Tuesday, Chinese internet search engine giant Baidu, Inc. (BIDU) reported increased earnings for the fourth quarter, helped by a 39.8% rise in online marketing revenues. Earnings for the quarter came in above analysts' estimate, as did revenues. Going forward, the company provided its first quarter revenue guidance, indicated to come in above current Street estimates.
Beijing, China-based Baidu's third quarter net income was RMB 427.9 million or US$62.7 million, up 48.2% from RMB 288.67 million or US$42.3 million in the same quarter last year. Earnings on a per share basis were RMB 12.27 or US$1.80, compared to RMB 8.31 or US$1.22 in the year ago quarter.
Excluding share-based compensation expenses, non-GAAP net income for the quarter was RMB 446.59 million or US$65.4 million, a 44.0% increase from RMB 310.2 million or US$45.5 million in the corresponding period in 2008. Non-GAAP earnings on a per share basis were RMB 12.80 or US$1.88 for the quarter, compared to RMB 8.93 or US$1.31 last year.
On average, eleven analysts polled by Thomson Reuters expected the company to earn US$1.66 per share for the quarter. Analysts estimates typically exclude special items.
The company noted that costs and expenses related to Baidu's Japan operations for the fourth quarter of 2009 were RMB 43.2 million or US$6.3 million, which reduced earnings per share by RMB 1.24 or US$0.18.
Total revenues for the quarter increased 39.8% to RMB 1.26 billion or US$184.7 million from RMB 0.90 billion or US$132.2 million in the prior-year quarter. Twelve analysts had a revenue consensus of US$179.82 million for the fourth quarter.
In the immediately preceding third quarter, Baidu reported increased earnings, helped by a 39.2% rise in online marketing revenues. Baidu's third quarter net income was RMB 492.9 million or US$72.2 million, or RMB 14.14 or US$2.07 per share on revenues of RMB 1.28 billion or US$187.3 million. Non-GAAP net income for the quarter was RMB 514.1 million or US$75.3 million or RMB 14.75 or US$2.16 per share.
Among others in the industry, Beijing-based Chinese online media company Sohu.com Inc. (SOHU) reported a decline in fourth quarter net profit, reflecting higher operating expenses, despite an increase in revenues. Net income for the fourth quarter was US$32.35 million or US$0.76 per share, and non-GAAP net income was US$39.35 million or US$0.92 per share, on revenues of US$135.83 million.
Search engine giant Google Inc.'s (GOOG) fourth quarter net income increased sharply from last year, due mainly to the absence of asset impairment charges recorded in the year-ago period, as well as strong advertising revenues that grew 17.5%. Net income for the quarter was US$1.97 billion or US$6.13 per share, while non-GAAP net income was US$2.19 billion or US$6.79 per share on gross revenues of US$6.67 billion.
Baidu had more than 223,000 active online marketing customers in the fourth quarter of 2009, representing a 13.2% increase from the corresponding period in 2008 and a 3.2% increase from the previous quarter.
Online marketing revenues for the quarter were RMB 1.26 billion or US$184.6 million, an increase of 39.8% from the corresponding period in 2008. Traffic acquisition cost as a component of cost of revenues was RMB 201.9 million or US$29.6 million, representing 16.0% of total revenues, as compared to 14.6% in the prior year quarter, reflecting normal fluctuation.
Bandwidth costs as a component of cost of revenues were RMB 54.4 million or US$8.0 million, representing 4.3% of total revenues, compared to 5.5% in the prior-year period. Depreciation costs were RMB 67.6 million or US$9.9 million, representing 5.4% of total revenues, compared to 6.4% in the corresponding period in 2008.
Selling, general and administrative expenses were RMB 221.8 million or US$32.5 million, representing an increase of 26.5% from the corresponding period in 2008.
Research and development expenses were RMB 124.4 million or US$18.2 million, a 45.4% increase from the corresponding period in 2008, primarily due to the increased number of research and development personnel.
Share-based compensation expenses, which were allocated to related operating costs and expense line items, were RMB 18.7 million or US$2.7 million in the fourth quarter of 2009, compared to RMB 21.5 million in the corresponding period in 2008.
Operating profit was RMB 462.2 million or US$67.7 million, an increase of 51.7% from the similar quarter of 2008. Operating profit excluding share-based compensation expenses was RMB 480.9 million or US$70.5 million, a 47.4% increase from the corresponding period in 2008.
For the fiscal year 2009, net earnings in 2009 rose to RMB 1.485 billion or US$217.6 million from RMB 1.0 billion or US$153.6 million a year ago. Earnings per share for the quarter amounted to RMB 42.70 or US$6.26, compared to RMB 30.19 or US$4.43 in 2008.
Net income excluding share-based compensation expenses in 2009 was RMB 1.571 billion or US$230.2 million RMB 1.1 billion or US$165.9 million last year. Non-GAAP earnings per share was RMB 45.19 or US$6.62 versus RMB 32.61 US$4.78 in the prior year.
Total revenues in 2009 were RMB 4.448 billion or US$651.6 million, up 39.1% from RMB 3.2 billion or US$468.8 million in 2008.
Analysts were looking for earnings of US$6.14 per share on revenues of US$637.69 million for the fiscal year 2009.
Looking ahead to the first quarter of 2010, Baidu currently expects to generate total revenues of RMB 1.200 billion or US$176 million - RMB 1.235 billion or US$181 million, representing a 48% to 52% year-over-year increase.
Analysts currently expect revenues of US$168.53 million for the first quarter of fiscal 2010.
BIDU closed Tuesday's regular trading at US$435.01, down US$8.22 or 1.85%, on a volume of about 2.76 million shares. In after hours, the share gained US$36.49 or 8.39%, at US$471.50.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.