Baidu shares fell around 9% in aftermarket trading following the release of its results.
Baidu announced that Xiang Hailong, the company's senior vice president of its search business, would resign after serving the company for 14 years.
Baidu also gave guidance for second-quarter revenues to be in a range of 25.1 billion to 26.6 billion RMB ($3.74 billion to $3.96 billion).
The net loss for the first quarter was 327 million yuan ($47.5 million), compared with the 187.5 million yuan loss expected by analysts. Online marketing accounted for 73% of its total revenues in the first quarter.
"Despite government policies to improve the market condition for small and medium enterprises, we anticipate online marketing in the near term to face a challenging environment", Chief Financial Officer Herman Yu said. "We will take this opportunity to improve our monetization capabilities and review our businesses for operational efficiency, while recognizing the importance to invest for sustainable long-term growth".
Baidu which has been pursuing new areas of growth such as in newsfeeds, short videos and autonomous driving has been pouring cash into these initiatives hoping to transform itself into a mobile-driven AI company. Baidu has promoted Dou Shen to senior vice president, overseeing Baidu's mobile business, previously known as the search business.
With the ongoing "Google of China" reference, Baidu also has become much more hard to analyze. now that it has moved away from just being considered the leader of search in China.
The company felt the heat after spending a lot on artificial intelligence and other next-generation technologies. In March, Baidu's mobile reach expanded to 1.1 billion monthly active devices, while DuerOS voice assistant installed base reached 275 million devices and generated 2.37 billion monthly voice queries.
The company also reported a management change.
Baidu also said in its first quarter financial report that its board of directors had authorized a new share repurchase program, under which the company may repurchase up to Dollars 1 billion of its shares, effective until July 1, 2020.