Baidu Misses Expectations For Q4 EPS

Baidu Inc (ADR) BIDU announced its financial results Wednesday for the fourth quarter ended December 31, 2014.

Fourth quarter revenues were $2.264 billion, above estimates of $2.25 billion and a 47.5 percent increase from the corresponding period in 2013.

Mobile revenue represented 42 percent of total revenue for the fourth quarter of 2014, up from 36 percent in the third quarter of 2014.

The fourth quarter operating profit was $475.8 million, a 7.8 percent increase from the year-ago period.

Non-GAAP diluted earnings per share which excluded share-based compensation expenses were $1.61, below estimates of $1.65.

Revenue per online marketing customer for the fourth quarter of 2014 was approximately $4,255, a 26.3 percent increase from the corresponding period in 2013 and a 1.9 percent increase compared to the third quarter of 2014.

Traffic acquisition cost in the fourth quarter as a component of cost of revenues was $304.2 million, or 13.4 percent of total revenues, as compared to 12.3 percent in the corresponding period in 2013. The increase reflected increased contribution of contextual ads, mobile and promotion of Hao123.

"2014 was a year of remarkable accomplishment for Baidu. We've successfully transitioned from a PC-centric to a mobile-first company, positioning us well for the next phase of our mobile opportunity: connecting people with services," said Robin Li, chairman and chief executive officer of Baidu.

Baidu currently expected total revenues for the first quarter of 2015 to come in at $2.038 billion to $2.106 billion, a 33.2 percent to 37.6 percent year-over-year increase.

Baidu Inc (ADR) traded at $93.45 in the after hours session, down 9.88 percent.