Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Anthony Noto, Goldman Sachs.
Anthony Noto - Goldman Sachs
Thank you very much. Shawn and Robin, congratulations on another strong quarter. I was wondering if you could comment specifically on the growth, either sequentially or year-over-year, in the core Baidu business as opposed to the growth that was contributed from your Union members?
As I look at the TAC and I try to keep it constant, it looks like the TAC dollars have accelerated faster than the year-over-year growth which would imply more of your growth is coming from Union members than the Baidu site. While the Baidu site is growing fast, we're trying to get a sense of what the underlying core growth rate of Baidu is, either sequentially or year-over-year. Thank you.
Robin Li
Hi Anthony, this is Robin. I think we are not an exception in terms of growing our business both from the organic side and from the Union side. As you have seen, that TAC only represents single digits of our total revenue. Depending on the market condition, the market maturity and competitive landscape, we would make our judgment on how aggressively we will expand our Union memberships.
But at this time, the gross revenue and the net revenue -- revenue net of the TAC -- both are growing quite nicely. We don't see anything alarming here.
Anthony Noto - Goldman Sachs
Thank you.
Operator
Your next question comes from the line of Wallace Cheung - CSFB.
Wallace Cheung - CSFB
Hi, Robin and Shawn. Hello?
Robin Li
Yes?
Wallace Cheung - CSFB
Hi, congratulations on a very good quarter. A quick question, can you comment on the direct sales force contribution on the first quarter revenue? And secondly on the guidance for the second quarter. Thank you.
Shawn Wang
The direct sales force contribution continued to remain a small portion of the revenue that we have generated. You notice that we've been making an investment in building our direct sales force over the last two quarters. But given the recurring nature of our business, all of these investments have not brought in immediate revenue contribution change. So in terms of revenue breakdowns, there is not a pattern at this time.
Robin Li
I would add that if you look at the customer acquisition contribution, I think direct sales is contributing more and more.
- To read the full transcript on Seeking Alpha, click here »
