Baidu, Inc. (Nasdaq: BIDU) (“Baidu” or the “Company”), the leading Chinese language Internet search provider, 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), compared to the previously stated range of RMB20.110 billion ($3.119 billion) to RMB20.580 billion ($3.192 billion).
Regulatory Pressures: 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’snew 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.
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