Baidu (NSDQ: BIDU), the Chinese search giant which stands to gain the most if Google (NSDQ: GOOG) goes ahead and pulls out of China, had a standout fourth quarter, as it completed the roll-out of its new Phoenix Nest ad system and benefited from an uptick in online ad spending.

The company had surprised analysts last quarter by issuing lower than expected guidance for the fourth quarter because of the switch to Phoenix Nest. But Baidu said that the ad system had put in a “better than anticipated performance”—driving the results, which were above the company’s guidance and analyst forecasts.