• Blowout quarter. Strong beat top to bottom
• Robust revenue growth of 56% YoY
• Cloud revenue up 96% YoY; paying customers exceeded 1 million milestone
• Tmall recorded 49% year-over-year growth for physical goods GMV in the quarter, furthering our market leadership in B2C
• Company will increase investment in 2nd half of the year to grow B2C market share

Summary Financials

• Total revenue growth of 56% YoY to US$7.4 billion
• Strong Core Commerce revenue growth of 58% YoY to US$6.3 billion
• Highly profitable Core Commerce segment, grew adjusted EBITA by 62% to nearly US$4 billion; 63% adjusted EBITA margin, expanded 2 percentage points YoY
• 96% revenue growth YoY in Cloud Computing, coming in at US$359 million
• Free cash flow was US$3.3 billion powering continued investment in future growth across cloud, digital media and entertainment and innovation initiatives
• Diluted EPS was US$0.83, up 92% YoY; with non-GAAP diluted EPSi of US$1.17, up 65% YoY

Strong User Growth Engagement and Monetization in Core Commerce

• Mobile Monthly Active Users on China retail marketplaces reached 529 million in June 2017, an increase of 22 million over March 2017
• Annual active consumers (formerly annual active buyers) on China retail marketplaces reached 466 million, up 12 million from the prior quarter
• China commerce retail revenue per annual active consumer increased to US$40, up from US$36 in the prior quarter
• Mobile revenue per mobile MAU increased to US$29, up from US$26 in the prior quarter Cloud Business: Hitting Milestones, Continuing Growth Trajectory
• Paying customers passed the 1 million customer milestone to reach 1,011,000, up from 874,000 in the previous quarter
• Cloud revenues grew 96% YoY to US$359 million driven primarily by an increase in paying customers and improving revenue mix of higher value-added services, which is reflected in ARPU expansion
• Expanding the total size of this market with customer friendly solutions remains our top priority

Growing Traction of Digital Media and Entertainment

• Revenue from digital media and entertainment increased 30% YoY to US$602 million
• A mixture of licensed and original content yielded hit drama and variety shows, with daily average subscribers of Youku video increasing over 100% year-on-year(Non-GAAP figures exclude share-based compensation expense, non-cash revaluation gain and certain other items.)