Alibaba Group Reports December 2019 Quarter Earnings

February 14, 2020

Alizila Staff

Alibaba Group today announced financial results for the quarter ended December 31, 2019. Highlights of the group’s fiscal 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.

Alibaba December 2019 Quarter EarningsHighlights

  • Revenue growth of 38% YoY; adjusted EBITDA growth of 37% YoY
  • Annual active consumers reached 711 million, driven by continued new user acquisition
  • Extended cloud computing leadership in China; surpassed RMB10 billion in quarterly cloud revenue for the first time

December Quarter Financial Review

  • Revenue was RMB161.5 billion (US$23.2 billion), up 38% YoY
  • Net income attributable to ordinary shareholders was RMB52.3 billion (US$7.5 billion), up 58% YoY
  • Adjusted EBITDA increased 37% YoY to RMB55.9 billion (US$8.0 billion)
  • Non-GAAP free cash flow of RMB78.3 billion (US$11.2 billion), up 52% YoY

Strong Momentum in Core Commerce

Expanding Leadership Across Consumption Value Chain

  • Core Commerce revenue of RMB141.5 billion (US$20.3 billion), up 38% YoY, with continued growth from China retail marketplaces
  • Marketplace-based core commerce adjusted EBITA grew 22% YoY to RMB66.4 billion (US$9.5 billion)
  • 2019 11.11 Global Shopping Festival delivered another record-breaking event, generating RMB268.4 billion (US$38.4 billion) in GMV settled through Alipay on our retail marketplaces and consumer services platforms – up 26% YoY – with over 200,000 participating brands

Solid User Growth and Engagement

  • Annual active consumers on China retail marketplaces reached 711 million, adding another 18 million consumers during the quarter, over 60% of which were from less developed areas
  • Mobile MAUs reached 824 million in December 2019, an increase of 39 million over September 2019

Local Consumer Services Growth Driven by Synergies Across Alibaba Digital Economy

  • Local consumer services revenue up 47% YoY driven by robust order growth and continued penetration into less developed areas
  • GMV from less developed areas grew approximately 40% YoY
  • 48% of new Ele.me customers generated from the Alipay app

Growing Merchant Adoption of Cainiao Network

  • Cainiao revenue up 67% YoY driven by increased merchant adoption of “Fulfilled by Cainiao” cross-border services
  • Cainiao Network and its logistics partners handled and delivered record 1.29 billion packages generated from the 11.11 Global Shopping Festival

Strong Growth in Global Markets

  • Lazada quarterly orders were up 97% YoY and quarterly active merchants doubled YoY
  • AliExpress continues to deliver robust user and GMV growth by leveraging Alibaba’s digital commerce technology and global logistics infrastructure; 11.11 Global Shopping Festival generated AliExpress GMV growth of 46% YoY

Continued Cloud Leadership

  • Cloud computing revenue grew 62% YoY to RMB10.7 billion (US$1.5 billion), driven by increased revenue contributions from both our public cloud and hybrid cloud businesses
  • For the first time, generated over RMB10 billion in cloud computing revenue in a single quarter

Digital Media and Entertainment

  • Youku’s average daily subscribers increased 59% YoY driven by more effective targeting of new subscribers during key promotional campaigns, an increase of auto-renewal subscribers and greater contribution from the 88VIP membership program on our China retail marketplaces
  • Digital Media and Entertainment revenue grew 14% YoY to RMB7.4 billion (US$1.1 billion)

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