Alibaba Group today announced financial results for the quarter ended June 30, 2019. Highlights of the group’s fiscal first-quarter earnings are in the infographic and summary below. To read Alibaba Group’s press release covering the results in greater detail, click here.

 

Highlights

• Strong quarter across the board; beat estimates on revenue and earnings
• Industry-leading revenue growth of 42% YoY
• Core business continued growth driven by new users and robust consumption activity
• Extending leadership position in less developed areas

JUNE QUARTER FINANCIAL REVIEW

• Total revenue of RMB114.9 billion (US$16.7 billion), up 42% YoY
• Net income attributable to ordinary shareholders was RMB21.3 billion (US$3.1 billion), up significantly year-over-year due to significantly higher share-based compensation expense in the year-ago period
  • This expense was higher because during that year-ago quarter Ant Financial completed an equity financing at a higher valuation, which required us to recognize the increase in value of Ant Financial awards to Alibaba Group employees
  • Excluding this impact, income from operations would have been up 27% YoY
• Adjusted EBITDA increased 34% YoY to RMB39.2 billion (US$5.7 billion)
• Marketplace-based core commerce adjusted EBITA up 27% YoY to RMB46.8 billion (US$6.8 billion)
• Non-GAAP free cash flow was RMB26.4 million (US$3.8 billion)

BUILDING UPON STRONG CORE COMMERCE BUSINESS

Expanding Core Commerce Leadership

• Core Commerce revenue of RMB99.5 billion (US$14.5 billion), up 44% YoY
• Tmall continued to gain wallet share and expand B2C market leadership, with paid physical goods GMV up 34% YoY
• New Retail continued to expand and achieved robust same-store sales growth
• As of June 30, 2019, there were 150 self-operated Freshippo stores in 17 cities across China

Robust User Growth and Engagement

• Annual active consumers on our China marketplaces reached 674 million, up 20 million over the 12-month period ended March 31, 2019; over 70% of new users came from less developed areas
• Mobile MAUs reached 755 million, an increase of 34 million over March 2019
• The strong user growth reflects successful user acquisition programs which deepened our penetration into less developed areas

Local Services Enjoys Robust GMV Growth and Improving Operating Efficiencies

• Revenue from local consumer services was RMB6.2 billion (US$900 million), an increase of 137% YoY
• We achieved strong growth in daily on-demand GMV, driven by robust order growth and increasing average order size
• Deepened integration with the Alibaba Digital Economy; consumers can discover offline promotional deals from nearest merchants while using the Taobao app

Cainiao Logistics Delivers Strong Cross-Border Growth and Last-Mile Solutions

• Cainiao logistics services revenue was RMB5.0 billion (US$729 million), up 50% YoY, driven by the increase in the volume of orders fulfilled
• Cainiao’s import fulfillment solutions served over 97% of Tmall Global packages in June 2019

CLOUD BUSINESS CONTINUES TO GROW AND INNOVATE

• Cloud revenue grew 66% YoY to RMB7.8 billion (US$1.1 billion) driven by an increase in average revenue per customer
• During the June 2019 quarter, Alibaba Cloud launched over 300 new products and features

GROWING USERS IN DIGITAL MEDIA AND ENTERTAINMENT

• Digital Media and Entertainment revenue grew 6% YoY to RMB6.3 billion (US$920 million), primarily due to our consolidation of Alibaba Pictures
• Youku’s average daily subscribers grew 40% YoY due to synergies between the commerce and entertainment businesses, which continued to deliver superior user experiences