Baidu logs strong Q4, but expects Q1 declines

Baidu (NASDAQ:BIDU) is seeing choppy trading postmarket, following a regular-session decline, after the company beat expectations on top and bottom lines with its Q4 earnings but warned of virus-related slowdowns.
Total revenues rose 6% to 28.9B yuan (about $4.15B), and rose about 3% from Q3's 28.1B yuan.
Operating income (on a GAAP basis) jumped by a large multiple, meanwhile: to 4.66B yuan (about $669M), a 319% year-over-year increase, and almost double Q3's total. Operating margin rose to 16% from a year-ago 4%.
Non-GAAP operating income rose 146% to 6.75B yuan (up 83% Q/Q), and operating margin rose to 23% from 10%.
"Baidu's quarterly operating margin has also been improving, through the strengthening of Baidu's mobile ecosystem and our focus on resource investment returns," says CFO Herman Yu. "Our leaner financial model and strong balance sheet put us in a good position to weather the slowing macro, while continuing to invest heavily in technology and new businesses, to optimize future growth."
Baidu App average daily active users rose 21% Y/Y in December, to 195M.
In-app search queries rose almost 30%.
For Q1, it expects revenues of 21B yuan to 22.9B yuan ($3B-$3.3B), a decline of 5-13% Y/Y. "The coronavirus situation in China is evolving, and business visibility is very limited."
Conference call to come at 8:15 p.m. ET.
Press release