Baidu (BIDU) 1Q17 Results: Revenue Improved on Higher Spending Per Customer, Non-GAAP Earnings Beat

Executive Summary

• Baidu reported 1Q17 non-GAAP diluted earnings per ADS of ¥6.85, up 0.7% year over year, to beat the consensus of ¥6.15. Revenues reached ¥16.9 billion, up 6.8% year over year and in line with the consensus estimate.
• The company announced that Jennifer Li would be stepping down as CFO to serve as CEO of Baidu’s investment firm Baidu Capital.
• Management expects the top-line for 2Q17 to be in the range of ¥20.47–¥20.98 billion, representing a year-over-year increase of 12.1%–14.9%.