Baidu, sometimes referred to as China's Google, reported a 33 percent increase in quarterly revenue as more advertising money flowed into its core search engine business.
The company said it expects total revenue of 15.41 billion-15.97 billion yuan for the current quarter, representing a 21.1 percent to 25.5 percent year-over-year increase.
Baidu's shares were up 12 percent at $177.10 in after-market trading.
The company has been investing heavily to diversify away from its bread-and-butter Internet search advertising business, which is less profitable on smartphones than on personal computers.
Mobile accounts for about two-thirds of Baidu's search traffic in a country that has more mobile than PC users.