Alibaba Group today announced financial results for the quarter ended September 30, 2019. Highlights of the group’s fiscal second-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
- Robust total revenue growth of 40% YoY; outperforming industry peers
- Mobile MAUs expanded to 785 million users; AACs reached 693 million consumers
- Marketplace-based core commerce adjusted EBITA grew 28% YoY
September Quarter Financial Review
- Total revenue of RMB119.0 billion (US$16.7 billion), up 40% YoY
- Income from operations grew 51% YoY to RMB20.4 billion (US$2.8 billion)
- Adjusted EBITDA increased 39% YoY to RMB37.1 billion (US$5.2 billion)
- Marketplace-based core commerce adjusted EBITA up 28% YoY to RMB45.6 billion (US$6.4 billion)
- Net income attributable to ordinary shareholders was RMB72.5 billion (US$10.1 billion), up 262% YoY due to a one-time gain of RMB69.2 billion (US$9.7 billion) recognized upon the receipt of the 33% equity interest in Ant Financial
- Non-GAAP free cash flow was RMB30.5 billion (US$4.3 billion), up 90% YoY
Building Upon Strong Core Commerce Business
Expanding Core Commerce Leadership
- Core Commerce revenue of RMB101.2 billion (US$14.2 billion), up 40% YoY
- Tmall continued to expand its leadership position as the consumer engagement and distribution platform of choice for brands in China
- Owned and operated grocery retail chain Freshippo continued to achieve robust same-store sales growth and expanded to 170 self-operated stores in China, primarily located in tier 1 and tier 2 cities
- Enabled digitalization of over 800 offline retail stores across 278 cities as of August 2019
- Over 200,000 brands, including more than 22,000 brands on Tmall Global, will participate in the 2019 11.11 Global Shopping Festival
Robust User Growth and Engagement
- Annual active consumers on our China marketplaces reached 693 million for the 12 months ended September 30, 2019, compared to 674 million over the 12-month period ended June 30, 2019
- Mobile MAUs reached 785 million, an increase of 30 million over June 2019
Local Services Enjoy Robust Growth and Drive Values for Local Merchants
- Daily GMV continued its strong momentum, driven by robust order growth and increasing user order frequency
- During the quarter, GMV from less developed areas grew 45% YoY
- Deepened integration with the Alibaba Digital Economy; 39% of new food delivery customers came from the Alipay mobile app
Cainiao Network Delivers Innovative and Comprehensive Logistics Solutions
- Daily package volume handled by Cainiao Post increased 100% YoY for the month ended September 30, 2019
- Crowdsourced parcel pick-up and delivery app Cainiao Guoguo had 100 million annual users, and parcel volume grew over 100% YoY
Strong Growth in Global Markets
- For the fourth consecutive quarter, Lazada achieved over 100% year-over-year orders growth, reflecting strong consumption demand
- For the 12 months ended September 30, 2019, AliExpress served over 80 million annual active consumers from over 200 countries and regions
Cloud Business Continues to Grow and Innovate
- Cloud computing revenue grew 64% YoY to RMB9.3 billion (US$1.3 billion), primarily driven by an increase in average revenue per customer
- Approximately 59% of companies listed in China are customers of Alibaba Cloud as of August 2019
Growing Users in Digital Media and Entertainment
- Digital Media and Entertainment revenue grew 23% YoY to RMB7.3 billion (US$1.0 billion), primarily due to our consolidation of Alibaba Pictures in March 2019
- Youku’s average daily subscribers grew 47% YoY due to synergies between the commerce and entertainment businesses, which continued to deliver superior user experiences
