Alibaba (BABA) Tops Q3 EPS by 17c, Revenues Rise 54%
Alibaba (NYSE: BABA) reported Q3 EPS of $1.30, $0.17 better than the analyst estimate of $1.13. Revenue for the quarter came in at $7.7 billion versus the consensus estimate of $7.32 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, Chief Executive Officer of Alibaba Group. “The 11.11 Shopping Festival featured Alibaba at its best, integrating commerce, entertainment and social engagement, all happening globally at record scale. We are driving the age of ‘New Retail,’ which leverages big data and innovation to provide a seamless online and offline experience for nearly half a billion mobile monthly active users. This retail transformation will make it even easier and more efficient for brands and retailers to engage with these consumers anywhere, anytime.”
“We reported another excellent quarter, with robust revenue growth of 54%. With three quarters of the year coming in ahead of expectations, we are adjusting up our 2017 fiscal year revenue guidance from 48% to 53% year-over-year growth,” said Maggie Wu, Chief Financial Officer of Alibaba Group. “This quarter we generated US$4.9 billion in free cash flow on a non-GAAP basis1, enabling us to continue investing in growth areas globally, including cloud computing, digital media and entertainment and innovation initiatives, as well as core commerce.”
- Revenue was RMB53,248 million (US$7,669 million), an increase of 54% year-over-year.
- Revenue from core commerce increased 45% year-over-year to RMB46,576 million (US$6,708 million).
- Revenue from cloud computing increased 115% year-over-year to RMB1,764 million (US$254 million).
- Revenue from digital media and entertainment increased 273% year-over-year to RMB4,063 million (US$585 million).
- Revenue from innovation initiatives and others increased 61% year-over-year to RMB845 million (US$122 million).
- Mobile MAUs on our China retail marketplaces reached 493 million in December, an increase of 43 million over September, while annual active buyers on our China retail marketplaces reached 443 million, an increase of 4 million from the 12-month period ended in September.
- The number of paying customers of our cloud computing business grew to 765,000 from 651,000 in the previous quarter. Operating loss from cloud computing was RMB339 million (US$49 million) and adjusted EBITA loss was RMB92 million (US$13 million).
- Net income was RMB17,157 million (US$2,471 million), income from operations was RMB20,664 million (US$2,976 million) and adjusted EBITDA was RMB27,021 million (US$3,892 million). Operating margin was 39%, adjusted EBITDA margin was 51% and adjusted EBITA margin for core commerce was 64%.
- Diluted EPS was RMB6.94 (US$1.00) and non-GAAP diluted EPS was RMB9.02 (US$1.30).
- Net cash provided by operating activities was RMB37,416 million (US$5,389 million) and non-GAAP free cash flow was RMB34,122 million (US$4,915 million).
For fiscal year 2017, Alibaba expect revenue to increase 53% year-over-year.
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