UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

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

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 of 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 the registrant by furnishing the information contained in this Form 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
EX-99.1

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.

		BAIDU.COM, INC.
		By		:		/s/ Robin Yanhong Li
		Name		:		Robin Yanhong Li
		Title		:		Chief Executive Officer

Date: October 23, 2008

Exhibit 99.1

Baidu Announces Third Quarter 2008 Results

BEIJING, China, October 22, 2008 — Baidu.com, Inc. (NASDAQ: BIDU), the leading Chinese language Internet search provider, today announced its unaudited financial results for the third quarter ended September 30, 2008.¹

Third Quarter 2008 Highlights

	•		Total revenues in the third quarter of 2008 increased to RMB919.1 million (US$135.4 million), representing an 85.1 % increase from the corresponding period in 2007.
	•		Operating profit in the third quarter of 2008 increased to RMB368.3 million (US$54.2 million), representing a 119.1% increase from the corresponding period in 2007.
	•		Net income in the third quarter of 2008 increased to RMB347.9 million (US$51.2 million), representing a 91.4 % increase from the corresponding period in 2007.
	•		Diluted earnings per share (“EPS”) for the third quarter of 2008 were RMB10.00 (US$1.47); diluted EPS excluding share-based compensation expenses (non-GAAP) for the third quarter of 2008 were RMB10.49 (US$1.54). Costs and expenses related to Baidu’s Japan operations, incurred in both Japan and China, in the third quarter of 2008 were RMB32.7 million (US$4.8 million), which reduced diluted EPS by RMB0.94 (US$0.14).
	•		The number of active online marketing customers during the third quarter grew to over 194,000, an increase of 7.2% from the previous quarter.

“I’m pleased to announce solid results for the third quarter,” said Robin Li, Baidu’s chairman and chief executive officer. “As China’s leader in paid search, Baidu has a large and diverse customer base covering numerous industries and sectors. Such diversity gives us great stability and positions us to capture future growth. Companies throughout China are increasingly recognizing the value of Baidu’s paid search as an effective marketing tool and we remain confident in our long-term growth potential.”

Jennifer Li, Baidu’s chief financial officer, said, “The impact of the 2008 Beijing Olympics on our business was in line with our projection for the quarter. We were also able to improve our operating margin again this quarter, highlighting the scalability of our business.”

Baidu recently launched the beta version of an online C2C platform that enables merchants to sell their products and services online via a Baidu-registered store. The new platform complements Baidu’s search business, enabling transaction fulfillment among our users. E-commerce is an emerging industry in China and there are vast opportunities for future growth in the sector. Baidu will continue to focus on providing the best quality experience for Internet users.

Third Quarter 2008 Results

Baidu reported total revenues of RMB919.1 million (US$135.4 million) for the third quarter ended September 30, 2008, representing an 85.1% increase from the corresponding period in 2007.

Online marketing revenues for the third quarter were RMB918.2 million (US$135.2 million), representing an 85.1% increase from the third quarter of 2007. Growth was mainly driven by increases in both the number of active online marketing customers and revenue per customer. Baidu had more than 194,000 active online marketing customers in the third quarter of 2008, representing a sequential increase of 7.2% and an increase of 35.7% from the corresponding period in 2007. Revenue per active online marketing customer for the third quarter increased to approximately RMB4,700 (US$692), a sequential increase of 6.8% and an increase of 34.3% from the corresponding period in 2007.

Traffic acquisition costs (TAC) as a component of cost of revenues were RMB108.8 million (US$16.0 million), representing 11.8% of total revenues, compared to 11.9% in the corresponding period in 2007.

Bandwidth costs as a component of cost of revenues were RMB48.0 million (US$7.1 million), representing 5.2% of total revenues, compared to 6.4% in the corresponding period in 2007. Depreciation costs as a component of cost of revenues were RMB56.9 million (US$8.4 million), representing 6.2% of total revenues, compared to 8.2% in the corresponding period in 2007.

Selling, general and administrative expenses were RMB163.2 million (US$24.0 million), representing an increase of 48.0% from the corresponding period in 2007, primarily due to the expansion of the direct sales force and an increase in customer service staff.

Research and development expenses were RMB78.2 million (US$11.5 million), representing a 109.0 % increase from the corresponding period in 2007, 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 by 211.1% to RMB17.0 million (US$2.5 million) in the third quarter of 2008 from RMB5.5 million in the corresponding period in 2007. The increase in share-based compensation expenses primarily reflects an increase in the number of options granted to employees.

Operating profit was RMB368.3 million (US$54.2 million), representing a 119.1% increase from the corresponding period in 2007. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB385.3 million (US$56.8 million) for the third quarter of 2008, a 122.0% increase from the corresponding period in 2007.

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 RMB457.3 million (US$67.4 million) for the third quarter of 2008, representing a 104.7% increase from the corresponding period in 2007.

Income tax expense was RMB34.8 million (US$5.1 million), compared to an income tax expense of RMB2.6 million in the third quarter of 2007. The year-on-year increase in tax expenses was due to higher tax rates applicable to some of our PRC subsidiaries as their tax holidays either expired or partially elapsed.

Net income was RMB347.9 million (US$51.2 million), representing a 91.4% increase from the corresponding period in 2007. Basic and diluted EPS for the third quarter of 2008 amounted to RMB10.15 (US$1.50) and RMB10.00 (US$1.47), respectively.

Net income excluding share-based compensation expenses (non-GAAP) was RMB364.9 million (US$53.7 million), a 94.9% increase from the corresponding period in 2007. Basic and diluted EPS excluding share-based compensation expenses (non-GAAP) for the third quarter of 2008 were RMB10.65 (US$1.57) and RMB10.49 (US$1.54), respectively.

As of September 30, 2008, Baidu’s cash, cash equivalents and short-term investments amounted to RMB2.3 billion (US$338.0 million). Net operating cash inflow and capital expenditures on a cash basis for the third quarter of 2008 were RMB482.2 million (US$71.0 million) and RMB85.1 million (US$12.5 million), respectively. A portion of our capital expenditure for the quarter was related to the construction of Baidu’s new campus facility.

Outlook for Fourth Quarter 2008

Baidu currently expects to generate total revenues in an amount ranging from RMB1,025 million (US$151 million) to RMB1,055 million (US$155 million) for the fourth quarter of 2008, representing an 80% to 85% increase from the corresponding period in 2007 and a 12% to 15% increase from the third quarter of 2008. This fourth quarter 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 on October 22, 2008 at 8:00 PM U.S. Eastern Time (8:00 AM, October 23, Beijing/Hong Kong time).

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

US:		+ 1-617-786-2902
UK:		+ 44-207-365-8426
Hong Kong:		+ 852-3002-1672

Passcode for all regions: 55689997

A replay of the conference call may be accessed by phone at the following number until October 29, 2008:

International: + 1-617-801-6888

Passcode: 69587650

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 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 the fourth quarter of 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 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 and Japanese language Internet search markets; 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 and Japanese language Internet search markets 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 October 22, 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 which are non-GAAP financial measures: 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 since April 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.

Contacts

For investor inquiries please contact:

China

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

Helen Plummer
Ogilvy Financial, Beijing
Tel: (8610) 8520 3090
Email: helen.plummer@ogilvy.com

U.S.

Thomas Smith
Ogilvy Financial, New York
Tel: (212) 880 5269
Email: thomas.smith@ogilvypr.com

For media inquiries please contact:

Ceren Wende
Ogilvy Financial, Beijing
Tel: (8610) 8520 6514
Email: ceren.wende@ogilvy.com

Baidu.com, Inc.
Condensed Consolidated Balance Sheets

		September 30				December 31,
(in RMB thousands)		2008				2007
		Unaudited				Audited
ASSETS
Current assets:
Cash and cash equivalents			2,088,554				1,350,600
Short-term investments			206,360				242,037
Accounts receivable, net			100,193				64,274
Prepaid expenses and other current assets			109,597				65,996
Deferred tax assets, net			2,587				2,587
Total current assets			2,507,291				1,725,494
Non-current assets:
Fixed assets, net			748,582				678,886
Land use right, net			95,008				96,472
Intangible assets, net			33,814				40,460
Goodwill			51,081				51,093
Investments, net			20,197				15,439
Deferred tax assets, net			17,060				15,716
Other non-current assets			84,394				32,348
Total non-current assets			1,050,136				930,414
TOTAL ASSETS			3,557,427				2,655,908
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other liabilities			371,745				359,310
Customers’ deposits			357,884				257,577
Deferred revenue			9,149				11,832
Deferred income			633				2,485
Total current liabilities			739,411				631,204
Non-current liabilities:
Long-term payable			—				3,000
Deferred income			—				332
Total non-current liabilities			—				3,332
Total liabilities			739,411				634,536
Shareholders’ equity
Class A Ordinary Shares, Par value US$0.00005 per share, 825,000,000 shares authorized, and 25,136,147 shares and 25,413,789 shares issued and outstanding as at December 31, 2007 and September 30, 2008			11				10
Class B Ordinary Shares, Par value US$0.00005 per share, 35,400,000 shares authorized, and 8,996,842 shares and 8,873,986 shares issued and outstanding as at December 31, 2007 and September 30, 2008			4				4
Additional paid-in capital			1,254,593				1,171,575
Accumulated other comprehensive loss			(127,770	)			(81,953	)
Retained earnings			1,691,178				931,736
Total shareholders’ equity			2,818,016				2,021,372
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			3,557,427				2,655,908

Baidu.com, Inc.
Condensed Consolidated Statements of Income

		For the Three Months Ended
		September 30,				September 30,				June 30,
(in RMB thousands except for share, per share information)		2008				2007				2008
		Unaudited				Unaudited				Unaudited
Revenues:
Online marketing services			918,179				496,120				802,183
Other services			946				410				428
Total revenues			919,125				496,530				802,611
Operating costs and expenses:
Cost of revenues (note 1, 2)			(309,342	)			(180,704	)			(280,980	)
Selling, general and administrative (note 2)			(163,247	)			(110,312	)			(174,213	)
Research and development (note 2)			(78,231	)			(37,433	)			(71,078	)
Total operating costs and expenses			(550,820	)			(328,449	)			(526,271	)
Operating profit			368,305				168,081				276,340
Other income:
Interest income			11,375				12,519				10,378
Exchange loss, net			(5	)			(331	)			(204	)
Other income, net			3,009				4,040				7,032
Total other income			14,379				16,228				17,206
Income before income taxes			382,684				184,309				293,546
Income taxes			(34,825	)			(2,580	)			(28,561	)
Net income			347,859				181,729				264,985
Earnings per share for Class A and Class B ordinary shares:
Basic			10.15				5.35				7.74
Diluted			10.00				5.23				7.62
Weighted average aggregate number of Class A and Class B ordinary shares outstanding:
Basic			34,257,974				33,983,137				34,217,081
Diluted			34,786,353				34,763,639				34,786,342
(1) Cost of revenues are detailed as follows:
Business tax and surcharges			(57,288	)			(30,702	)			(49,511	)
Traffic acquisition costs			(108,797	)			(59,155	)			(101,693	)
Bandwidth costs			(48,029	)			(31,837	)			(43,012	)
Depreciation costs			(56,907	)			(40,654	)			(57,790	)
Operational costs			(37,379	)			(17,979	)			(27,795	)
Share-based compensation expenses			(942	)			(377	)			(1,179	)
Total cost of revenues			(309,342	)			(180,704	)			(280,980	)
(2) Includes share-based compensation expenses as follows:
Cost of revenues			(942	)			(377	)			(1,179	)
Selling, general and administrative			(6,933	)			(68	)			(16,484	)
Research and development			(9,149	)			(5,027	)			(11,618	)
Total share-based compensation expenses			(17,024	)			(5,472	)			(29,281	)

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

		Three months ended September 30, 2007												Three months ended June 30, 2008												Three months ended September 30, 2008
		GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results
Operating profit			168,081				5,472				173,553				276,340				29,281				305,621				368,305				17,024				385,329

		Three months ended September 30, 2007												Three months ended June 30, 2008												Three months ended September 30, 2008
		GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results				GAAP Result				Adjustment				Non-GAAP Results
Net income			181,729				5,472				187,201				264,985				29,281				294,266				347,859				17,024				364,883

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
		September 30, 2007				total revenues				June 30, 2008				total revenues				September 30, 2008				total revenues
Net cash provided by operating activities			254,870				51	%			403,378				50	%			482,172				52	%
Changes in assets and liabilities, net of effects of acquisitions			(17,800	)			-4	%			(37,893	)			-5	%			(45,293	)			-5	%
Income taxes expenses			2,580				1	%			28,561				4	%			34,825				4	%
Interest income and other, net			(16,228	)			-3	%			(17,206	)			-2	%			(14,379	)			-1	%
Adjusted EBITDA			223,422				45	%			376,840				47	%			457,325				50	%