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Reports Q1 (Mar) earnings of $2.02 per share, $0.52 better than the Thomson Reuters consensus of $1.50; revenues rose 59.9% year/year to $189.6 mln vs the $180.1 mln consensus. Co issues upside guidance for Q2, sees Q2 revs of $268.1-274.0 mln vs. $240.07 mln Thomson Reuters consensus. Online marketing revenues for the first quarter of 2010 were RMB1.293 billion ($189.5 million), representing a 59.6% increase from the corresponding period in 2009. Baidu had around 221,000 active Online marketing customers in the first quarter of 2010, representing a 19.5% increase from the corresponding period in 2009 and a 0.9% decrease from the previous quarter. Revenue per Online marketing customer for the first quarter was approximately RMB5,900 ($864), a 34.1% increase from the corresponding period in 2009 and a 3.5% increase from the previous quarter. Traffic acquisition costs (TAC) as a component of cost of revenues were RMB171.3 million ($25.1 million), representing 13.2% of total revenues, as compared to 15.3% in the corresponding period in 2009 and 16.0% in the fourth quarter of 2009. The decrease in TAC as a percentage of total revenues reflects initiatives to drive quality improvements on Baidu Union traffic. Co also announces a 10:1 ADS split.

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