Baidu, a Chinese search engine company, surpassed analysts' expectations for quarterly sales and adjusted profit on Wednesday, thanks to higher demand for its artificial intelligence (AI) and cloud products.
Baidu, dubbed "China's Google," has ventured into artificial intelligence, cloud computing, and autonomous driving to bolster its main search business, which has been hampered by competition and a regulatory crackdown. It began offering robotaxi services in Beijing last year.
"Baidu Core delivered another solid quarter, powered by our AI cloud revenue growing 73 % year-over-year," said Rong Luo, Baidu's chief financial officer.
Baidu's shares on the NYSE, which have fallen 21% this year, were up 1.4 % at $173.8 premarket.
The company's results come amid a broad regulatory crackdown by China on the country's technology sector, which includes giants such as Tencent and Alibaba, in an effort to rein in monopolistic activities.
Tencent Holdings warned earlier this month that the advertising sector's outlook will remain bleak until next year.
This quarter, Baidu's main segment, online marketing, grew by 6%. However, in the recent two quarters, the rate of increase has slowed.
Baidu's third-quarter revenue was 31.92 billion yuan ($5.00 billion), compared to 31.71 billion yuan in the previous quarter.
The company earned 14.66 yuan per ADS on an adjusted basis, compared to projections of 12.81 yuan per ADS.