Alibaba CEO: we delivered a solid quarter despite softer demand, supply chain and logistics disruption

“We delivered a solid quarter despite softer demand, supply chain and logistics disruptions due to impact of changes in COVID-19 measures,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group. “Looking ahead, we expect continued recovery in consumer sentiment and economic activity. We are focused on driving growth for our customers amid the competitive landscape, and creating sustainable, long-term value for our shareholders.”

“During the past quarter, we continued to improve operating efficiency and cost optimization that resulted in robust profit growth,” said Toby Xu, Chief Financial Officer of Alibaba Group. “Our net cash position remains strong and we continue to generate healthy cash flow. During the quarter ended December 31, 2022, we repurchased 45.4 million ADSs for approximately US$3.3 billion under our share repurchase program as part of our ongoing commitment to improve our shareholder return.”

Financial highlights

In the quarter ended December 31, 2022:
• Revenue was RMB247,756 million (US$35,921 million), an increase of 2% year-over-year.
• Income from operations was RMB35,031 million (US$5,079 million), an increase of 396% or RMB27,963 million year-over-year, primarily due to a RMB22,427 million decrease in impairment of goodwill in relation to Digital media and entertainment segment. We excluded impairment of goodwill from our non-GAAP measurements. Adjusted EBITA, a non-GAAP measurement, was RMB52,048 million (US$7,546 million), an increase of 16% year-over-year.
• Net income attributable to ordinary shareholders was RMB46,815 million (US$6,788 million). Net income was RMB45,746 million (US$6,633 million), an increase of 138% or RMB26,522 million year-over-year, primarily due to a RMB22,427 million decrease in impairment of goodwill in relation to Digital media and entertainment segment. Non-GAAP net income was RMB49,932 million (US$7,239 million), an increase of 12% year-over-year.
• Diluted earnings per ADS was RMB17.91 (US$2.60) and diluted earnings per share was RMB2.24 (US$0.32 or HK$2.51). Non-GAAP diluted earnings per ADS was RMB19.26 (US$2.79), an increase of 14% year-over-year and non-GAAP diluted earnings per share was RMB2.41 (US$0.35 or HK$2.70), an increase of 14% year-over-year.
• Net cash provided by operating activities was RMB87,370 million (US$12,668 million), an increase of 9% compared to RMB80,366 million in the same quarter of 2021. Free cash flow, a nonGAAP measurement of liquidity, was RMB81,514 million (US$11,818 million), an increase of 15% compared to RMB71,022 million in the same quarter of 2021.