Alibaba: Thanks to the rapid recovery of China’s economy, Alibaba had another very healthy quarter

Alibaba Group Holding Limited has announced its financial results for the quarter ended December 31, 2020.

“China was the only major economy to achieve positive GDP growth last year. Thanks to the rapid recovery of China’s economy, Alibaba had another very healthy quarter,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group.

“We achieved another successful 11.11 Global Shopping Festival by stimulating consumption, satisfying consumer demands and supporting the business recovery of merchants in response to the impact of the pandemic. Our cloud computing business continues to expand market leadership and show strong growth, reflecting the massive potential of China’s nascent cloud computing market as well as our years of investment in technology. Looking ahead, we are confident that we will continue to create value for our customers, lead with innovation and make our contributions to society.”

“We delivered another solid quarter, with revenue growth of 37% year-over-year and adjusted EBITDA up 22% year-over-year, while our strong free cash flow enabled us to further invest in strategic areas,” said Maggie Wu, Chief Financial Officer of Alibaba Group. “We are pleased that our Alibaba Cloud business achieved positive adjusted EBITA during the quarter and Cainiao Network was operating cash flow positive. These progresses reflect our long-term approach to organically incubate and expand businesses from launch
to profitability.”

BUSINESS HIGHLIGHTS

In the quarter ended December 31, 2020:

•  Revenue was RMB221,084 million (US$33,883 million), an increase of 37% year-over-year.
  Annual active consumers on our China retail marketplaces reached 779 million for the twelve months period ended December 31, 2020, an increase of 22 million from the twelve months period ended September 30, 2020.
•  Mobile MAUs on our China retail marketplaces reached 902 million in December 2020, an increase of 21 million over September 2020.
  Income from operations was RMB49,002 million (US$7,510 million), an increase of 24% yearover-year. Adjusted EBITDA, a non-GAAP measurement, increased 22% year-over-year to RMB68,380 million (US$10,480 million). Adjusted EBITA, a non-GAAP measurement, increased 21% year-over-year to RMB61,253 million (US$9,387 million).
• Net income attributable to ordinary shareholders was RMB79,427 million (US$12,173 million), and net income was RMB77,977 million (US$11,950 million). Non-GAAP net income was
  RMB59,207 million (US$9,074 million), an increase of 27% year-over-year.
• Diluted earnings per ADS was RMB28.85 (US$4.42) and non-GAAP diluted earnings per ADS was RMB22.03 (US$3.38), an increase of 21% year-over-year. Diluted earnings per share was
  2 RMB3.61 (US$0.55 or HK$4.29) and non-GAAP diluted earnings per share was RMB2.75 (US$0.42 or HK$3.27), an increase of 21% year-over-year.
•  Net cash provided by operating activities was RMB103,208 million (US$15,817 million) and nonGAAP free cash flow was RMB96,210 million (US$14,745 million).
  Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this
  results announcement.