Alibaba has reported its strongest quarterly revenue growth since the company’s IPO.
For the quarter ended March 31 revenue increased 60 per cent to $US5.6 billion. Alibaba’s revenue for the full year was $US23 billion, an increase of 56 per cent year-over-year.
“Alibaba Group finished the fiscal year on a very strong note. In March we surpassed RMB3 trillion in annual GMV and our revenue for the year was over RMB100 billion. We achieved strong growth in mobile users, active buyers and transactions,” said Daniel Zhang, CEO of Alibaba Group. “Our focus on long-term strategic priorities – globalisation, rural expansion, building a world-class cloud computing business and creating a comprehensive media and entertainment platform — has laid a strong foundation for future growth.”
Revenue from its core commerce operations increased 45 per cent year-over-year to $US19.45 billion.
The company’s Chinese ecommerce marketplaces processed $US547 billion during the fiscal year, up 22 per cent from a year earlier.
Annual active buyers the China retail marketplaces reached 454 million, an increase of 11 million from the 12-month period ended in December 2016.
Looking internationally, Alibaba now has 83 million annual active buyers outside China, who have shopped on its Lazada marketplace in South East Asia or its international platform AliExpress.
Revenue from cloud computing increased 103 per cent, year-over-year to $US314 million and paying customers grew to 874,000 from 513,000 as of March 31, 2016. For the full fiscal year 2017, operating loss from cloud computing was $US244 million and adjusted EBITA loss was $US69 million.
Full year revenue from digital media and entertainment increased 271 per cent year-over-year to $US2.14 billion.
Strategically, Alibaba sees “tremendous opportunities to drive synergies between our digital media and entertainment and core commerce offerings.” For example data from Alibaba’s entertainment products is used to offer more relevant product recommendations on its commerce platforms.
“The successful data integration fitting our retail commerce platforms and our digital media and entertainment metrics now allows brands to track, engage and then manage the whole lifecycle of their customers in our ecosystems,” said Zhang.