Alibaba uncovers secret to Q2 success
Revenue growth at Chinese e-commerce and technology company beats expectations
Chinese e-commerce and technology company Alibaba has reported strong revenue and profit growth for the quarter ending September 30, 2019.
The company announced a better-than-expected 40 per cent rise in revenue, driven primarily by growth in its cloud computing and e-commerce activities. Total revenues leapt to $16.7bn (£12.8bn, €14.9bn), slightly beating analyst expectations.
Maggie Wu, chief financial officer of Alibaba Group, said: “We delivered a strong quarter with revenue growth of 40 per cent and adjusted EBITDA up 39 per cent year-over-year. With sustained consumer engagement and spending across the Alibaba Economy, we have continued our revenue and profit growth, as well as (creating) strong free cash flow that enables us to invest in long-term growth.”
Alibaba’s core online retail operation continues to flourish, despite worries that Chinese e-commerce is reaching saturation point and concerns about the effects of the ongoing trade war with the US. Alibaba added nearly 30 million users to its retail marketplaces in the past year, topping 690 million in total.
In addition, revenue from the company’s cloud services division grew 64 per cent to $1.3bn year on year, with Alibaba Cloud now counting 59 per cent of Chinese-listed companies among its customers.
Daniel Zhang, executive chairman and CEO of Alibaba Group, said the company is aiming to serve more than a billion active consumers every year by the end of 2024.