Alibaba has smashed analyst estimates with its latest financials.
The Chinese e-commerce giant reported (PDF) net income of RMB 17.12 billion ($2.47 billion) with total revenue of RMB 53.25 million ($7.67 billion) for its Q3 2016, the latter was a 54 percent year-on-year jump. Earning per share came in at RMB 6.94 ($1.00).
This was a big win for Alibaba. Analysts predicted net income of RMB 13.7 billion and total revenue of RMB 50.4 billion, according to the Wall Street Journal, but it beat those figures by some margin.
The primary source of revenue remains Alibaba core commerce businesses — in particular its Taobao marketplace and T-Mall service for brands — and that unit accounted for RMB 46,58 billion ($6.71 billion), up 45 percent year-on-year. Alibaba said its marketplaces now have 493 million monthly users, as of December 2016, with 443 million active buyers — for context, China now has 731 million internet users, 95 percent of whom are on mobile.
We know Alibaba has been prioritizing its cloud computing business, and revenue from it once again more than doubled (up 115 percent) to reach RMB 1.76 billion ($254 million) in revenue — that’s up nearly 50 percent on the previous quarter alone. And Aliyun, the cloud computing business, is getting close to breakeven/profitability, having carded a slim RMB 339 million ($49 million) loss in Q3, up from RMB 439 million ($66 million) in the previous quarter.
Cloud computing may be a fast growing business unit, but it still accounts for just a few percent of Alibaba’s total revenue.
Another area where it is seeing growth include “digital media and entertainment” — revenue grew 273 percent to reach RMB 4.1 billion ($585 million) — while other activities accounted for RMB 845 million ($122 million), up 61 percent.
More to follow
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