Search engine giant Baidu Inc reported unexpectedly better results for its fourth-quarter earnings on Friday last week. The company reported a surge for both its revenues and profits, attributing it to an increase in its user base through its rapidly expanding mobile ecosystem.
For its fourth quarter of 2019, the company reported total revenues of 28.9 billion yuan, or roughly around $4.15 billion. This was a 6 percent increase when compared to the same period a year earlier. The company reported a massive surge in its net profits for the quarter, reaching close to 9.2 billion yuan. This represented a significant 95 percent increase when compared to the same period a year earlier.
For 2019, the company reported total revenues of 107.4 billion yuan. This represented a 5 percent increase when compared to its total revenues for 2018.
Baidu CEO and chairman, Robin Li, mentioned in a stated that the company finished the year making "tremendous progress" in enhancing its overall ecosystem. The company's stellar performance was attributed to the continued success of the company's smart mini-programs, it's mobile apps, and its Baijiahao publisher accounts.
Li added that its growing mobile ecosystem has seen a surge in daily activity. For the month of December, the company recorded a total of 195 million daily active users. This was apparently a 21 percent year-on-year increase. Other activities on its platform also experienced increased, with its in-app search queries surging by more than 30 percent year-on-year for the quarter.
The company stated that it managed to achieve an increased activity in its various platforms through its investments in various new technologies. Additionally, the company stated that it has made substantial investments to achieve its goal of becoming a leader in emerging technologies such as smart transportation, artificial intelligence, and enterprise cloud solutions.
The Chinese tech giant's CFO, Herman Yu, mentioned that the company has made great strides in improving its quarterly operating margins. This is likely one of the major factors that drove the firm's net profit surge for its latest quarter.
For the past couple of years, Baidu has been trying to restructure it's business and its organization to become more competitive. According to an internal letter, Baidu considers 2019 to be a critical year as it gauges the effectiveness of the company's strategy and its various other efforts so far.
Following the release of its earnings results, the company stated that it is looking forward to the success of its efforts to build the most powerful information and knowledge-based ecosystem. The company aims to make greater breakthroughs in the coming years in terms of its bolstering the revenue scale for its intelligent businesses.