BEIJING, June 13, 2016 /PRNewswire/ -- Baidu, Inc.
(Nasdaq: BIDU) ("Baidu" or the "Company"), the leading Chinese
language Internet search provider, today announced revised revenue
guidance for the second quarter of 2016 and provided an update on
recent business developments.
Baidu currently expects estimated second quarter 2016 revenue to
be in the range of RMB18.100 billion
($2.807 billion) to RMB18.200 billion
($2.823 billion)[1], compared to the
previously stated range of RMB20.110
billion ($3.119 billion) to RMB20.580
billion ($3.192 billion).
Since the beginning of May 2016,
Baidu has taken steps to implement measures requested by regulatory
authorities, such as modifying paid search practices. Baidu has
also proactively implemented numerous additional measures to
deliver a better user experience and build a safer and more
trustworthy platform for users, including turning down customers
who do not meet Baidu's new requirements, creating an
industry-leading customer credibility ranking system and weighing
customer credibility more highly in the ranking algorithm, reducing
the number of sponsored links, and making upgrades to Baidu's user
feedback system and user protection programs, to name but a few.
These measures enhance user experience and the Company observed
solid user traffic.
The revenue guidance revision was mainly attributable to the
following factors:
First, regulatory authorities continue to review the online
marketing practices of medical, pharmaceutical, healthcare and
other similar businesses, and have also implemented stricter
advertising regulations for medical organizations. The review is
being rolled out with varied timing with different levels of
implementation and interpretation across geographies. While the
review is underway, the Company has observed a reduction or delay
in spend from a significant portion of medical customers. These
customers may be in the process of receiving instruction from
regulatory authorities, gathering and submitting required
documentation and adjusting their practices to comply with new
regulations.
The implementation of and compliance with new regulations could
take place over a prolonged period of time. The Company notes that
high quality medical customers who have reduced or delayed spend
would likely be compliant with new regulations over time. As such,
the Company expects spend from these customers to recover
gradually.
Second, the Company has reduced the number of sponsored links
across the platform. This measure impacts revenue over the short
term but enhances user experience and will drive benefit to Baidu
over the long term.
"Baidu provides a strong, unique value proposition to its users
and customers by helping users find whatever it is they are looking
for, and connecting online marketers with those users. This role
comes with great social responsibility and user experience is our
top priority," said Robin Li,
Baidu's chairman and chief executive officer. "Although a
significant portion of our revenue is sacrificed, the steps we have
taken to further bolster a healthy, safe and trustworthy online and
offline ecosystem will result in long term benefit and reward for
Baidu."
Baidu believes higher standards related to customer
requirements, sponsored links, user feedback and user protection
mechanisms, will help improve the user experience, strengthen
Baidu's market position and benefit the Company over the long
term.
Conference Call Information
Baidu's management will hold an earnings conference call at
7:30 PM on June 13, 2016, U.S. Eastern Time (7:30 AM on June 14,
2016, Beijing/Hong Kong
Time).
Dial-in details for the earnings conference call are as
follows:
|
|
International:
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+65 67135090
|
China:
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4006208038
|
US:
|
+1 8456750437
|
UK:
|
+44 2036214779
|
Hong Kong:
|
+852 30186771
|
|
|
Passcode for all
regions:
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31893843
|
|
|
A replay of the conference call may be accessed by phone at the
following number until June 21,
2016:
International:
|
+61 2 8199 0299
|
|
|
Passcode:
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31893843
|
Additionally, a live and archived webcast of this conference
call will be available at http://ir.baidu.com.
[1] This announcement contains translations of certain RMB
amounts into U.S. dollars at specified rates solely for the
convenience of the reader. Unless otherwise noted, all translations
from RMB to U.S. dollars are made at a rate of RMB6.4480 to US$1.00, the effective noon buying rate as of
March 31, 2016, in The City of New York for cable transfers of RMB as
certified for customs purposes by the Federal Reserve Bank of
New York.
About Baidu
Baidu, Inc. is the leading Chinese language Internet search
provider. As a technology-based media company, Baidu aims to
provide the best and most equitable way for people to find what
they're looking for. In addition to serving individual Internet
search users, Baidu provides an effective platform for businesses
to reach potential customers. Baidu's ADSs trade on the NASDAQ
Global Select Market under the symbol "BIDU". Currently, ten ADSs
represent one Class A ordinary share.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements. Among
other things, the outlook for the second quarter 2016 and
quotations from management in this announcement, as well as Baidu's
strategic and operational plans, contain forward-looking
statements. Baidu may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about Baidu's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: our growth
strategies; our future business development, including development
of new products and services; our ability to attract and retain
users and customers; competition in the Chinese and Japanese
language Internet search markets; competition for online marketing
customers; changes in our revenues and certain cost or expense
items as a percentage of our revenues; the outcome of ongoing, or
any future, litigation or arbitration, including those relating to
intellectual property rights; the expected growth of the Chinese
language Internet search market and the number of Internet and
broadband users in China; Chinese
governmental policies relating to the Internet and Internet search
providers and general economic conditions in China, Japan
and elsewhere. Further information regarding these and other risks
is included in our annual report on Form 20-F and other documents
filed with the Securities and Exchange Commission. Baidu does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information
provided in this press release and in the attachments is as of the
date of the press release, and Baidu undertakes no duty to update
such information, except as required under applicable law.
For investor and media inquiries, please contact:
Sharon Ng
Baidu, Inc.
Tel: +86-10-5992-4958
Investor inquiries email: ir@baidu.com
Media inquiries email: intlcomm@baidu.com
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SOURCE Baidu, Inc.