Alibaba Quarterly Earnings reported for June 2018 saw revenue growth of 61% on a massive base beat analyst expectations. As a point of comparison, none of the FANGs or BATs (Facebook, Amazon, Apple, Netflix, Google, Baidu, and Tencent) posted revenue over 42%.
Alibaba continued to add consumers at a high rate, gaining 24 million consumers this quarter to a total of 576 million annual active consumers. This large consumer base is the backbone of their 3-pronged consumer offering of retail, entertainment, and local services which will be the long-term drivers of value creation.
It’s not all good news however, Alibaba Quarterly Earnings fell 41%, driven by a one-off stock compensation charge of 11.2 billion yuan from the revaluation of Ant Financial Services Group. Net income for the quarter was down to 8.7 billion yuan ($1.27 billion), down from 14.7 billion yuan ($2.14 billion) for the same period last year.
Comparing this to Amazon’s earnings which topped $2.5 billion, Alibaba profits were about half their Western counterpart. However without the one of charge they’d be only half a billion behind, although with revenues up 61% to 80.9 billion yuan ($11.77 billion) they are ahead of Amazon’s revenue of $52.9 billion they’re ahead on total sales.
“Alibaba had another excellent quarter, with significant user expansion and even more robust engagement across our growing ecosystem. Our China retail marketplace business continues to gain share, with New Retail initiatives driving further revenue growth and enabling our retail partners to seamlessly serve customers. We are executing our plan of providing more value and choice to users a long the consumption continuum, with digital entertainment and local service offerings that tap into big addressable markets beyond core commerce. We will continue to invest in strategic business opportunities and innovation to sustain our competitive advantage and for long-term growth”.
– Daniel Zhang, CEO, Alibaba Group
