, the China-based search company that caused a small phenomenon when it listed on the
earlier this month, filed its first quarterly earnings that showed revenue nearly tripling and profit rising sevenfold.
Baidu said late Tuesday that second-quarter revenue was a mere $8.4 million (in translated currency), but that figure marked a 189% growth from the year-ago revenue and 53% growth from the previous quarter.
Traffic acquisition cost, or revenue shared with search partners, totaled only about $500,000, or 6.1% of total revenue. A year ago, traffic acquisition cost comprised 11.4% of total revenue.
Net income grew to $1.5 million, up 626% from the same quarter a year ago and up 382% sequentially.
Baidu said the number of "active online marketing customers" rose 30% from the previous quarter to 41,000. The company also trumpeted that it was "the sixth largest Web site globally" in the three months ended Aug. 23, according to Alexa.com. But Alexa's numbers, while often useful, are notorious for being based on small samples, often skewed toward specific geographic regions.
Baidu CEO Robin Li said the earnings report highlighted "the continued, robust increase in revenues and expansion of our customer base." He added that, "Our recent successful IPO demonstrated strong investor confidence in the prospects of China's Internet search market, in our business model as well as in our management team."
For the third quarter, Baidu expects revenue of $9.6 million to $10 million, representing a 139% to 151% growth from the corresponding period in 2004.
Baidu went public on Aug. 5 at $66 a share, rocketing as high as $153.98 on the following day. Since then, it has fallen steadily, closing at $72.69 on Monday.
The company has ridden on two speculative themes in the stock market recently, the growing interest among investors in Chinese Internet companies and the rapid growth in search-related advertising, led in the U.S. by
. Like Google, Baidu is showing early signs of strong revenue and profit growth as it masters the business.
While Baidu formally released its earnings announcement one minute after the close of trading Tuesday, the stock surged again during Tuesday trading, closing up 12.8% at $82. That marked the third day in Baidu's history that the stock closed up, and the biggest one-day gain since its initial day of trading.
After the bell, Baidu shares were off 1% to $81.15.