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Baidu (ticker: BIDU) reported Q2 2005 earnings results today that were in-line with previous management guidance. There were no analyst estimates. Key stats from the quarter:


Q2 Results:
(all percentage changes and comparisons are year on year, unless stated otherwise; assumes conversion of RMB 8.2765 : US $1)

  • Total revenue rose 188.6% to $8.4 million, and rose 52.6% sequentially.
  • Net revenue rose 185.5% to $7.9 million, and rose 52.9% sequentially.
  • Online marketing services revenue rose 211.9% to $8.1 million, and rose 55.1% sequentially.
  • Enterprise search software and related services revenue rose 24.6% to $315,000.
  • Portal search services revenue fell 43.5% to $46,000.
  • Gross margin was 70.0% vs 65.9%.
  • Operating expenses rose 155.8% to $4.4 million.
  • SG&A expenses rose 194.6% to $2.9 million.
  • R&D expenses rose 204.5% to $837,000.
  • Share-based compensation expenses rose 51.6% to $745,000.
  • GAAP operating income rose 687.6% to $1.4 million, and rose 336.8% sequentially.
  • Operating margin was 17.2% vs 6.3%.
  • Non-GAAP operating income rose 224.6% to $2.2 million, and rose 104.2% sequentially.
  • GAAP net income rose 625.5% to $1.5 million, and rose 381.8% sequentially.
  • Net margin was 17.3% vs 6.9%.
  • Non-GAAP net income rose 218.0% to $2.2 million, and rose 110.8% sequentially.
  • Diluted EPS of $0.05 vs $0.01.

Balance Sheet
(assumes conversion of RMB 8.2765 : US $1)

  • Cash and equivalents of $25.5 million as of June 30, 2005.

Other Stats

(all percentage changes and comparisons are year on year, unless stated otherwise; assumes conversion of RMB 8.2765 : US $1)

  • Active online marketing customers rose 142.6% to 41,248, and rose 29.8% sequentially.
  • Average revenue per online marketing customer rose 28.3% to $195, and rose 18.9% sequentially.
  • Traffic acquisition costs fell to 6.1% of total revenue from 11.4% in Q2 2004.

Q3 Guidance
(assumes conversion of RMB 8.10469 : US $1)

  • Total revenue of $9.6 - $10.0 million.

BIDU chart.

Bidu823

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Source: Baidu reports in-line with previous guidance; issues Q3 guidance; stock down in AH (BIDU 2Q05 earnings results)