Alibaba Reports September 2020 Quarter Earnings
Alizila Staff | November 5, 2020

Alibaba Group today announced financial results for the quarter ended Sept. 30, 2020. Highlights of the group’s earnings are in the infographics and summary below. To read Alibaba Group’s press release covering the results in greater detail, click here. To read Alibaba Group Chairman & CEO Daniel Zhang’s comments delivered on analyst call after announcing quarterly earnings, click here.

Highlights

• Robust revenue growth of 30% YoY
• Strong profit growth with adjusted EBITDA up 28% YoY
• China retail marketplaces reached 881 million mobile MAUs and 757 million annual active consumers
• Cloud computing revenue grew 60% YoY

September Quarter Financial Review

• Revenue was RMB155.1 billion (US$22.8 billion), an increase of 30% YoY
• Adjusted EBITDA increased 28% YoY to RMB47.5 billion (US$7.0 billion)
• Net income attributable to ordinary shareholders was RMB28.8 billion (US$4.2 billion), down 60% over the same period last year, when we booked a significant one-time gain upon the receipt of the 33% equity interest in Ant Group
• Excluding the one-time gain, share-based compensation expense, revaluation and disposal gains/losses of investments, impairment of investments and goodwill and certain other items, non-GAAP net income was up 44% YoY
• Non-GAAP free cash flow grew 33% YoY to RMB40.5 billion (US$6.0 billion)

Resilience in Core Commerce

Continued Growth in Post-Covid-19 Environment

• Core Commerce revenue of RMB130.9 billion (US$19.3 billion), up 29% YoY, with comprehensive product supply and engaging user experience driving consumer growth and higher purchase frequency
• Tmall online physical goods GMV up 21% YoY, Taobao online physical goods GMV grew at high-teens percent YoY and Tmall Global GMV up 37% YoY, all excluding unpaid orders

Strong User Growth and Deeper Consumer Engagement

• Annual active consumers on our China retail marketplaces reached 757 million for the 12 months ended September 30, 2020, a quarterly net increase of 15 million over the 12-month period ended June 30, 2020
• Mobile MAUs on our China retail marketplaces reached 881 million in September 2020, an increase of 7 million over June 2020
• Taobao Deals achieved strong growth since it launched a new version in March 2020, recording over 70 million MAUs in September 2020
• Taobao Live – our live streaming portal – has strengthened engagement between merchants and consumers, totaling more than RMB350 billion in Taobao Live GMV for the 12 months ended September 30, 2020

Solid Growth in New Retail and Local Consumer Services

• Freshippo (known as “Hema” in Chinese) achieved healthy same-store sales growth as we continue to optimize its store operations and improve customer experience
• Increase in market opportunity captured by Ele.me following continued demand for digitalization in the restaurant and service industry in China remains strong after the impact of the Covid-19 pandemic
• Ele.me’s average daily number of paying members grew 45% YoY, driven by onboarding high-quality merchants and adding engaging content
• In July 2020, Ele.me rolled out a major strategic and platform upgrade and expanded its on-demand delivery services to cover a wide range of categories, such as fresh produce, grocery and flowers, and upgraded the benefits of its membership program, including launching a rewards system

Cainiao Network Driving Domestic and Cross-Border Efficiency

• In China, Cainiao expanded the coverage of Cainiao Post (neighborhood and campus stations and residential self-pick-up stations), and also expanded the services of Cainiao Guoguo (crowdsourced parcel pick-up and delivery service) and improved customer experiences on the app
• Internationally, Cainiao broadened its export business by collaborating with more global partners and had established local logistics networks in 15 countries and regions

Lazada Maintained Robust Growth Momentum

• Lazada order volume up 100% YoY, even as many markets continue to battle new waves of Covid-19

Significant Growth in Cloud

• Revenue from the cloud computing business was RMB14.9 billion (US$2.2 billion), up 60% YoY primarily due to growth in revenues from customers in the internet, finance and retail industries
• Approximately 60% of A-share listed companies are Alibaba Cloud customers as of Sept. 30, 2020 and their average spending grew 45% YoY in September 2020

Digital Media and Entertainment

• Youku’s average daily subscriber base increased 45% YoY, driven by Youku’s offering of appealing original content, contributions from the 88VIP membership program
• Alibaba Pictures invested in and distributed two of the top-three grossing films during China’s National Day Golden Week and participated in the production and distribution of films that collectively accounted for over 50% of China box office sales in the first half of this fiscal year (according to Beacon box office data)