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Earnings Review and Free Research Report: Baidu’s Quarterly Revenue Jumped 14.3%; Adjusted ADS Rocketed 98%

Research Desk Line-up: trivago Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Baidu, Inc. (NASDAQ: BIDU), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BIDU, following the Company's disclosure of its second quarter fiscal 2017 results, on July 26, 2017. The web search giant outperformed top- and bottom-line expectations and provided revenue forecasts for the upcoming quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Internet Information Providers industry. Pro-TD has currently selected trivago N.V. (NASDAQ: TRVG) for due-diligence and potential coverage as the Company announced on August 04, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on trivago when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BIDU; also brushing on TRVG. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=BIDU

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Earnings Reviewed

Baidu reported total revenues of RMB20.87 billion ($3.08 billion) for Q2 2017, representing a 14.3% increase compared to revenue of RMB18.26 billion for Q2 2016. The Company's revenue numbers came in ahead of analysts' estimates of $3.06 billion

During Q2 2017, Baidu's selling, general, and administrative expenses were RMB2.93 billion ($433 million), representing a drop of 30.1% on a y-o-y basis, primarily due to a decrease in promotional spending. The Company's research and development (R&D) expenses were RMB3.15 billion ($464 million) in the reported quarter, representing a 27.7% increase compared to the year ago corresponding quarter, due to the growth of R&D personnel-related costs.

Baidu's operating profit surged 46.9% to RMB4.21 billion ($621 million) for Q2 2017 compared to RMB 2.87 billion in Q2 2016. The Company's non-GAAP operating profit was RMB5.01 billion ($738 million) in the reported quarter, up 53.2% on a y-o-y basis.

Net income attributable to Baidu was RMB4.42 billion ($651 million), representing a growth of 82.9% compared to net income of RMB2.41 billion in Q2 2016. The Company's diluted earnings per ADS for the reported quarter amounted to RMB11.31 ($1.67) compared to diluted ADS of RMB6.57.

For Q2 2017, non-GAAP net income attributable to Baidu soared 98.4% to RMB5.57 billion ($822 million) compared to non-GAAP net income of RMB2.81 billion for Q2 2016. The Company's non-GAAP diluted earnings per ADS for the reported quarter amounted to RMB16.00 ($2.36) from ADS of 8.08 in the year ago same period. Baidu's earnings surpassed Wall Street's expectations of $1.42 per ADS.

Operating Details

For Q2 2017, Baidu's online marketing revenues were RMB17.88 billion ($2.64 billion), representing a 5.6% increase compared to revenue of RMB16.94 billion in Q2 2016. The Company had approximately 470,000 active online marketing customers in the reported quarter, representing a drop of 20.9% on a y-o-y basis. Baidu's revenue per online marketing customer for Q2 2017 was approximately RMB37,500 ($5,532), up 32.0% compared to the year ago comparable quarter.

During Q2 2017, Baidu's traffic acquisition costs as a component of cost of revenues was RMB2.48 billion ($365 million), representing 11.9% of total revenues, compared to traffic acquisition costs RMB2.91 billion, or 15.9% of total revenues, in Q2 2016.

Baidu's bandwidth costs as a component of cost of revenues were RMB1.38 billion ($204 million), representing 6.6% of total revenues, compared to bandwidth costs of RMB1.15 billion, or 6.3% of total revenues, in Q2 2016. In the reported quarter, the Company's content costs as a component of cost of revenues were RMB3.11 billion ($459 million), representing 14.9% of total revenues, compared to content costs of RMB1.70 billion, or 9.3% of total revenues, in the prior year's same quarter, attributed to iQiyi's increased content costs.

Cash Matters

As of June 30, 2017, the Company had cash, cash equivalents, and short-term investments of RMB92.15 billion ($13.59 billion). The Company's net operating cash inflow for Q2 2017 was RMB6.63 billion ($977 million). Baidu's capital expenditures for the reported quarter totaled RMB1.13 billion ($166 million).

Outlook

For Q3 2017, Baidu is forecasting to generate total revenues in an amount ranging from RMB23.130 billion ($3.412 billion) to RMB23.750 billion ($3.503 billion), representing an annual increase of 26.7% to 30.1%. The Company noted that, excluding mobile games from Baidu's financials, the guidance represents a 29.1% to 32.6% growth on a y-o-y basis.

Stock Performance

On Tuesday, August 08, 2017, the stock closed the trading session at $229.45, climbing 1.01% from its previous closing price of $227.16. A total volume of 4.02 million shares have exchanged hands, which was higher than the 3-month average volume of 2.91 million shares. Baidu's stock price soared 25.40% in the last three months, 28.78% in the past six months, and 37.85% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 39.56%. The stock is trading at a PE ratio of 48.39. At Tuesday's closing price, the stock's net capitalization stands at $80.04 billion.

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