment will pay off in late 2014 and 2015.
Baidu Inc has a significant threat from Chinese internet company Qihoo 360 Technology. At present, Baidu Inc (NASDAQ:BIDU) is far ahead of all its big and small competitors, but the distance is shortening. Rival Qihoo is in the business of mobile security software, and is also shelling out money in the new mobile gaming and search technology. Last year, Qihoo posted $671 million in revenue compared to Baidu’s $5.2 billion.