Baidu (Nasdaq:BIDU) recorded net income of RMB 492.9 million ($72.2 million) in the third quarter of 2009, up 41.7% year-on-year. Total revenues reached RMB 1.28 billion ($187.3 million) in the quarter up 39.1% from the corresponding period in 2008, with online marketing revenues contributing RMB 1.278 billion ($187.2 million).
=> Earning & growth in line with Bilibala's expectation. However, its 12 month price earning growth ratio looks a bit high. If based on 2010 forward price earning growth ratio, then it looks ok.
Baidu saw its active online marketing customers in the quarter increase 11.3% annually and 6.4% sequentially to 216,000, with average revenue per online marketing customer at RMB 5,900 ($864), up 25.5% year-on-year and 9.3% quarter-on-quarter. The company reported traffic acquisition cost (TAC) of RMB 196.2 million ($28.7 million), or 15.3% of total revenues, as compared to 11.8% in the corresponding period in 2008 and 16.0% in the second quarter of 2009. Baidu attributed the annual increase to fast growth in its Baidu Union business.
The company warned it expects revenues ranging from RMB1.19 billion ($174 million) to RMB 1.23 billion ($180 million) for the fourth quarter of 2009, up 32-36% year-on-year, as it anticipates a negative impact from discontinuing its "classic" bid ranking system.
=> "slower" growth trigger investors to sell Baidu's shares. Share price fall significantly by 13.2% from US$432.97 on Monday to US$375.72 on Friday (after market). Bilibala think after the fall, Baidu once again looks attractive.
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