China’s Baidu tops quarterly revenue estimates on ad recovery, cloud demand

China’s Baidu beat analysts’ estimates for first-quarter revenue on Thursday, driven by a recovery in advertising sales and higher demand for its AI-powered cloud products.

The company, China’s largest search engine provider, reported revenue of 31.51 billion yuan ($4.37 billion) for the three months ended March 31, compared to analysts’ average estimate of 31.21 billion yuan as per LSEG data.

U.S.-listed shares of the company rose about 3% in premarket trade.