Alibaba lifts outlook based on skyrocketing sales

The Chinese e-commerce giant had a very merry holiday as its December quarter sales surged 54% year-over-year (YoY).



Alibaba’s sales hit $7.7 billion for the three months ended on Dec. 31, 2016, exceeding analysts’ expectation of $7.3 billion. The increase is also prompting the retailer to “adjust up our 2017 fiscal year revenue guidance from 48% to 53% year-over-year growth,” said Maggie Wu, CFO of Alibaba Group.



The increases were due to a number of factors, including a 45% YoY jump in core commerce revenue to $6.7 billion. The company’s cloud computing division’s revenue increased 115% YoY to $254 million, the company said.



Mobile active users (MAU) on Alibaba’s Chinese retail marketplaces reached 493 million in December, an increase of 43 million over September. Meanwhile, annual active buyers on these marketplaces reached 443 million, an increase of 4 million from the 12-month period ended in September, the company added.



Net income was $2.5 billion, income from operations was $3 billion.



“Our robust December quarter demonstrates the strength of the Chinese consumer and Alibaba’s ability to create value across our vast ecosystem,” said Daniel Zhang, CEO of Alibaba Group. “We are driving the age of ‘New Retail,’ which leverages big data and in-novation to provide a seamless online and offline experience for nearly half a billion mobile monthly active users,” he added. “This retail transformation will make it even easier and more efficient for brands and retailers to engage with these consumers anywhere, anytime.”