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Alibaba Group Quarterly Results: Revenue Up 61 percent

Photo credits: Pexels by Sindhu wijaya

Alibaba Group Holdings released its Q4 results for quarter ending Mar-18 as well as Full Fiscal 2018 year results last Friday.

For the quarter, revenue grew 61% reaching RMB 62 billion (US$ 9.7 billion) quarter on quarter, exceeding analysts expectations.

The strong revenue growth was mainly attributed to robust growth in Alibaba’s domestic and international commerce, and cloud businesses.

The revenue from cloud computing alone increased by 103% to RMB 4.4 billion. The revenue increase is also partly due to consolidation of revenue from Alibaba’s latest investments in Cainiao, the logistics provider company as well as the acquisition of Intime, a retail chain.

The revenue would still have grown over 50%, excluding the consolidation of Cainiao, said Maggie Wei Wu, the CFO in the earnings call.

For the full year, total revenue was up 58% at RMB 250 billion (US$ 39.1 billion) and the free cash flow generated was RMB 99 billion (US$16 billion).

The margins came under pressure though, mainly due to consolidation of new investments in Cainiao, Lazada and other strategic initiatives.

The company stated it made great strides in its globalization strategy and has deep long-term commitment to Southeast Asia markets. It committed further investment of US$2 billion in Lazada group, which it acquired recently and appointed its senior executive, Lucy Peng as Lazada’s CEO.

Also Read: Softbank And Alibaba Invest Rs 2,900 Crores In Paytm Mall

For the full earnings call transcript, refer to the report at www.seekingalpha.com

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