Chinese Search Firm Strong In Third Quarter
Baidu, a Chinese-language Internet search firm, pulled in $187.3 million in revenue during third-quarter 2009, a 39.1% jump from what it generated in third-quarter 2008.
The company’s operating income saw an even greater jump on a percentage basis, rising 41.6% to $76.4 million. And its net income was up 41.7% to $72.2 million. The quarter ended Sept. 30.
Baidu attributed the jump in income in part of its expanded Online Marketing Professional Edition tool, which is also known as Phoenix Nest. At the end of the third quarter, 70% of its customers were using Phoenix Nest. Baidu expects its fourth-quarter revenue to slip to between $174 million and $180 million, as it will be discontinuing its Online Marketing Classic Edition tool.
Baidu managed to reduce its traffic acquisition costs as a percentage of revenue from the second quarter of 2009 to the third quarter. In the second quarter, acquisition costs were 16%: In the third quarter, they had slipped to 15.3%. But both of these represented increases from the 11.8% of revenue acquisition costs made up during third quarter 2008.
