Alibaba’s revenues increased 61 per cent to US$8.3 billion last quarter, making it the company’s fastest growing quarter since the its 2014 IPO.
The Chinese ecommerce giant reported net income of US$2.6 billion, as both revenue and earnings surpassed estimates for the quarter ended September 30.
In its results released overnight, Alibaba raised its full year outlook to reflect its majority stake in Cainiao Network. The company upgraded its full year revenue guidance from between 45 to 49 per cent to between 49 to 53 per cent.
Core commerce revenue was up 63 per cent to almost $7 billion, as its China retail marketplaces served 488 million annual active users.
Mobile MAUs on Alibaba’s China retail marketplaces reached 549 million in September 2017, an increase of 20 million over June 2017.
Those shoppers are also spending more. China commerce retail revenue per annual active consumer increased to US$44, up from US$40 in the prior quarter, and mobile revenue per mobile MAU grew to US$32 for the quarter.
Revenue from Alibaba’s international commerce retail business reached US$433 million in the quarter, representing a 115 per cent year-on-year growth, driven by strong growth in Alibaba’s Southeast Asian platform Lazada and China outbound platform AliExpress.
Joe Tsai, Alibaba’s executive vice chairman, put the growth down to early investments in mobile and algorithm-driven personalisation technology, as well as logistics and cloud computing which provide the supporting infastructure for the company’s cloud commerce business.
“Sometimes long-term investing cuts into short-term profitability. This is where we feel adamant that responsible managers of businesses must choose long-term benefits over short-term results,” Tsai said.
Alibaba’s cloud computing revenue increased 99 per cent increase to US$447 million, “driven by both robust growth in paying customers and improving revenue mix to higher valued-added services.”
The company continues pushing deeper into bricks and mortar retail, opening more its Hema supermarkets and spending on department store chain InTime.
Physical stores will also play a key role in next week’s Singles’ Day, more than 1,000 brands will be partnering with Alibaba to transform 100,000 physical retail locations into “smart stores.”