2022-02-24 12:19Revenue and Profitability - Revenue for the quarter ended December 31, 2021, was RMB 242.58 billion (USD 38.07 billion), representing a year-over-year growth of 10%[3] - Net profit attributable to ordinary shareholders was RMB 20.429 billion (USD 3.206 billion), a year-over-year decrease of 74%[5] - Operating profit was RMB 7.068 billion (USD 1.109 billion), a year-over-year decline of 86%, primarily due to goodwill impairment of RMB 25.141 billion (USD 3.945 billion)[4] - Free cash flow was RMB 71.022 billion (USD 11.145 billion), a decrease of 26% compared to RMB 96.210 billion in the same period last year[5] - Adjusted EBITDA for the three months ended December 31, 2021, was RMB 51.36 billion (USD 8.06 billion), down 25% from RMB 68.38 billion[20] - The diluted earnings per share for the three months ended December 31, 2021, was RMB 0.94 (USD 0.15), a 74% decrease from RMB 3.61[20] Consumer Metrics - The number of annual active consumers reached approximately 1.28 billion, with a net increase of 43 million in the quarter[3] - Taote achieved a net increase of 39 million annual active consumers, reaching 280 million, with a strong growth of over 100% in paid orders year-over-year[7] - The international retail business, including Lazada and Trendyol, reached approximately 301 million annual active consumers, with a net increase of 16 million in the quarter, and overall orders grew by about 25% year-on-year[9] - The local services segment reported approximately 372 million annual active consumers, with a quarterly order volume growth of 22%[11] Segment Performance - The international commerce segment revenue grew by 18% year-over-year to RMB 16.449 billion (USD 2.581 billion)[3] - The cloud business segment revenue increased by 20% year-over-year to RMB 19.539 billion (USD 3.066 billion)[3] - The community business platform, TaoCaiCai, achieved a strong quarter-on-quarter GMV growth of 30% as of December 31, 2021, while improving consumer purchase frequency and retention[8] - The international wholesale business saw a transaction value growth of approximately 50% year-on-year on Alibaba.com, with revenue increasing by 29% and value-added service revenue up by 43%[10] - The local services segment had revenue of RMB 12.14 billion, with an operating loss of RMB 7.64 billion, indicating challenges in this area[22] Goodwill and Impairment - The company reported a significant goodwill impairment of RMB 25.14 billion (USD 3.95 billion) related to its digital media and entertainment segment[21] - The goodwill impairment recorded for the three months ended December 31, 2021, was RMB 25,141 million (USD 3,945 million), reflecting the excess of carrying value over fair value in certain reporting units[41] Cash Flow and Investments - The net cash flow from operating activities for the three months ended December 31, 2021, was RMB 80,366 million (USD 12,611 million), a decrease of 22% from RMB 103,208 million in the same period of 2020[57] - The net cash used in investing activities for the three months ended December 31, 2021, was RMB 33,790 million (USD 5,302 million), reflecting an increase in short-term investments of RMB 15,450 million (USD 2,424 million)[58] - The company repurchased approximately 10.1 million American Depositary Shares for about USD 1.4 billion in the December quarter, totaling USD 7.7 billion for 42.2 million shares repurchased in the nine months ended December 31, 2021[19] Future Outlook and Strategy - Alibaba announced a commitment to achieve carbon neutrality in its operations by 2030 and to reduce ecosystem carbon emissions by 1.5 billion tons by 2035[3] - The company aims to achieve carbon neutrality for Scope 1 and Scope 2 emissions by 2030 and reduce Scope 3 emissions intensity by 50%[17] - The company expects revenue growth of 10% to 12% for the upcoming fiscal year, driven by increased user engagement and market expansion[63] - The company is investing heavily in new technologies, with a budget of $1 billion allocated for R&D in AI and cloud computing[64] Operational Efficiency - The total costs and expenses excluding equity incentive expenses were RMB 225,736 million (USD 35,422 million), which accounted for 93% of revenue, an increase from 74% in the same period of 2020[38] - Research and development expenses for the same period were RMB 15,705 million (USD 2,465 million), maintaining a revenue ratio of 6%, consistent with the previous year[39] - Sales and marketing expenses reached RMB 36,706 million (USD 5,760 million), accounting for 15% of revenue, up from 11% in the same period of 2020[39] Employee Metrics - The total number of employees as of December 31, 2021, was 259,316, up from 258,578 as of September 30, 2021[59]