Chinese online search engine Baidu.com (BIDU) announced its unaudited financial results for the quarter ended June 30, 2006.
Total revenues increased by 41.3% sequentially, or 174.9% year-over-year, to CNY191.6 million. Net income increased by 65.9% sequentially or 385.2% year-over-year to CNY58.5 million.
The number of active online marketing customers grew to more than 90,000, an increase of 21.6% from the previous quarter.
"We are very pleased Baidu has maintained its revenue growth momentum and achieved another quarter of excellent results," said Robin Li, Chairman and CEO of Baidu. "Our focus on providing the best user experience continues to drive traffic growth and our expanded sales force contributed to a substantial boost in our active customer base."
Online marketing revenues for the second quarter were CNY189.1 million, representing a 43.2% increase from the first quarter of 2006 and a 183.3% increase from the second quarter of 2005. The growth was driven by the increase in the number of active online marketing customers, which increased by 21.6% from the first quarter of 2006 to more than 90,000 for the second quarter.
For the full year, the company expects share-based compensation expenses for awards granted to employees prior to July 1, 2006 to be CNY37.6 million. This amount does not include expenses to be recognized over the remainder of the year related to awards granted to employees after July 1, 2006 or awards granted to non-employees that have been or may be granted.
Operating profit was CNY58.0 million, representing a 115.4% increase from the first quarter of 2006 and a 384.7% increase from the second quarter of 2005. Operating profit excluding share-based compensation expenses (non-GAAP) was CNY69.7 million for the second quarter of 2006, a 75.4% increase from the previous quarter and a 284.5% increase from the corresponding period in 2005.
As of June 30, 2006, the company had cash and cash equivalents of CNY1.1 billion. Net operating cash flow and capital expenditures for the second quarter of 2006 were CNY129.7 million and CNY41.1 million, respectively. The increase in capital expenditures was primarily due to expenditures incurred to support significant traffic growth during the quarter.
