Baidu.com, Inc. (BIDU) Reports 100% Increase in Second Quarter Revenues, 86.7% Increase in Net Income
Baidu.com, Inc. (BIDU), the leading Internet search provider in China, reported better than expected second quarter results today after the close. Revenues soared 100% year-over-year to $117.0 million (RMB 802.6 million) vs. analysts’ estimates of $112.5 million. Net income rose an impressive 86.7% to $38.6 million (RMB 265.0 million), or $1.11 cents per diluted share. On a non-GAAP basis, excluding share-based compensation expense, earnings per share were $1.23. Analysts were expecting earnings of 98 cents per share.
“This quarter saw impressive growth for Baidu,” said Robin Li, Baidu’s chairman and chief executive officer. “Our ability to make such progress was due to the appreciation of paid search by our loyal small and medium sized enterprise customers as well as a growing appreciation of search engine marketing by large enterprises in China. The scalability of our business, aided by increasing numbers of large enterprise customers, helped Baidu post record results this quarter, despite some impact from the devastating earthquake this past May.”
Jennifer Li, Baidu’s chief financial officer, said, “In the second quarter of 2008, we were able to produce steady increases in both the number of active online marketing customers and revenues per active online marketing customer. We are also pleased to report that our operating margin improved from previous quarters reflecting the scalability of our search business.”
Revenue guidance for the third quarter of $132 million (RMB 905 million) to $136 million (RMB 935 million) brackets analysts’ consensus estimates of $135.3 million. The company cites the Olympic Games in Beijing next month as being potentially beneficial in the long term to the Internet industry in China.
Shares of BIDU are 12% higher after hours at $325 on nearly 500,000 shares after closing down 1.3% at $288.70 during regular trading. The stock has traded in a 52-week range of $161.00 – $429.19.
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