Alibaba has reported a 38 per cent revenue increase from the prior year reaching US$23.2 billion however, the company warned the impact of the Novel Coronavirus will likely hit its results next quarter. 

In an earnings call, Daniel Zhang, CEO of Alibaba Group said food delivery orders are down year-on-year due to restaurant closures, and there is a limited delivery capacity for its Hema supermarkets.

He also noted that its businesses that rely on physical goods will likely see revenue declines in the current quarter.

Zhang said, “In response to the coronavirus, we mobilised Alibaba ecosystem’s powerful forces of commerce and technology to fully support the fight against the outbreak, ensure supply of daily necessities for our communities and introduced practical relief measures for our merchants.”

Alibaba’s annual active consumers on its China retail marketplaces reached 711 million, an increase of 18 million from the 12-month period ended September 30, 2019.

Mobile MAUs on its China retail marketplaces reached 824 million in December 2019, an increase of 39 million over September 2019.

Income from operations was US$5.7 billion, an increase of 48 per cent year-over-year. 

Zhang said, “Our digital economy reached new heights with another record 11.11 Global Shopping Festival for our merchants and partners. Continued investment in user engagement, especially through social commerce content, contributed to our strong gains in annual active consumers. 

“As a result of its rapid growth, our cloud computing services for the first time generated revenue of over RMB10 billion in a single quarter.”

During the quarter, Alibaba said its cloud business reached two financial and technological milestones. 

For the first time, Alibaba Cloud generated over US$1.5 billion of revenue in a single quarter. Cloud computing revenue grew 62 per cent driven by increased revenue contributions from both our public cloud and hybrid cloud businesses.

Second, ahead of this year’s 11.11 Global Shopping Festival, Alibaba Cloud enabled the migration of the core systems of its ecommerce businesses onto its public cloud. 

According to the company, Alibaba Cloud provided a highly scalable, reliable and secure public cloud infrastructure that handled a single day GMV of US$38.4 billion.

Maggie Wu, Chief Financial Officer of Alibaba Group said, “We had a successful listing on the main board of the Hong Kong Stock Exchange in November and delivered strong results for the quarter, with top-line revenue growth of 38 per cent year-over-year and adjusted EBITDA growth of 37 per cent year-over-year. 

“Looking forward, we will remain dedicated to investing in digital infrastructure and services, supporting our customers and partners across the Alibaba Digital Economy, especially during the challenging time.”


Previous post

Clipchamp raises $13.2 million

Next post

Digital transformation is not delivering, say skeptical financial services investors

Join the digital transformation discussion and sign up for the Which-50 Irregular Insights newsletter.