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Baidu's revenues are on fire.... Those who said that with the departure of Google we would be seeing some bullish numbers coming out of Baidu were right... really right. This week, Baidu Inc. announced that they posted a 76.4% revenue increase for the third quarter ended September 30, 2010.
Total revenues in the third quarter of 2010 were CNY2.256 billion, a whopping 76.4% increase from the corresponding period in 2009. Net income in the third quarter of 2010 was CNY1.047 billion, a 112.4% increase (i bow my head low with respect and admiration at this achievement) from the corresponding period in 2009. Now thats a great quarter and one that surely must have people in the West sitting up and asking how this can be happening and happening so fast.
In news released by the company, Jennifer Li, Baidu's chief financial officer, said, "We are pleased to have delivered record margins in the third quarter, even as we actively invested in sales and marketing, R&D and network equipment. Looking forward, we will continue to invest aggressively to support Baidu's long-term growth."
Online marketing revenues for the third quarter of 2010 were CNY2.256 billion, representing a 76.5% increase from the corresponding period in 2009. Baidu had about 272,000 active online marketing customers in the third quarter of 2010, representing a 25.9% increase from the corresponding period in 2009 and a 7.1% increase from the previous quarter. Revenue per online marketing customer for the third quarter was approximately CNY8,300, a 40.7% increase from the corresponding period in 2009 and a 10.7% increase from the previous quarter.
Traffic acquisition cost as a component of cost of revenues was CNY201.7 million, representing 8.9% of total revenues, as compared to 15.3% in the corresponding period in 2009 and 9.7% in the second quarter of 2010. The sequential decrease in TAC as a percentage of total revenues reflects faster organic traffic growth during the quarter.
Operating profit was CNY1.181 billion, representing a 126.6% increase from the corresponding period in 2009. Operating profit excluding share-based compensation expenses (non-GAAP) was CNY1.206 billion, a 122.2% increase from the corresponding period in 2009.
Income tax expense was CNY165.2 million, compared to an income tax expense of CNY49.1 million in the corresponding period in 2009. The effective tax rate for the third quarter of 2010 was 13.6% as compared to 9.1% for the corresponding period in 2009 and 14.4% in the previous quarter.
As of September 30, 2010, Baidu Inc. had cash, cash equivalents and short-term investments of CNY6.938 billion. Net operating cash inflow and capital expenditures for the third quarter of 2010 were CNY1.265 billion and CNY246.3 million, respectively.
Baidu, which runs the Baidu.com website, currently expects to generate total revenues in an amount ranging from CNY2.370 billion to CNY2.440 billion for the fourth quarter of 2010, representing an 88% to 93.5% year-over-year increase.
Source: China Tech News
Written on Monday, 25 October 2010 23:47 by Matt McDougall
