BIDU 2Q07 (3): Revenue Share Up 1.1% to 58.1%
Topic: How was Baidu doing in 2Q07 in terms of revenue?
Data: According to consulting firm Analysys International, Baidu's revenue market share in China was 58.1% in Q2 2007, up 1.1 percentage points. Google China's market share increased 4.1 percentage points to 22.8%. Yahoo China's market share declined 2.0 percentage points to 11.6%. The appendix is a table showing revenue market shares of Baidu and its competitors from 1Q06 to 2Q07. Analysys International also estimates total revenues of all Chinese search engines were $86.34M in Q2.
Analysis: Based on the estimated total market size ($86.34M) and Baidu's market share (58.1%), Baidu's total revenue in 2Q07 was $50.2M (=$86.34M x 58.1%). On average, Wall Street analysts estimate Baidu generated $49.25M in revenues in Q2. Baidu's official Q2 guidance is $48.9M to $50.2M. This means Baidu's revenue in Q2 will beat Wall Street consensus and reach the high end of guidance.
Note: The analysis above is based on the assumption that Analysys International was right on their estimates. We suggest that investors do some research on this consulting firm's track record, before believing their estimates.
In the next article of our "BIDU 2Q07" series, we will outline the key points to watch from Baidu's 2Q07 reports.
Related:
Appendix: Revenue Market Share Trend of Chinese Search Engines (1Q06-2Q07)
| 1Q06 | 2Q06 | 3Q06 | 4Q06 | 1Q07 | 2Q07 | |
| Market Share: | ||||||
| Baidu | 43.9% | 50.3% | 57.0% | 58.0% | 57.0% | 58.1% |
| 13.2% | 16.2% | 16.3% | 17.0% | 18.7% | 22.8% | |
| Yahoo | 21.1% | 15.7% | 13.0% | 13.0% | 13.6% | 11.6% |
| Sohu | 9.2% | 7.4% | 5.5% | 5.0% | 4.6% | 2.7% |
| Zhongsou | 4.2% | 2.7% | 3.1% | 3.4% | 2.9% | 2.4% |
| Sina | 3.0% | 2.7% | 1.7% | 1.1% | 0.9% | 0.6% |
| NetEase | 1.3% | 1.3% | 1.0% | 0.8% | 0.8% | 0.6% |
| Other | 4.0% | 3.7% | 2.4% | 1.7% | 1.4% | 1.1% |
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Quarterly Change: | ||||||
| Baidu | 10.8% | 6.4% | 6.7% | 1.0% | -1.0% | 1.1% |
| 0.2% | 3.0% | 0.1% | 0.7% | 1.7% | 4.1% | |
| Yahoo | -5.9% | -5.4% | -2.7% | 0.0% | 0.6% | -2.0% |
| Sohu | -1.7% | -1.8% | -1.9% | -0.5% | -0.4% | -1.9% |
| Zhongsou | -1.2% | -1.5% | 0.5% | 0.2% | -0.5% | -0.5% |
| Sina | -2.4% | -0.3% | -1.0% | -0.6% | -0.2% | -0.3% |
| NetEase | 0.3% | 0.0% | -0.4% | -0.1% | 0.0% | -0.2% |
| Other | -0.2% | -0.2% | -1.3% | -0.7% | -0.3% | -0.3% |
Source: Analysys International
It's amazing
Posted by: neadvathidats | Saturday, August 02, 2008 at 08:27 PM