EmailBaidu (BIDU $113.05 +5.95) reported second quarter earnings of $1.24 per share, $0.13 better than the Capital IQ consensus of $1.11, while revenues rose 62.4% year/year to $858 million versus the $855.9 million consensus. The company issued in-line guidance for the third revenues of $983-1009 million versus the $998.11 million consensus. Baidu had about 352,000 active online marketing customers in the second quarter of 2012, representing an 18.1% increase from the corresponding period in 2011 and a 9.7% increase from the first quarter of 2012.
Revenue per online marketing customer for the second quarter was approximately $2,440, a 34.8% increase from the corresponding period in 2011 and a 16.5% increase compared to the first quarter of 2012. Traffic acquisition cost (TAC) as a component of cost of revenues was $71.4 million, representing 8.3% of total revenues, as compared to 7.9% in the corresponding period in 2011 and 7.8% in the first quarter of 2012. Selling, general and administrative expenses were $92.5 million, representing an increase of 55.6% from the corresponding period in 2011, primarily due to an increase in personnel and marketing-related expenses.
