In its latest quarterly results Alibaba’s revenue skyrocketed 42 per cent to US$16.7 billion, beating investor expectations. 

Daniel Zhang, CEO at Alibaba Group said, “Alibaba had a great quarter, expanding our user base to 674 million annual active consumers, demonstrating our superior user experience. 

“We will continue to expand our customer base, increase operating efficiency and deliver robust growth. With strong cash flow from our core commerce business, we will continue to invest in technology and bring digital transformation to millions of businesses globally.” 

For the quarter ended June 30, adjusted EBITDA increased 34 per cent year-over-year to US$5.7 billion. Diluted earnings per ADS was US$1.17 and non-GAAP diluted earnings per ADS was US$1.83, an increase of 56 per cent year-over-year.

Its income from operations increased by 204 per cent to US$3.5 billion, Alibaba explained the increase would have been 27 per cent excluding share-based compensation expense resulting from Ant Financial’s awards to their employees. 

This expense was significantly higher in the quarter ended June 30, 2018 because during the quarter Ant Financial completed an equity financing at a higher valuation, which required them to recognise the increase in value of these awards. 

Annual active consumers on its China retail marketplaces reached 674 million, an increase of 20 million from the 12-month period ending March 31, 2019. 

Its mobile monthly active users on its China retail marketplaces reached 755 million in June 2019, an increase of 34 million from March 2019. 

Maggie Wu, CFO at Alibaba Group said, “We had a strong quarter to start our fiscal year, with revenue growing 42 per cent and adjusted EBITDA growing 34 per cent year-over-year.

“We are pleased to see sustained user engagement and consumer spending across our platforms. We continue to invest for long term growth while at the same time gaining cost efficiencies in our investment areas.” 

For its cloud computing business, revenue grew 66 per cent year-over-year to US$1.1 billion driven by an increase in average revenue per customer. 

During this quarter, Alibaba Cloud launched over 300 new products and features, including those related to core cloud offerings, security, data intelligence and AI applications. 

The tech giant said, “We are focusing on delivering high value-added services while rationalising our offerings of commodity products and services. 

“We will continue to execute a strategy of expanding our market leadership, increasing investments in talent and technology infrastructure and developing new value-added products and features.”

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