Revenues in the fiscal third quarter to December rose 54 percent to CNY 53.25 billion (USD 7.7 billion). The stout performance was driven, in part, by Singles Day - Alibaba's annual shopping-palooza, held November 11, in which the company processed as many as 175,000 orders per second.
While e-commerce continues to generate the vast majority of Alibaba's revenue, the company is intent on exploring new revenue streams, something evidenced by its recent projects related to data, cloud computing, artificial intelligence and logistics.
Non-GAAP net income of $3.239B or $1.30 per share was up 38% Y/Y, and topped estimates by $0.17.
Shares of Alibaba were up 5.4% in pre-market trading. Stateside regulators are also reportedly investigating Alibaba's accounting practices. The company is beginning to build out a new headquarters staff in New York City and reportedly plans a big event in the Midwest this spring to explain to USA companies how it will facilitate sales by US businesses to Chinese web shoppers. We are driving the age of 'new retail, ' which leverages big data and innovation to provide a seamless online and offline experience for almost half a billion mobile monthly active users. "This retail transformation will make it even easier and more efficient for brands and retailers to engage with these consumers anywhere, anytime", Zhang said.
For a company that Wall Street expects to report revenues of $22.2 billion for the year ending in March 2017, growth of 53% is impressive no matter how apathetic one is to the shares and to Alibaba's growth story. Innovation initiatives and other segment and the core commerce segments each enjoyed revenue increases of 61% and 45%, respectively.
For the quarter, Alibaba recorded a 115 percent year-on-year increase in cloud revenue to US$254 million (1.76 billion yuan), fuelled primarily by a bigger base of paying customers that doubled year-on-year to 765,000, and from 651,000 the previous quarter.
Mobile monthly active users on Alibaba's China retail marketplaces jumped 25% year over year to 493 million on the back of efforts to improve the mobile experience. Consumers who made purchases during the 12-month period ended December 31 increased 4 million to 443 million.
"The third quarter is typically a strong quarter for the company, as it encompasses the Singles" Day in it. Digital Media & Entertainment sales rose 273% to $585 million after Alibaba consolidated Youku Tudou.
Total revenue of 119,694 billion yuan ($17.240 billion), up 55.5% from 76,959 billion yuan a year earlier.