Baidu, the leading search engine company in China, has reported its financial results for the third quarter of the year.

The company reported lower revenue than the corresponding quarter of the last year. However, it posted robust net profit. Baidu also issued a warning about sluggish revenue growth in the fourth quarter.

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The search engine company reported its quarterly revenue at $2.7 billion, showing decline of 0.7 percent year-over-year basis. The drop in revenue is mainly attributed to Chinese government's crackdown on online advertising. The company said that it is likely to see more decline in the fourth quarter. Baidu expects that its fourth quarter revenue may decline by as much as 4.6 percent.

Baidu CEO Robin Li said that Baidu may have to face rough period until early next year. The company expects its fourth quarter revenue to be in the range of $2.63 billion to $2.71 billion, showing a decline of 1.7 percent to 4.6 percent over the revenue it earned in the fourth quarter to the last year. For the third quarter, the company reported a nine percent increase in its net income. Baidu's net income stood at $465.2 million, which equates to $1.28 per ADR.

Baidu's chief financial officer Jennifer Li stated that the company is likely to bottom out in the fourth quarter, adding "We will see a more pronounced impact over the next quarter."

The company also reported a 16 percent decline in the number of its advertising clients during the third quarter. Li noted that some of its clients are not able to transact with the company due to stricter controls. 

TagsBaidu, china, Search engine, Robin Li