Alibaba Group today announcedfinancial results for the quarter ended Dec. 31, 2018. Highlights of the group’s third-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 revenue growth of 41% YoY; continuing to outperform global technology peers
• Significant user growth adding 33 million mobile MAUs to reach 699 million
• Strong profit and free cash flow growth enables continued investment in strategic businesses and technology across ecosystem

September Quarter Financial Review

• Total revenue was up 41% YoY to RMB117.3 billion (US$17.1 billion)
• Marketplace-based core commerce adjusted EBITA grew 31% YoY to RMB54.3 billion (US$7.9 billion)
• Diluted EPS of RMB12.64 (US$1.84)
• Non-GAAP free cash flow was RMB51.4 billion (US$7.5 billion)

Robust User Growth and Consumer Engagement

• Mobile MAUs reached 699 million, an increase of 33 million over September 2018
• Annual active consumers reached 636 million, up 35 million over the prior quarter, driven by successful user acquisition programs, such as referrals through the Alipay App
• Over 70% of annual active consumer growth was from third-and-lower tier cities

Business Highlights

Extending Core Marketplace Leadership (Taobao & Tmall)

• Core commerce revenue grew 40% YoY, with 28% YoY growth for customer management revenue
• Tmall extended B2C market leadership and consumer wallet share, with Tmall physical goods GMV, excluding unpaid orders, up 29% YoY, outpacing the industry based on available data from China’s National Bureau of Statistics and reflecting strong secular consumer trends
• Tmall extended its leadership position as the engagement and distribution platform of choice in China for global brands, with Valentino, Ermenegildo Zegna and others opening Tmall flagship stores and joining the Tmall Luxury Pavilion

New Retail Redefining the Future of Brick-and-Mortar

• Proprietary grocery retail chain Freshippo (also known as Hema) expanded to 109 self-operated stores; continued to achieve robust same-store sales growth
• Approximately 470 Sun Art stores now enabled with New Retail know-how and technology

Local Consumer Services Driving Value for Merchants and Consumers

• Combined Ele.me, on-demand food delivery platform, and Koubei, online restaurant and local service guide
• Daily on-demand orders and GMV continued to show strong growth during the quarter
• Cloud revenue grew 84% YoY to RMB6.6 billion (US$962 million), driven by increased spending from enterprise customers

Continued Momentum in Digital Media and Entertainment

• Digital Media and Entertainment revenue grew 20% YoY to RMB6.5 billion (US$944 million)
• Agreed to increase stake in Alibaba Pictures to approximately 51%, enabling closer alignment of business and content strategy[1]

[1] Transaction subject to approval from Alibaba Pictures’ independent shareholders