Baidu Conference Call Highlights

Loading...
Loading...
Baidu
BIDU
reported its third quarter earnings on Wednesday. Shares of the company are up a whopping 6%. Below are some key highlights from its conference call: Financial Progress: • Our focus remains on solidifying our leadership positions in key gateways such as search, maps and app distribution. • For the third quarter, total revenues were RMB13.5 billion, representing a 52% increase year-over-year. • During the third quarter, Baidu had approximately 516,000 active online marketing customers, a 11% increase. • Revenue per online marketing customer for the third quarter was RMB25,900, a 36% increase from the corresponding period in 2013 and an increase of 7% from the previous quarter. • Traffic acquisition cost as a component of cost of revenue in Q3 was RMB1.7 billion or 12.9% of total revenues. • The company had cash, cash equivalents and short-term investments of RMB51.3 billion. • Net operating cash inflow and capital expenditure for the third quarter were RMB4.9 billion and RMB1.4 billion respectively. Mobile: • We delivered strong results this quarter. • The top line continues to be robust, driven by our core search service. • Mobile contributed 36% of our total revenues for the quarter. • Our traffic continued to grow healthily, driven largely by mobile, and this quarter mobile traffic surpassed PC traffic. • As iPads have grown to be a more meaningful portion of our traffic, from this quarter onward, we will classify all tablets as part of mobile to reflect tablets' mobile characteristics. • If we had classified all tablets as mobile in the second quarter, our mobile revenue would have been 33%. • Excluding iPad revenue in the second quarter, our mobile revenue was 30%. • Baidu continues to enjoy clear dominance and onward and upward growth momentum in the key mobile gateways of search, maps and apps distribution. • Mobile enables us to play a broader role in the larger addressable market. • O2O is perhaps the most exciting of the many new opportunities that China's mobile Internet revolution has opened up. • We can help bridge online and offline. • And with Baidu's solid mobile foundation, we can extend our value proposition to our users and customers in ways we were not able to before. • For customers, we have the potential to show true conversion from online to offline as well. • With PCs we were limited to generating leads, but with mobile, we can participate not only in leads generation but also fulfillment in the closed-loop transaction. • Baidu can help our customers, large, medium and smaller local merchants alike, bring users through the door. • We can help fill empty seats. We can really match the service with the need. • We've designed our products to deliver an end-to-end experience from query to payment to service fulfillment. • With the new opportunities mobile presents, we can now connect not only with roughly 0.5 million large customers. • Voice search queries already make up around 10% of mobile on Baidu today, and we believe that in the next five years over 50% of searches will be speech or image driven. Baidu Connect: • At Baidu World, on September 3, we rolled out a new initiative called Baidu Connect. • Baidu Connect build upon light apps and is a powerful tool for merchants that can bring in a large scale of fees. • We provide easy-to-set-up templates tailored to specific industries. • The Baidu Connect account helps merchants reach new customers and maintain engagement with existing ones. • Baidu Connect enables both pull through search as a general search or adding the @ symbol before the real name of our service and landing directly on the Baidu Connect page.
Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNews
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...