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Last Update: 26-Apr-13 07:40 ET
Bidu shares plunge 8% following miss on earnings
Baidu.com (BIDU $84.45 -7.89) reported first quarter earnings of $0.95 per share, $0.07 worse than the Capital IQ consensus of $1.02, while revenues rose 41.9% year/year to $961 million vs the $966.96 million consensus. Online marketing revenues for the first quarter of 2013 were RMB5.953 bln ($958.5 million), representing a 39.7% increase from the corresponding period in 2012. Baidu had about 410,000 active online marketing customers in the first quarter of 2013, representing a 27.7% increase from the corresponding period in 2012 and a 1.0% increase from the fourth quarter of 2012. Revenue per online marketing customer for the first quarter was ~RMB14,500 ($2,335), a 9.0% increase from the corresponding period in 2012 and a 6.5% decrease compared to the fourth quarter of 2012. Traffic acquisition cost (TAC) as a component of cost of revenues was RMB609.6 million ($98.2 million), representing 10.2% of total revenues, as compared to 7.8% in the corresponding period in 2012 and 9.6% in the fourth quarter of 2012. The increase mainly reflects increased contextual ads contributions and hao123 promotions through our network. Bandwidth costs as a component of cost of revenues were RMB404.9 million ($65.2million), representing 6.8% of total revenues, compared to 5.2% in the corresponding period in 2012. Depreciation costs as a component of cost of revenues were RMB333.1 million ($53.6 million), representing 5.6% of total revenues, compared to 5.4% in the corresponding period in 2012. These increases were mainly due to an increase in network infrastructure capacity. Content costs as a component of cost of revenues were RMB95.8 million ($15.4 million), representing 1.6% of total revenues, compared to 0.7% in the corresponding period in 2012. This increase mainly reflects the full quarter impact of iQiyi's consolidation. The company issued in-line guidance for the second quarter with revenues of $1.187-1.216 billion versus the $1.2 billion Capital IQ consensus.
