Alibaba Reports September Quarter 2017 Financial Results

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Alibaba Group today announced financial results for the quarter ended Sept. 30 2017. Highlights are in the infographic and summary below. To read Alibaba Group’s press release covering the results in greater detail, click here.

Alibaba Earnings

Highlights

  • Outstanding quarter. Strong beat, top to bottom, reflecting the strength of our business even beyond our core
  • Strongest growth rate since IPO with total revenue growth of 61% YoY

Summary financials

  • Strong beat on non-GAAP diluted *EPS of US$1.29, up 63% YoY; while diluted EPS was US$1.02, up 128% YoY
  • Total revenue growth of 61% YoY to US$8.3 billion led by robust growth in China commerce retail business, international commerce retail business and Alibaba Cloud
  • Strong Core Commerce revenue growth of 63% YoY to US$7.0 billion
  • Highly profitable Core Commerce segment; grew adjusted EBITA by 50% YoY to nearly US$4.0 billion with adjusted EBITA margin for core commerce of 57%
  • 99% YoY growth in Cloud Computing revenue for the quarter
  • Free cash flow was US$3.4 billion powering continued investment in core commerce, including logistics, cloud computing, digital entertainment and other innovation initiatives

Core Commerce: User growth, engagement and monetization:

  • Mobile monthly active users on China retail marketplaces reached 549 million in September, an increase of 20 million over June 2017
  • Annual active consumers on China retail marketplaces reached 488 million, up 22 million users from the 12-month period ended June 30, 2017
  • China commerce retail revenue per annual active consumer increased to US$44, up from US$40 in the prior quarter, and mobile revenue per mobile MAU grew to US$32 for the quarter

Robust Growth of Cloud Business

  • Cloud revenue grew 99% YoY to US$447 million driven by robust growth in paying customers and improving revenue mix of higher valued-added services
  • Continued investment to further market expansion and build valuable services

Long-term Advantages in Digital Media and Entertainment

  • Revenue from digital media and entertainment increased 33% YoY to US$721 million
  • Daily average subscribers of Youku video increasing over 180% year-on-year due to successfully executed content strategy of acquiring and developing a mixture of licensed and original content

Other Innovation Initiatives

  • Revenue from Innovation Initiatives and Others segment increased 27% year-on-year.

Cainiao Consolidation and Adjustment to Revenue Guidance

  • To support new retail strategy, made additional investment US$803 million to increase ownership of Cainiao to a majority stake of 51%.
  • To account for Cainiao consolidation, revising up full year revenue growth guidance range to 49~53% year-over-year.
  • Excluding the impacts from the Cainiao consolidation, we are on track to deliver our prior guidance range of 45~49%

*Non-GAAP diluted EPS excludes disposal gains, share-based compensation and certain other items.

Source