Alibaba Group Announces September Quarter 2024 Results
Alibaba Group reported Q3 2024 results with revenue of RMB236,503 million (US$33,701 million), up 5% year-over-year. Net income increased 63% to RMB43,547 million (US$6,205 million). The company's Cloud Intelligence Group saw 7% revenue growth with triple-digit AI-related product revenue growth. During the quarter, Alibaba repurchased US$4.1 billion of shares, achieving a 2.1% reduction in total shares outstanding. Notable performance included AIDC's 29% revenue growth and Local Services Group's 14% growth. The company continued investing in user experience and strengthening product offerings, while implementing new GMV-based service fees and cancelling annual service fees for Tmall merchants.
Alibaba Group ha riportato i risultati del terzo trimestre 2024 con un fatturato di RMB236.503 milioni (US$33.701 milioni), in crescita del 5% rispetto all'anno precedente. L'utile netto è aumentato del 63%, raggiungendo RMB43.547 milioni (US$6.205 milioni). Il Cloud Intelligence Group ha registrato una crescita del fatturato del 7%, con una crescita a tre cifre dei ricavi dei prodotti legati all'IA. Durante il trimestre, Alibaba ha riacquistato azioni per un valore di US$4,1 miliardi, ottenendo una riduzione del 2,1% nel numero totale di azioni in circolazione. Le performance notevoli includono la crescita del fatturato del 29% di AIDC e del 14% del Local Services Group. L'azienda ha continuato a investire nell'esperienza degli utenti e a rafforzare l'offerta di prodotti, mentre implementava nuove commissioni di servizio basate sul GMV e cancellava le commissioni annuali per i commercianti di Tmall.
Alibaba Group reportó los resultados del tercer trimestre de 2024 con ingresos de RMB236,503 millones (US$33,701 millones), un aumento del 5% interanual. El ingreso neto aumentó un 63%, alcanzando RMB43,547 millones (US$6,205 millones). El Cloud Intelligence Group experimentó un crecimiento de ingresos del 7% con un crecimiento de ingresos de productos relacionados con IA de tres dígitos. Durante el trimestre, Alibaba recompró acciones por un valor de US$4.1 mil millones, logrando una reducción del 2.1% en el número total de acciones en circulación. Entre las actuaciones notables se incluyen un crecimiento del 29% en ingresos de AIDC y un crecimiento del 14% en Local Services Group. La empresa continuó invirtiendo en la experiencia del usuario y fortaleciendo su oferta de productos, mientras implementaba nuevas tarifas de servicio basadas en el GMV y cancelaba las tarifas anuales para los comerciantes de Tmall.
알리바바 그룹은 2024년 3분기 결과를 발표했으며, 매출은 RMB236,503 백만(미화 33,701 백만)으로 전년 대비 5% 증가했습니다. 순이익은 63% 증가하여 RMB43,547 백만(미화 6,205 백만)에 달했습니다. 클라우드 인공지능 그룹은 7%의 매출 성장을 보였으며, AI 관련 제품 매출은 세 자릿수 성장률을 기록했습니다. 이 분기 동안 알리바바는 41억 달러의 자사주 매입을 실시하여 총 발행 주식 수를 2.1% 줄였습니다. 주목할 만한 성과로는 AIDC의 29% 매출 성장과 지역 서비스 그룹의 14% 성장 등이 포함됩니다. 회사는 사용자 경험에 대한 지속적인 투자와 제품 제공 강화에 힘쓰면서 GMV 기반의 새로운 서비스 요금을 도입하고 Tmall 상인을 위한 연간 서비스 요금을 폐지했습니다.
Alibaba Group a publié les résultats du troisième trimestre 2024, avec des revenus de RMB236,503 millions (US$33,701 millions), soit une augmentation de 5% par rapport à l'année dernière. Le bénéfice net a augmenté de 63% pour atteindre RMB43,547 millions (US$6,205 millions). Le Cloud Intelligence Group a connu une croissance des revenus de 7% avec une croissance à trois chiffres des revenus des produits liés à l'IA. Au cours du trimestre, Alibaba a racheté des actions pour un montant de 4,1 milliards de dollars, réalisant une réduction de 2,1% du nombre total d'actions en circulation. Parmi les performances notables figurent la croissance des revenus de 29% d'AIDC et la croissance de 14% du Local Services Group. L'entreprise a continué à investir dans l'expérience utilisateur et à renforcer son offre de produits, tout en mettant en œuvre de nouveaux frais de service basés sur le GMV et en annulant les frais de service annuels pour les commerçants de Tmall.
Alibaba Group hat die Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Umsatz von RMB236.503 Millionen (US$33.701 Millionen), was einem Anstieg von 5% im Vergleich zum Vorjahr entspricht. Der Nettogewinn stieg um 63% auf RMB43.547 Millionen (US$6.205 Millionen). Die Cloud Intelligence Group verzeichnete ein Umsatzwachstum von 7% mit einer dreistelligen Wachstumsrate bei den KI-bezogenen Produktumsätzen. Im Laufe des Quartals hat Alibaba Aktien im Wert von 4,1 Milliarden US-Dollar zurückgekauft, was zu einer Reduzierung der gesamten ausstehenden Aktien um 2,1% führte. Zu den bemerkenswerten Leistungen gehören das Umsatzwachstum von 29% bei AIDC und das Wachstum von 14% bei der Local Services Group. Das Unternehmen investierte weiterhin in die Benutzererfahrung und stärkte sein Produktangebot, während es neue GMV-basierte Servicegebühren einführte und die jährlichen Servicegebühren für Tmall-Händler strich.
- Net income increased 63% YoY to RMB43,547 million
- AI-related product revenue grew triple-digits for fifth consecutive quarter
- AIDC revenue grew 29% YoY to RMB31,672 million
- Repurchased US$4.1 billion of shares, reducing outstanding shares by 2.1%
- Local Services Group revenue increased 14% YoY
- Adjusted EBITA decreased 5% YoY to RMB40,561 million
- Non-GAAP net income decreased 9% YoY to RMB36,518 million
- Free cash flow decreased 70% YoY to RMB13,735 million
- Operating cash flow decreased 36% YoY
Insights
This is a significant earnings report showing mixed results for Alibaba. Key highlights include: 5% YoY revenue growth to
Notable concerns include a
The strategic shift toward GMV-based service fees and AI investments positions Alibaba for future growth, though near-term profitability remains pressured by increased investments in core businesses.
The Cloud Intelligence Group shows promising momentum with accelerating growth. Key developments include: Triple-digit growth in AI-related revenues for the fifth straight quarter, leadership recognition in Forrester's public cloud report and significant upgrades to the Qwen AI model family.
The strategic focus on AI infrastructure and reduced API pricing demonstrates Alibaba's commitment to capturing the cloud AI opportunity while making advanced capabilities more accessible. With over 70,000 derivative models developed on their open-source platform, Alibaba is establishing itself as a major player in the global AI ecosystem.
“This quarter we continued to invest in the user experience and strengthen product offerings to serve our consumers. We entered into long-term collaborations with industry peers to broaden payment and logistics services on Taobao and Tmall platforms, which we expect will accelerate our overall growth. Growth in our Cloud business accelerated from prior quarters, with revenues from public cloud products growing in double digits and AI-related product revenue delivering triple-digit growth. We are more confident in our core businesses than ever and will continue to invest in supporting long-term growth. Our other businesses continued to improve their operating efficiency, with most of them continuing to increase their profitability or reduce losses,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
“Our revenue growth this quarter was driven by improving monetization of Taobao and Tmall Group, which included GMV-based service fees and merchant adoption of our marketing tool Quanzhantui. Consistent with our strategy, we continue to invest in our core businesses while enhancing operational efficiency. During the quarter we repurchased
BUSINESS HIGHLIGHTS
In the quarter ended September 30, 2024:
-
Revenue was
RMB236,503 million (US ), an increase of$33,701 million 5% year-over-year.
-
Income from operations was
RMB35,246 million (US ), an increase of$5,023 million 5% year-over-year, primarily due to the decrease in non-cash share-based compensation expense, partly offset by the decrease in adjusted EBITA. We excluded non-cash share-based compensation expense from our non-GAAP measurements. Adjusted EBITA, a non-GAAP measurement, decreased5% year-over-year toRMB40,561 million (US ), was primarily attributable to the increase in investments in our e-commerce businesses, partly offset by revenue growth and improved operating efficiency.$5,780 million
-
Net income attributable to ordinary shareholders was
RMB43,874 million (US ). Net income was$6,252 million RMB43,547 million (US ), an increase of$6,205 million 63% year-over-year, primarily attributable to the mark-to-market changes from our equity investments, decrease in impairment of our investments and increase in income from operations. Non-GAAP net income in the quarter ended September 30, 2024 wasRMB36,518 million (US ), a decrease of$5,204 million 9% compared toRMB40,188 million in the same quarter of 2023.
-
Diluted earnings per ADS was
RMB18.17 (US ). Diluted earnings per share was$2.59 RMB2.27 (US or$0.32 HK ). Non-GAAP diluted earnings per ADS was$2.52 RMB15.06 (US ), a decrease of$2.15 4% year-over-year. Non-GAAP diluted earnings per share wasRMB1.88 (US or$0.27 HK ), a decrease of$2.08 4% year-over-year.
-
Net cash provided by operating activities was
RMB31,438 million (US ), a decrease of$4,480 million 36% compared toRMB49,231 million in the same quarter of 2023. Free cash flow, a non-GAAP measurement of liquidity, wasRMB13,735 million (US ), a decrease of$1,957 million 70% compared toRMB45,220 million in the same quarter of 2023. The decrease in free cash flow was mainly attributed to our investments in Alibaba Cloud infrastructure, refund to Tmall merchants after we cancelled the annual service fee and other working capital changes related to factors including scale down of certain 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
During the quarter we increased investment in strategic initiatives such as price-competitive products, customer service, membership program benefits and technology, with the aim of enhancing user experience. These efforts led to higher purchase frequency and improved feedback regarding the overall shopping experience year-over-year.
We adopted a more open approach for payment and logistics services on our platforms to make shopping on our platforms more convenient to a larger base of consumers and improve merchants’ operating efficiency. We have already observed much stronger momentum in new purchasers, and we believe our focus on user growth and retention will drive the overall growth of our platforms.
Starting from September 1, we implemented a software service fee based on the GMV of completed transactions on our platform, which puts us in line with the common practice of the e-commerce industry. In the meantime, we cancelled the annual service fee for Tmall merchants and provided software service fee rebates to certain small and medium-sized merchants. In addition, Quanzhantui, our AI-powered platform-wide marketing tool, saw steady increase in merchant adoption. Merchants benefit from the use of Quanzhantui through improvement of their marketing efficiency, and with higher efficiency we expect merchants to increase their marketing spending on our platform.
During the quarter, online GMV growth was supported by double-digit order growth year-over-year, mainly driven by the increase in purchase frequency, partly offset by the decline in average order value. In October and November, we had a successful 11.11 Global Shopping Festival, during which Taobao and Tmall achieved robust growth in GMV and a record number of purchasers.
The number of 88VIP members, our highest spending consumer group, continued to increase by double-digits year-over-year, reaching 46 million during the quarter. Our premium shoppers are loyal customers who increase our purchase frequency and drive GMV growth. Accordingly, we target to continue to grow the subscription of 88VIP membership by investing in improved benefits and services.
Cloud Intelligence Group
For the quarter ended September 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 service provider of choice in
In September, we held our 16th annual cloud computing developer summit and exhibition, the Apsara Conference 2024, during which Cloud Intelligence Group unveiled new technologies, including:
- Qwen (通义千问) Large Model Family Upgrades: We introduced significant upgrades across the Qwen large model family, including the release of the open-source Qwen 2.5 series, which has become one of the leading models in the global open-source ecosystem, with the flagship Qwen 2.5-72B demonstrating strong results across benchmarks, outperforming industry players. As of September 30, 2024, more than 70,000 derivative models have been developed on Hugging Face based on the Qwen family of models since it was first open-sourced in 2023, demonstrating its position as one of the most widely adopted open-source models globally.
- Cost-efficient and Accessible AI: Alibaba Cloud remains committed to providing customers with the best value in AI capabilities. During this quarter, we significantly improved cost-efficiency for the customers of Qwen models by reducing the charge rate for API calls, making advanced AI technologies more affordable and accessible.
- Comprehensive AI Infrastructure Upgrades: To better position ourselves to capture AI adoption, we have strengthened AI infrastructure to enhance scalability and performance. Recently, we launched GPU container services, and upgraded AI server as well as high-performance network products. These improvements have significantly enhanced model training and inference efficiency across various industries.
Alibaba International Digital Commerce Group (“AIDC”)
For the quarter ended September 30, 2024, revenue from AIDC grew
The AliExpress platform continued to enhance its value proposition by expanding its supplier base, enriching its product offerings and meeting the needs of local consumers. During the quarter, AliExpress launched the “AliExpressDirect” model, aiming to expand product choice and optimize fulfillment efficiency by leveraging local inventories. In addition, synergies between AliExpress and the cross-border logistics operations of Cainiao have further strengthened AliExpress’ competitiveness, with average delivery time shortened significantly quarter-over-quarter.
Cainiao Smart Logistics Network Limited (“Cainiao”)
For the quarter ended September 30, 2024, revenue from Cainiao grew
We will continue to drive synergies between Cainiao and our cross-border e-commerce business. To meet the demands of an expanding cross-border e-commerce business, Cainiao’s strategy is to strengthen its end-to-end capabilities by developing a highly-digitalized global logistics network. Furthermore, Cainiao Express started providing logistics services on other e-commerce platform in October, further expanding its market reach.
Local Services Group
For the quarter ended September 30, 2024, revenue from Local Services Group grew by
Digital Media and Entertainment Group
During the quarter ended September 30, 2024, revenue of Digital Media and Entertainment Group was
Share Repurchases
During the quarter ended September 30, 2024, we repurchased a total of 414 million ordinary shares (equivalent to 52 million ADSs) for a total of
SEPTEMBER QUARTER SUMMARY FINANCIAL RESULTS
|
Three months ended September 30, |
|
|||||
|
2023 |
2024 |
|
||||
|
RMB |
RMB |
US$ |
YoY %
|
|||
|
(in millions, except percentages and per share amounts) |
||||||
|
|
|
|
|
|||
Revenue |
224,790 |
236,503 |
33,701 |
|
|||
|
|
|
|
|
|||
Income from operations |
33,584 |
35,246 |
5,023 |
|
|||
Operating margin |
|
|
|
|
|||
Adjusted EBITDA(1) |
49,237 |
47,327 |
6,744 |
(4)%(3) |
|||
Adjusted EBITDA margin(1) |
|
|
|
|
|||
Adjusted EBITA(1) |
42,845 |
40,561 |
5,780 |
(5)%(3) |
|||
Adjusted EBITA margin(1) |
|
|
|
|
|||
|
|
|
|
|
|||
Net income |
26,696 |
43,547 |
6,205 |
|
|||
Net income attributable to ordinary shareholders |
27,706 |
43,874 |
6,252 |
|
|||
Non-GAAP net income(1) |
40,188 |
36,518 |
5,204 |
(9)%(3) |
|||
|
|
|
|
|
|||
Diluted earnings per share(5) |
1.35 |
2.27 |
0.32 |
|
|||
Diluted earnings per ADS(5) |
10.77 |
18.17 |
2.59 |
|
|||
Non-GAAP diluted earnings per share(1)(5) |
1.95 |
1.88 |
0.27 |
(4)%(3)(6) |
|||
Non-GAAP diluted earnings per ADS(1)(5) |
15.63 |
15.06 |
2.15 |
(4)%(3)(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 increase was primarily due to the decrease in non-cash share-based compensation expense, partly offset by the decrease in adjusted EBITA. |
(3) |
The year-over-year decreases were primarily attributable to the increase in investments in our e-commerce businesses, partly offset by revenue growth and improved operating efficiency. |
(4) |
The year-over-year increases were primarily attributable to the mark-to-market changes from our equity investments, decrease in impairment of our investments and increase in income from operations, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss attributable to noncontrolling interests. |
(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, 2024 was
The following table sets forth a breakdown of our revenue by segment for the periods indicated:
|
Three months ended September 30, |
|
|||||
|
2023 |
2024 |
|
||||
|
RMB |
RMB |
US$ |
YoY %
|
|||
|
(in millions, except percentages) |
||||||
Taobao and Tmall Group: |
|
|
|
|
|||
|
|
|
|
|
|||
- Customer management |
68,661 |
70,364 |
10,027 |
|
|||
- Direct sales and others(1) |
23,899 |
22,644 |
3,227 |
(5)% |
|||
|
92,560 |
93,008 |
13,254 |
|
|||
|
5,094 |
5,986 |
853 |
|
|||
Total Taobao and Tmall Group |
97,654 |
98,994 |
14,107 |
|
|||
|
|
|
|
|
|||
Cloud Intelligence Group |
27,648 |
29,610 |
4,219 |
|
|||
|
|
|
|
|
|||
Alibaba International Digital Commerce Group: |
|
|
|
|
|||
International commerce retail |
18,978 |
25,618 |
3,650 |
|
|||
International commerce wholesale |
5,533 |
6,054 |
863 |
|
|||
Total Alibaba International Digital Commerce Group |
24,511 |
31,672 |
4,513 |
|
|||
|
|
|
|
|
|||
Cainiao Smart Logistics Network Limited |
22,823 |
24,647 |
3,512 |
|
|||
Local Services Group |
15,564 |
17,725 |
2,526 |
|
|||
Digital Media and Entertainment Group |
5,779 |
5,694 |
811 |
(1)% |
|||
All others(2) |
48,052 |
52,178 |
7,435 |
|
|||
Unallocated |
277 |
469 |
67 |
|
|||
Inter-segment elimination |
(17,518) |
(24,486) |
(3,489) |
|
|||
Consolidated revenue |
224,790 |
236,503 |
33,701 |
|
|||
|
Six months ended September 30, |
|
|||||
|
2023 |
2024 |
|
||||
|
RMB |
RMB |
US$ |
YoY %
|
|||
|
(in millions, except percentages) |
||||||
Taobao and Tmall Group: |
|
|
|
|
|||
|
|
|
|
|
|||
- Customer management |
148,322 |
150,479 |
21,443 |
|
|||
- Direct sales and others(1) |
54,066 |
49,950 |
7,118 |
(8)% |
|||
|
202,388 |
200,429 |
28,561 |
(1)% |
|||
|
10,219 |
11,938 |
1,701 |
|
|||
Total Taobao and Tmall Group |
212,607 |
212,367 |
30,262 |
(0)% |
|||
|
|
|
|
|
|||
Cloud Intelligence Group |
52,713 |
56,159 |
8,003 |
|
|||
|
|
|
|
|
|||
Alibaba International Digital Commerce Group: |
|
|
|
|
|||
International commerce retail |
36,116 |
49,309 |
7,026 |
|
|||
International commerce wholesale |
10,518 |
11,656 |
1,661 |
|
|||
Total Alibaba International Digital Commerce Group |
46,634 |
60,965 |
8,687 |
|
|||
|
|
|
|
|
|||
Cainiao Smart Logistics Network Limited |
45,987 |
51,458 |
7,333 |
|
|||
Local Services Group |
30,014 |
33,954 |
4,838 |
|
|||
Digital Media and Entertainment Group |
11,160 |
11,275 |
1,607 |
|
|||
All others(2) |
93,850 |
99,179 |
14,133 |
|
|||
Unallocated |
526 |
888 |
126 |
|
|||
Inter-segment elimination |
(34,545) |
(46,506) |
(6,627) |
|
|||
Consolidated revenue |
458,946 |
479,739 |
68,362 |
|
|||
| ____________________ | |
(1) |
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. |
(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 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:
|
Three months ended September 30, |
|
|||||
|
2023 |
2024 |
|
||||
|
RMB |
RMB |
US$ |
YoY %
|
|||
|
(in millions, except percentages) |
||||||
Taobao and Tmall Group |
47,077 |
44,590 |
6,354 |
(5)% |
|||
Cloud Intelligence Group |
1,409 |
2,661 |
379 |
|
|||
Alibaba International Digital Commerce Group |
(384) |
(2,905) |
(414) |
(657)% |
|||
Cainiao Smart Logistics Network Limited |
906 |
55 |
8 |
(94)% |
|||
Local Services Group |
(2,564) |
(391) |
(56) |
|
|||
Digital Media and Entertainment Group |
(201) |
(178) |
(25) |
|
|||
All others(1) |
(1,437) |
(1,582) |
(225) |
(10)% |
|||
Unallocated (2) |
(1,019) |
(1,271) |
(181) |
|
|||
Inter-segment elimination |
(942) |
(418) |
(60) |
|
|||
Consolidated adjusted EBITA |
42,845 |
40,561 |
5,780 |
(5)% |
|||
Less: Non-cash share-based compensation expense |
(6,830) |
(3,666) |
(522) |
|
|||
Less: Amortization of intangible assets |
(2,431) |
(1,649) |
(235) |
|
|||
Income from operations |
33,584 |
35,246 |
5,023 |
|
|||
|
Six months ended September 30, |
|
|||||
|
2023 |
2024 |
|
||||
|
RMB |
RMB |
US$ |
YoY %
|
|||
|
(in millions, except percentages) |
||||||
Taobao and Tmall Group |
96,396 |
93,400 |
13,309 |
(3)% |
|||
Cloud Intelligence Group |
2,325 |
4,998 |
712 |
|
|||
Alibaba International Digital Commerce Group |
(804) |
(6,611) |
(942) |
(722)% |
|||
Cainiao Smart Logistics Network Limited |
1,783 |
673 |
96 |
(62)% |
|||
Local Services Group |
(4,546) |
(777) |
(111) |
|
|||
Digital Media and Entertainment Group |
(138) |
(281) |
(40) |
(104)% |
|||
All others(1) |
(3,170) |
(2,845) |
(405) |
|
|||
Unallocated (2) |
(2,482) |
(2,142) |
(305) |
|
|||
Inter-segment elimination |
(1,148) |
(819) |
(117) |
|
|||
Consolidated adjusted EBITA |
88,216 |
85,596 |
12,197 |
(3)% |
|||
Less: Non-cash share-based compensation expense |
(5,201) |
(7,775) |
(1,108) |
|
|||
Less: Amortization and impairment of intangible assets |
(4,910) |
(3,441) |
(490) |
|
|||
Less: Impairment of goodwill |
(2,031) |
– |
– |
|
|||
Less: Provision for the shareholder class action lawsuits |
– |
(3,145) |
(448) |
|
|||
Income from operations |
76,074 |
71,235 |
10,151 |
(6)% |
|||
| ____________________ | |
(1) |
All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, DingTalk and other businesses. |
(2) |
Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments. |
(3) |
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 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 September 30, 2024 was
- International Commerce Wholesale Business
Revenue from our International commerce wholesale business in the quarter ended September 30, 2024 was
(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 September 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 September 30, 2024 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
|
|||||||||
|
2023 |
2024 |
|||||||||
|
RMB |
% of
|
RMB |
US$ |
% of
|
||||||
|
(in millions, except percentages) |
||||||||||
Costs and expenses: |
|
|
|
|
|
|
|||||
Cost of revenue |
139,664 |
|
144,029 |
20,524 |
|
(1.2)% |
|||||
Product development expenses |
14,218 |
|
14,182 |
2,020 |
|
(0.3)% |
|||||
Sales and marketing expenses |
25,485 |
|
32,471 |
4,627 |
|
|
|||||
General and administrative expenses |
9,408 |
|
9,777 |
1,393 |
|
(0.1)% |
|||||
Amortization of intangible assets |
2,431 |
|
1,649 |
235 |
|
(0.4)% |
|||||
Total costs and expenses |
191,206 |
|
202,108 |
28,799 |
|
|
|||||
|
|
|
|
|
|
|
|||||
Share-based compensation expense: |
|
|
|
|
|
|
|||||
Cost of revenue |
1,244 |
|
619 |
89 |
|
(0.3)% |
|||||
Product development expenses |
3,006 |
|
1,757 |
250 |
|
(0.6)% |
|||||
Sales and marketing expenses |
850 |
|
549 |
78 |
|
(0.2)% |
|||||
General and administrative expenses |
1,730 |
|
1,221 |
174 |
|
(0.3)% |
|||||
Total share-based compensation expense(1) |
6,830 |
4,146 |
591 |
||||||||
|
|
|
|
|
|
|
|||||
Costs and expenses excluding share-based compensation expense: |
|
|
|
|
|
|
|||||
Cost of revenue |
138,420 |
|
143,410 |
20,435 |
|
(1.0)% |
|||||
Product development expenses |
11,212 |
|
12,425 |
1,770 |
|
|
|||||
Sales and marketing expenses |
24,635 |
|
31,922 |
4,549 |
|
|
|||||
General and administrative expenses |
7,678 |
|
8,556 |
1,219 |
|
|
|||||
Amortization of intangible assets |
2,431 |
|
1,649 |
235 |
|
(0.4)% |
|||||
Total costs and expenses excluding share-based compensation expense |
184,376 |
197,962 |
28,208 |
||||||||
| ____________________ | |
(1) |
This includes both cash and non-cash share-based compensation expenses. |
Cost of revenue – Cost of revenue in the quarter ended September 30, 2024 was
Product development expenses – Product development expenses in the quarter ended September 30, 2024 were
Sales and marketing expenses – Sales and marketing expenses in the quarter ended September 30, 2024 were
General and administrative expenses – General and administrative expenses in the quarter ended September 30, 2024 were
Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the quarter ended September 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 September 30, |
|
|||||
|
2023 |
2024 |
|
||||
|
RMB |
RMB |
US$ |
YoY %
|
|||
|
(in millions, except percentages) |
||||||
By type of awards: |
|
|
|
|
|||
Alibaba Group share-based awards(1) |
4,840 |
2,786 |
397 |
(42)% |
|||
Ant Group share-based awards(2) |
85 |
12 |
2 |
(86)% |
|||
Others(3) |
1,905 |
1,348 |
192 |
(29)% |
|||
Total share-based compensation expense(4) |
6,830 |
4,146 |
591 |
(39)% |
|||
| ____________________ | |
(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. |
(4) |
This includes both cash and non-cash share-based compensation expenses. |
Share-based compensation expense related to Alibaba Group share-based awards decreased in the quarter ended September 30, 2024 compared to the same quarter of 2023. This decrease was primarily due to the decrease in the number 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, 2024 was
Income from operations and operating margin
Income from operations in the quarter ended September 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 “September Quarter Segment Results” above.
Interest and investment income, net
Interest and investment income, net in the quarter ended September 30, 2024 was
The above-mentioned investment gains and losses were excluded from our non-GAAP net income.
Other income (expense), net
Other income (expense), net in the quarter ended September 30, 2024 was an expense of
Income tax expenses
Income tax expenses in the quarter ended September 30, 2024 were
Share of results of equity method investees
Share of results of equity method investees in the quarter ended September 30, 2024 was a profit of
|
Three months ended September 30, |
||||
|
2023 |
2024 |
|||
|
RMB |
RMB |
US$ |
||
|
(in millions) |
||||
Share of profit (loss) of equity method investees |
|
|
|
||
- Ant Group |
846 |
2,478 |
353 |
||
- Others |
(1,146) |
(746) |
(106) |
||
Impairment loss |
(4,469) |
– |
– |
||
Others(1) |
(995) |
(754) |
(108) |
||
Total |
(5,764) |
978 |
139 |
||
| ____________________ | |
(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 increase in share of profit of Ant Group was mainly because the share of results in the same quarter last year reflected a
Net income and Non-GAAP net income
Our net income in the quarter ended September 30, 2024 was
Excluding non-cash share-based compensation expense, gains/losses of investments, and certain other items, non-GAAP net income in the quarter ended September 30, 2024 was
Net income attributable to ordinary shareholders
Net income attributable to ordinary shareholders in the quarter ended September 30, 2024 was
Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended September 30, 2024 was
Diluted earnings per share in the quarter ended September 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 September 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 September 30, 2024, net cash provided by operating activities was
Net cash provided by investing activities
During the quarter ended September 30, 2024, net cash provided by investing activities of
Net cash used in financing activities
During the quarter ended September 30, 2024, net cash used in financing activities of
Employees
As of September 30, 2024, we had a total of 197,991 employees, compared to 198,162 as of June 30, 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/10042440-pohtg.html
Chinese: https://s1.c-conf.com/diamondpass/10042441-ywtss.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 10042440; Chinese conference PIN 10042441).
Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en-US/investor-relations on November 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 (expense), 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 (expense), 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 September 30, |
Six months ended September 30, |
|||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||
|
(in millions, except per share data) |
(in millions, except per share data) |
|||||||||
Revenue |
224,790 |
236,503 |
33,701 |
458,946 |
479,739 |
68,362 |
|||||
Cost of revenue |
(139,664) |
(144,029) |
(20,524) |
(282,011) |
(290,135) |
(41,344) |
|||||
Product development expenses |
(14,218) |
(14,182) |
(2,020) |
(24,683) |
(27,555) |
(3,927) |
|||||
Sales and marketing expenses |
(25,485) |
(32,471) |
(4,627) |
(52,532) |
(65,167) |
(9,286) |
|||||
General and administrative expenses |
(9,408) |
(9,777) |
(1,393) |
(16,705) |
(23,057) |
(3,285) |
|||||
Amortization and impairment of intangible assets |
(2,431) |
(1,649) |
(235) |
(4,910) |
(3,441) |
(490) |
|||||
Impairment of goodwill |
– |
– |
– |
(2,031) |
– |
– |
|||||
Other gains, net |
– |
851 |
121 |
– |
851 |
121 |
|||||
|
|
|
|
|
|
|
|||||
Income from operations |
33,584 |
35,246 |
5,023 |
76,074 |
71,235 |
10,151 |
|||||
Interest and investment income, net |
5,136 |
18,607 |
2,652 |
(762) |
17,129 |
2,441 |
|||||
Interest expense |
(1,854) |
(2,427) |
(346) |
(3,638) |
(4,615) |
(658) |
|||||
Other income (expense), net |
1,391 |
(1,478) |
(211) |
2,755 |
(1,221) |
(174) |
|||||
|
|
|
|
|
|
|
|||||
Income before income tax and share of results of equity method investees |
38,257 |
49,948 |
7,118 |
74,429 |
82,528 |
11,760 |
|||||
Income tax expenses |
(5,797) |
(7,379) |
(1,052) |
(11,819) |
(17,442) |
(2,485) |
|||||
Share of results of equity method investees |
(5,764) |
978 |
139 |
(2,914) |
2,483 |
354 |
|||||
|
|
|
|
|
|
|
|||||
Net income |
26,696 |
43,547 |
6,205 |
59,696 |
67,569 |
9,629 |
|||||
Net loss attributable to noncontrolling interests |
1,151 |
486 |
70 |
2,393 |
854 |
121 |
|||||
|
|
|
|
|
|
|
|||||
Net income attributable to Alibaba Group Holding Limited |
27,847 |
44,033 |
6,275 |
62,089 |
68,423 |
9,750 |
|||||
|
|
|
|
|
|
|
|||||
Accretion of mezzanine equity |
(141) |
(159) |
(23) |
(51) |
(280) |
(40) |
|||||
|
|
|
|
|
|
|
|||||
Net income attributable to ordinary shareholders |
27,706 |
43,874 |
6,252 |
62,038 |
68,143 |
9,710 |
|||||
|
|
|
|
|
|
|
|||||
Earnings per share attributable to ordinary shareholders(1) |
|
|
|
|
|
|
|||||
Basic |
1.36 |
2.34 |
0.33 |
3.04 |
3.58 |
0.51 |
|||||
Diluted |
1.35 |
2.27 |
0.32 |
3.01 |
3.50 |
0.50 |
|||||
|
|
|
|
|
|
|
|||||
Earnings per ADS attributable to ordinary shareholders(1) |
|
|
|
|
|
|
|||||
Basic |
10.90 |
18.71 |
2.67 |
24.31 |
28.62 |
4.08 |
|||||
Diluted |
10.77 |
18.17 |
2.59 |
24.08 |
28.00 |
3.99 |
|||||
|
|
|
|
|
|
|
|||||
Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1) |
|
|
|
|
|
|
|||||
Basic |
20,335 |
18,761 |
|
20,414 |
19,045 |
|
|||||
Diluted |
20,526 |
19,322 |
|
20,567 |
19,459 |
|
|||||
| ____________________ | |
(1) |
Each ADS represents eight ordinary shares. |
ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS |
|||||
|
As of March 31, |
As of September 30, |
|||
|
2024 |
2024 |
|||
|
RMB |
RMB |
US$ |
||
|
(in millions) |
||||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
248,125 |
182,992 |
26,076 |
||
Short-term investments |
262,955 |
155,530 |
22,163 |
||
Restricted cash and escrow receivables |
38,299 |
45,480 |
6,481 |
||
Equity securities and other investments |
59,949 |
50,266 |
7,163 |
||
Prepayments, receivables and other assets |
143,536 |
174,834 |
24,913 |
||
Total current assets |
752,864 |
609,102 |
86,796 |
||
|
|||||
Equity securities and other investments |
220,942 |
344,658 |
49,113 |
||
Prepayments, receivables and other assets |
116,102 |
115,960 |
16,524 |
||
Investment in equity method investees |
203,131 |
202,548 |
28,863 |
||
Property and equipment, net |
185,161 |
207,917 |
29,628 |
||
Intangible assets, net |
26,950 |
22,906 |
3,264 |
||
Goodwill |
259,679 |
259,621 |
36,996 |
||
Total assets |
1,764,829 |
1,762,712 |
251,184 |
||
|
|
|
|
||
Liabilities, Mezzanine Equity and Shareholders’ Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Current bank borrowings |
12,749 |
16,938 |
2,414 |
||
Current unsecured senior notes |
16,252 |
15,786 |
2,249 |
||
Income tax payable |
9,068 |
8,115 |
1,156 |
||
Accrued expenses, accounts payable and other liabilities |
297,883 |
322,743 |
45,991 |
||
Merchant deposits |
12,737 |
3,813 |
543 |
||
Deferred revenue and customer advances |
72,818 |
77,473 |
11,040 |
||
Total current liabilities |
421,507 |
444,868 |
63,393 |
||
|
|||||
ALIBABA GROUP HOLDING LIMITED UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) |
|||||
|
As of March 31, |
As of September 30, |
|||
|
2024 |
2024 |
|||
|
RMB |
RMB |
US$ |
||
|
(in millions) |
||||
|
|
|
|
||
Deferred revenue |
4,069 |
4,318 |
615 |
||
Deferred tax liabilities |
53,012 |
54,747 |
7,801 |
||
Non-current bank borrowings |
55,686 |
51,302 |
7,311 |
||
Non-current unsecured senior notes |
86,089 |
83,608 |
11,914 |
||
Non-current convertible unsecured senior notes |
– |
34,626 |
4,934 |
||
Other liabilities |
31,867 |
31,365 |
4,470 |
||
Total liabilities |
652,230 |
704,834 |
100,438 |
||
|
|
|
|
||
Commitments and contingencies |
|
|
|
||
Mezzanine equity |
10,728 |
11,592 |
1,651 |
||
Shareholders’ equity: |
|
||||
Ordinary shares |
1 |
1 |
– |
||
Additional paid-in capital |
397,999 |
380,145 |
54,170 |
||
Treasury shares at cost |
(27,684) |
(36,185) |
(5,156) |
||
Statutory reserves |
14,733 |
15,885 |
2,264 |
||
Accumulated other comprehensive income |
3,598 |
467 |
66 |
||
Retained earnings |
597,897 |
593,612 |
84,589 |
||
|
|
|
|
||
Total shareholders’ equity |
986,544 |
953,925 |
135,933 |
||
Noncontrolling interests |
115,327 |
92,361 |
13,162 |
||
|
|
|
|
||
Total equity |
1,101,871 |
1,046,286 |
149,095 |
||
|
|
|
|||
Total liabilities, mezzanine equity and equity |
1,764,829 |
1,762,712 |
251,184 |
||
|
|||||
ALIBABA GROUP HOLDING LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
|
Three months ended September 30, |
Six months ended September 30, |
|||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||
|
(in millions) |
(in millions) |
|||||||||
|
|
|
|
|
|
|
|||||
Net cash provided by operating activities |
49,231 |
31,438 |
4,480 |
94,537 |
65,074 |
9,273 |
|||||
Net cash (used in) provided by investing activities |
(23,761) |
964 |
137 |
(11,166) |
(34,865) |
(4,968) |
|||||
Net cash used in financing activities |
(12,382) |
(66,782) |
(9,516) |
(37,018) |
(86,364) |
(12,307) |
|||||
Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables |
813 |
(2,456) |
(350) |
5,132 |
(1,797) |
(256) |
|||||
|
|
|
|
|
|
|
|||||
Increase (Decrease) in cash and cash equivalents, restricted cash and escrow receivables |
13,901 |
(36,836) |
(5,249) |
51,485 |
(57,952) |
(8,258) |
|||||
Cash and cash equivalents, restricted cash and escrow receivables at beginning of period |
267,094 |
265,308 |
37,806 |
229,510 |
286,424 |
40,815 |
|||||
|
|
|
|
|
|
|
|||||
Cash and cash equivalents, restricted cash and escrow receivables at end of period |
280,995 |
228,472 |
32,557 |
280,995 |
228,472 |
32,557 |
|||||
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 September 30, |
Six months ended September 30, |
|||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||
|
(in millions) |
(in millions) |
|||||||||
Net income |
26,696 |
43,547 |
6,205 |
59,696 |
67,569 |
9,629 |
|||||
Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA: |
|
|
|
|
|
|
|||||
Interest and investment income, net |
(5,136) |
(18,607) |
(2,652) |
762 |
(17,129) |
(2,441) |
|||||
Interest expense |
1,854 |
2,427 |
346 |
3,638 |
4,615 |
658 |
|||||
Other (income) expense, net |
(1,391) |
1,478 |
211 |
(2,755) |
1,221 |
174 |
|||||
Income tax expenses |
5,797 |
7,379 |
1,052 |
11,819 |
17,442 |
2,485 |
|||||
Share of results of equity method investees |
5,764 |
(978) |
(139) |
2,914 |
(2,483) |
(354) |
|||||
Income from operations |
33,584 |
35,246 |
5,023 |
76,074 |
71,235 |
10,151 |
|||||
Non-cash share-based compensation expense |
6,830 |
3,666 |
522 |
5,201 |
7,775 |
1,108 |
|||||
Amortization and impairment of intangible assets |
2,431 |
1,649 |
235 |
4,910 |
3,441 |
490 |
|||||
Impairment of goodwill |
– |
– |
– |
2,031 |
– |
– |
|||||
Provision for the shareholder class action lawsuits |
– |
– |
– |
– |
3,145 |
448 |
|||||
Adjusted EBITA |
42,845 |
40,561 |
5,780 |
88,216 |
85,596 |
12,197 |
|||||
Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights |
6,392 |
6,766 |
964 |
13,073 |
12,892 |
1,837 |
|||||
Adjusted EBITDA |
49,237 |
47,327 |
6,744 |
101,289 |
98,488 |
14,034 |
|||||
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 September 30, |
Six months ended September 30, |
|||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||
|
(in millions) |
(in millions) |
|||||||||
|
|
|
|
|
|
|
|||||
Net income |
26,696 |
43,547 |
6,205 |
59,696 |
67,569 |
9,629 |
|||||
Adjustments to reconcile net income to non-GAAP net income: |
|
|
|
|
|
|
|||||
Non-cash share-based compensation expense |
6,830 |
3,666 |
522 |
5,201 |
7,775 |
1,108 |
|||||
Amortization and impairment of intangible assets |
2,431 |
1,649 |
235 |
4,910 |
3,441 |
490 |
|||||
Provision for the shareholder class action lawsuits |
– |
– |
– |
– |
3,145 |
448 |
|||||
(Gain) Loss on deemed disposals/disposals/ revaluation of investments |
(1,731) |
(12,697) |
(1,809) |
7,307 |
(8,116) |
(1,157) |
|||||
Impairment of goodwill and investments, and others |
7,604 |
756 |
108 |
11,873 |
5,067 |
722 |
|||||
Tax effects (1) |
(1,642) |
(403) |
(57) |
(3,877) |
(1,672) |
(238) |
|||||
|
|
|
|
|
|
|
|||||
Non-GAAP net income |
40,188 |
36,518 |
5,204 |
85,110 |
77,209 |
11,002 |
|||||
| ____________________ | |
(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 September 30, |
Six months ended September 30, |
|||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||
|
(in millions, except per share data) |
(in millions, except per share data) |
|||||||||
|
|
|
|
|
|
|
|||||
Net income attributable to ordinary shareholders – basic |
27,706 |
43,874 |
6,252 |
62,038 |
68,143 |
9,710 |
|||||
Dilution effect on earnings arising from non-cash share-based awards operated by equity method investees and subsidiaries |
(66) |
(56) |
(8) |
(134) |
(131) |
(19) |
|||||
Adjustments for interest expense attributable to convertible unsecured senior notes |
– |
69 |
10 |
– |
95 |
14 |
|||||
Net income attributable to ordinary shareholders – diluted |
27,640 |
43,887 |
6,254 |
61,904 |
68,107 |
9,705 |
|||||
Non-GAAP adjustments to net income attributable to ordinary shareholders(1) |
12,478 |
(7,524) |
(1,072) |
22,949 |
8,521 |
1,214 |
|||||
|
|
|
|
|
|
|
|||||
Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS |
40,118 |
36,363 |
5,182 |
84,853 |
76,628 |
10,919 |
|||||
|
|
|
|
|
|
|
|||||
Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares)(2) |
20,526 |
19,322 |
|
20,567 |
19,459 |
|
|||||
|
|
|
|
|
|
|
|||||
Diluted earnings per share(2)(3) |
1.35 |
2.27 |
0.32 |
3.01 |
3.50 |
0.50 |
|||||
|
|
|
|
|
|
|
|||||
Non-GAAP diluted earnings per share(2)(4) |
1.95 |
1.88 |
0.27 |
4.13 |
3.94 |
0.56 |
|||||
|
|
|
|
|
|
|
|||||
Diluted earnings per ADS(2)(3) |
10.77 |
18.17 |
2.59 |
24.08 |
28.00 |
3.99 |
|||||
|
|
|
|
|
|
|
|||||
Non-GAAP diluted earnings per ADS(2)(4) |
15.63 |
15.06 |
2.15 |
33.00 |
31.50 |
4.49 |
|||||
| ____________________ | |
(1) |
Non-GAAP adjustments excluding the attributions to the noncontrolling interests. See the table above for items regarding the reconciliation of net income to non-GAAP net income (before excluding the attributions to the noncontrolling interests). |
(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 September 30, |
Six months ended September 30, |
|||||||||
|
2023 |
2024 |
2023 |
2024 |
|||||||
|
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||
|
(in millions) |
(in millions) |
|||||||||
Net cash provided by operating activities |
49,231 |
31,438 |
4,480 |
94,537 |
65,074 |
9,273 |
|||||
Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses) |
(4,112) |
(16,977) |
(2,419) |
(10,119) |
(28,916) |
(4,120) |
|||||
Less: Changes in the buyer protection fund deposits |
101 |
(726) |
(104) |
(109) |
(5,051) |
(720) |
|||||
|
|
|
|
|
|
|
|||||
Free cash flow |
45,220 |
13,735 |
1,957 |
84,309 |
31,107 |
4,433 |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241114291910/en/
Investor Relations Contact
Lydia Liu
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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