Baidu (BIDU) Another Solid Report, with Raised Guidance

Baidu (BIDU) reported tonight and while they only beat estimates for the quarter by 2 cents (47c v 45c), revenue guidance for next quarter was pushed up to the $493 to $504M range, above the $484M consensus which seems to be enough to keep investors happy. The stock is doing little after hours. I would have expected the bar to be higher since the stock has rallied 50%+already in 2011, but at this point anything Chinese internet is completely teflon. With that said, revenue was up 88% year over year – very impressive.

Full report here:

  • For the first quarter, Baidu reported net income of $163.5 million, or 47 cents per American Depository Share. This compared with $70.4 million or $2.10 per share before a 10-for-1 stock split a year ago.
  • Total revenue for the first quarter came in at $372 million, above its own forecast of $360.6 million to $371.2 million and up roughly 88 percent from a year ago. Analysts estimates called for revenue of $367.3 million.
  • Online marketing revenues for the first quarter of 2011 were RMB2.435 billion ($371.8 million), representing an 88.2% increase from the corresponding period in 2010.
  • Baidu had approximately 274,000 active online marketing customers in the first quarter of 2011, representing a 24.0% increase from the corresponding period in 2010 and a 0.7% decrease from the previous quarter.
  • Revenue per online marketing customer for the first quarter was approximately RMB8,900 ($1,359), a 50.8% increase from the corresponding period in 2010 and flat compared to the previous quarter.
  • Traffic acquisition cost (TAC) as a component of cost of revenues was RMB198.6 million ($30.3 million), representing 8.2% of total revenues, as compared to 13.2% in the corresponding period in 2010 and 8.1% in the fourth quarter of 2010.

TAC costs are widely watched and remain at a substantially lower level than a year ago, which is very good.

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About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

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