Alibaba, the well-known Chinese e-commerce company, declared a 14% YoY revenue growth for the quarter ending on June 30, marking its most significant annual sales increase since September 2021. In premarket trading, the company’s U.S. traded shares surged by 4.5%. Here’s a comparison of Alibaba’s performance in the June quarter.
Revenue reached 234.16 billion yuan ($32.29 billion), showcasing a 14% YoY growth, surpassing the expected 224.92 billion yuan. Net income for ordinary shareholders stood at 34.33 billion yuan, a remarkable 51% YoY rise, exceeding the projected 28.66 billion yuan.
During the June quarter, Alibaba’s primary ventures, Taobao and Tmall Group, saw a 12% YoY revenue increase to 114.95 billion yuan. The Taobao app experienced noteworthy growth, with a 6.5% rise in daily active users in June compared to the previous year.
Alibaba’s global market expansion yielded positive results, with international retail revenue surging by 60% YoY to 17.14 billion yuan in the same quarter. This demand also boosted Alibaba’s Cainiao logistics business, driving a 34% rise to 23.16 billion yuan in revenue.
Alibaba’s cloud division reported a 4% revenue increase, totaling 25.12 billion yuan for the quarter. These current results contrast the previous year, reflecting China’s struggles with the Covid-19 pandemic and a two-month lockdown in Shanghai.
Since China eased pandemic measures, the economy has shown mixed performance. Despite investor expectations of a strong rebound, domestic consumer demand remained sluggish, resulting in a slower-than-anticipated second-quarter GDP for the year.
Alibaba, headquartered in Hangzhou, has been engaged in significant transformations over recent months. In March, the company announced its intention to divide into six distinct business groups, some of which would be empowered to secure external funding and pursue public offerings. Notably, Alibaba has already unveiled plans to list its cloud computing division on the public market.
The current Chief Executive Officer and Chairman, Daniel Zhang, is set to step down from his role in September, while retaining his position as the leader of Alibaba’s cloud computing enterprise, as the company moves towards a public listing. Seasoned Alibaba executive Eddie Wu is slated to take over as CEO, while Joe Tsai will assume the role of chairman, as indicated by the company in June.
“Alibaba delivered a robust quarter as we continue to implement our Reorganization, which is progressively infusing new vigor into all facets of our operations,” Zhang remarked in a statement released on Thursday.
Alibaba’s robust performance in the June quarter showcases a 14% YoY revenue growth, its most significant rise since September 2021. Key highlights include the success of Taobao and Tmall Group, international retail revenue surging by 60%, and a 4% revenue increase in the cloud division. Despite challenges, Alibaba’s transformative efforts and strong financials paint a promising future.