Alibaba: Despite these unusual times, we remain focused on the long term

Alibaba: Despite these unusual times, we remain focused on the long term

Alibaba Group Holding Limited has  announced its financial results for the quarter ended June 30, 2020 revealing strong recovery to Pre-Covid-19 levels across the Board.

“Alibaba delivered excellent results this past quarter. We were well positioned to capture growth from the ongoing digital transformation, which has been accelerated by the pandemic, in both consumption and enterprise operations,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group.

“We mobilized our entire digital infrastructure to support the economic recovery of businesses across a wide range of sectors, while broadening and diversifying our consumer base by addressing their changing preferences in a post-COVID-19 environment. Despite these unusual times, we remain focused on the long term, on fulfilling our mission, and on creating true value for our consumers and business customers.”

“We delivered a very strong start to our new fiscal year, with revenue growing 34% year-over-year and adjusted EBITDA growing 30% year-over-year,” said Maggie Wu, Chief Financial Officer of Alibaba Group. “Our domestic core commerce business has fully recovered to pre-COVID-19 levels across the board, while cloud computing revenue grew 59% year-over-year. Our strong profit growth and cash flow enable us to continue to strengthen our core business and invest for long term growth.”

Highlights

  • Revenue growth of 34% YoY
  • Strong profit growth with adjusted EBITDA up 30% YoY
  • Non-GAAP free cash flow increased by 39% YoY
  • Domestic core commerce business has fully recovered to pre-COVID-19 levels across the board

June Quarter Financial Review

  • Revenue was RMB153.8 billion (US$21.8 billion), an increase of 34% YoY
  • Net income attributable to ordinary shareholders was RMB47.6 billion (US$6.7 billion), up 124% YoY, mainly due to a net gain arising from the increase in the market prices of our equity investments in publicly-traded companies
  • Adjusted EBITDA increased 30% YoY to RMB51.0 billion (US$7.2 billion)
  • Non-GAAP free cash flow increased by 39% to RMB36.6 billion (US$5.2 billion), mainly due to robust profit growth

Resilience in Core Commerce

Strong Recovery to Pre-Covid-19 Levels across the Board

  • Core Commerce revenue of RMB133.3 billion (US$18.9 billion), up 34% YoY, with continued rapid growth and increased penetration in less developed areas
  • Revenue from the China commerce retail business was RMB101.3 billion (US$14.3 billion), up 34% YoY, marking a strong recovery compared to the March 2020 quarter
  • Marketplace-based core commerce generated solid profit growth with adjusted EBITA RMB55.5 billion (US$7.9 billion), up 19% YoY

Cainiao Network Continues to Fulfill Partners’ Logistics Needs

  • Revenue from Cainiao Network was RMB7.7 billion (US$1.1 billion), up 54% YoY
  • Cainiao Post (neighborhood and campus stations and residential self-pick-up stations) average daily package volume was up over 100% YoY
  • In urban areas, Cainiao Post continues to see robust adoption by third party logistics players to optimize their last-mile delivery

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