Baidu said it earned $2.07 a share in the third quarter, based on the exchange rate of Sept. 30. That’s up 41% from the year-earlier number and is 24 cents above the consensus analyst view.

Baidu’s sales rose 39% to $187.3 million, just below the $187.8 million expected by analysts polled by Thomson Reuters.

But the solid results were tempered by the firm’s fourth-quarter outlook. Baidu says it expects sales of $174 million and $180 million, where analysts had been expecting $203.7 million.

Baidu gets nearly all of its revenue from selling text-based ads that show up near search results.

Search-based ads are cheaper than other forms of advertising, which makes them popular with small businesses in China that are just catching on to the Internet, says analysts.

Baidu ended the quarter with 216,000 online active advertisers vs. 194,000 a year ago and 203,000 in the second quarter.

The company’s revenue per advertiser rose to $864 from $692 a year ago and $791 in the second quarter.

Source : Konaxis