Blockbuster quarter prompts Alibaba to boost annual outlook
Alibaba's strong financial performance showed no signs of slowing down in its second quarter as the Chinese Internet giant topped analyst estimates and raised its revenue outlook for the year.
For the quarter ended September 30, revenue rose 61% to $8.3 billion (all financial metrics in U.S. dollars). This beat Zacks Investment Research’s consensus estimate of $7.78 billion, according to Investor’s Business Daily.
A majority of this increase stemmed from Alibaba’s core commerce, which increased 63% year-over-year to $7.0 billion. Revenue from the company’s China commerce retail business surged 64% to $5.9 billion, or 72% of total revenue. The company credits the increase to robust growth of customer management revenue and commission revenue, as well as the consolidation of department store chain Intime, starting in mid-May 2017.
Annual active consumers on the company’s Chinese retail market-places reached 488 million, an increase of 22 million from the 12-month period ended June 30, 2017.
Additional revenue drivers included gains in the company’s cloud computing division, which had a 99% year-over-year increase, pushing revenue to $447 million. Meanwhile, revenue from digital media and entertainment increased 33% year-over-year to $721 million. Revenue from innovation initiatives and others increased 27% year-over-year to $134 million U.S.).
For the quarter ended September 30, revenue rose 61% to $8.3 billion (all financial metrics in U.S. dollars). This beat Zacks Investment Research’s consensus estimate of $7.78 billion, according to Investor’s Business Daily.
A majority of this increase stemmed from Alibaba’s core commerce, which increased 63% year-over-year to $7.0 billion. Revenue from the company’s China commerce retail business surged 64% to $5.9 billion, or 72% of total revenue. The company credits the increase to robust growth of customer management revenue and commission revenue, as well as the consolidation of department store chain Intime, starting in mid-May 2017.
Annual active consumers on the company’s Chinese retail market-places reached 488 million, an increase of 22 million from the 12-month period ended June 30, 2017.
Additional revenue drivers included gains in the company’s cloud computing division, which had a 99% year-over-year increase, pushing revenue to $447 million. Meanwhile, revenue from digital media and entertainment increased 33% year-over-year to $721 million. Revenue from innovation initiatives and others increased 27% year-over-year to $134 million U.S.).