Baidu released its latest quarterly earnings report after closing bell tonight, posting adjusted earnings of RMB11.19 per ADS or $1.81 per share on RMB16.58 billion ($2.673 billion) in revenue, a 38.8% year over year increase. Analysts had been looking for earnings of RMB10.58 or $1.88 per share on revenue of RMB16.57 billion for the second quarter.
Key metrics from Baidu’s earnings report
Diluted earnings per ADS were RMB10.19 or $1.64 per share. Adjusted EBITDA increased 4.7% year over year to RMB7.7 billion ($759.1 million) for the quarter.
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“With Baidu’s cornerstone search business delivering solid growth and enjoying ample runway ahead, and with powerful mobile gateways to leverage, we are ideally positioned to capture the O2O e-commerce opportunity and build the ‘Next Baidu’,” Baidu Chairman and CEO Robin Li said in a statement. “As we continue to connect people with services and enable closed loop transactions, we are creating a transactional business model as Baidu grows and evolves in the age of mobile.”
Baidu reports user growth
Baidu reported 629 million mobile search monthly active users, a 24% increase from last year. The company saw mobile maps monthly active users increase 48% year over year to 304 million. Baidu’s O2O gross merchandise volume increased 109% from last year to RMB40.5 billion.
Online marketing revenues increased 37.1% to RMB16.227 billion. Baidu said it had approximately 590,000 active online marketing customers, a 20.9% increase year over year. The Chinese search giant reported about RMB27,400 in revenue per online marketing customer, a 13.2% increase from last year.
Traffic acquisition costs were 12.7% of total revenues or RMB2.112 billion, while bandwidth costs were 5.4% of revenues or RMB896.2 million. Content costs made up 5.1% of total revenues or RMB840.2 million.
Baidu provides guidance
For the third quarter, Baidu projects revenue of between RMB18.17 billion ($2.93 billion) and RMB18.58 billion ($2.997 billion). That would be an increase of between 34.4% and 37.4% year over year.
U.S. shares of Baidu slipped by as much as 7.12% to $185.71 per share in after-hours trades.