FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the month of February 2008

Commission File Number: 000-51469

BAIDU.COM, INC.

12/F, Ideal International Plaza
No. 58 West-North 4^th Ring
Beijing 100080, People’s Republic of China
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F þ                    Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o                    No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

82-      N/A     

 

 

BAIDU.COM, INC.

Form 6-K

TABLE OF CONTENTS

		Page
Signature			3
Exhibit 99.1 Press Release

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 14, 2008

Exhibit 99.1

Baidu Announces Fourth Quarter and Fiscal Year 2007 Results

BEIJING, China, February 14, 2008 — 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, 2007¹.

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 RMB 35.9 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 ($1110.4), 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 an 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.

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.

For investor inquiries please contact:

Linda Sun
Baidu.com, Inc.
Tel: (8610) 8262 1188
ir@baidu.com

For investor and media inquiries please contact:

China

Helen Plummer
Ogilvy Public Relations Worldwide (Beijing)
Tel: +86-10-8520-3090
Helen.plummer@ogilvy.com

US

Thomas Smith
Ogilvy Public Relations Worldwide (New York)
Tel: 1 (212) 880 5269
thomas.smith@ogilvypr.com

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

		For the Three Months Ended												Twelve Months Ended
		December 31,				December 31,				September 30,				December 31,				December 31,
(in RMB thousands except for share, per share information)		2007				2006				2007				2007				2006
		Unaudited				Unaudited				Unaudited				Unaudited				Audited
Revenues:
Online marketing services			569,588				269,754				496,120				1,741,021				828,484
Other services			1,474				1,552				410				3,404				9,354
Total revenues			571,062				271,306				496,530				1,744,425				837,838
Operating costs and expenses:
Cost of revenues (note 1, 2)			(216,012	)			(77,669	)			(180,704	)			(645,406	)			(245,489	)
Selling, general and administrative (note 2)			(132,230	)			(70,999	)			(110,312	)			(411,163	)			(250,240	)
Research and development (note 2)			(46,535	)			(20,899	)			(37,433	)			(140,702	)			(79,231	)
Total operating costs and expenses			(394,777	)			(169,567	)			(328,449	)			(1,197,271	)			(574,960	)
Operating profit			176,285				101,739				168,081				547,154				262,878
Other income:
Interest income			12,846				12,016				12,188				49,009				42,354
Other income, net			12,146				3,048				4,040				20,053				4,187
Total other income			24,992				15,064				16,228				69,062				46,541
Income before income taxes			201,277				116,803				184,309				616,216				309,419
Income taxes			18,561				6,000				(2,580	)			12,752				(12,256	)
Cumulative effect of change in accounting principle			—				—				—				—				4,603
Net income			219,838				122,803				181,729				628,968				301,766
Earnings per share for Class A and Class B ordinary shares:
Basic			6.45				3.65				5.35				18.57				9.06
Diluted			6.32				3.54				5.23				18.11				8.75
Weighted average aggregate number of Class A and Class B ordinary shares outstanding:
Basic			34,087,848				33,666,239				33,983,137				33,872,611				33,290,696
Diluted			34,797,946				34,711,753				34,763,639				34,724,364				34,506,594
(1) Cost of revenues are detailed as follows:
Business tax and surcharges			(36,614	)			(16,357	)			(30,702	)			(108,783	)			(51,833	)
Traffic acquisition costs			(72,299	)			(23,631	)			(59,155	)			(204,693	)			(75,180	)
Bandwidth costs			(35,857	)			(12,656	)			(31,837	)			(117,554	)			(40,005	)
Depreciation costs			(46,662	)			(16,898	)			(40,654	)			(147,115	)			(51,574	)
Operational costs			(23,820	)			(7,931	)			(17,979	)			(65,544	)			(25,481	)
Share-based compensation expenses			(760	)			(196	)			(377	)			(1,717	)			(1,416	)
Total cost of revenues			(216,012	)			(77,669	)			(180,704	)			(645,406	)			(245,489	)
(2) Includes share-based compensation expenses as follows:
Cost of revenues			(760	)			(196	)			(377	)			(1,717	)			(1,416	)
Selling, general and administrative			(5,539	)			(6,166	)			(68	)			(17,371	)			(32,970	)
Research and development			(6,986	)			(992	)			(5,027	)			(20,760	)			(13,894	)
Total share-based compensation expenses			(13,285	)			(7,354	)			(5,472	)			(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												Three months ended September 30, 2007												Three months ended December 31, 2007												Twelve months ended December 31, 2007												Twelve months ended December 31, 2006
		GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results
Operating profit			101,739				7,354				109,093				168,081				5,472				173,553				176,285				13,285				189,570				547,154				39,848				587,002				262,878				48,280				311,158

		Three months ended December 31, 2006												Three months ended September 30, 2007												Three months ended December 31, 2007												Twelve months ended December 31, 2007												Twelve months ended December 31, 2006
		GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results
Net income			122,803				7,354				130,157				181,729				5,472				187,201				219,838				13,285				233,123				628,968				39,848				668,816				301,766				43,677				345,443

     

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

		Three months ended				As a % of				Three months ended				As a % of				Three months ended				As a % of				Twelve months ended				As a % of				Twelve months ended				As a % of
		December 31, 2006				total revenues				September 30, 2007				total revenues				December 31, 2007				total revenues				December 31, 2007				total revenues				December 31, 2006				total revenues
Net cash provided by operating activities			170,835				63	%			254,870				51	%			334,609				59	%			979,478				56	%			526,144				63	%
Changes in assets and liabilities, net of effects of acquisitions			(17,721	)			-7	%			(17,800	)			-4	%			(44,063	)			-8	%			(129,713	)			-7	%			(110,264	)			-13	%
Income taxes expenses			(6,000	)			-2	%			2,580				1	%			(18,561	)			-3	%			(12,752	)			-1	%			12,256				1	%
Interest income and other, net			(15,064	)			-6	%			(16,228	)			-3	%			(24,992	)			-4	%			(69,062	)			-4	%			(46,541	)			-6	%
Adjusted EBITDA			132,050				48	%			223,422				45	%			246,993				44	%			767,951				44	%			381,595				45	%