- Baidu (NASDAQ:BIDU) now expects Q2 revenue of RMB18.1B-RMB18.2B ($2.807B-$2.823B), below prior guidance of RMB20.11B-RMB20.58B and an RMB20.1B consensus.
- The Chinese search giant blames: 1) Ongoing regulatory probes of its online ad practices for "medical, pharmaceutical, healthcare and other similar businesses," and stricter ad regulations for medical organizations. 2) Fewer sponsored links on Baidu's online ad platform.
- Baidu adds regulatory probes are "being rolled out with varied timing with different levels of implementation and interpretation across geographies," and that medical advertisers are delaying their spending as the probes continue. "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."
- BIDU -7.4% after hours to $151.39.