Chinese Internet search engine Baidu.com (BIDU) says its unaudited financial results for the third quarter ended September 30, 2007 show total revenues increased to CNY496.5 million, representing a 107.5% increase from the corresponding period in 2006.
"During the third quarter, we saw solid revenue and earnings growth driven by an increase in user traffic and active online customers," said Robin Li, Baidu's chairman and chief executive officer. "Our results reflect the scalability of our pay for performance business model and demonstrate our growing reputation as the Chinese language search provider of choice."
Online marketing revenues for the third quarter were CNY496.1 million, representing a 108.8% increase from the third quarter of 2006. The growth was driven by the increases in both the number of active online marketing customers and revenue per customer. Baidu had nearly 143,000 active online marketing customers in the third quarter of 2007, representing a sequential increase of 11.6% and an increase of 38.5% from the corresponding period in 2006. Revenue per online marketing customer for the third quarter of 2007 increased to approximately CNY3,500, representing a sequential increase of 11.0% and an increase of 50.7% from the corresponding period in 2006.
Operating profit was CNY168.1 million, representing a 120.5% increase from the corresponding period in 2006. Net income was CNY181.7 million, representing a 113.2% increase from the corresponding period in 2006.
As of September 30, 2007, Baidu's cash, cash equivalents and short-term investments amounted to CNY1.4 billion. Net operating cash inflow and capital expenditures for the third quarter of 2007 were CNY254.9 million and CNY150.0 million, respectively. The increase in capital expenditure was primarily due to capacity expansion and construction on Baidu's new campus facility.