Alibaba Group Reports Quarterly Financial Results

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Alibaba Group Reports Quarterly Financial Results



Alibaba Group today announcedfinancial results for its fiscalthird quarter endedDec. 31, 2016. The highlights can be found below in an infographic and in a summary from the company. To read Alibaba Group’s press release covering the results in greater detail, click here.

Alibaba-Earnings-1-24_FINALPNG

Highlights

  • Blowout quarter. Strong beat from top to bottom demonstrating strength of Chinese consumer and Alibaba’s ability to create value across the ecosystem.
  • EPS beat consensus by 17%.
  • Robust total revenue growth of 54% YoY with strong growth coming from each of our reporting segments.
  • Raised FY2017 revenue guidance from 48% to 53%. For comparison, FY2016’s revenue growth was 33%. This is an acceleration of growth on a bigger base.

Summary financials

  • Strong beat on non-GAAP diluted EPS of US$1.30, up 38% YoY.
  • Total revenue growth of 54% YoY to US$7.7 billion.
  • Strong Core Commerce revenue growth of 45% YoY to US$6.7 billion.
  • Triple-digit YoY revenue growth in Cloud Computing and Digital Media & Entertainment.
  • Highly profitable Core Commerce segment, generating US$4.3 billion in adjusted EBITA and 64% adjusted EBITA margin.
  • Strong free cash flow of US$4.9 billion enabling investment in growth globally across cloud, digital media and entertainment and innovation initiatives as well as core commerce.

Continued Strong Performance of Core Commerce

Mobile leadership

  • Mobile revenue increased 73% YoY, accounting for 80% of China commerce retail revenue, compared to 65% of China commerce retail revenue in the same quarter of 2015.

User growthand engagement

  • Mobile MAUs on China retail marketplaces reached 493 million, up 25% YoY, driven by efforts to provide highly relevant and engaging content to increase user engagement on mobile.
  • Annual active buyers on China retail marketplaces reached 443 million, up 9% YoY.

User monetization

  • China commerce retail revenue per annual active buyer increased to US$35, up from US$32 in the prior quarter.
  • Annual mobile revenue per mobile MAU increased to US$24, up from US$23 in the prior quarter.

Rapid Growth of Cloud Computing

  • Cloud computing revenue grew 115% YoY to US$254 million.
  • Paying customers grew to 765,000 from 651,000 in the previous quarter.

Growing Traction of Digital Media and Entertainment

  • Revenue was up 273% YoY to US$585 million primarily due to consolidation of Youku Tudou and increase in revenue from mobile services provided by UCWeb, such as search, news feeds and game publishing.
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