ZACKSยท2025-05-16 18:51Core Insights - Alibaba (BABA) reported non-GAAP earnings of $1.73 per ADS for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate by 16.89% and showing a year-over-year increase of 23% in domestic currency [1] - The company's Q4 fiscal 2025 revenues reached $32.6 billion, slightly missing the Zacks Consensus Estimate by 1.49%, with a year-over-year growth of 7% in domestic currency [1][2] Revenue Breakdown - The increase in revenue was primarily driven by the strong performance of the Taobao and Tmall Group, which contributed 42.9% of total revenues, generating RMB 101.37 billion ($14.0 billion), a 9% increase year-over-year [3][5] - The China Commerce Retail segment, accounting for 94.3% of Taobao and Tmall revenues, reported revenues of RMB 95.6 billion ($13.2 billion), reflecting an 8% increase from the previous year [5] - The Alibaba International Digital Commerce Group, which includes Lazada and AliExpress, generated RMB 33.6 billion ($4.63 billion) in revenues, up 22% year-over-year [7] - The Local Services Group saw revenues of RMB 16.1 billion ($2.22 billion), a 10% increase from the year-ago quarter, driven by strong order growth in Ele.me and Amap [9] - The Cloud Intelligence Group reported revenues of RMB 30.1 billion ($4.15 billion), an 18% increase year-over-year, fueled by accelerated growth in public cloud revenues [11] Operating Performance - Operating income for the quarter was RMB 28.5 billion ($3.92 billion), up 92.8% year-over-year, with an operating margin expansion of 540 basis points to 12% [16] - Adjusted EBITDA increased by 36% year-over-year to RMB 32.6 billion ($4.5 billion), with an adjusted EBITDA margin expansion of 300 basis points to 14% [17] Membership and Customer Engagement - The number of 88VIP members, the highest-spending consumer group, increased to 50 million, reflecting double-digit growth year-over-year [4] Financial Position - As of March 31, 2025, cash and cash equivalents were $20 billion (RMB 145.49 billion), down from $22.3 billion (RMB 162.78 billion) at the end of the previous quarter [18] - Free cash flow for the quarter was $516 million (RMB 3.74 billion) [19]