Alibaba Group Announces June Quarter 2024 Results
Alibaba Group (NYSE: BABA) reported its financial results for the quarter ended June 30, 2024. Revenue rose by 4% year-over-year to RMB243,236 million (USD$33,470 million). The company saw a 15% decrease in income from operations to RMB35,989 million (USD$4,952 million). Adjusted EBITA slightly dropped by 1% to RMB45,035 million (USD$6,197 million).
Net income fell by 27% to RMB24,022 million (USD$3,306 million) primarily due to lower income from operations and higher impairment on investments. Free cash flow decreased by 56% to RMB17,372 million (USD$2,390 million), due to increased investments in Alibaba Cloud infrastructure. The company repurchased shares worth USD$5.8 billion.
Taobao and Tmall Group's revenue decreased by 1%, while Cloud Intelligence Group revenue increased by 6%, driven by AI-related products. Alibaba International Digital Commerce Group saw a 32% revenue growth. Cainiao and Local Services Group revenues grew by 16% and 12%, respectively. Digital Media and Entertainment Group revenue increased by 4%.
Alibaba Group (NYSE: BABA) ha riportato i risultati finanziari per il trimestre conclusosi il 30 giugno 2024. I ricavi sono aumentati del 4% rispetto all'anno precedente, raggiungendo RMB243.236 milioni (USD$33.470 milioni). L'azienda ha registrato una diminuzione del 15% dell'utile operativo, scendendo a RMB35.989 milioni (USD$4.952 milioni). L'EBITA rettificato è leggermente diminuito dell'1%, raggiungendo RMB45.035 milioni (USD$6.197 milioni).
Il reddito netto è calato del 27%, arrivando a RMB24.022 milioni (USD$3.306 milioni), principalmente a causa di un minore reddito operativo e di maggiori svalutazioni sugli investimenti. Il flusso di cassa libero è diminuito del 56%, attestandosi a RMB17.372 milioni (USD$2.390 milioni), a causa degli investimenti crescenti nelle infrastrutture di Alibaba Cloud. L'azienda ha riacquistato azioni per un valore di USD$5,8 miliardi.
Le entrate del gruppo Taobao e Tmall sono diminuite dell'1%, mentre le entrate del Cloud Intelligence Group sono aumentate del 6%, sostenute da prodotti legati all'IA. Il gruppo Alibaba International Digital Commerce ha registrato una crescita del fatturato del 32%. Le entrate di Cainiao e Local Services Group sono cresciute rispettivamente del 16% e del 12%. Anche le entrate del Digital Media and Entertainment Group sono aumentate del 4%.
Alibaba Group (NYSE: BABA) reportó sus resultados financieros para el trimestre que terminó el 30 de junio de 2024. Los ingresos aumentaron un 4% interanual, alcanzando RMB243,236 millones (USD$33,470 millones). La compañía observó una disminución del 15% en los ingresos de operaciones, bajando a RMB35,989 millones (USD$4,952 millones). El EBITA ajustado cayó ligeramente un 1%, alcanzando RMB45,035 millones (USD$6,197 millones).
La renta neta cayó un 27%, situándose en RMB24,022 millones (USD$3,306 millones), principalmente debido a menores ingresos operativos y mayores deterioros en inversiones. El flujo de caja libre disminuyó un 56%, alcanzando RMB17,372 millones (USD$2,390 millones), a causa del aumento de inversiones en la infraestructura de Alibaba Cloud. La empresa recompró acciones por un valor de USD$5.8 mil millones.
Los ingresos del grupo Taobao y Tmall disminuyeron un 1%, mientras que los ingresos del Cloud Intelligence Group aumentaron un 6%, impulsados por productos relacionados con IA. El grupo Alibaba International Digital Commerce vio un crecimiento de ingresos del 32%. Los ingresos del grupo Cainiao y Local Services crecieron un 16% y un 12%, respectivamente. Los ingresos del grupo Digital Media and Entertainment también aumentaron un 4%.
알리바바 그룹 (NYSE: BABA)은 2024년 6월 30일자로 종료된 분기의 재무 결과를 발표했습니다. 매출은 전년 대비 4% 증가하여 RMB243,236백만 (USD$33,470백만)에 달했습니다. 회사는 운영 소득이 15% 감소하여 RMB35,989백만 (USD$4,952백만)으로 감소했다고 보고했습니다. 조정된 EBITA는 약간 감소하여 RMB45,035백만 (USD$6,197백만)으로 나타났습니다.
순이익은 27% 감소하여 RMB24,022백만 (USD$3,306백만)에 이르렀으며, 이는 주로 운영 소득 감소 및 투자에 대한 더 높은 손상과 관련이 있습니다. 자유 현금 흐름은 RMB17,372백만 (USD$2,390백만)으로 56% 감소했으며, 이는 알리바바 클라우드 인프라에 대한 투자가 증가했기 때문입니다. 회사는 USD$58억 상당의 자사주 매입을 진행했습니다.
타오바오 및 티몰 그룹의 매출은 1% 감소한 반면, 클라우드 인텔리전스 그룹의 매출은 AI 관련 제품에 힘입어 6% 증가했습니다. 알리바바 국제 디지털 상거래 그룹은 32%의 매출 성장을 기록했습니다. 카이니아오 및 지역 서비스 그룹의 매출은 각각 16%와 12% 증가했습니다. 디지털 미디어 및 엔터테인먼트 그룹의 매출도 4% 증가했습니다.
Le groupe Alibaba (NYSE: BABA) a annoncé ses résultats financiers pour le trimestre se terminant le 30 juin 2024. Le chiffre d'affaires a augmenté de 4% par rapport à l'année précédente, atteignant 243,236 millions RMB (33,470 millions USD). L'entreprise a enregistré une baisse de 15% de son résultat d'exploitation, s'élevant à 35,989 millions RMB (4,952 millions USD). L'EBITA ajusté a légèrement baissé de 1%, atteignant 45,035 millions RMB (6,197 millions USD).
Le bénéfice net a chuté de 27%, atteignant 24,022 millions RMB (3,306 millions USD), principalement en raison de revenus d'exploitation inférieurs et de provisions pour dépréciation sur investissements plus élevées. Le flux de trésorerie disponible a diminué de 56%, s'établissant à 17,372 millions RMB (2,390 millions USD), en raison des investissements accrus dans les infrastructures d'Alibaba Cloud. L'entreprise a racheté des actions d'une valeur de 5,8 milliards USD.
Les revenus du groupe Taobao et Tmall ont diminué de 1%, tandis que ceux du Cloud Intelligence Group ont augmenté de 6%, soutenus par des produits liés à l'IA. Le groupe Alibaba International Digital Commerce a connu une croissance de 32% de son chiffre d'affaires. Les revenus des groupes Cainiao et Local Services ont respectivement augmenté de 16% et 12%. Les revenus du groupe Digital Media and Entertainment ont également augmenté de 4%.
Die Alibaba Group (NYSE: BABA) hat ihre finanziellen Ergebnisse für das im Juni 2024 endende Quartal bekannt gegeben. Der Umsatz stieg im Vergleich zum Vorjahr um 4% auf RMB243.236 Millionen (USD$33.470 Millionen). Das Unternehmen verzeichnete einen Rückgang des operativen Ergebnisses um 15% auf RMB35.989 Millionen (USD$4.952 Millionen). Das bereinigte EBITA fiel um 1% auf RMB45.035 Millionen (USD$6.197 Millionen).
Der Nettogewinn sank um 27% auf RMB24.022 Millionen (USD$3.306 Millionen), was hauptsächlich auf geringere operative Einnahmen und höhere Abschreibungen auf Investitionen zurückzuführen ist. Der freie Cashflow ging um 56% auf RMB17.372 Millionen (USD$2.390 Millionen) zurück, was auf erhöhte Investitionen in die Infrastruktur von Alibaba Cloud zurückzuführen ist. Das Unternehmen hat Aktien im Wert von USD$5,8 Milliarden zurückgekauft.
Die Einnahmen der Taobao- und Tmall-Gruppe sanken um 1%, während die Einnahmen der Cloud Intelligence Group um 6% stiegen, angetrieben durch KI-bezogene Produkte. Die Alibaba International Digital Commerce Group verzeichnete ein Umsatzwachstum von 32%. Die Umsätze von Cainiao und Local Services Group wuchsen um 16% bzw. 12%. Auch die Einnahmen der Digital Media and Entertainment Group stiegen um 4%.
- Revenue increased by 4% year-over-year to RMB243,236 million (USD$33,470 million).
- Cloud Intelligence Group revenue rose by 6% to RMB26,549 million (USD$3,653 million), driven by AI-related products.
- Alibaba International Digital Commerce Group's revenue grew 32% year-over-year to RMB29,293 million (USD$4,031 million).
- Cainiao revenue increased by 16% to RMB26,811 million (USD$3,689 million).
- Local Services Group's revenue grew by 12% to RMB16,229 million (USD$2,233 million).
- Income from operations decreased by 15% year-over-year to RMB35,989 million (USD$4,952 million).
- Net income declined by 27% year-over-year to RMB24,022 million (USD$3,306 million).
- Free cash flow dropped by 56% year-over-year to RMB17,372 million (USD$2,390 million).
- Net cash provided by operating activities decreased by 26% year-over-year to RMB33,636 million (USD$4,628 million).
Alibaba's Q2 2024 results show a mixed picture. Revenue grew 4% YoY to
Key positives include:
- Cloud Intelligence Group revenue grew 6% YoY, with public cloud and AI-related products driving growth
- International Digital Commerce Group revenue surged 32% YoY
- Local Services Group narrowed losses significantly
Concerns include:
- 15% YoY decrease in income from operations to
RMB35,989 million - Taobao and Tmall Group revenue declined 1% YoY
- Free cash flow dropped 56% YoY to
RMB17,372 million
Overall, while Alibaba is investing for future growth, near-term profitability is under pressure. The company's focus on AI and international expansion shows promise, but investors should monitor the core e-commerce business closely.
Alibaba's Q2 results highlight its strategic pivot towards AI and cloud computing. The 6% YoY growth in Cloud Intelligence Group revenue, driven by public cloud and AI-related products, is particularly noteworthy. The triple-digit YoY growth in AI-related product revenue indicates Alibaba's strong positioning in this rapidly evolving sector.
Key technological advancements include:
- Recognition in Gartner's Magic Quadrant for Data Science and Machine Learning Platforms
- Launch of Qwen 2.0 large language model series
- 200% QoQ increase in paying users for Alibaba Cloud's AI platform
- Deployment of AI technology in 14 Olympic venues for real-time 360-degree replays
These developments showcase Alibaba's commitment to innovation and its potential to compete globally in AI and cloud services. However, the company must balance these investments with maintaining profitability in its core e-commerce business.
Alibaba's Q2 results reveal interesting consumer trends and market dynamics. The high-single-digit online GMV growth and double-digit order growth in Taobao and Tmall Group suggest resilient consumer demand despite economic headwinds. The success of the 6.18 Shopping Festival indicates effective promotional strategies and consumer responsiveness to price-competitive offerings.
Key consumer insights:
- Increased consumer retention and purchase frequency
- Growing popularity of the 88VIP membership program, surpassing 42 million members
- Strong performance of the Choice business on AliExpress, particularly in Europe and the Gulf region
- 12% YoY growth in Local Services Group revenue, reflecting robust demand for on-demand services
These trends highlight Alibaba's ability to adapt to changing consumer preferences and expand its ecosystem. The focus on enhancing user experience and offering quality products at competitive prices appears to be resonating with consumers, potentially strengthening Alibaba's market position in the long term.
“Our results this quarter demonstrated our strategy at work. Our focus on enhancing user experience by offering quality products at attractive prices with great service led to stabilizing market share of Taobao and Tmall Group as we returned the business on the growth trajectory. The cloud business achieved positive revenue growth momentum, driven by public cloud and AI-related product adoption as we continue to invest to maintain our market leadership,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
“In this quarter, we continue to invest for growth in our core businesses while reducing losses in other business units through operating efficiency. We maintained the integrity of our margins and delivered consistent adjusted EBITA. We also returned significant value to shareholders at a pace higher than past quarters, as we made
BUSINESS HIGHLIGHTS
In the quarter ended June 30, 2024:
-
Revenue was
RMB243,236 million (US ), an increase of$33,470 million 4% year-over-year.
-
Income from operations was
RMB35,989 million (US ), a decrease of$4,952 million 15% orRMB6,501 million year-over-year, primarily due to a reversal of share-based compensation expense ofRMB6,901 million during the same quarter in the prior year, as discussed in “June Quarter Other Financial Results” below. We excluded non-cash share-based compensation expense from our non-GAAP measurements. Adjusted EBITA, a non-GAAP measurement, decreased1% year-over-year toRMB45,035 million (US ).$6,197 million
-
Net income attributable to ordinary shareholders was
RMB24,269 million (US ). Net income was$3,340 million RMB24,022 million (US ), a decrease of$3,306 million 27% year-over-year, primarily due to a decrease in income from operations and the increase in impairment of our investments, partly offset by the mark-to-market changes from our equity investments. Non-GAAP net income in the quarter ended June 30, 2024 wasRMB40,691 million (US ), a decrease of$5,599 million 9% compared toRMB44,922 million in the same quarter of 2023.
-
Diluted earnings per ADS was
RMB9.89 (US ). Diluted earnings per share was$1.36 RMB1.24 (US or$0.17 HK ). Non-GAAP diluted earnings per ADS was$1.36 RMB16.44 (US ), a decrease of$2.26 5% year-over-year. Non-GAAP diluted earnings per share wasRMB2.05 (US or$0.28 HK ), a decrease of$2.25 5% year-over-year.
-
Net cash provided by operating activities was
RMB33,636 million (US ), a decrease of$4,628 million 26% compared toRMB45,306 million in the same quarter of 2023. Free cash flow, a non-GAAP measurement of liquidity, wasRMB17,372 million (US ), a decrease of$2,390 million 56% compared toRMB39,089 million in the same quarter of 2023. The decrease in free cash flow mainly reflected the increase in expenditure related to our investments in Alibaba Cloud infrastructure and other working capital changes related to factors including our planned reduction of direct sales businesses.
Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.
BUSINESS AND STRATEGIC UPDATES
Taobao and Tmall Group
We increased investment in strategic initiatives such as price-competitive products, customer service, membership program benefits and technology, with the aim to enhance user experience. These efforts led to better consumer retention, increased purchase frequency, and positive feedback regarding the overall shopping experience.
We improved matching of products with user needs and conversion of user traffic to purchases through investments in technology such as recommendation and matching algorithms, as well as increasing price-competitive offerings through diversification of suppliers. In April, we launched our new AI-powered platform-wide marketing tool, Quanzhantui, which features automated bidding, optimized targeting and performance dashboard visualization. This new product aims at increasing merchants’ marketing spending and improving their marketing efficiency, and we have observed steady increase in merchant adoption.
During the quarter, we achieved high-single-digit online GMV growth and double-digit order growth year-over-year, driven by increase in the number of purchasers and purchase frequency. In particular, we had a successful 6.18 Shopping Festival, which delivered strong online GMV growth year-over-year, as we implemented user-friendly promotion mechanisms and increased mindshare for being a comprehensive and price-competitive shopping destination.
The number of 88VIP members continued to increase by double-digits year-over-year, surpassing 42 million during the quarter. We aim to enlarge our pool of premium shoppers by continuing increasing the subscription of 88VIP membership and enhancing their purchase willingness through improved benefits and services.
Cloud Intelligence Group
For the quarter ended June 30, 2024, revenue from Cloud Intelligence Group was
During this quarter, overall revenue excluding Alibaba-consolidated subsidiaries grew over
Alibaba Cloud has gained notable recognition as the cloud service provider of choice in
Our ongoing commitment to open-source development has led to widespread recognition of our Qwen 2.0 series of large language models among global developers. Qwen 2.0 demonstrates substantial performance improvements across areas such as reasoning, code generation and mathematics, while enhancing safety features and expanding to support 27 languages. The number of paying users using Alibaba Cloud’s AI platform (百炼) increased by over
During the
Alibaba International Digital Commerce Group (“AIDC”)
For the quarter ended June 30, 2024, revenue from AIDC grew
The AliExpress platform expanded its supplier base and now includes local merchants to enrich its product offerings and better meet the needs of local consumers. During the quarter, AliExpress and Magazine Luiza (“Magalu”), a leading retailer in
Cainiao Smart Logistics Network Limited (“Cainiao”)
For the quarter ended June 30, 2024, revenue from Cainiao grew
We continue to drive synergies between Cainiao and our cross-border e-commerce business, as Cainiao executes its strategy to strengthen its end-to-end capabilities through developing a highly-digitalized global logistics network.
Local Services Group
For the quarter ended June 30, 2024, revenue from Local Services Group grew by
Digital Media and Entertainment Group
During the quarter ended June 30, 2024, revenue of Digital Media and Entertainment Group was
ESG Updates
In July, we published our 2024 Environmental, Social and Governance Report. The report provides updates on our key ESG strategic dimensions, including progress and performance in key initiatives such as our carbon neutrality pledges. The full version of the report is available on our official website.
Share Repurchases
During the quarter ended June 30, 2024, we repurchased a total of 613 million ordinary shares (equivalent to 77 million ADSs) for a total of
As of June 30, 2024, we had 19,024 million ordinary shares (equivalent to 2,378 million ADSs) outstanding, a net decrease of 445 million ordinary shares compared to March 31, 2024, or a
JUNE QUARTER SUMMARY FINANCIAL RESULTS |
||||||||
|
Three months ended June 30, |
|
||||||
|
2023 |
2024 |
|
|||||
|
RMB |
RMB |
US$ |
YoY %
|
||||
|
(in millions, except percentages and per share amounts) |
|||||||
|
|
|
|
|
||||
Revenue |
234,156 |
243,236 |
33,470 |
|
||||
|
|
|
|
|
||||
Income from operations |
42,490 |
35,989 |
4,952 |
(15)%(2) |
||||
Operating margin |
|
|
|
|
||||
Adjusted EBITDA(1) |
52,052 |
51,161 |
7,040 |
(2)%(3) |
||||
Adjusted EBITDA margin(1) |
|
|
|
|
||||
Adjusted EBITA(1) |
45,371 |
45,035 |
6,197 |
(1)%(3) |
||||
Adjusted EBITA margin(1) |
|
|
|
|
||||
|
|
|
|
|
||||
Net income |
33,000 |
24,022 |
3,306 |
(27)%(4) |
||||
Net income attributable to ordinary shareholders |
34,332 |
24,269 |
3,340 |
(29)%(4) |
||||
Non-GAAP net income(1) |
44,922 |
40,691 |
5,599 |
(9)%(4) |
||||
|
|
|
|
|
||||
Diluted earnings per share(5) |
1.66 |
1.24 |
0.17 |
(26)%(4)(6) |
||||
Diluted earnings per ADS(5) |
13.30 |
9.89 |
1.36 |
(26)%(4)(6) |
||||
Non-GAAP diluted earnings per share(1) (5) |
2.17 |
2.05 |
0.28 |
(5)%(4)(6) |
||||
Non-GAAP diluted earnings per ADS(1) (5) |
17.37 |
16.44 |
2.26 |
(5)%(4)(6) |
____________________ | ||
(1) |
See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable |
|
(2) |
The year-over-year decrease was primarily due to a reversal of share-based compensation expense of |
|
(3) |
The year-over-year decreases were primarily attributable to the increase in investments in our e-commerce businesses, partly offset by improved operating efficiency. |
|
(4) |
The year-over-year decreases were primarily due to a decrease in income from operations and the increase in impairment of our investments, partly offset by the mark-to-market changes from our equity investments, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss attributable to noncontrolling interests. We excluded non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements. |
|
(5) |
Each ADS represents eight ordinary shares. |
|
(6) |
The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding. |
JUNE QUARTER SEGMENT RESULTS
Revenue for the quarter ended June 30, 2024 was
The following table sets forth a breakdown of our revenue by segment for the periods indicated(1):
|
Three months ended June 30, |
|
|
|||||
|
2023 |
|
2024 |
|
YoY % |
|||
|
RMB |
|
RMB |
|
US$ |
|
Change |
|
|
(in millions, except percentages) |
|||||||
Taobao and Tmall Group: |
|
|
|
|
||||
|
|
|
|
|
||||
- Customer management |
79,661 |
|
80,115 |
|
11,024 |
|
|
|
- Direct sales and others(2) |
30,167 |
|
27,306 |
|
3,758 |
|
(9)% |
|
|
109,828 |
|
107,421 |
|
14,782 |
|
(2)% |
|
|
5,125 |
|
5,952 |
|
819 |
|
|
|
Total Taobao and Tmall Group |
114,953 |
|
113,373 |
|
15,601 |
|
(1)% |
|
|
|
|
|
|
|
|
|
|
Cloud Intelligence Group |
25,065 |
|
26,549 |
|
3,653 |
|
|
|
|
|
|
|
|
|
|
|
|
Alibaba International Digital Commerce Group: |
|
|
|
|
|
|
|
|
International commerce retail |
17,138 |
|
23,691 |
|
3,260 |
|
|
|
International commerce wholesale |
4,985 |
|
5,602 |
|
771 |
|
|
|
Total Alibaba International Digital Commerce Group |
22,123 |
|
29,293 |
|
4,031 |
|
|
|
|
|
|
|
|
|
|
|
|
Cainiao Smart Logistics Network Limited |
23,164 |
|
26,811 |
|
3,689 |
|
|
|
Local Services Group |
14,450 |
|
16,229 |
|
2,233 |
|
|
|
Digital Media and Entertainment Group |
5,381 |
|
5,581 |
|
768 |
|
|
|
All others(3) |
45,798 |
|
47,001 |
|
6,468 |
|
|
|
Total segment revenue |
250,934 |
|
264,837 |
|
36,443 |
|
|
|
Unallocated |
249 |
|
419 |
|
58 |
|
|
|
Inter-segment elimination |
(17,027) |
|
(22,020) |
|
(3,031) |
|
|
|
Consolidated revenue |
234,156 |
|
243,236 |
|
33,470 |
|
|
____________________ | ||
(1) |
Starting from the quarter ended September 30, 2023, we reclassified the revenue of our DingTalk business, which was previously reported under Cloud Intelligence Group, to All others, the purpose of which was to provide DingTalk with greater autonomy to promote innovation and enhance competitiveness. Our CODM started to review information under this new reporting structure and segment reporting has been updated to conform to this change as well as the way we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. |
|
(2) |
Direct sales and others revenue under Taobao and Tmall Group primarily represents Tmall Supermarket, Tmall Global and other direct sales businesses, where revenue and cost of inventory are recorded on a gross basis. |
|
(3) |
All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, DingTalk (previously reported under Cloud Intelligence Group segment) and other businesses. The majority of revenue within All others consists of direct sales revenue, which is recorded on a gross basis. |
The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated(1):
|
Three months ended June 30, |
|
||||||
|
2023 |
2024 |
YoY % |
|||||
|
RMB |
RMB |
US$ |
Change(4) |
||||
|
(in millions, except percentages) |
|||||||
Taobao and Tmall Group |
49,319 |
48,810 |
6,716 |
(1)% |
||||
Cloud Intelligence Group |
916 |
2,337 |
322 |
|
||||
Alibaba International Digital Commerce Group |
(420) |
(3,706) |
(510) |
(782)% |
||||
Cainiao Smart Logistics Network Limited |
877 |
618 |
85 |
(30)% |
||||
Local Services Group |
(1,982) |
(386) |
(53) |
|
||||
Digital Media and Entertainment Group |
63 |
(103) |
(14) |
N/A |
||||
All others(2) |
(1,733) |
(1,263) |
(174) |
|
||||
Total segment adjusted EBITA |
47,040 |
46,307 |
6,372 |
(2)% |
||||
Unallocated(3) |
(1,463) |
(871) |
(120) |
|
||||
Inter-segment elimination |
(206) |
(401) |
(55) |
|
||||
Consolidated adjusted EBITA |
45,371 |
45,035 |
6,197 |
(1)% |
||||
Less: Non-cash share-based compensation expense |
1,629 |
(4,109) |
(565) |
|
||||
Less: Amortization and impairment of intangible assets |
(2,479) |
(1,792) |
(247) |
|
||||
Less: Impairment of goodwill |
(2,031) |
– |
– |
|
||||
Less: Provision for the shareholder class action lawsuits |
– |
(3,145) |
(433) |
|
||||
Income from operations |
42,490 |
35,989 |
4,952 |
(15)% |
____________________ | ||
(1) |
Starting from the quarter ended September 30, 2023, we reclassified the results of our DingTalk business, which was previously reported under Cloud Intelligence Group, to All others, the purpose of which was to provide DingTalk with greater autonomy to promote innovation and enhance competitiveness. Our CODM started to review information under this new reporting structure and segment reporting has been updated to conform to this change as well as the way we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. |
|
(2) |
All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, DingTalk (previously reported under Cloud Intelligence Group segment) and other businesses. |
|
(3) |
Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments. |
|
(4) |
For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate. |
Taobao and Tmall Group
(i) Segment revenue
-
China Commerce Retail Business
Revenue from ourChina commerce retail business in the quarter ended June 30, 2024 wasRMB107,421 million (US ), a decrease of$14,782 million 2% compared toRMB109,828 million in the same quarter of 2023 due to the9% decrease in direct sales revenue described below.
Customer management revenue increased by1% year-over-year, primarily due to a high-single-digit year-over-year growth in online GMV, partly offset by a decline in take rate. The year-over-year decrease in take rate was primarily due to increasing proportion of GMV generated from new models that currently have lower monetization rates.
Direct sales and others revenue underChina commerce retail business in the quarter ended June 30, 2024 wasRMB27,306 million (US ), a decrease of$3,758 million 9% compared toRMB30,167 million in the same quarter of 2023, primarily attributable to the decline in sales of consumer electronics and appliances due to our planned reduction of certain direct sales businesses, partly offset by the increase in sales of groceries.
-
China Commerce Wholesale Business
Revenue from ourChina commerce wholesale business in the quarter ended June 30, 2024 wasRMB5,952 million (US ), an increase of$819 million 16% compared toRMB5,125 million in the same quarter of 2023, primarily due to an increase in revenue from value-added services provided to paying members.
(ii) Segment adjusted EBITA
Taobao and Tmall Group adjusted EBITA decreased by
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA increased by
Alibaba International Digital Commerce Group
(i) Segment revenue
-
International Commerce Retail Business
Revenue from our International commerce retail business in the quarter ended June 30, 2024 wasRMB23,691 million (US ), an increase of$3,260 million 38% compared toRMB17,138 million in the same quarter of 2023, primarily driven by order growth from AliExpress’ Choice, as well as improvements in monetization. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate fluctuations.
-
International Commerce Wholesale Business
Revenue from our International commerce wholesale business in the quarter ended June 30, 2024 wasRMB5,602 million (US ), an increase of$771 million 12% compared toRMB4,985 million in the same quarter of 2023, primarily due to an increase in revenue generated by cross-border-related value-added services.
(ii) Segment adjusted EBITA
Alibaba International Digital Commerce Group adjusted EBITA was a loss of
Cainiao Smart Logistics Network Limited
(i) Segment revenue
Revenue from Cainiao Smart Logistics Network Limited was
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited adjusted EBITA decreased by
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was
(ii) Segment adjusted EBITA
Local Services Group adjusted EBITA was a loss of
Digital Media and Entertainment Group
(i) Segment revenue
Revenue from Digital Media and Entertainment Group was
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group adjusted EBITA in the quarter ended June 30, 2024 was a loss of
All Others
(i) Segment revenue
Revenue from All others segment was
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the quarter ended June 30, 2024 was a loss of
JUNE QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:
|
Three months ended June 30, |
% of Revenue
|
||||||||||
|
2023 |
2024 |
||||||||||
|
RMB |
% of
|
RMB |
US$ |
% of
|
|||||||
|
(in millions, except percentages) |
|||||||||||
Costs and expenses: |
|
|
|
|
|
|
||||||
Cost of revenue |
142,347 |
|
146,106 |
20,105 |
|
(0.7)% |
||||||
Product development expenses |
10,465 |
|
13,373 |
1,840 |
|
|
||||||
Sales and marketing expenses |
27,047 |
|
32,696 |
4,499 |
|
|
||||||
General and administrative expenses |
7,297 |
|
13,280 |
1,827 |
|
|
||||||
Amortization and impairment of intangible assets |
2,479 |
|
1,792 |
247 |
|
(0.4)% |
||||||
Impairment of goodwill |
2,031 |
|
– |
– |
– |
(0.9)% |
||||||
Total costs and expenses |
191,666 |
|
207,247 |
28,518 |
|
|
||||||
|
|
|
|
|
|
|
||||||
Share-based compensation expense: |
|
|
|
|
|
|
||||||
Cost of revenue |
(307) |
(0.1)% |
586 |
80 |
|
|
||||||
Product development expenses |
(242) |
(0.1)% |
1,803 |
248 |
|
|
||||||
Sales and marketing expenses |
(125) |
(0.1)% |
399 |
55 |
|
|
||||||
General and administrative expenses |
(955) |
(0.4)% |
1,343 |
185 |
|
|
||||||
Total share-based compensation expense |
(1,629) |
|
4,131 |
568 |
|
|
||||||
|
|
|
|
|
|
|
||||||
Costs and expenses excluding share-based compensation expense: |
|
|
|
|
|
|
||||||
Cost of revenue |
142,654 |
|
145,520 |
20,025 |
|
(1.1)% |
||||||
Product development expenses |
10,707 |
|
11,570 |
1,592 |
|
|
||||||
Sales and marketing expenses |
27,172 |
|
32,297 |
4,444 |
|
|
||||||
General and administrative expenses |
8,252 |
|
11,937 |
1,642 |
|
|
||||||
Amortization and impairment of intangible assets |
2,479 |
|
1,792 |
247 |
|
(0.4)% |
||||||
Impairment of goodwill |
2,031 |
|
– |
– |
– |
(0.9)% |
||||||
Total costs and expenses excluding share-based compensation expense |
193,295 |
203,116 |
27,950 |
|
|
Cost of revenue – Cost of revenue in the quarter ended June 30, 2024 was
Product development expenses – Product development expenses in the quarter ended June 30, 2024 were
Sales and marketing expenses – Sales and marketing expenses in the quarter ended June 30, 2024 were
General and administrative expenses – General and administrative expenses in the quarter ended June 30, 2024 were
Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the quarter ended June 30, 2024 was
The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:
|
Three months ended June 30, |
|
|
|||||
|
2023 |
|
2024 |
|
|
|||
|
RMB |
|
RMB |
|
US$ |
|
YoY % Change |
|
|
(in millions, except percentages) |
|||||||
By type of awards: |
|
|
|
|
||||
Alibaba Group share-based awards(1) |
4,267 |
3,091 |
425 |
(28)% |
||||
Ant Group share-based awards(2) |
(6,834) |
(27) |
(4) |
(100)% |
||||
Others(3) |
938 |
1,067 |
147 |
|
||||
Total share-based compensation expense |
(1,629) |
4,131 |
568 |
N/A |
____________________ | ||
(1) |
This represents Alibaba Group share-based awards granted to our employees. |
|
(2) |
This represents Ant Group share-based awards granted to our employees, which is subject to mark-to-market accounting treatment. |
|
(3) |
This represents share-based awards of our subsidiaries. |
Share-based compensation expense related to Alibaba Group share-based awards decreased in the quarter ended June 30, 2024 compared to the same quarter of 2023. This decrease was primarily due to the general decrease in the average fair market value and number of the awards granted.
Share-based compensation expense related to Ant Group share-based awards was a net reversal for the quarter ended June 30, 2023 because we made a mark-to-market adjustment during the quarter relating to Ant Group share-based awards granted to our employees, reflecting a decrease in the value of Ant Group.
We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.
Amortization and impairment of intangible assets – Amortization and impairment of intangible assets in the quarter ended June 30, 2024 was
Impairment of goodwill – Impairment of goodwill of
Income from operations and operating margin
Income from operations in the quarter ended June 30, 2024 was
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA decreased
Adjusted EBITA by segment
Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled “June Quarter Segment Results” above.
Interest and investment income, net
Interest and investment income, net in the quarter ended June 30, 2024 was a loss of
The above-mentioned investment gains and losses were excluded from our non-GAAP net income.
Other income, net
Other income, net in the quarter ended June 30, 2024 was
Income tax expenses
Income tax expenses in the quarter ended June 30, 2024 were
Share of results of equity method investees
Share of results of equity method investees in the quarter ended June 30, 2024 was
|
Three months ended June 30, |
|||||
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions) |
|||||
Share of profit (loss) of equity method investees |
|
|
|
|||
- Ant Group |
4,364 |
3,917 |
539 |
|||
- Others |
(502) |
(588) |
(81) |
|||
Impairment loss |
(12) |
(2,157) |
(297) |
|||
Others(1) |
(1,000) |
333 |
46 |
|||
Total |
2,850 |
1,505 |
207 |
____________________ | ||
(1) |
“Others” mainly include basis differences arising from equity method investees, share-based compensation expense related to share-based awards granted to employees of our equity method investees, as well as gain or loss arising from the deemed disposal of the equity method investees. |
We record our share of results of all equity method investees one quarter in arrears. We recorded an impairment loss of
Net income and Non-GAAP net income
Our net income in the quarter ended June 30, 2024 was
Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in the quarter ended June 30, 2024 was
Net income attributable to ordinary shareholders
Net income attributable to ordinary shareholders in the quarter ended June 30, 2024 was
Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended June 30, 2024 was
Diluted earnings per share in the quarter ended June 30, 2024 was
A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares.
Cash and cash equivalents, short-term investments and other treasury investments
As of June 30, 2024, cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, were
Net cash provided by operating activities and free cash flow
During the quarter ended June 30, 2024, net cash provided by operating activities was
Net cash used in investing activities
During the quarter ended June 30, 2024, net cash used in investing activities of
Net cash used in financing activities
During the quarter ended June 30, 2024, net cash used in financing activities of
Employees
As of June 30, 2024, we had a total of 198,162 employees, compared to 204,891 as of March 31, 2024.
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group’s management will hold a conference call to discuss the financial results at 7:30 a.m.
All participants must pre-register to join this conference call using the Participant Registration link below:
English: https://s1.c-conf.com/diamondpass/10040376-uTdhw.html
Chinese: https://s1.c-conf.com/diamondpass/10040377-puyhg.html
Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference.
A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en-US/ir-financial-reports-quarterly-results. An archived webcast will be available through the same link following the call. A replay of the conference call will be available for one week from the date of the conference (Dial-in number: +1 855 883 1031; English conference PIN 10040376; Chinese conference PIN 10040377).
Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en-US/investor-relations on August 15, 2024 to view the earnings release and accompanying slides prior to the conference call.
ABOUT ALIBABA GROUP
Alibaba Group’s mission is to make it easy to do business anywhere. The company aims to build the future infrastructure of commerce. It envisions that its customers will meet, work and live at Alibaba, and that it will be a good company that lasts for 102 years.
EXCHANGE RATE INFORMATION
This results announcement contains translations of certain Renminbi (“RMB”) amounts into
SAFE HARBOR STATEMENTS
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
NON-GAAP FINANCIAL MEASURES
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non-GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable
We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results.
We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet.
Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by
Adjusted EBITDA represents net income before interest and investment income, net, interest expense, other income, net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.
Adjusted EBITA represents net income before interest and investment income, net, interest expense, other income, net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.
Non-GAAP net income represents net income before non-cash share-based compensation expense, amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments, and others (including provision in relation to matters outside the ordinary course of business), and adjustments for the tax effects.
Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.
Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants.
The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable
ALIBABA GROUP HOLDING LIMITED |
||||||
UNAUDITED CONSOLIDATED INCOME STATEMENTS |
||||||
|
Three months ended June 30, |
|||||
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions, except per share data) |
|||||
Revenue |
234,156 |
243,236 |
33,470 |
|||
Cost of revenue |
(142,347) |
(146,106) |
(20,105) |
|||
Product development expenses |
(10,465) |
(13,373) |
(1,840) |
|||
Sales and marketing expenses |
(27,047) |
(32,696) |
(4,499) |
|||
General and administrative expenses |
(7,297) |
(13,280) |
(1,827) |
|||
Amortization and impairment of intangible assets |
(2,479) |
(1,792) |
(247) |
|||
Impairment of goodwill |
(2,031) |
– |
– |
|||
|
|
|
|
|||
Income from operations |
42,490 |
35,989 |
4,952 |
|||
Interest and investment income, net |
(5,898) |
(1,478) |
(203) |
|||
Interest expense |
(1,784) |
(2,188) |
(301) |
|||
Other income, net |
1,364 |
257 |
35 |
|||
|
|
|
|
|||
Income before income tax and share of results of equity method investees |
36,172 |
32,580 |
4,483 |
|||
Income tax expenses |
(6,022) |
(10,063) |
(1,384) |
|||
Share of results of equity method investees |
2,850 |
1,505 |
207 |
|||
|
|
|
|
|||
Net income |
33,000 |
24,022 |
3,306 |
|||
Net loss attributable to noncontrolling interests |
1,242 |
368 |
50 |
|||
|
|
|
|
|||
Net income attributable to Alibaba Group Holding Limited |
34,242 |
24,390 |
3,356 |
|||
|
|
|
|
|||
Accretion of mezzanine equity |
90 |
(121) |
(16) |
|||
Net income attributable to ordinary shareholders |
34,332 |
24,269 |
3,340 |
|||
|
|
|
|
|||
Earnings per share attributable to ordinary shareholders(1) |
|
|
|
|||
Basic |
1.68 |
1.26 |
0.17 |
|||
Diluted |
1.66 |
1.24 |
0.17 |
|||
|
|
|
|
|||
Earnings per ADS attributable to ordinary shareholders(1) |
|
|
|
|||
Basic |
13.40 |
10.04 |
1.38 |
|||
Diluted |
13.30 |
9.89 |
1.36 |
|||
|
|
|
|
|||
Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1) |
|
|
|
|||
Basic |
20,493 |
19,329 |
|
|||
Diluted |
20,608 |
19,595 |
|
____________________ | ||
(1) |
Each ADS represents eight ordinary shares. |
ALIBABA GROUP HOLDING LIMITED |
||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
|
As of March 31, |
|
As of June 30, |
|||
|
2024 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions) |
|||||
Assets |
|
|
|
|||
Current assets: |
|
|
|
|||
Cash and cash equivalents |
248,125 |
219,167 |
30,158 |
|||
Short-term investments |
262,955 |
176,030 |
24,223 |
|||
Restricted cash and escrow receivables |
38,299 |
46,141 |
6,349 |
|||
Equity securities and other investments |
59,949 |
53,727 |
7,393 |
|||
Prepayments, receivables and other assets |
143,536 |
158,625 |
21,828 |
|||
Total current assets |
752,864 |
653,690 |
89,951 |
|||
|
||||||
Equity securities and other investments |
220,942 |
330,935 |
45,538 |
|||
Prepayments, receivables and other assets |
116,102 |
117,340 |
16,146 |
|||
Investment in equity method investees |
203,131 |
203,873 |
28,054 |
|||
Property and equipment, net |
185,161 |
194,222 |
26,726 |
|||
Intangible assets, net |
26,950 |
25,272 |
3,478 |
|||
Goodwill |
259,679 |
259,722 |
35,739 |
|||
Total assets |
1,764,829 |
1,785,054 |
245,632 |
|||
|
|
|
|
|||
Liabilities, Mezzanine Equity and Shareholders’ Equity |
|
|
|
|||
Current liabilities: |
|
|
|
|||
Current bank borrowings |
12,749 |
13,567 |
1,867 |
|||
Current unsecured senior notes |
16,252 |
16,343 |
2,249 |
|||
Income tax payable |
9,068 |
6,868 |
945 |
|||
Accrued expenses, accounts payable and other liabilities |
297,883 |
339,279 |
46,686 |
|||
Merchant deposits |
12,737 |
12,449 |
1,713 |
|||
Deferred revenue and customer advances |
72,818 |
74,384 |
10,236 |
|||
Total current liabilities |
421,507 |
462,890 |
63,696 |
ALIBABA GROUP HOLDING LIMITED |
||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) |
||||||
|
As of March 31, |
|
As of June 30, |
|||
|
2024 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions) |
|||||
Deferred revenue |
4,069 |
4,313 |
593 |
|||
Deferred tax liabilities |
53,012 |
54,279 |
7,469 |
|||
Non-current bank borrowings |
55,686 |
55,631 |
7,655 |
|||
Non-current unsecured senior notes |
86,089 |
86,574 |
11,913 |
|||
Non-current convertible unsecured senior notes |
– |
35,822 |
4,929 |
|||
Other liabilities |
31,867 |
32,185 |
4,429 |
|||
Total liabilities |
652,230 |
731,694 |
100,684 |
|||
|
|
|
|
|||
Commitments and contingencies |
|
|
|
|||
Mezzanine equity |
10,728 |
10,903 |
1,501 |
|||
Shareholders’ equity: |
|
|
|
|||
Ordinary shares |
1 |
1 |
– |
|||
Additional paid-in capital |
397,999 |
381,469 |
52,492 |
|||
Treasury shares at cost |
(27,684) |
(27,687) |
(3,810) |
|||
Statutory reserves |
14,733 |
15,056 |
2,072 |
|||
Accumulated other comprehensive income |
3,598 |
4,446 |
612 |
|||
Retained earnings |
597,897 |
564,740 |
77,711 |
|||
|
|
|
|
|||
Total shareholders’ equity |
986,544 |
938,025 |
129,077 |
|||
Noncontrolling interests |
115,327 |
104,432 |
14,370 |
|||
|
|
|
|
|||
Total equity |
1,101,871 |
1,042,457 |
143,447 |
|||
|
|
|
||||
Total liabilities, mezzanine equity and equity |
1,764,829 |
1,785,054 |
245,632 |
ALIBABA GROUP HOLDING LIMITED |
||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
|
Three months ended June 30, |
|||||
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions) |
|||||
|
|
|
|
|||
Net cash provided by operating activities |
45,306 |
|
33,636 |
|
4,628 |
|
Net cash provided by (used in) investing activities |
12,595 |
|
(35,829) |
|
(4,930) |
|
Net cash used in financing activities |
(24,636) |
|
(19,582) |
|
(2,695) |
|
Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables |
4,319 |
|
659 |
|
91 |
|
|
|
|
|
|
|
|
Increase (Decrease) in cash and cash equivalents, restricted cash and escrow receivables |
37,584 |
|
(21,116) |
|
(2,906) |
|
Cash and cash equivalents, restricted cash and escrow receivables at beginning of period |
229,510 |
|
286,424 |
|
39,413 |
|
|
|
|
|
|
|
|
Cash and cash equivalents, restricted cash and escrow receivables at end of period |
267,094 |
|
265,308 |
|
36,507 |
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE
The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated:
|
Three months ended June 30, |
|||||
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions) |
|||||
Net income |
33,000 |
|
24,022 |
|
3,306 |
|
Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA: |
|
|
|
|
|
|
Interest and investment income, net |
5,898 |
|
1,478 |
|
203 |
|
Interest expense |
1,784 |
|
2,188 |
|
301 |
|
Other income, net |
(1,364) |
|
(257) |
|
(35) |
|
Income tax expenses |
6,022 |
|
10,063 |
|
1,384 |
|
Share of results of equity method investees |
(2,850) |
|
(1,505) |
|
(207) |
|
Income from operations |
42,490 |
|
35,989 |
|
4,952 |
|
Non-cash share-based compensation expense |
(1,629) |
|
4,109 |
|
565 |
|
Amortization and impairment of intangible assets |
2,479 |
|
1,792 |
|
247 |
|
Impairment of goodwill |
2,031 |
|
– |
|
– |
|
Provision for the shareholder class action lawsuits |
– |
|
3,145 |
|
433 |
|
Adjusted EBITA |
45,371 |
|
45,035 |
|
6,197 |
|
Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights |
6,681 |
|
6,126 |
|
843 |
|
Adjusted EBITDA |
52,052 |
|
51,161 |
|
7,040 |
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE
The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated:
|
Three months ended June 30, |
|||||
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions) |
|||||
|
|
|
|
|||
Net income |
33,000 |
|
24,022 |
|
3,306 |
|
Adjustments to reconcile net income to non-GAAP net income: |
|
|
|
|
|
|
Non-cash share-based compensation expense |
(1,629) |
|
4,109 |
|
565 |
|
Amortization and impairment of intangible assets |
2,479 |
|
1,792 |
|
247 |
|
Provision for the shareholder class action lawsuits |
– |
|
3,145 |
|
433 |
|
Loss on deemed disposals/disposals/revaluation of investments |
9,038 |
|
4,581 |
|
630 |
|
Impairment of goodwill and investments, and others |
4,269 |
|
4,311 |
|
593 |
|
Tax effects (1) |
(2,235) |
|
(1,269) |
|
(175) |
|
|
|
|
|
|
|
|
Non-GAAP net income |
44,922 |
|
40,691 |
|
5,599 |
____________________ | ||
(1) |
Tax effects primarily comprise tax effects relating to non-cash share-based compensation expense, amortization and impairment of intangible assets and certain gains and losses from investments, and others. |
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE
The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated:
|
Three months ended June 30, |
|||||
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions, except per share data) |
|||||
|
|
|
|
|||
Net income attributable to ordinary shareholders – basic |
34,332 |
24,269 |
3,340 |
|||
Dilution effect on earnings arising from non-cash share-based awards operated by equity method investees and subsidiaries |
(68) |
(75) |
(10) |
|||
Adjustments for interest expense attributable to convertible unsecured senior notes |
– |
26 |
4 |
|||
Net income attributable to ordinary shareholders – diluted |
34,264 |
24,220 |
3,334 |
|||
Non-GAAP adjustments to net income attributable to ordinary shareholders(1) |
10,471 |
16,045 |
2,207 |
|||
|
|
|
|
|||
Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS |
44,735 |
40,265 |
5,541 |
|||
|
|
|
|
|||
Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares)(2) |
20,608 |
19,595 |
|
|||
|
|
|
|
|||
Diluted earnings per share(2)(3) |
1.66 |
1.24 |
0.17 |
|||
|
|
|
|
|||
Non-GAAP diluted earnings per share(2)(4) |
2.17 |
2.05 |
0.28 |
|||
|
|
|
|
|||
Diluted earnings per ADS(2)(3) |
13.30 |
9.89 |
1.36 |
|||
|
|
|
|
|||
Non-GAAP diluted earnings per ADS(2)(4) |
17.37 |
16.44 |
2.26 |
____________________ | ||
(1) |
See the table above for the reconciliation of net income to non-GAAP net income for more information of these non-GAAP adjustments. |
|
(2) |
Each ADS represents eight ordinary shares. |
|
(3) |
Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. |
|
(4) |
Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share, on a diluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. |
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE
The table below sets forth a reconciliation of net cash provided by operating activities to free cash flow for the periods indicated:
|
Three months ended June 30, |
|||||
|
2023 |
|
2024 |
|||
|
RMB |
|
RMB |
|
US$ |
|
|
(in millions) |
|||||
Net cash provided by operating activities |
45,306 |
33,636 |
4,628 |
|||
Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses) |
(6,007) |
(11,939) |
(1,643) |
|||
Less: Changes in the buyer protection fund deposits |
(210) |
(4,325) |
(595) |
|||
|
|
|
|
|||
Free cash flow |
39,089 |
17,372 |
2,390 |
|||
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813557982/en/
Investor Relations Contact
Rob Lin
Head of Investor Relations
Alibaba Group Holding Limited
investor@alibaba-inc.com
Media Contacts
Cathy Yan
cathy.yan@alibaba-inc.com
Ivy Ke
ivy.ke@alibaba-inc.com
Source: Alibaba Group Holding Limited
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