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.
The company's revenue rose to 18.70 billion yuan ($2.86 billion) in the fourth quarter ended Dec. 31, from 14.05 billion yuan a year earlier.
Baidu itself had forecast fourth-quarter revenue of between 18.20 billion yuan and 18.75 billion yuan, factoring in a deal with online travel firms Ctrip.com International and Baidu-backed Qunar Cayman Islands.
Net income attributable to Baidu rose to 24.71 billion yuan, or 70.92 yuan per American depository share (ADS), from 3.24 billion yuan, or 9.03 yuan per ADS.
Excluding net gain recognized in Baidu's exchange of Qunar shares with Ctrip, the company earned 7.61 yuan per ADS.