BABA(09988)2024-11-15 12:19Revenue and Profit Performance - Revenue for the quarter reached RMB 236.503 billion (USD 33.701 billion), a 5% year-over-year increase[5] - Operating profit was RMB 35.246 billion (USD 5.023 billion), up 5% year-over-year, driven by reduced non-cash share-based compensation expenses[5] - Net income attributable to ordinary shareholders was RMB 43.874 billion (USD 6.252 billion), with net profit increasing 63% year-over-year to RMB 43.547 billion (USD 6.205 billion)[5] - Alibaba's total revenue for Q3 2024 was RMB 236.50 billion (USD 33.70 billion), a 5% YoY increase, with net income attributable to ordinary shareholders rising 58% YoY to RMB 43.87 billion (USD 6.25 billion)[18] - Total revenue for the September 2024 quarter was RMB 236,503 million (USD 33,701 million), a 5% YoY increase from RMB 224,790 million in the same period last year[19] - Revenue for the three months ending September 30, 2024, was RMB 236,503 million (USD 33,701 million), an increase from RMB 224,790 million in the same period in 2023[74] - Net profit attributable to Alibaba Group shareholders for the six months ending September 30, 2024, was RMB 68,423 million (USD 9,750 million), up from RMB 62,089 million in the same period in 2023[74] - Net profit for the three months ended September 30, 2024, was RMB 43,547 million (USD 6,205 million), compared to RMB 26,696 million in the same period of 2023[53] - Net profit attributable to ordinary shareholders for the three months ended September 30, 2024, was RMB 43,874 million (USD 6,252 million), compared to RMB 27,706 million in the same period of 2023[54] - Net profit for the three months ended September 30, 2024, was RMB 43,547 million (USD 6,205 million), up from RMB 26,696 million in the same period in 2023[78] Cloud Intelligence Group Performance - Cloud Intelligence Group revenue grew 7% year-over-year to RMB 29.610 billion (USD 4.219 billion), with AI-related products achieving triple-digit growth for five consecutive quarters[9] - Public cloud product revenue saw double-digit growth, contributing to overall revenue growth of over 7% excluding revenue from consolidated businesses[9] - Cloud Intelligence Group revenue increased 7% YoY to RMB 29,610 million (USD 4,219 million)[19] - Cloud Intelligence Group revenue increased by 7% YoY to RMB 29,610 million (USD 4,219 million), driven by double-digit growth in public cloud products, including AI-related products[26] - Cloud Intelligence Group adjusted EBITA surged 89% YoY to RMB 2,661 million (USD 379 million), primarily due to a shift towards higher-margin public cloud products and improved operational efficiency[27] Taobao and Tmall Performance - Taobao and Tmall's GMV growth was driven by double-digit order volume growth, with 88VIP members reaching 46 million, a double-digit year-over-year increase[8] - During the Double 11 shopping festival, Taobao and Tmall achieved strong GMV growth and a record number of buyers[8] - Taotian Group's revenue from China retail commerce reached RMB 93,008 million (USD 13,254 million), with customer management revenue growing 2% YoY due to online GMV growth[23] - Taotian Group's adjusted EBITA decreased 5% YoY to RMB 44,590 million (USD 6,354 million), primarily due to increased investments in user experience[25] Alibaba International Digital Commerce Group Performance - Alibaba International Digital Commerce Group (AIDC) revenue increased 29% YoY to RMB 31.67 billion (USD 4.51 billion) in Q3 2024, driven by cross-border business growth[12] - Alibaba International Digital Commerce Group's total revenue grew 29% YoY to RMB 31,672 million (USD 4,513 million), with international retail commerce up 35% and wholesale commerce up 9%[19] - International Digital Commerce Group's retail revenue grew 35% YoY to RMB 25,618 million (USD 3,650 million), driven by growth in AliExpress Choice and Trendyol[28] - International Digital Commerce Group's wholesale revenue increased by 9% YoY to RMB 6,054 million (USD 863 million), supported by growth in cross-border value-added services[29] - Alibaba International Digital Commerce Group's adjusted EBITA surged 89% YoY to RMB 2,661 million (USD 379 million)[22] Cainiao Group Performance - Cainiao Group revenue grew 8% YoY to RMB 24.65 billion (USD 3.51 billion) in Q3 2024, primarily driven by cross-border logistics fulfillment solutions[13] - Cainiao Group revenue rose 8% YoY to RMB 24,647 million (USD 3,512 million)[19] - Cainiao Group revenue rose 8% YoY to RMB 24,647 million (USD 3,512 million), primarily due to growth in cross-border logistics fulfillment solutions[31] - Cainiao Group's adjusted EBITA loss widened significantly to RMB 2,905 million (USD 414 million), a 657% YoY increase in losses[22] Local Services Group Performance - Local Services Group revenue increased 14% YoY to RMB 17.73 billion (USD 2.53 billion) in Q3 2024, with Gaode's daily active users peaking at over 300 million during the National Day holiday[14] - Local Services Group revenue grew 14% YoY to RMB 17,725 million (USD 2,526 million)[19] - Local Services Group revenue increased by 14% YoY to RMB 17,725 million (USD 2,526 million), driven by order growth in Amap and Ele.me, as well as marketing service revenue growth[33] Digital Media and Entertainment Group Performance - Digital Media and Entertainment Group revenue decreased 1% YoY to RMB 5.69 billion (USD 811 million) in Q3 2024, with narrowing losses due to increased advertising revenue and content investment efficiency[15] Share Repurchases and Financial Position - The company repurchased USD 4.1 billion worth of shares, reducing outstanding shares by 2.1% compared to the end of June[4] - Alibaba repurchased 414 million ordinary shares (equivalent to 52 million ADSs) for a total of USD 4.1 billion in Q3 2024, reducing outstanding shares by 2.1%[17] - Cash, cash equivalents, short-term investments, and other financial investments totaled RMB 554,378 million (USD 78,998 million) as of September 30, 2024, down from RMB 617,230 million as of March 31, 2024[57] - Total assets as of September 30, 2024, were RMB 1,762,712 million (USD 251,184 million), slightly down from RMB 1,764,829 million as of March 31, 2024[75][76] - Cash and cash equivalents decreased to RMB 182,992 million (USD 26,076 million) as of September 30, 2024, from RMB 248,125 million as of March 31, 2024[75] - Total liabilities increased to RMB 704,834 million (USD 100,438 million) as of September 30, 2024, from RMB 652,230 million as of March 31, 2024[76] - Total equity attributable to shareholders was RMB 953,925 million (USD 135,933 million) as of September 30, 2024, down from RMB 986,544 million as of March 31, 2024[76] - Total current assets decreased to RMB 609,102 million (USD 86,796 million) as of September 30, 2024, from RMB 752,864 million as of March 31, 2024[75] Cash Flow and Free Cash Flow - Free cash flow decreased by 70% year-over-year to RMB 13.735 billion (USD 1.957 billion), primarily due to investments in Alibaba Cloud infrastructure and refunds to Tmall merchants[6] - Net cash provided by operating activities for the three months ended September 30, 2024, was RMB 31,438 million (USD 4,480 million), a 36% decrease from RMB 49,231 million in the same period of 2023[58] - Free cash flow for the three months ended September 30, 2024, was RMB 13,735 million (USD 1,957 million), a 70% decrease from RMB 45,220 million in the same period of 2023[58] - Net cash used in financing activities for the three months ended September 30, 2024, was RMB 66,782 million (USD 9,516 million), primarily due to share repurchases and dividend payments[60] - Operating cash flow for the three months ended September 30, 2024, was RMB 31,438 million (USD 4,480 million), a decrease from RMB 49,231 million in the same period in 2023[77] - Net cash used in financing activities for the six months ended September 30, 2024, was RMB 86,364 million (USD 12,307 million), compared to RMB 37,018 million in the same period in 2023[77] - Free cash flow for the six months ended September 30, 2024, was RMB 31,107 million (USD 4,433 million), compared to RMB 84,309 million in the same period of 2023[81] - Net cash provided by operating activities for the six months ended September 30, 2024, was RMB 65,074 million (USD 9,273 million), compared to RMB 94,537 million in the same period of 2023[81] - Purchases of property and equipment (excluding land use rights and construction in progress related to corporate campuses) for the three months ended September 30, 2024, were RMB 16,977 million (USD 2,419 million), up from RMB 4,112 million in the same period of 2023[81] - Purchases of property and equipment (excluding land use rights and construction in progress related to corporate campuses) for the six months ended September 30, 2024, were RMB 28,916 million (USD 4,120 million), compared to RMB 10,119 million in the same period of 2023[81] - Changes in buyer protection fund for the three months ended September 30, 2024, were RMB -726 million (USD -104 million), compared to RMB 101 million in the same period of 2023[81] - Changes in buyer protection fund for the six months ended September 30, 2024, were RMB -5,051 million (USD -720 million), compared to RMB -109 million in the same period of 2023[81] Expenses and Costs - Total costs and expenses for the quarter were RMB 202,108 million (USD 28,799 million), accounting for 60.9% of revenue, down from 62.1% in the same period last year[40] - Product development expenses for the quarter were RMB 14,182 million (USD 2,020 million), accounting for 6.0% of revenue, down from 6.3% in the same period last year[41] - Sales and marketing expenses for the three months ended September 30, 2024, were RMB 32,471 million (USD 4,627 million), accounting for 13.7% of revenue, compared to RMB 25,485 million (11.3% of revenue) in the same period of 2023[42] - General and administrative expenses for the three months ended September 30, 2024, were RMB 9,777 million (USD 1,393 million), accounting for 4.1% of revenue, compared to RMB 9,408 million (4.2% of revenue) in the same period of 2023[42] - Equity incentive expenses for the three months ended September 30, 2024, were RMB 4,146 million (USD 591 million), a 39% decrease compared to RMB 6,830 million in the same period of 2023[43] - Non-cash share-based compensation expenses for the six months ended September 30, 2024, were RMB 7,775 million (USD 1,108 million), up from RMB 5,201 million in the same period in 2023[79] - Provision for shareholder class action lawsuits for the six months ended September 30, 2024, was RMB 3,145 million (USD 448 million)[79] Earnings and Non-GAAP Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was RMB 47,327 million (USD 6,744 million), a 4% decrease compared to RMB 49,237 million in the same period of 2023[46] - Adjusted EBITA for the three months ended September 30, 2024, was RMB 40,561 million (USD 5,780 million), a 5% decrease compared to RMB 42,845 million in the same period of 2023[46] - Non-GAAP net profit for the three months ended September 30, 2024, was RMB 36,518 million (USD 5,204 million), a 9% decrease compared to RMB 40,188 million in the same period of 2023[53] - Adjusted EBITA for the six months ended September 30, 2024, was RMB 85,596 million (USD 12,197 million), compared to RMB 88,216 million in the same period in 2023[78] - Non-GAAP net profit for the three months ended September 30, 2024, was RMB 36,518 million (USD 5,204 million), down from RMB 40,188 million in the same period in 2023[79] - Adjusted EBITDA for the six months ended September 30, 2024, was RMB 98,488 million (USD 14,034 million), compared to RMB 101,289 million in the same period in 2023[78] - Non-GAAP diluted earnings per share for the three months ended September 30, 2024, were RMB 1.88 (USD 0.27), compared to RMB 1.95 in the same period of 2023[80] - Non-GAAP diluted earnings per ADS for the six months ended September 30, 2024, were RMB 31.50 (USD 4.49), compared to RMB 33.00 in the same period of 2023[80] - Adjusted EBITDA, Adjusted EBITA, and non-GAAP net profit are used to identify core business trends and provide insights into operational performance[68] - Free cash flow is considered a liquidity indicator, showing how much operating cash flow is available for strategic investments and acquisitions[68] - Adjusted EBITDA excludes interest income, investment gains, taxes, equity method investment results, and non-cash expenses like stock-based compensation and amortization[70] - Adjusted EBITA excludes similar items as Adjusted EBITDA but focuses more on core operational performance[70] - Non-GAAP net profit excludes non-cash stock-based compensation, intangible asset amortization, and gains/losses from investment disposals[70] - Non-GAAP diluted EPS is calculated by dividing non-GAAP net profit by the weighted average number of diluted shares outstanding[71] - Free cash flow is derived from operating cash flow minus capital expenditures and excludes funds from buyer protection deposits[71] - The company emphasizes that non-GAAP financial metrics should not be considered in isolation or as substitutes for GAAP metrics[69] - Detailed reconciliations between non-GAAP and GAAP financial metrics are provided in the earnings announcement[72] Interest Income and Investment Gains - Interest income and net investment gains for the three months ended September 30, 2024, were RMB 18,607 million (USD 2,652 million), a 262% increase compared to RMB 5,136 million in the same period of 2023[48] - Interest income and investment gains for the three months ending September 30, 2024, were RMB 18,607 million (USD 2,652 million), a significant increase from RMB 5,136 million in the same period in 2023[74] - Interest income and investment gains for the six months ended September 30, 2024, were RMB 17,129 million (USD 2,441 million), compared to RMB 762 million in the same period in 2023[78] Employee and Operational Metrics - The company's total number of employees as of September 30, 2024, was 197,991, compared to 198,162 as of June 30, 2024[61] - The company will hold an earnings call on November 15, 2024, at 7:30 AM ET to discuss financial results[62] Other Segments Performance - All Other segments revenue grew 9% YoY to RMB 52,178 million (USD 7,435 million), mainly due to increased retail revenue from Freshippo and AliHealth[37] China Wholesale Commerce Performance - China wholesale commerce revenue increased 18% YoY to RMB 5,986 million (USD 853 million), driven by higher value-added services for paid members[24]