Plans to expand R&D and sales teams to drive improvements in technology and monetisation
Chinese language internet search provider Baidu has reported total revenues of RMB1.29bn for the first quarter of 2010, an increase of 59.6% compared to RMB811m for the same period last year.
The company posted an operating profit of RMB530.8m, an increase of 167.4% compared to RMB198.5m for the same period a year ago.
Net income for the quarter ended March 31, 2009, was RMB480.5m, up 165.3% compared to RMB181.1m for the same period last year. Diluted EPS excluding share-based compensation expenses (non-GAAP) for the first quarter of 2010 was RMB14.33 ($2.10).
Online marketing revenues were RMB1.29bn, representing a 59.6% increase from the corresponding period in 2009. Baidu had about 221,000 active online marketing customers, representing a 19.5% increase from the same period last year and a 0.9% decrease from the previous quarter. Revenue per online marketing customer was RMB5,900, an increase of 34.1% from the corresponding period in 2009.
Jennifer Li, chief financial officer at Baidu, said: “True to our commitment to managing for profitable growth, we delivered both strong top and bottom line results in the first quarter. For the rest of the year, we will aggressively expand our R&D and sales teams to drive improvements in technology and monetisation while investing in network infrastructure to support traffic growth.
The company expects total revenues to be in the range of RMB1.83bn to RMB1.87bn for the second quarter of 2010, representing 67% to 70% quarter-over-quarter growth.