Baidu Q2 2011 Profit Up 95% YoY

Baidu, 7/25/11

Chinese internet company Baidu (Nasdaq: BIDU) today announced its unaudited financial results for the second quarter ended June 30, 2011. Total revenues in Q2 2011 were RMB 3.415 bln (USD 528.4 mln), a 78.4% increase from Q2 2010.

Net income in Q2 2011 was RMB 1.633 bln (USD 252.6 mln), a 95.0% increase from Q2 2010.

Online marketing revenues for Q2 2011 were RMB 3.414 bln (USD 528.3 mln), representing a 78.4% increase from Q2 2010. Baidu had approximately 298,000 active online marketing customers in Q2 2011, representing a 17.3% increase from Q2 2010 and an 8.8% increase from Q1 2011. Revenue per online marketing customer for the second quarter was approximately RMB 11,500 (USD 1,779), a 53.3% increase from Q2 2010 and a 29.2% increase from Q1 2011.

Traffic acquisition cost (TAC) as a component of cost of revenues was RMB 269.1 mln (USD 41.6 mln), representing 7.9% of total revenues, as compared to 9.7% in Q2 2010 and 8.2% in Q1 2011.

Bandwidth costs as a component of cost of revenues were RMB 146.7 mln (USD 22.7 mln), representing 4.3% of total revenues, compared to 3.5% in Q2 2010. Depreciation costs as a component of cost of revenues were RMB 143.2 mln (USD 22.2 mln), representing 4.2% of total revenues, compared to 4.4% in Q2 2010.

Research and development expenses were RMB 298.7 mln (USD 46.2 mln), an 87.5% increase from Q2 2010. The increase was primarily due to increased R&D headcount.

Baidu currently expects to generate total revenues in an amount ranging from RMB 3.950 bln (USD 611.1 mln) to RMB 4.050 bln (USD 626.6 mln) for Q3 2011, representing a 75.1% to 79.5% year-over-year increase.

To view Baidu's full earnings report, please click here.

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