Alibaba's first quarter revenues surge 61 percent

Alibaba Group Holding Limited in its results announcement for the quarter ended June 30, 2018 said that revenue reach 80,920 million Chinese yuan (12,229 million dollars), an increase of 61 percent year-over-year. Net income attributable to ordinary shareholders was 8,685 million Chinese yuan (1,313 million dollars) and net income was 7,650 million Chinese yuan (1,156 million dollars), representing a year-on-year decrease of 41 percent and 45 percent, respectively, which the company said was attributable to a one-time increase in sharebased compensation expense of 11,180 million Chinese yuan relating to Ant Financial’s awards to the employees. Excluding the effect of such Ant Financial related share-based compensation expense, the company added that net income for the quarter would have increased by 33 percent.

“Alibaba had another excellent quarter, with significant user expansion and even more robust engagement across our growing ecosystem. We will continue to invest in strategic business opportunities and innovation to sustain our competitive advantage and for long-term growth,” said Daniel Zhang, Chief Executive Officer of Alibaba Group in a statement.

Review of Alibaba’s first quarter performance

The company said, revenue from core commerce also increased 61 percent to 69,188 million Chinese yuan (10,456 million dollars). Revenue from cloud computing increased 93 percent to 4,698 million Chinese yuan (710 million dollars), while revenue from digital media and entertainment increased 46 percent to 5,975 million Chinese yuan (903 million dollars) and revenue from innovation initiatives and others increased 64 percent to 1,059 million Chinese yuan (160 million dollars).

Annual active consumers on the company’s China retail marketplaces reached 576 million, an increase of 24 million from the 12-month period ended March 31, 2018. Revenue from the company’s international commerce retail business reached 4,316 million Chinese yuan (652 million dollars), representing 64 percent growth.

The company said, mobile MAUs on its China retail marketplaces reached 634 million in June 2018, an increase of 17 million over March 2018. Income from operations, the company added, was 8,020 million Chinese yuan (1,212 million dollars), a decrease of 54 percent due to a one-time increase in share-based compensation expense related to Ant Financial’s awards to the company’s employees, which was the result of a significant increase in the valuation of Ant Financial in its most recent round of equity fundraising. Excluding Ant Financial-related share-based compensation expense, Alibaba said, income from operations would have increased by 9 percent.

Adjusted EBITA increased 13 percent to 26,502 million Chinese yuan (4,005 million dollars), while adjusted EBITA for core commerce was 32,797 million Chinese yuan (4,956 million dollars), an increase of 22 percent year-over-year, representing a margin of 47 percent.

Non-GAAP net income was 20,101 million Chinese yuan (3,038 million dollars) and diluted EPS was 3.30 Chinese yuan (0.50 dollars) and non-GAAP diluted EPS was 8.04 Chinese yuan (1.22 dollars).

“We delivered another great quarter with 61 percent revenue growth as well as strong profit growth, excluding one-time items. We are pleased with the strength and rapid growth of our business at such significant scale,” added Maggie Wu, Chief Financial Officer of Alibaba Group.

Picture:Alibaba media library