Alibaba Group CEO: Our results this quarter demonstrated our strategy at work

Alibaba Group CEO: Our results this quarter demonstrated our strategy at work

Over the three months ended June 30, 2024, Alibaba’s quarterly revenue rose 4% year-over-year to RMB243.24 billion ($33.47 billion).

Alibaba’s Chinese commerce platforms, Taobao and Tmall, saw a rise in return customers and purchasing frequency as a result of investments made towards enhancing user experience. The uptick in activity led to strong gross merchandise value (GMV) growth and stabilizing market share.

Alibaba Cloud’s revenue increased by 6% year-over-year to RMB26.55 billion. Its transition towards high-quality revenue streams and public cloud drove segment revenue excluding Alibaba-consolidated subsidiaries to accelerate by 6% year-over-year as well.

“In this quarter, we continue to execute our plan to invest for growth in our core businesses, while reducing losses in other business units through improvement in operating efficiency,” said Alibaba Group CFO Toby Xu.

The increased pace of investment contributed to a 56% year-over-year decrease in free cash flow, which fell to RMB17.37 billion, while Alibaba’s adjusted earnings before interest, taxes, and amortization (EBITA) for the quarter decreased 1% year-over-year to RMB45.04 billion.

“We maintained the integrity of our margins and delivered consistent adjusted EBITA. We also returned significant value to shareholders at a pace higher than past quarters,” said Xu.

Alibaba repurchased 613 million ordinary shares at a cost of $5.8 billion during the first quarter, including approximately $1.2 billion worth of American Depository Shares through privately negotiated transactions concurrently with the issuance of convertible notes.

During the 2024 fiscal year, the company repurchased $12.5 billion worth of its shares as it “delivered value to shareholders by returning cash and creating earnings accretion,” Alibaba Chairman Joe Tsai and CEO Eddie Wu noted in a letter to shareholders.

By the end of the June quarter, Alibaba had 19,024 million ordinary shares outstanding—a 2.3% net reduction in outstanding shares after accounting for shares issued under the group’s employee stock ownership plan compared to March 31, 2024.

Return to Growth Trajectory

Alibaba’s largest revenue generator by segment remained Taobao and Tmall Group (TTG), which reported high-single-digit online GMV growth and double-digit order growth in the June quarter as consumers made more purchases on its platforms.

TTG’s revenue declined 1% year-over-year, mainly due to a previously planned reduction of direct sales businesses, with a focus on third-party platform businesses.

Customer management revenue (CMR) grew 1% year-over-year on the back of rising GMV, partly offset by a decline in take rate. CMR is expected to improve as the platforms launch monetization products in the second half of the 2025 fiscal year.

“Our focus on enhancing user experience by offering quality products at attractive prices with great service led to stabilizing market share of Taobao and Tmall Group as we returned the business on the growth trajectory,” said Wu.

For the first time, the platforms eschewed a pre-sales period and instead divided the promotions into two waves. Merchants and consumers alike benefited from a range of AI-powered tools to run price comparisons, field product questions and more.

Relevant Directory Listings

Listing image

SwipBox

Focus on the user experience SwipBox is focused on creating the world’s best user experience for delivering and picking up parcels using parcel lockers. Through a combination of intuitive network management software and hassle-free, app-operated parcel lockers, SwipBox delivers maximum convenience to logistics providers, retailers […]

Find out more

Other Directory Listings

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



MER Magazine


The Mail & Express Review (MER) Magazine is our quarterly print publication. Packed with original content and thought-provoking features, MER is a must-read for those who want the inside track on the industry.

 

News Archive

Pin It on Pinterest

Share This