Baidu soars as Q1 results top expectations, led by offline marketing, cloud
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Baidu (NASDAQ:BIDU) shares jumped on Thursday after the Chinese tech giant posted first-quarter results that topped expectations, thanks to strength in its core business, particularly non-online marketing and cloud services.
For the period ending March 31, Baidu (BIDU) said it earned an adjusted $1.77 per share on $4.48 billion, compared to estimates of 83 cents per share and $4.16 billion in revenue.
The company attributed the results to its non-online ad business, which rose 35% year-over-year to RMB 5.7 billion ($903 million), up 35% year-over-year, "driven by cloud and other AI-powered businesses."
"Revenues from Baidu Core remained healthy with non-ad revenues increasing by 35% year over year, driven by Baidu AI Cloud, which grew 45% year over year in the quarter," said Rong Luo, CFO of Baidu, in a statement. "Looking ahead, we remain committed to quality revenue growth and an enduring business model. In addition, we will further enhance our overall operational efficiency to drive long-term growth."
During the period, Baidu (BIDU) also noted Adjusted EBITDA was $867 million, with an adjusted EBITDA margin of 19%. 
Baidu (BIDU) shares rose nearly 5.5% to $125.80 in premarket trading, while other Chinese tech stocks, including Alibaba (BABA), JD.com (JD) and iQiyi (IQ), also rose.
Baidu (BIDU) owns a stake in iQIYI (IQ) and revenue attributed to the video streaming company was $1.15 billion, down 9% year over year.
Alibaba (BABA) also reported first-quarter results on Thursday, topping expectations. However, the Chinese e-commerce giant said it would not provide a full-year outlook for revenue, citing the impact of COVID-19 in the country.
Earlier in May J.P. Morgan upgraded Chinese tech stocks, including Baidu (BIDU), citing an abatement to "significant uncertainties facing the sector."