Alibaba’s revenue increased 40 per cent from the prior year to US$16.6 billion in its first quarterly earnings report since founder Jack Ma stepped down as executive chairman. 

Annual active consumers on its China retail marketplaces hit 693 million, a 19 million increase from the prior quarter. It’s mobile monthly active users reached 785 million, an increase of 30 million from the prior quarter. 

Daniel Zhang, CEO and executive chairman of Alibaba said, “Alibaba Group celebrated its 20th anniversary in September, marking an important milestone on our 102 year journey to make it easy to do business anywhere. 

“Our digital economy continues to thrive and prosper. We aim to serve over one billion annual active consumers and help our merchants achieve over RMB10 trillion in annual gross merchandise volume by end of fiscal 2024. 

“We will continue to invest in the user experience and innovative technology to create new value for consumers, as well as the millions of enterprises undergoing digital transformation in the new digital economy.”

During the quarter the company also kicked off preparations for its 11.11 shopping festival.

Maggie Wu, CFO at Alibaba said the company delivered a strong quarter with revenue growth of 40 per cent and adjusted EBITDA up 39 per cent year-over-year. 

“With sustained consumer engagement and spending across the Alibaba economy, we have continued our revenue and profit growth, as well as strong free cash flow that enable us to invest in long-term growth.”

The company’s cloud computing business grew revenue 64 per cent from the prior year to US$1.3 billion during the quarter ended September 30. 

Alibaba said this was primarily driven by an increase in average revenue per customer. Alibaba Cloud serves customers from a broad range of traditional industries beyond Internet and media industries. 

Its cloud division is dominating the space with 59 per cent of companies listed in China are customers of Alibaba Cloud. 

The company said, the adoption of cloud services in China’s public sector and traditional industries is driven not only by demand for cost-effective IT solutions, but also by transformation of business models and processes through digitisation of customer insight, inventory, work flow, resource planning and other aspects. 

“As an internet technology company that has pioneered digital transformation, we believe that we are uniquely positioned to maintain our leadership in providing cloud services that are not only cost-effective but also enable businesses to operate more intelligently,” the company said. 

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