Tuesday, July 24, 2007

Preview Baidu's Earnings

Baidu will report second quarter earnings tomorrow. Here is the webcast link.

Baidu estimated revenue for this quarter will be 378 to 388 million yuan.

Yesterday, Analysys International just announced their market data for the second quarter.

Previously, they estimated that Baidu's first quarter was 281 million yuan. Baidu reported actual revenue at 275 million yuan.

As indicated in their analysis, Baidu's second quarter revenue should come in around 382 million yuan. If their analysis will be as accurate as last time, Baidu's should report revenue just above the low end of their estimate, or about 370-380 million yuan.

The only thing might help Baidu out for this quarter could be branding advertisements.

Due to the popularity of zhidao(answers), post(bulletin board), and MP3 services and visibly increased display ads on these service pages, the branding ads could bring significant revenue this quarter. As indicated by Charles Zhang, CEO of Sohu, the money for the 2008 Beijing Olympic Games are coming in super strong.

Hopefully, Robin Li will give us a hint on how valuable the Baidu properties are for the coming 2008 Beijing Olympic Games.

On the latest service release, data.baidu went to live today. The service is similar to Google trend combing with analytics. On top of the list of many rankings, the banks are in dominate position, perhaps indicate it's importance on Baidu's future strategies.

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