Alibaba Group Announces September Quarter 2023 Results
- Solid quarter with revenue increasing 9% year-over-year
- Income from operations and adjusted EBITA increasing 34% and 18% year-over-year, respectively
- First annual dividend distribution announced, amounting to approximately US$2.5 billion
- Strong growth in Taobao app users and increased order volume
- Successful 15th annual 11.11 Global Shopping Festival
- Alibaba International Digital Commerce Group, Local Services Group, To-Home, To-Destination, Cainiao, Cloud Intelligence Group, Digital Media and Entertainment Group, and other businesses demonstrated growth and strategic updates
- None.
“Alibaba Group delivered a solid quarter, marked by renewed momentum and energy across multiple businesses as a result of our strategic reorganization. As we embark on a new phase of development, we have clearly defined our strategic focus and priorities. We will maintain an entrepreneurial mindset. We are committed to investing for growth and making bold decisions where necessary. Through a more flexible organizational governance mechanism, we aim to capture brand new opportunities from the ongoing AI technological transformation and create more value for our customers,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
“We achieved a stable quarter with revenue increasing
BUSINESS HIGHLIGHTS
In the quarter ended September 30, 2023:
-
Revenue was
RMB224,790 million (US ), an increase of$30,810 million 9% year-over-year. -
Income from operations was
RMB33,584 million (US ), an increase of$4,603 million 34% year-over-year. The year-over-year increase was primarily attributable to an increase in adjusted EBITA, as well as a decrease in share-based compensation expense. We excluded share-based compensation expense from our non-GAAP measurements. Adjusted EBITA, a non-GAAP measurement, increased18% year-over-year toRMB42,845 million (US ).$5,872 million -
Net income attributable to ordinary shareholders was
RMB27,706 million (US ). Net income was$3,797 million RMB26,696 million (US ), compared to net loss of$3,659 million RMB22,467 million in the same quarter of 2022, primarily attributable to a net gain arising from the increase in fair value of our equity investments, compared to a net loss from these investments in the same quarter last year, and an increase in adjusted EBITA. We excluded net gains or losses arising from the changes in fair value of our investments from our non-GAAP measurements. Non-GAAP net income wasRMB40,188 million (US ), an increase of$5,508 million 19% year-over-year. -
Diluted earnings per ADS was
RMB10.77 (US ) and diluted earnings per share was$1.48 RMB1.35 (US or$0.19 HK ). Non-GAAP diluted earnings per ADS was$1.47 RMB15.63 (US ), an increase of$2.14 21% year-over-year and non-GAAP diluted earnings per share wasRMB1.95 (US or$0.27 HK ), an increase of$2.13 21% year-over-year. -
Net cash provided by operating activities was
RMB49,231 million (US ), an increase of$6,748 million 4% compared toRMB47,112 million in the same quarter of 2022. Free cash flow, a non-GAAP measurement of liquidity, wasRMB45,220 million (US ), an increase of$6,198 million 27% compared toRMB35,709 million in the same quarter of 2022.
BUSINESS AND STRATEGIC UPDATES
Taobao and Tmall Group
Our Taobao and Tmall Group’s strategy is to put users first, build an ecosystem for brands and merchants to thrive on our platform, and realize AI technology-driven innovation. Taobao app is at the core of this strategy as a one-stop destination for consumption and daily life needs serving the largest number of users. We continue to improve the value proposition of Taobao app by (i) increasing content to encourage user engagement, (ii) enhancing price-competitive product supply by onboarding more merchants and targeting more effectively, and (iii) introducing AI applications and tools to improve user experience and seller efficiency.
For the month ended September 30, 2023, we achieved healthy year-over-year organic growth of Taobao app users as a result of our content and price-competitive strategy. Our investments to provide more interactive content led to strong growth in user time spent on short-form video content. Importantly, the number of transacting buyers and order volume also increased during the quarter, as we continue to increase interactive content and broaden assortment of price-competitive products offered by both existing and new merchants. In addition, the number of 88VIP members increased double-digits year-over-year, surpassing 30 million during the quarter. Taobao and Tmall Group successfully concluded its 15th annual 11.11 Global Shopping Festival, which recorded positive year-over-year growth in participating merchants, transacting buyers and order volume compared to the same period last year.
Taobao and Tmall Group continues to expand AI products and services for its merchant operation platform and monetization platform (Alimama). It now offers AI tools that simplify and automate online store operations, such as new store design, product photo and description generation, customer service and financial and order management, all of which improve merchants’ operating efficiency. Additionally, in August, Taobao and Tmall Group upgraded one of its key advertising platforms, Wanxiangtai Unbounded Edition (万相台无界版), with the aim of growing the number of merchants who advertise with us by facilitating them to allocate their advertising budgets in all available properties within the Alibaba ecosystem using a single interface. The updated edition features AI technologies that provide (i) data analysis and insights to optimize advertising spending, (ii) marketing tools that intelligently locate targeted customers and (iii) AI-generated content for advertising. These proprietary AI technologies enhance merchants’ efficiency and improve conversion and return on investment for merchants. We have seen strong adoption of Wanxiangtai Unbounded Edition by both new and existing merchants during the quarter.
Xianyu (闲鱼), a fun community and marketplace, continues to grow strongly with DAU up over
Alibaba International Digital Commerce Group (“AIDC”)
Alibaba International Digital Commerce Group operates various retail and wholesale marketplaces including Lazada, AliExpress, Trendyol, Daraz, Miravia and Alibaba.com. During the September quarter, the combined order growth of AIDC’s retail businesses was approximately
AliExpress is executing its growth strategy under multiple business models – the established marketplace business, which saw double-digit growth year-over-year in the number of orders during this quarter, and Choice, a new model launched in early 2023 through which AliExpress delivers enhanced experience to consumers by working with merchants to ensure better control of product selection and quality as well as speed of logistics. Choice works closely with Cainiao to improve consumer experience, recently rolling out a 5-day delivery guarantee program in selected European countries. As a result the order volume of Choice ramped up rapidly during the quarter.
Lazada recorded double-digit order growth year-over-year during the quarter. Lazada continues to focus on improving monetization. As a result, losses per order narrowed quarter-over-quarter and year-over-year.
Trendyol delivered robust order growth while investing in its expansion outside Türkiye. By leveraging its product sourcing capabilities and supply chain advantages, Trendyol further expanded its footprint in the region.
Local Services Group
For the quarter ended September 30, 2023, revenue from Local Services Group grew
To-Home
For the quarter ended September 30, 2023, Ele.me’s overall order volume, consisting of both restaurant and non-restaurant orders, grew year-over-year and quarter-over-quarter driven by increasing number of transacting users and higher purchase frequency per user. As a result of successful marketing campaigns, Ele.me’s restaurant delivery orders grew by double-digits year-over-year this quarter. In addition, Ele.me is making significant progress in the non-restaurant delivery category. During the quarter, non-restaurant delivery orders also grew by double-digits year-over-year, driven by strong consumer demands during festivals and marketing campaigns, such as flower delivery on Chinese Valentine’s Day, “24/7 Medicine Delivery” service campaign, and new iPhone 15 launch on September 22, 2023. For the quarter ended September 30, 2023, Ele.me’s losses continued to narrow year-over-year driven by improving operating efficiency and increasing scale.
To-Destination
For the quarter ended September 30, 2023, order growth of Amap increased rapidly year-over-year, due to its strengthening position as a comprehensive “To-Destination” service platform as well as strong travel demand during this summer season. During an eight-day holiday period from September 29 to October 6 that combined Mid-Autumn Festival and National Day holiday, Amap recorded an all-time high of over 280 million peak daily active users as the Chinese economy experienced strong recovery in travel demand.
Cainiao Smart Logistics Network Limited (“Cainiao”)
For the quarter ended September 30, 2023, revenue from Cainiao grew
Cainiao continues to execute its strategy of building a global smart logistics network, reinforcing comprehensive end-to-end capabilities in cross-border logistics solutions. During the quarter, Cainiao rolled out its premium 5-day delivery service for consumers in eight countries and regions. The project leverages Cainiao’s comprehensive capabilities in full-chain operational optimization across first-mile pick-up, line haul, customs clearance, sortation, and last-mile delivery.
Cainiao leverages technology to remain competitive. To support AliExpress’ Choice expansion, Cainiao provided parcel bundling and direct shipping capabilities through data analytics and algorithms that reduce delivery time and improve efficiency.
Cloud Intelligence Group
For the quarter ended September 30, 2023, revenue from Cloud Intelligence Group was
We continue to improve revenue quality by reducing the revenue from project-based contracts that are of low margins. On the other hand, revenues from public cloud products and services increased during this quarter which drove improved profitability.
From October 31 to November 2, we held our 15th annual cloud computing developer summit and exhibition, the Apsara Conference 2023, during which Alibaba Cloud Intelligence Group unveiled new technologies that had been under development. Highlights of our proprietary technologies include:
- Generative AI Models: Alibaba’s proprietary large language model (LLM) Tongyi Qianwen (通义千问) launched an upgraded 2.0 version, with strong capabilities in understanding complex instructions, reasoning, memorizing and reducing hallucination. We also rolled out eight vertical models for specific industries including finance and gaming, as well as business enhancement capabilities such as code generation and customer support.
-
Ecosystem: We have built one of the largest open-source AI developer communities in
China . Our developer community ModelScope has gathered over 2,300 AI models, attracting 2.8 million AI developers and over 100 million cumulative model downloads since the launch of this community. We are also making available the open-source version of our Tongyi Qianwen models in ModelScope, which we have announced will include a version with 72 billion-parameter after the launch of our 7 billion-parameter and 14 billion-parameter models. - Alibaba Cloud Bailian (阿里云百炼): One-stop AI application development platform Alibaba Cloud Bailian, which provides LLM application development services in one single platform offering a range of high performing foundation models including those from third parties. It simplifies the large model training process and allows developers to focus on model application innovation. In addition, it provides a secure environment for customer data protection during the training process.
Alibaba Cloud supported the first “Asian Games on the Cloud,” to facilitate more intelligent, sustainable, sophisticated and efficient Asian Games. Using cloud-native technology running on Alibaba Cloud’s container services, we enabled more agile, scalable and efficient operations of the event.
Digital Media and Entertainment Group
During the quarter ended September 30, 2023, revenue of Digital Media and Entertainment Group was
Businesses within the segment continue to achieve synergies. On September 19, 2023, Alibaba Pictures announced its acquisition of Damai, aiming to leverage Damai's leading position in the offline performance market to expand influence in the offline entertainment industry. Benefiting from the recovery of offline entertainment market and strong demand in the summer, Damai maintained its industry-leading position with triple-digit GMV growth and improving profitability year-over-year during the quarter. In August, Damai and Youku jointly sold tickets of TFBoys’ 10th anniversary concert, for offline performance and online broadcasting, respectively. The exclusive online broadcasting attracted more than 1.68 million viewers and achieved more than 100 million times of interaction, which broke the record for online paid performances on Youku.
China’s box office during the summer movie season hit record high this year. No More Bets (孤注一掷) and Lost in the Stars (消失的她), both co-produced by Alibaba Pictures, were the top two performers in terms of box office in
All Others
DingTalk
Starting from the quarter ended September 30, 2023, we reclassified the result 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.
DingTalk, our digital collaboration workplace and application development platform, offers new ways of working, sharing and collaboration through the integration of latest AI models. As of September 30, 2023, 17 product lines of DingTalk had been fully integrated with large models. DingTalk also opened up its intelligent AI PaaS platform to customers and ecosystem partners, which will help participants in the ecosystem reinvent their products.
Intelligent Information Platform
Our Intelligent Information Platform includes Quark (夸克), UCWeb, and other businesses. During the month ended September 30, 2023, Quark continued to grow strongly with DAUs up over
Fliggy
Fliggy, a leading online travel platform, provides comprehensive services to meet consumers’ travel needs. During the quarter ended September 30, 2023, Fliggy’s GMV increased rapidly year-over-year driven by strong recovery in both domestic and international travel demands.
Updates on ESG Initiatives
Empowering More Sustainable and Inclusive Asian Games
Alibaba Group contributed to promote the sustainability and inclusiveness of the 19th Asian Games and the 4th Asian Para Games in
- Alibaba Cloud introduced its digital avatar, Xiaomo (小莫), which supports two-way translation between sign language and Chinese spoken language. Xiaomo provided on-site assistance to audience with hearing impairments during the Asian Para Games.
- Amap, by leveraging its “Wheelchair Navigation” feature, assisted Hangzhou Disabled Persons’ Federation in the technological upgrade of its “Online Accessible Service” platform in order to provide users with more detailed accessible travel planning and navigation services.
Enhancing Community Resilience
In August 2023, Alibaba Foundation donated
Impacts of Recent
In October 2023,
Update on Business Group Spin-offs and Capital Raisings
Cloud Intelligence Group
The recent expansion of
Alibaba International Digital Commerce Group
Alibaba International Digital Commerce Group is in preparation for external fundraising.
Cainiao
Cainiao Smart Logistics Network Limited has applied for an initial public offering in
Freshippo (Hema)
Freshippo (Hema)’s plan for an initial public offering has been put on hold as we evaluate market conditions and other factors that would contribute to a successful transaction to enhance shareholder value.
Shareholder Return Activities
Our board of directors has approved an annual cash dividend for fiscal year 2023 in the amount of
For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the Company’s
In addition, during the quarter ended September 30, 2023, we repurchased approximately 18.6 million ADSs (the equivalent of 148.4 million ordinary shares) for approximately
SEPTEMBER QUARTER SUMMARY FINANCIAL RESULTS
|
Three months ended September 30, |
|
||||||
|
2022 |
2023 |
|
|||||
|
RMB |
RMB |
US$ |
YoY %
|
||||
|
(in millions, except percentages and per share amounts) |
|||||||
|
|
|
|
|
||||
Revenue |
207,176 |
224,790 |
30,810 |
|
||||
|
|
|
|
|
||||
Income from operations |
25,137 |
33,584 |
4,603 |
|
||||
Operating margin |
|
|
|
|
||||
Adjusted EBITDA(1) |
43,311 |
49,237 |
6,748 |
|
||||
Adjusted EBITDA margin(1) |
|
|
|
|
||||
Adjusted EBITA(1) |
36,164 |
42,845 |
5,872 |
|
||||
Adjusted EBITA margin(1) |
|
|
|
|
||||
|
|
|
|
|
||||
Net (loss) income |
(22,467)(4) |
26,696(4) |
3,659 |
N/A |
||||
Net (loss) income attributable to ordinary shareholders |
(20,561)(4) |
27,706(4) |
3,797 |
N/A |
||||
Non-GAAP net income(1) |
33,820 |
40,188 |
5,508 |
|
||||
|
|
|
|
|
||||
Diluted (loss) earnings per share(5) |
(0.97)(4) |
1.35(4) |
0.19 |
N/A |
||||
Diluted (loss) earnings per ADS(5) |
(7.77)(4) |
10.77(4) |
1.48 |
N/A |
||||
Non-GAAP diluted earnings per share(1) (5) |
1.61 |
1.95 |
0.27 |
|
||||
Non-GAAP diluted earnings per ADS(1) (5) |
12.92 |
15.63 |
2.14 |
|
||||
| ________________ | ||
(1) |
See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable |
|
(2) |
The year-over-year increase was primarily attributable to an increase in adjusted EBITA, as well as a decrease in share-based compensation expense. |
|
(3) |
The year-over-year increases were primarily contributed by revenue growth and improved operating efficiency. |
|
(4) |
The year-over-year change was primarily attributable to a net gain arising from the increase in fair value of our equity investments, compared to a net loss from these investments in the same quarter last year, and an increase in adjusted EBITA. |
|
(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. |
|
SEPTEMBER QUARTER SEGMENT RESULTS
Revenue for the quarter ended September 30, 2023 was
Starting from the quarter ended June 30, 2023, we have implemented a new organizational structure which includes six major business groups and various other businesses (the “Reorganization”). Our segment reporting has been updated to reflect our Reorganization and how our chief operating decision maker (“CODM”) review information under our new structure.
The following table sets forth a breakdown of our revenue by segment for the periods indicated(1):
|
Three months ended September 30, |
|
|||||||||
|
2022 |
2023 |
|
||||||||
|
RMB |
RMB |
US$ |
YoY %
|
|||||||
|
(in millions, except percentages) |
||||||||||
Taobao and Tmall Group: |
|
|
|
|
|||||||
|
|
|
|
|
|||||||
- Customer management |
66,877 |
|
68,661 |
|
9,411 |
|
|
||||
- Direct sales and others(3) |
22,559 |
|
23,899 |
|
3,276 |
|
|
||||
|
89,436 |
|
92,560 |
|
12,687 |
|
|
||||
|
4,299 |
|
5,094 |
|
698 |
|
|
||||
Total Taobao and Tmall Group |
93,735 |
|
97,654 |
|
13,385 |
|
|
||||
|
|
|
|
|
|||||||
Alibaba International Digital Commerce Group: |
|
|
|
|
|||||||
International commerce retail |
10,990 |
|
18,978 |
|
2,602 |
|
|
||||
International commerce wholesale |
5,056 |
|
5,533 |
|
758 |
|
|
||||
Total Alibaba International Digital Commerce Group |
16,046 |
|
24,511 |
|
3,360 |
|
|
||||
|
|
|
|
|
|||||||
Local Services Group |
13,381 |
|
15,564 |
|
2,133 |
|
|
||||
Cainiao Smart Logistics Network Limited |
18,282 |
|
22,823 |
|
3,128 |
|
|
||||
Cloud Intelligence Group(2) |
27,035 |
|
27,648 |
|
3,789 |
|
|
||||
Digital Media and Entertainment Group |
5,228 |
|
5,779 |
|
792 |
|
|
||||
All others(2) (4) |
48,142 |
|
48,052 |
|
6,586 |
|
(0)% |
||||
Total segment revenue |
221,849 |
|
242,031 |
|
33,173 |
|
|
||||
Unallocated |
216 |
|
277 |
|
38 |
|
|
||||
Inter-segment elimination |
(14,889 |
) |
(17,518 |
) |
(2,401 |
) |
|
||||
Consolidated revenue |
207,176 |
|
224,790 |
|
30,810 |
|
|
||||
|
Six months ended September 30, |
|
|||||||||
|
2022 |
2023 |
|
||||||||
|
RMB |
RMB |
US$ |
YoY %
|
|||||||
|
(in millions, except percentages) |
||||||||||
Taobao and Tmall Group: |
|
|
|
|
|||||||
|
|
|
|
|
|||||||
- Customer management |
139,302 |
|
148,322 |
|
20,329 |
|
|
||||
- Direct sales and others(3) |
47,557 |
|
54,066 |
|
7,410 |
|
|
||||
|
186,859 |
|
202,388 |
|
27,739 |
|
|
||||
|
9,393 |
|
10,219 |
|
1,401 |
|
|
||||
Total Taobao and Tmall Group |
196,252 |
|
212,607 |
|
29,140 |
|
|
||||
|
|
|
|
|
|||||||
Alibaba International Digital Commerce Group: |
|
|
|
|
|||||||
International commerce retail |
21,732 |
|
36,116 |
|
4,950 |
|
|
||||
International commerce wholesale |
10,035 |
|
10,518 |
|
1,442 |
|
|
||||
Total Alibaba International Digital Commerce Group |
31,767 |
|
46,634 |
|
6,392 |
|
|
||||
|
|
|
|
|
|||||||
Local Services Group |
24,512 |
|
30,014 |
|
4,114 |
|
|
||||
Cainiao Smart Logistics Network Limited |
35,574 |
|
45,987 |
|
6,303 |
|
|
||||
Cloud Intelligence Group(2) |
51,391 |
|
52,713 |
|
7,225 |
|
|
||||
Digital Media and Entertainment Group |
9,194 |
|
11,160 |
|
1,530 |
|
|
||||
All others(2) (4) |
93,478 |
|
93,850 |
|
12,862 |
|
|
||||
Total segment revenue |
442,168 |
|
492,965 |
|
67,566 |
|
|
||||
Unallocated |
409 |
|
526 |
|
72 |
|
|
||||
Inter-segment elimination |
(29,846 |
) |
(34,545 |
) |
(4,734 |
) |
|
||||
Consolidated revenue |
412,731 |
|
458,946 |
|
62,904 |
|
|
||||
| ________________ | ||
(1) |
Starting from the quarter ended June 30, 2023, our segment reporting has been updated to reflect our Reorganization. Our CODM started to review information under a new reporting structure, and segment reporting has been updated to conform to this change. Comparative figures were reclassified to conform to this presentation. |
|
(2) |
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. This reclassification conforms to the way that we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. |
|
(3) |
Direct sales and others revenue under Taobao and Tmall Group primarily represents our direct sales businesses, including Tmall Supermarket, Tmall Global and other direct sales businesses, where revenue and cost of inventory are recorded on a gross basis. |
|
(4) |
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 consist 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 September 30, |
|
|||||||||
|
2022 |
2023 |
|
||||||||
|
RMB |
RMB |
US$ |
YoY %
|
|||||||
|
(in millions, except percentages) |
||||||||||
Taobao and Tmall Group |
45,635 |
|
47,077 |
|
6,453 |
|
|
||||
Alibaba International Digital Commerce Group |
(748 |
) |
(384 |
) |
(53 |
) |
|
||||
Local Services Group |
(3,328 |
) |
(2,564 |
) |
(351 |
) |
|
||||
Cainiao Smart Logistics Network Limited |
125 |
|
906 |
|
124 |
|
|
||||
Cloud Intelligence Group(2) |
981 |
|
1,409 |
|
193 |
|
|
||||
Digital Media and Entertainment Group |
(362 |
) |
(201 |
) |
(28 |
) |
|
||||
All others(2) (3) |
(2,884 |
) |
(1,437 |
) |
(197 |
) |
|
||||
Total segment adjusted EBITA |
39,419 |
|
44,806 |
|
6,141 |
|
|
||||
Unallocated (4) |
(2,705 |
) |
(1,019 |
) |
(140 |
) |
|
||||
Inter-segment elimination |
(550 |
) |
(942 |
) |
(129 |
) |
|
||||
Consolidated adjusted EBITA |
36,164 |
|
42,845 |
|
5,872 |
|
|
||||
Less: Share-based compensation expense |
(7,787 |
) |
(6,830 |
) |
(936 |
) |
|
||||
Less: Amortization of intangible assets |
(2,729 |
) |
(2,431 |
) |
(333 |
) |
|
||||
Less: Equity-settled donation expense |
(511 |
) |
— |
|
— |
|
|
||||
Income from operations |
25,137 |
|
33,584 |
|
4,603 |
|
|
||||
|
Six months ended September 30, |
|
|||||||||
|
2022 |
2023 |
|
||||||||
|
RMB |
RMB |
US$ |
YoY %
|
|||||||
|
(in millions, except percentages) |
||||||||||
Taobao and Tmall Group |
90,854 |
|
96,396 |
|
13,212 |
|
|
||||
Alibaba International Digital Commerce Group |
(2,128 |
) |
(804 |
) |
(110 |
) |
|
||||
Local Services Group |
(6,162 |
) |
(4,546 |
) |
(623 |
) |
|
||||
Cainiao Smart Logistics Network Limited |
(60 |
) |
1,783 |
|
244 |
|
N/A |
||||
Cloud Intelligence Group(2) |
1,845 |
|
2,325 |
|
319 |
|
|
||||
Digital Media and Entertainment Group |
(1,269 |
) |
(138 |
) |
(19 |
) |
|
||||
All others(2) (3) |
(5,835 |
) |
(3,170 |
) |
(435 |
) |
|
||||
Total segment adjusted EBITA |
77,245 |
|
91,846 |
|
12,588 |
|
|
||||
Unallocated (4) |
(5,606 |
) |
(2,482 |
) |
(340 |
) |
|
||||
Inter-segment elimination |
(1,056 |
) |
(1,148 |
) |
(157 |
) |
|
||||
Consolidated adjusted EBITA |
70,583 |
|
88,216 |
|
12,091 |
|
|
||||
Less: Share-based compensation expense |
(14,512 |
) |
(5,201 |
) |
(713 |
) |
|
||||
Less: Amortization of intangible assets |
(5,480 |
) |
(4,910 |
) |
(673 |
) |
|
||||
Less: Impairment of goodwill |
— |
|
(2,031 |
) |
(278 |
) |
|
||||
Less: Equity-settled donation expense |
(511 |
) |
— |
|
— |
|
|
||||
Income from operations |
50,080 |
|
76,074 |
|
10,427 |
|
|
||||
| ________________ | ||
(1) |
Starting from the quarter ended June 30, 2023, our segment reporting has been updated to reflect our Reorganization. Our CODM started to review information under a new reporting structure, and segment reporting has been updated to conform to this change. Comparative figures were reclassified to conform to this presentation. |
|
(2) |
Starting from the quarter ended September 30, 2023, we reclassified the result 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. This reclassification conforms to the way that we manage and monitor segment performance. Comparative figures were reclassified to conform to this presentation. |
|
(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. |
|
(4) |
Unallocated primarily relate to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments. |
|
(5) |
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 our
Customer management revenue increased by
Direct sales and others revenue under
- China Commerce Wholesale Business
Revenue from our
(ii) Segment adjusted EBITA
Taobao and Tmall 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 September 30, 2023 was
- International Commerce Wholesale Business
Revenue from our International commerce wholesale business in the quarter ended September 30, 2023 was
(ii) Segment adjusted EBITA
Alibaba International Digital Commerce Group adjusted EBITA was a loss of
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
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 was
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA increased by
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 September 30, 2023 was a loss of
All Others
(i) Segment revenue
Revenue from all others segment, which was
(ii) Segment adjusted EBITA
Adjusted EBITA from all others segment in the quarter ended September 30, 2023 was a loss of
SEPTEMBER 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 September 30, |
% of
|
||||||||||||
|
2022 |
2023 |
||||||||||||
|
RMB |
% of
|
RMB |
US$ |
% of
|
|||||||||
|
(in millions, except percentages) |
|||||||||||||
Costs and expenses: |
|
|
|
|
|
|
||||||||
Cost of revenue |
131,210 |
64 |
% |
139,664 |
19,143 |
63 |
% |
(1)% |
||||||
Product development expenses |
15,150 |
7 |
% |
14,218 |
1,949 |
6 |
% |
(1)% |
||||||
Sales and marketing expenses |
22,359 |
11 |
% |
25,485 |
3,493 |
11 |
% |
|
||||||
General and administrative expenses |
10,591 |
5 |
% |
9,408 |
1,289 |
4 |
% |
(1)% |
||||||
Amortization of intangible assets |
2,729 |
1 |
% |
2,431 |
333 |
1 |
% |
|
||||||
Total costs and expenses |
182,039 |
88 |
% |
191,206 |
26,207 |
85 |
% |
(3)% |
||||||
|
|
|
|
|
|
|
||||||||
Share-based compensation expense: |
|
|
|
|
|
|
||||||||
Cost of revenue |
1,202 |
1 |
% |
1,244 |
171 |
1 |
% |
|
||||||
Product development expenses |
3,834 |
2 |
% |
3,006 |
411 |
1 |
% |
(1)% |
||||||
Sales and marketing expenses |
871 |
0 |
% |
850 |
117 |
0 |
% |
|
||||||
General and administrative expenses |
1,880 |
1 |
% |
1,730 |
237 |
1 |
% |
|
||||||
Total share-based compensation expense |
7,787 |
4 |
% |
6,830 |
936 |
3 |
% |
(1)% |
||||||
|
|
|
|
|
|
|
||||||||
Costs and expenses excluding share-based compensation expense: |
|
|
|
|
|
|
||||||||
Cost of revenue |
130,008 |
63 |
% |
138,420 |
18,972 |
62 |
% |
(1)% |
||||||
Product development expenses |
11,316 |
5 |
% |
11,212 |
1,538 |
5 |
% |
|
||||||
Sales and marketing expenses |
21,488 |
11 |
% |
24,635 |
3,376 |
11 |
% |
|
||||||
General and administrative expenses |
8,711 |
4 |
% |
7,678 |
1,052 |
3 |
% |
(1)% |
||||||
Amortization of intangible assets |
2,729 |
1 |
% |
2,431 |
333 |
1 |
% |
|
||||||
Total costs and expenses excluding share-based compensation expense |
174,252 |
84 |
% |
184,376 |
25,271 |
82 |
% |
(2)% |
||||||
Cost of revenue – Cost of revenue in the quarter ended September 30, 2023 was
Product development expenses – Product development expenses in the quarter ended September 30, 2023 were
Sales and marketing expenses – Sales and marketing expenses in the quarter ended September 30, 2023 were
General and administrative expenses – General and administrative expenses in the quarter ended September 30, 2023 were
Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the quarter ended September 30, 2023 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 September 30, |
|
||||||||||||
|
2022 |
2023 |
% Change |
|||||||||||
|
RMB |
% of
|
RMB |
US$ |
% of
|
YoY |
||||||||
|
(in millions, except percentages) |
|||||||||||||
By type of awards: |
|
|
|
|
|
|
||||||||
Alibaba Group share-based awards(1) |
6,472 |
3 |
% |
4,840 |
663 |
2 |
% |
(25)% |
||||||
Ant Group share-based awards(2) |
163 |
0 |
% |
85 |
12 |
0 |
% |
(48)% |
||||||
Others(3) |
1,152 |
1 |
% |
1,905 |
261 |
1 |
% |
|
||||||
Total share-based compensation expense |
7,787 |
4 |
% |
6,830 |
936 |
3 |
% |
(12)% |
||||||
| ________________ | ||
(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 September 30, 2023 compared to the same quarter of 2022. This decrease was primarily due to the general decrease in the average fair market value of the awards granted.
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 of intangible assets – Amortization of intangible assets in the quarter ended September 30, 2023 was
Income from operations and operating margin
Income from operations in the quarter ended September 30, 2023 was
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA increased
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 “September Quarter Segment Results” above.
Interest and investment income, net
Interest and investment income, net in the quarter ended September 30, 2023 was a gain of
The above-mentioned gains and losses were excluded from our non-GAAP net income.
Other income, net
Other income, net in the quarter ended September 30, 2023 was
Income tax expenses
Income tax expenses in the quarter ended September 30, 2023 were
Excluding share-based compensation expense, revaluation and disposal gains/losses of investments, impairment of investments, as well as the deferred tax effects on basis differences arising from our equity method investees, our effective tax rate would have been
Share of results of equity method investees
Share of results of equity method investees in the quarter ended September 30, 2023 was a loss of
|
Three months ended September 30, |
||||||||
|
2022 |
2023 |
|||||||
|
RMB |
RMB |
US$ |
||||||
|
(in millions) |
||||||||
Share of profit (loss) of equity method investees |
|
|
|
||||||
- Ant Group |
2,392 |
|
846 |
|
116 |
|
|||
- Others |
(1,878 |
) |
(1,146 |
) |
(157 |
) |
|||
Impairment loss |
(3,626 |
) |
(4,469 |
) |
(613 |
) |
|||
Others(1) |
(1,024 |
) |
(995 |
) |
(136 |
) |
|||
Total |
(4,136 |
) |
(5,764 |
) |
(790 |
) |
|||
| ________________ | ||
(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. The year-over-year decrease in share of profit of Ant Group which reflected a
During the quarter ended September 30, 2023, Ant Group repurchased approximately
For
Net income (loss) and Non-GAAP net income
Our net income in the quarter ended September 30, 2023 was
Excluding share-based compensation expense, revaluation and disposal gains/losses of investments, impairment of investments and certain other items, non-GAAP net income in the quarter ended September 30, 2023 was
Net income (loss) attributable to ordinary shareholders
Net income attributable to ordinary shareholders in the quarter ended September 30, 2023 was
Diluted earnings (loss) per ADS/share and non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended September 30, 2023 was
Diluted earnings per share in the quarter ended September 30, 2023 was
A reconciliation of diluted earnings (loss) 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 September 30, 2023, 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 September 30, 2023, net cash provided by operating activities was
Net cash used in investing activities
During the quarter ended September 30, 2023, net cash used in investing activities of
Net cash used in financing activities
During the quarter ended September 30, 2023, net cash used in financing activities of
Employees
As of September 30, 2023, we had a total of 224,955 employees, compared to 228,675 as of June 30, 2023.
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/10033946-dsb6ko.html
Chinese: https://s1.c-conf.com/diamondpass/10033948-0lkr8u.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 10033946; Chinese conference PIN 10033948).
Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en-US/investor-relations on November 16, 2023 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 (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization of intangible assets, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, impairment of goodwill, as well as equity-settled donation expense which we do not believe are reflective of our core operating performance during the periods presented.
Adjusted EBITA represents net income before (i) interest and investment income, net, interest expense, other income, net, income tax expenses and share of results of equity method investees, (ii) certain non-cash expenses, consisting of share-based compensation expense, amortization of intangible assets, impairment of goodwill and equity-settled donation expense which we do not believe are reflective of our core operating performance during the periods presented.
Non-GAAP net income represents net income before share-based compensation expense, amortization of intangible assets, impairment of goodwill and investments, gain or loss on deemed disposals/disposals/revaluation of investments, equity-settled donation expense and others, as adjusted 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 September 30, |
Six months ended September 30, |
||||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||
|
(in millions, except per share data) |
(in millions, except per share data) |
||||||||||||||||
Revenue |
207,176 |
|
224,790 |
|
30,810 |
|
412,731 |
|
458,946 |
|
62,904 |
|
||||||
Cost of revenue |
(131,210 |
) |
(139,664 |
) |
(19,143 |
) |
(260,867 |
) |
(282,011 |
) |
(38,653 |
) |
||||||
Product development expenses |
(15,150 |
) |
(14,218 |
) |
(1,949 |
) |
(29,343 |
) |
(24,683 |
) |
(3,383 |
) |
||||||
Sales and marketing expenses |
(22,359 |
) |
(25,485 |
) |
(3,493 |
) |
(47,937 |
) |
(52,532 |
) |
(7,200 |
) |
||||||
General and administrative expenses |
(10,591 |
) |
(9,408 |
) |
(1,289 |
) |
(19,024 |
) |
(16,705 |
) |
(2,290 |
) |
||||||
Amortization of intangible assets |
(2,729 |
) |
(2,431 |
) |
(333 |
) |
(5,480 |
) |
(4,910 |
) |
(673 |
) |
||||||
Impairment of goodwill |
— |
|
— |
|
— |
|
— |
|
(2,031 |
) |
(278 |
) |
||||||
|
|
|
|
|
|
|
||||||||||||
Income from operations |
25,137 |
|
33,584 |
|
4,603 |
|
50,080 |
|
76,074 |
|
10,427 |
|
||||||
Interest and investment income, net |
(42,452 |
) |
5,136 |
|
704 |
|
(37,083 |
) |
(762 |
) |
(104 |
) |
||||||
Interest expense |
(1,388 |
) |
(1,854 |
) |
(254 |
) |
(2,632 |
) |
(3,638 |
) |
(499 |
) |
||||||
Other income, net |
2,944 |
|
1,391 |
|
191 |
|
3,053 |
|
2,755 |
|
377 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
(Loss) Income before income tax and share of results of equity method investees |
(15,759 |
) |
38,257 |
|
5,244 |
|
13,418 |
|
74,429 |
|
10,201 |
|
||||||
Income tax expenses |
(2,572 |
) |
(5,797 |
) |
(795 |
) |
(7,971 |
) |
(11,819 |
) |
(1,620 |
) |
||||||
Share of results of equity method investees |
(4,136 |
) |
(5,764 |
) |
(790 |
) |
(7,616 |
) |
(2,914 |
) |
(399 |
) |
||||||
|
|
|
|
|
|
|
||||||||||||
Net (loss) income |
(22,467 |
) |
26,696 |
|
3,659 |
|
(2,169 |
) |
59,696 |
|
8,182 |
|
||||||
Net loss attributable to noncontrolling interests |
2,034 |
|
1,151 |
|
158 |
|
4,395 |
|
2,393 |
|
328 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to Alibaba Group Holding Limited |
(20,433 |
) |
27,847 |
|
3,817 |
|
2,226 |
|
62,089 |
|
8,510 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Accretion of mezzanine equity |
(128 |
) |
(141 |
) |
(20 |
) |
(48 |
) |
(51 |
) |
(7 |
) |
||||||
Net (loss) income attributable to ordinary shareholders |
(20,561 |
) |
27,706 |
|
3,797 |
|
2,178 |
|
62,038 |
|
8,503 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
(Loss) Earnings per share attributable to ordinary shareholders(1) |
|
|
|
|
|
|
||||||||||||
Basic |
(0.97 |
) |
1.36 |
|
0.19 |
|
0.10 |
|
3.04 |
|
0.42 |
|
||||||
Diluted |
(0.97 |
) |
1.35 |
|
0.19 |
|
0.10 |
|
3.01 |
|
0.41 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
(Loss) Earnings per ADS attributable to ordinary shareholders(1) |
|
|
|
|
|
|
||||||||||||
Basic |
(7.77 |
) |
10.90 |
|
1.49 |
|
0.82 |
|
24.31 |
|
3.33 |
|
||||||
Diluted |
(7.77 |
) |
10.77 |
|
1.48 |
|
0.82 |
|
24.08 |
|
3.30 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1) |
|
|
|
|
|
|
||||||||||||
Basic |
21,164 |
|
20,335 |
|
|
21,231 |
|
20,414 |
|
|
||||||||
Diluted |
21,164 |
|
20,526 |
|
|
21,329 |
|
20,567 |
|
|
||||||||
| ________________ | ||
(1) |
Each ADS represents eight ordinary shares. |
|
ALIBABA GROUP HOLDING LIMITED |
||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||
|
As of March 31, |
As of September 30, |
||||
|
2023 |
2023 |
||||
|
RMB |
RMB |
US$ |
|||
|
(in millions) |
|||||
Assets |
|
|
|
|||
Current assets: |
|
|
|
|||
Cash and cash equivalents |
193,086 |
243,716 |
33,404 |
|||
Short-term investments |
326,492 |
296,793 |
40,679 |
|||
Restricted cash and escrow receivables |
36,424 |
37,279 |
5,110 |
|||
Equity securities and other investments |
4,892 |
33,851 |
4,640 |
|||
Prepayments, receivables and other assets |
137,072 |
146,317 |
20,054 |
|||
Total current assets |
697,966 |
757,956 |
103,887 |
|||
|
||||||
Equity securities and other investments |
245,737 |
247,820 |
33,966 |
|||
Prepayments, receivables and other assets |
110,926 |
109,784 |
15,047 |
|||
Investment in equity method investees |
207,380 |
208,289 |
28,548 |
|||
Property and equipment, net |
176,031 |
179,436 |
24,594 |
|||
Intangible assets, net |
46,913 |
41,592 |
5,701 |
|||
Goodwill |
268,091 |
266,713 |
36,556 |
|||
Total assets |
1,753,044 |
1,811,590 |
248,299 |
|||
|
|
|
|
|||
Liabilities, Mezzanine Equity and Shareholders’ Equity |
|
|
|
|||
Current liabilities: |
|
|
|
|||
Current bank borrowings |
7,466 |
8,187 |
1,122 |
|||
Current unsecured senior notes |
4,800 |
— |
— |
|||
Income tax payable |
12,543 |
8,507 |
1,166 |
|||
Accrued expenses, accounts payable and other liabilities |
275,950 |
286,604 |
39,283 |
|||
Merchant deposits |
13,297 |
12,603 |
1,727 |
|||
Deferred revenue and customer advances |
71,295 |
73,909 |
10,130 |
|||
Total current liabilities |
385,351 |
389,810 |
53,428 |
|||
ALIBABA GROUP HOLDING LIMITED |
|||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) |
|||||||||
|
As of March 31, |
As of September 30, |
|||||||
|
2023 |
2023 |
|||||||
|
RMB |
RMB |
US$ |
||||||
|
(in millions) |
||||||||
|
|
|
|
||||||
Deferred revenue |
3,560 |
|
3,771 |
|
517 |
|
|||
Deferred tax liabilities |
61,745 |
|
57,692 |
|
7,907 |
|
|||
Non-current bank borrowings |
52,023 |
|
55,116 |
|
7,554 |
|
|||
Non-current unsecured senior notes |
97,065 |
|
103,441 |
|
14,178 |
|
|||
Other liabilities |
30,379 |
|
31,714 |
|
4,347 |
|
|||
Total liabilities |
630,123 |
|
641,544 |
|
87,931 |
|
|||
|
|
|
|
||||||
Commitments and contingencies |
|
|
|
||||||
Mezzanine equity |
9,858 |
|
10,328 |
|
1,415 |
|
|||
Shareholders’ equity: |
|
|
|
||||||
Ordinary shares |
1 |
|
1 |
|
— |
|
|||
Additional paid-in capital |
416,880 |
|
407,748 |
|
55,887 |
|
|||
Treasury shares at cost |
(28,763 |
) |
(28,555 |
) |
(3,914 |
) |
|||
Subscription receivables |
(49 |
) |
— |
|
— |
|
|||
Statutory reserves |
12,977 |
|
14,416 |
|
1,976 |
|
|||
Accumulated other comprehensive (loss) income |
(10,417 |
) |
5,809 |
|
796 |
|
|||
Retained earnings |
599,028 |
|
635,663 |
|
87,125 |
|
|||
|
|
|
|
||||||
Total shareholders’ equity |
989,657 |
|
1,035,082 |
|
141,870 |
|
|||
Noncontrolling interests |
123,406 |
|
124,636 |
|
17,083 |
|
|||
|
|
|
|
||||||
Total equity |
1,113,063 |
|
1,159,718 |
|
158,953 |
|
|||
|
|
|
|||||||
Total liabilities, mezzanine equity and equity |
1,753,044 |
|
1,811,590 |
|
248,299 |
|
|||
ALIBABA GROUP HOLDING LIMITED |
||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||||
|
Three months ended September 30, |
Six months ended September 30, |
||||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||
|
(in millions) |
(in millions) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities |
47,112 |
|
49,231 |
|
6,748 |
|
80,981 |
|
94,537 |
|
12,957 |
|
||||||
Net cash used in investing activities |
(8,148 |
) |
(23,761 |
) |
(3,257 |
) |
(35,755 |
) |
(11,166 |
) |
(1,530 |
) |
||||||
Net cash used in financing activities |
(11,470 |
) |
(12,382 |
) |
(1,697 |
) |
(32,492 |
) |
(37,018 |
) |
(5,074 |
) |
||||||
Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables |
3,437 |
|
813 |
|
112 |
|
6,763 |
|
5,132 |
|
704 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Increase in cash and cash equivalents, restricted cash and escrow receivables |
30,931 |
|
13,901 |
|
1,906 |
|
19,497 |
|
51,485 |
|
7,057 |
|
||||||
Cash and cash equivalents, restricted cash and escrow receivables at beginning of period |
215,919 |
|
267,094 |
|
36,608 |
|
227,353 |
|
229,510 |
|
31,457 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents, restricted cash and escrow receivables at end of period |
246,850 |
|
280,995 |
|
38,514 |
|
246,850 |
|
280,995 |
|
38,514 |
|
||||||
ALIBABA GROUP HOLDING LIMITED |
||||||||||||||||||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE |
||||||||||||||||||
The table below sets forth a reconciliation of our net (loss) income to adjusted EBITA and adjusted EBITDA for the periods indicated: |
||||||||||||||||||
|
|
|
||||||||||||||||
|
Three months ended September 30, |
Six months ended September 30, |
||||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||
|
(in millions) |
(in millions) |
||||||||||||||||
Net (loss) income |
(22,467 |
) |
26,696 |
|
3,659 |
|
(2,169 |
) |
59,696 |
|
8,182 |
|
||||||
Adjustments to reconcile net (loss) income to adjusted EBITA and adjusted EBITDA: |
|
|
|
|
|
|
||||||||||||
Interest and investment income, net |
42,452 |
|
(5,136 |
) |
(704 |
) |
37,083 |
|
762 |
|
104 |
|
||||||
Interest expense |
1,388 |
|
1,854 |
|
254 |
|
2,632 |
|
3,638 |
|
499 |
|
||||||
Other income, net |
(2,944 |
) |
(1,391 |
) |
(191 |
) |
(3,053 |
) |
(2,755 |
) |
(377 |
) |
||||||
Income tax expenses |
2,572 |
|
5,797 |
|
795 |
|
7,971 |
|
11,819 |
|
1,620 |
|
||||||
Share of results of equity method investees |
4,136 |
|
5,764 |
|
790 |
|
7,616 |
|
2,914 |
|
399 |
|
||||||
Income from operations |
25,137 |
|
33,584 |
|
4,603 |
|
50,080 |
|
76,074 |
|
10,427 |
|
||||||
Share-based compensation expense |
7,787 |
|
6,830 |
|
936 |
|
14,512 |
|
5,201 |
|
713 |
|
||||||
Amortization of intangible assets |
2,729 |
|
2,431 |
|
333 |
|
5,480 |
|
4,910 |
|
673 |
|
||||||
Impairment of goodwill |
— |
|
— |
|
— |
|
— |
|
2,031 |
|
278 |
|
||||||
Equity-settled donation expense |
511 |
|
— |
|
— |
|
511 |
|
— |
|
— |
|
||||||
Adjusted EBITA |
36,164 |
|
42,845 |
|
5,872 |
|
70,583 |
|
88,216 |
|
12,091 |
|
||||||
Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights |
7,147 |
|
6,392 |
|
876 |
|
13,842 |
|
13,073 |
|
1,792 |
|
||||||
Adjusted EBITDA |
43,311 |
|
49,237 |
|
6,748 |
|
84,425 |
|
101,289 |
|
13,883 |
|
||||||
ALIBABA GROUP HOLDING LIMITED |
||||||||||||||||||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE |
||||||||||||||||||
The table below sets forth a reconciliation of our net (loss) income to non-GAAP net income for the periods indicated: |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
Six months ended September 30, |
||||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||
|
(in millions) |
(in millions) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
Net (loss) income |
(22,467 |
) |
26,696 |
|
3,659 |
|
(2,169 |
) |
59,696 |
|
8,182 |
|
||||||
Adjustments to reconcile net (loss) income to non-GAAP net income: |
|
|
|
|
|
|
||||||||||||
Share-based compensation expense |
7,787 |
|
6,830 |
|
936 |
|
14,512 |
|
5,201 |
|
713 |
|
||||||
Amortization of intangible assets |
2,729 |
|
2,431 |
|
333 |
|
5,480 |
|
4,910 |
|
673 |
|
||||||
Impairment of goodwill and investments |
10,020 |
|
7,604 |
|
1,042 |
|
13,134 |
|
11,873 |
|
1,627 |
|
||||||
Loss (Gain) on deemed disposals/disposals/ revaluation of investments and others |
38,560 |
|
(1,731 |
) |
(237 |
) |
36,848 |
|
7,307 |
|
1,001 |
|
||||||
Equity-settled donation expense |
511 |
|
— |
|
— |
|
511 |
|
— |
|
— |
|
||||||
Tax effects (1) |
(3,320 |
) |
(1,642 |
) |
(225 |
) |
(4,244 |
) |
(3,877 |
) |
(531 |
) |
||||||
|
|
|
|
|
|
|
||||||||||||
Non-GAAP net income |
33,820 |
|
40,188 |
|
5,508 |
|
64,072 |
|
85,110 |
|
11,665 |
|
||||||
| ________________ | ||
(1) |
Tax effects primarily comprise tax effects relating to share-based compensation expense, amortization 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 (loss) earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated: |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
Six months ended September 30, |
||||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||
|
(in millions, except per share data) |
(in millions, except per share data) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to ordinary shareholders – basic |
(20,561 |
) |
27,706 |
|
3,797 |
|
2,178 |
|
62,038 |
|
8,503 |
|
||||||
Dilution effect on earnings arising from share-based awards operated by equity method investees and subsidiaries |
(1 |
) |
(66 |
) |
(9 |
) |
(1 |
) |
(134 |
) |
(18 |
) |
||||||
Net (loss) income attributable to ordinary shareholders – diluted |
(20,562 |
) |
27,640 |
|
3,788 |
|
2,177 |
|
61,904 |
|
8,485 |
|
||||||
Non-GAAP adjustments to net (loss) income attributable to ordinary shareholders(1) |
54,909 |
|
12,478 |
|
1,711 |
|
63,525 |
|
22,949 |
|
3,145 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS |
34,347 |
|
40,118 |
|
5,499 |
|
65,702 |
|
84,853 |
|
11,630 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares)(2) |
21,276 |
|
20,526 |
|
|
21,329 |
|
20,567 |
|
|
||||||||
|
|
|
|
|
|
|
||||||||||||
Diluted (loss) earnings per share(2)(3) |
(0.97 |
) |
1.35 |
|
0.19 |
|
0.10 |
|
3.01 |
|
0.41 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Non-GAAP diluted earnings per share(2)(4) |
1.61 |
|
1.95 |
|
0.27 |
|
3.08 |
|
4.13 |
|
0.57 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Diluted (loss) earnings per ADS(2)(3) |
(7.77 |
) |
10.77 |
|
1.48 |
|
0.82 |
|
24.08 |
|
3.30 |
|
||||||
|
|
|
|
|
|
|
||||||||||||
Non-GAAP diluted earnings per ADS(2)(4) |
12.92 |
|
15.63 |
|
2.14 |
|
24.64 |
|
33.00 |
|
4.52 |
|
||||||
________________ |
||
(1) |
See the table above for the reconciliation of net (loss) income to non-GAAP net income for more information of these non-GAAP adjustments. |
|
(2) |
Each ADS represents eight ordinary shares. |
|
(3) |
Diluted (loss) earnings per share is derived from dividing net (loss) income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted (loss) earnings per ADS is derived from the diluted (loss) 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 September 30, |
Six months ended September 30, |
||||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||||||
|
(in millions) |
(in millions) |
||||||||||||||||
Net cash provided by operating activities |
47,112 |
|
49,231 |
|
6,748 |
|
80,981 |
|
94,537 |
|
12,957 |
|
||||||
Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses) |
(10,957 |
) |
(4,112 |
) |
(564 |
) |
(22,067 |
) |
(10,119 |
) |
(1,386 |
) |
||||||
Less: Purchase of intangible assets (excluding those acquired through acquisitions) |
— |
|
— |
|
— |
|
(22 |
) |
— |
|
— |
|
||||||
Less: Changes in the buyer protection fund deposits |
(446 |
) |
101 |
|
14 |
|
(1,010 |
) |
(109 |
) |
(15 |
) |
||||||
|
|
|
|
|
|
|
||||||||||||
Free cash flow |
35,709 |
|
45,220 |
|
6,198 |
|
57,882 |
|
84,309 |
|
11,556 |
|
||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20231115729023/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
FAQ
What are the business highlights of Alibaba's financial results for the quarter ended September 30, 2023?
What is the revenue growth for Alibaba Group in the quarter ended September 30, 2023?
What strategic updates were announced by Alibaba Group?
