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Baidu Announces Fourth Quarter and Fiscal Year 2007 Results
Feb 13, 2008

BEIJING, China, Feb. 13 /Xinhua-PRNewswire/ -- Baidu.com, Inc. (Nasdaq: BIDU), the leading Chinese language Internet search provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2007(1).

    (Logo: http://www.newscom.com/cgi-bin/prnh/20041011/BAIDULOGO )

    Fourth Quarter and Fiscal Year 2007 Highlights

     -- Total revenues in the fourth quarter 2007 increased to RMB571.1
        million ($78.3 million), representing a 110.5% increase from the
        corresponding period in 2006.
     -- Total revenues in fiscal year 2007 increased to RMB1,744.4 million
        ($239.1 million), representing a 108.2% increase from 2006.
     -- Net income in the fourth quarter 2007 increased to RMB219.8 million
        ($30.1 million), representing a 79.0% increase from the corresponding
        period in 2006. Diluted earnings per share ("EPS") for the fourth
        quarter 2007 was RMB6.32 ($0.87); diluted EPS excluding share-based
        compensation expenses (non-GAAP) for the fourth quarter of 2007 was
        RMB6.70 ($0.92). Costs and expenses related to Baidu's Japan
        operations for the fourth quarter of 2007 were RMB25.2 million ($3.5
        million), which reduced diluted EPS by RMB0.73 ($0.10).
     -- Net income in fiscal year 2007 increased to RMB629.0 million ($86.2
        million), representing a 108.4% increase from 2006. Diluted EPS for
        2007 was RMB18.11 ($2.48); diluted EPS excluding share-based
        compensation expenses (non-GAAP) for 2007 was RMB19.26 ($2.64). Costs
        and expenses related to Baidu's Japan operations for 2007 were RMB73.4
        million ($10.1 million), which reduced diluted EPS by RMB2.11 ($0.29).
     -- The number of active online marketing customers during the fourth
        quarter grew to over 155,000, an increase of 8.4% from the previous
        quarter.

"We are pleased to report another quarter of solid results, with healthy earnings growth demonstrating the scalability of our business model," said Robin Li, Baidu's chairman and CEO. "These results were driven by our continued strategy of enhancing our product and service offerings to ensure the best user experience. Our efforts were rewarded by increases in our user traffic and expansion of our market share, further strengthening our position as the leader in Chinese language search."

Mr. Li continued, "During the fourth quarter, we achieved strong revenue growth alongside a steady increase in our number of online marketing customers. As we continue to focus on best serving our users and customers, and as we consistently provide relevant new products and services while exploring opportunities for value-adding partnerships, we expect to continue taking advantage of growth opportunities to ensure sustained strong growth over the long term."

Fourth Quarter 2007 Results

Baidu reported total revenues of RMB571.1 million ($78.3 million) for the fourth quarter ended December 31, 2007, representing a 110.5% increase from the corresponding period in 2006.

Online marketing revenues for the fourth quarter were RMB569.6 million ($78.1 million), representing a 111.2% increase from the fourth quarter 2006. The growth was driven by the increases in both the number of active online marketing customers and revenue per customer. Baidu had more than 155,000 active online marketing customers in the fourth quarter of 2007, representing an 8.4% increase from the previous quarter and 43.5% from the corresponding period in 2006. Revenue per online marketing customer for the fourth quarter increased to approximately RMB3,700 ($507.2), a sequential increase of 5.7% and an increase of 48.0% from the corresponding period in 2006.

Traffic acquisition cost (TAC) as a component of cost of revenues was RMB72.3 million ($9.9 million), representing 12.7% of total revenues, compared to 8.7% in the corresponding period in 2006. The increase in TAC as a percentage of total revenues primarily reflects the continued growth of revenue contribution from Baidu Union members.

Bandwidth costs as a component of cost of revenues was RMB35.9 million ($4.9 million), representing 6.3% of total revenues, compared to 4.7% in the corresponding period in 2006. Depreciation costs as a component of cost of revenues was RMB46.7 million ($6.4 million), representing 8.2% of total revenues, compared to 6.2% in the corresponding period in 2006. The increase in bandwidth and depreciation costs as percentages of total revenues reflects expansion of network capacity to support Baidu's long-term growth.

Selling, general and administrative expenses were RMB132.2 million ($18.1 million), representing an increase of 86.2% from the corresponding period in 2006, primarily due to expansion of the direct sales force.

Research and development expenses were RMB46.5 million ($6.4 million), representing a 122.7% increase from the corresponding period in 2006, primarily due to an increase in research and development staff.

Share-based compensation expenses, which were allocated to related operating cost and expense line items, increased in aggregate to RMB13.3 million ($1.8 million) in the fourth quarter of 2007 from RMB7.4 million in the corresponding period in 2006. The increase in share-based compensation expenses primarily reflects increased options grants during the quarter.

Operating profit was RMB176.3 million ($24.2 million), representing a 73.3% increase from the corresponding period in 2006. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB189.6 million ($26.0 million) for the fourth quarter of 2007, a 73.8% increase from the corresponding period in 2006.

Income tax benefit was RMB18.6 million ($2.5 million), which was primarily attributable to the receipt of a reinvestment incentive tax refund of RMB21.2 million ($2.9 million) in the fourth quarter.

Net income was RMB219.8 million ($30.1 million), representing a 79.0% increase from the corresponding period in 2006. Basic and diluted EPS for the fourth quarter of 2007 amounted to RMB6.45 ($0.88) and RMB6.32 ($0.87), respectively.

Net income excluding share-based compensation expenses (non-GAAP) was RMB233.1 million ($32.0 million), a 79.1% increase from the corresponding period in 2006. Basic and diluted EPS excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2007 were RMB6.84 ($0.94) and RMB6.70 ($0.92), respectively.

As of December 31, 2007, the Company had cash, cash equivalents and short- term investments of RMB1.6 billion ($218.3 million). Net operating cash inflow and capital expenditures for the fourth quarter of 2007 were RMB334.6 million ($45.9 million) and RMB166.2 million ($22.8 million), respectively.

Adjusted EBITDA (non-GAAP), which is defined in this announcement as earnings before interest, taxes, depreciation, amortization, other non- operating income and share-based compensation expenses, were RMB247.0 million ($33.9 million) for the fourth quarter of 2007, representing an 87.0% increase from the corresponding period in 2006.

Fiscal Year 2007 Results

Total revenues in 2007 were RMB1,744.4 million ($239.1 million), representing a 108.2% increase from 2006.

Online marketing revenues in 2007 were RMB1,741.0 million ($238.7 million), representing a 110.1% increase from 2006. The growth was driven by the increases in both the number of active online marketing customers and revenue per customer. Baidu had more than 214,000 active online marketing customers in 2007, representing a 49.7% increase from 2006. Revenue per online marketing customer for 2007 increased to RMB8,100 ($1,110.4), an increase of 39.7% from 2006.

Traffic acquisition costs in 2007 were RMB204.7 million ($28.1 million), representing 11.7% of total revenues compared to 9.0% in 2006. The increase in TAC as a percentage of total revenues primarily reflects the continued growth of revenue contribution from Baidu Union members.

Selling, general and administrative expenses in 2007 were RMB411.2 million ($56.4 million), representing an increase of 64.3% from the previous year, mainly due to expansion of the direct sales force and strengthening of the distributor network.

Research and development expenses totaled RMB140.7 million ($19.3 million) in 2007, representing a 77.6% increase from 2006 primarily due to an increase in research and development staff.

Operating profit in 2007 was RMB547.2 million ($75.0 million), a 108.1% increase from 2006. Operating profit excluding share-based compensation expenses (non-GAAP) in 2007 was RMB587.0 million ($80.5 million), representing an 88.7% increase from 2006.

Net income in 2007 was RMB629.0 million ($86.2 million), representing a 108.4% increase from 2006. Basic and diluted EPS for 2007 amounted to RMB18.57 ($2.55) and RMB18.11 ($2.48), respectively.

Net income excluding share-based compensation expenses (non-GAAP) in 2007 was RMB668.8 million ($91.7 million), reflecting a 93.6% increase from 2006. Basic and diluted EPS excluding share-based compensation expenses (non-GAAP) in 2007 were RMB19.75 ($2.71) and RMB19.26 ($2.64), respectively.

Full year net operating cash inflow and capital expenditures were RMB979.5 million ($134.3 million) and RMB569.1 million ($78.0 million), respectively.

Adjusted EBITDA (non-GAAP) was RMB768.0 million ($105.3 million) in 2007, representing a 101.2% increase from 2006.

Outlook for First Quarter 2008

Baidu currently expects to generate total revenues in an amount ranging from RMB533 million ($73.1 million) to RMB548 million ($75.1 million) for the first quarter of 2008, representing a 93% to 99% increase from the corresponding period in 2007. This forecast reflects Baidu's current and preliminary view, which is subject to change.

Conference Call Information

Baidu's management will hold an earnings conference call at 8 PM on February 13, 2008 U.S. Eastern Standard Time (9 AM on February 14, 2008 Beijing/Hong Kong time).

    Dial-in details for the conference call are as follows:

    US:        +1-617-614-3453
    UK:        +44-207-365-8426
    Hong Kong: +852-3002-1672
    Passcode for all regions: 47462262

A replay of the conference call may be accessed by phone at the following number until 10 PM on February 20, 2008 U.S. Eastern Standard Time:

International: +1-617-801-6888

Passcode: 56506980

Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com .

    (1) This announcement contains translations of certain RMB amounts into
        U.S. dollars at specified rates solely for the convenience of the
        reader. Unless otherwise noted, all translations from RMB to U.S.
        dollars are made at a rate of RMB7.2946 to US$1.00, the effective noon
        buying rate as of December 31, 2007 in The City of New York for cable
        transfers of RMB as certified for customs purposes by the Federal
        Reserve Bank of New York.

    About Baidu

Baidu.com, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best way for people to find information. In addition to serving individual Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu's ADSs, each of which represents one Class A ordinary share, currently trade on the Nasdaq Global Select Market under the symbol "BIDU".

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for first quarter 2008 and quotations from management in this announcement, as well as Baidu's strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract and retain users and customers; competition in the Chinese language Internet search market; competition for online marketing customers; changes in our revenues and certain cost or expense items as a percentage of our revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; the expected growth of the Chinese language Internet search market and the number of Internet and broadband users in China; and Chinese governmental policies relating to the Internet and Internet content providers. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of February 14, 2008, and Baidu undertakes no duty to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following measures defined as non-GAAP financial measures by the SEC: adjusted EBITDA, operating profit excluding share-based compensation expenses, net income excluding share-based compensation expenses, and basic and diluted EPS excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures" and "Reconciliation from net cash provided by operating activities to adjusted EBITDA" set forth at the end of this release.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain expenses and expenditures that may not be indicative of its operating performance from a cash perspective. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. Baidu computes its non-GAAP financial measures using the same consistent method from quarter to quarter, except that the non-GAAP measures for the quarter ended March 31, 2006 reflected the one-time cumulative effect of change in accounting principle due to our adoption of SFAS 123(R) since January 1, 2006. We believe these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. A limitation of using non-GAAP operating profit excluding share-based compensation expenses, net income excluding share-based compensation expenses, and basic and diluted EPS excluding share-based compensation expenses is that these non-GAAP measures exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. A limitation of using non-GAAP Adjusted EBITDA is that it does not include all items that impact our net income for the period. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.




    Baidu.com, Inc.
    Condensed Consolidated Balance Sheets


                                       December 31, September 30, December 31,
    (in RMB thousands)                        2007          2007         2006
                                         Unaudited     Unaudited      Audited

    ASSETS
        Current assets:
     Cash and cash equivalents           1,350,600     1,301,072    1,136,274
     Short-term investments                242,037       128,168       85,339
     Accounts receivable, net               64,274        50,615       23,051
     Prepaid expenses and other current
      assets                                65,996       109,354       32,339
     Deferred tax assets, net                2,587         1,866        1,734
        Total current assets             1,725,494     1,591,075    1,278,737

        Non-current assets:
     Fixed assets, net                     678,886       494,852      191,734
     Land use right, net                    96,472        96,960       92,400
     Intangible assets, net                 40,460        37,715       44,386
     Goodwill                               51,093        51,097       47,316
     Investments, net                       15,439         5,697           --
     Deferred tax assets, net               15,716         8,745        5,802
     Other non-current assets               32,348        51,830        7,702
        Total non-current assets           930,414       746,896      389,340

    TOTAL ASSETS                         2,655,908     2,337,971    1,668,077

    LIABILITIES AND SHAREHOLDERS' EQUITY
        Current liabilities:
    Accrued expenses and other
     liabilities                           359,310       302,455      153,141
    Customers' deposits                    257,577       229,408      141,185
    Deferred revenue                        11,832        11,295        2,583
    Deferred income                          2,485         3,206        4,090
        Total current liabilities          631,204       546,364      300,999

        Non-current liabilities:
    Long-term payable                        3,000         3,000        7,000
    Deferred income                            332           634        2,817
        Total non-current liabilities        3,332         3,634        9,817

    Total liabilities                      634,536       549,998      310,816

    Shareholders' equity
    Class A Ordinary Shares, Par value
     US$0.00005 per share, 825,000,000
     shares authorized, and 22,574,381
     shares and 25,136,147 shares issued
     and outstanding as at December 31,
     2006 and December 31, 2007                 10            10            9
    Class B Ordinary Shares, Par value
     US$0.00005 per share, 35,400,000
     shares authorized, and 11,130,018
     shares and 8,996,842 shares issued
     and outstanding as at December 31,
     2006 and December 31, 2007                  4             4            5
    Additional paid-in capital           1,171,575     1,140,499    1,088,176
    Accumulated other comprehensive
     income/(loss)                         (81,953)      (64,438)     (33,697)
    Retained earnings                      931,736       711,898      302,768
    Total shareholders' equity           2,021,372     1,787,973    1,357,261

    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                              2,655,908     2,337,971    1,668,077



    Baidu.com, Inc.
    Condensed Consolidated Statements of Income
    (in RMB thousands except for share, per share information)

                                                For the Three Months Ended
                                             Dec. 31,    Dec. 31,   Sept. 30,
                                               2007        2006        2007
                                            Unaudited   Unaudited   Unaudited
    Revenues:
    Online marketing services                569,588      269,754      496,120
    Other services                             1,474        1,552          410
    Total revenues                           571,062      271,306      496,530

    Operating costs and expenses:
    Cost of revenues (note 1, 2)            (216,012)     (77,669)    (180,704)
    Selling, general and administrative
     (note 2)                               (132,230)     (70,999)    (110,312)
    Research and development (note 2)        (46,535)     (20,899)     (37,433)
    Total operating costs and expenses      (394,777)    (169,567)    (328,449)

    Operating profit                         176,285      101,739      168,081

    Other income:
    Interest income                           12,846       12,016       12,188
    Other income, net                         12,146        3,048        4,040
    Total other income                        24,992       15,064       16,228

    Income before income taxes               201,277      116,803      184,309

    Income taxes                              18,561        6,000       (2,580)

    Cumulative effect of change in
     accounting principle                         --           --           --

    Net income                               219,838      122,803      181,729


   Earnings per share for Class A and
    Class B ordinary shares:
   Basic                                        6.45         3.65         5.35
   Diluted                                      6.32         3.54         5.23

   Weighted average aggregate number of
    Class A and Class B ordinary shares
    outstanding:
   Basic                                  34,087,848   33,666,239   33,983,137
   Diluted                                34,797,946   34,711,753   34,763,639

    (1) Cost of revenues are detailed as
        follows:
    Business tax and surcharges              (36,614)     (16,357)     (30,702)
    Traffic acquisition costs                (72,299)     (23,631)     (59,155)
    Bandwidth costs                          (35,857)     (12,656)     (31,837)
    Depreciation costs                       (46,662)     (16,898)     (40,654)
    Operational costs                        (23,820)      (7,931)     (17,979)
    Share-based compensation expenses           (760)        (196)        (377)
    Total cost of revenues                  (216,012)     (77,669)    (180,704)

    (2) Includes share-based compensation
        expenses as follows:
    Cost of revenues                            (760)        (196)        (377)
    Selling, general and administrative       (5,539)      (6,166)         (68)
    Research and development                  (6,986)        (992)      (5,027)
    Total share-based compensation
     expenses                                (13,285)      (7,354)      (5,472)



                                                    Twelve Months Ended
                                                December 31,      December 31,
                                                    2007              2006
                                                 Unaudited           Audited
    Revenues:
    Online marketing services                    1,741,021           828,484
    Other services                                   3,404             9,354
    Total revenues                               1,744,425           837,838

    Operating costs and expenses:
    Cost of revenues (note 1, 2)                  (645,406)         (245,489)
    Selling, general and administrative
     (note 2)                                     (411,163)         (250,240)
    Research and development (note 2)             (140,702)          (79,231)
    Total operating costs and expenses          (1,197,271)         (574,960)

    Operating profit                               547,154           262,878

    Other income:
    Interest income                                 49,009            42,354
    Other income, net                               20,053             4,187
    Total other income                              69,062            46,541

    Income before income taxes                     616,216           309,419

    Income taxes                                    12,752           (12,256)

    Cumulative effect of change in
     accounting principle                               --             4,603

    Net income                                     628,968           301,766


    Earnings per share for Class A and
     Class B ordinary shares:
    Basic                                            18.57              9.06
    Diluted                                          18.11              8.75

    Weighted average aggregate number of
     Class A and Class B ordinary shares
      outstanding:
    Basic                                       33,872,611        33,290,696
    Diluted                                     34,724,364        34,506,594

    (1) Cost of revenues are detailed as
        follows:
    Business tax and surcharges                   (108,783)          (51,833)
    Traffic acquisition costs                     (204,693)          (75,180)
    Bandwidth costs                               (117,554)          (40,005)
    Depreciation costs                            (147,115)          (51,574)
    Operational costs                              (65,544)          (25,481)
    Share-based compensation expenses               (1,717)           (1,416)
    Total cost of revenues                        (645,406)         (245,489)

    (2) Includes share-based compensation
        expenses as follows:
    Cost of revenues                                (1,717)           (1,416)
    Selling, general and administrative            (17,371)          (32,970)
    Research and development                       (20,760)          (13,894)
    Total share-based compensation
     expenses                                      (39,848)          (48,280)



    Reconciliations of non-GAAP results of operations measures to the
    nearest comparable GAAP measures (*) (in RMB thousands, unaudited)

                                           Three months ended December 31,
                                                        2006
                                                                    Non-GAAP
                                         GAAP Result  Adjustment    Results
    Operating profit                         101,739      7,354     109,093

                                           Three months ended December 31,
                                                        2006
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Net income                               122,803      7,354     130,157


                                          Three months ended September 30,
                                                        2007
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Operating profit                         168,081      5,472     173,553

                                          Three months ended September 30,
                                                        2007
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Net income                               181,729      5,472     187,201

                                           Three months ended December 31,
                                                        2007
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Operating profit                          176,285    13,285     189,570

                                           Three months ended December 31,
                                                        2007
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Net income                               219,838     13,285     233,123


                                          Twelve months ended December 31,
                                                        2007
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Operating profit                         547,154     39,848     587,002

                                          Twelve months ended December 31,
                                                        2007
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Net income                               628,968     39,848     668,816

                                          Twelve months ended December 31,
                                                        2006
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Operating profit                        267,878      48,280     311,158

                                          Twelve months ended December 31,
                                                        2006
                                         GAAP Result  Adjustment    Non-GAAP
                                                                    Results
    Net income                              301,766      43,677     345,443

    (*) The adjustment is only for share-based compensation and cumulative
        effect of change in accounting principle.




    Reconciliation from net cash provided by operating activities to adjusted
    EBITDA(*) (in RMB thousands, unaudited)


                                          Three months ended    As a % of
                                           December 31, 2006   total revenues
    Net cash provided by operating
     activities                                      170,835             63%

       Changes in assets and liabilities,
        net of effects of acquisitions               (17,721)            -7%
       Income taxes expenses                          (6,000)            -2%
       Interest income and other, net                (15,064)            -6%

    Adjusted EBITDA                                  132,050             48%

                                          Three months ended    As a % of
                                          September 30, 2007  total revenues
    Net cash provided by operating
     activities                                      254,870             51%

       Changes in assets and liabilities,
        net of effects of acquisitions               (17,800)            -4%
       Income taxes expenses                           2,580              1%
       Interest income and other, net                (16,228)            -3%

    Adjusted EBITDA                                  223,422             45%

                                          Three months ended    As a % of
                                           December 31, 2007   total revenues
    Net cash provided by operating
     activities                                      334,609             59%

       Changes in assets and liabilities,
        net of effects of acquisitions               (44,063)            -8%
       Income taxes expenses                         (18,561)            -3%
       Interest income and other, net                (24,992)            -4%

    Adjusted EBITDA                                  246,993             44%

                                         Twelve months ended    As a % of
                                           December 31, 2007   total revenues
    Net cash provided by operating
     activities                                      979,478             56%

       Changes in assets and liabilities,
        net of effects of acquisitions              (129,713)            -7%
       Income taxes expenses                         (12,752)            -1%
       Interest income and other, net                (69,062)            -4%

    Adjusted EBITDA                                  767,951             44%

                                         Twelve months ended    As a % of
                                           December 31, 2006   total revenues
    Net cash provided by operating
     activities                                      526,144             63%

       Changes in assets and liabilities,
        net of effects of acquisitions              (110,264)           -13%
       Income taxes expenses                          12,256              1%
       Interest income and other, net                (46,541)            -6%

    Adjusted EBITDA                                  381,595             45%

    (*) Definition of adjusted EBITDA: earnings before interest, taxes,
        depreciation, amortization,  other non-operating income, share-based
        compensation expenses and cumulative effect of change in accounting
        principle.



    For more information, please contact:

     Investor Inquiries:
     Linda Sun
     Baidu.com, Inc.
     Tel:   +8610-8262-1188
     Email: ir@baidu.com

     Investor and Media Inquiries:
     China
     Helen Plummer
     Ogilvy Public Relations Worldwide (Beijing)
     Tel:   +86-10-8520-3090
     Email: Helen.plummer@ogilvy.com

     US
     Thomas Smith
     Ogilvy Public Relations Worldwide (New York)
     Tel:   +1-212-880-5269
     Email: thomas.smith@ogilvypr.com
SOURCE  Baidu.com, Inc.
    -0-                             02/13/2008
    /CONTACT:  Investors: Linda Sun of Baidu.com, Inc., +86-10-8262-1188, or
ir@baidu.com; or Investors and Media: Helen Plummer of Ogilvy Public Relations
Worldwide (Beijing), +86-10-8520-3090, or helen.plummer@ogilvy.com, or Thomas
Smith of Ogilvy Public Relations Worldwide (New York), +1-212-880-5269, or
thomas.smith@ogilvypr.com, for Baidu /
    /Photo:   http://www.newscom.com/cgi-bin/prnh/20041011/BAIDULOGO
              PRN Photo Desk, 888-776-6555 or 212-782-2840/
    /Web site:  http://www.baidu.com /
    (BIDU)

CO:  Baidu.com Inc.
ST:  China
IN:  CPR MLM ITE ENT
SU:  ASI ERN CCA



JH
-- CNW026 --
4793 02/13/2008 16:30 EST http://www.prnewswire.com