Alibaba Group today announced its financial results for the quarter ended March 31, 2017 and the fiscal year then ended, with excellent 60% YoY revenue growth.
“Alibaba Group had another outstanding quarter and fiscal year, demonstrating our ability to successfully engage and monetize the half a billion consumers across our platforms,” said Daniel Zhang, chief executive of Alibaba Group.
“Our core commerce segment continued its significant growth and strong cash flow at large scale, enabling our aggressive investment in cloud computing, digital media and entertainment to drive the digital transformation of the economy and high quality consumption across China.”
Alibaba reported strong quarter results, with revenue growth accelerating to 60%, the highest growth rate it’s achieved since its IPO. The Chinese e-commerce giant also reported strong fiscal year revenue growth of 56% with annual non-GAAP free cash flow of approximately US $10 billion, according to Maggie Wu, Chief Financial Officer of Alibaba Group. “
Our robust results demonstrate the strength of our core businesses, as well as the positive momentum of our emerging businesses, including cloud computing, where we continue to see strong growth and market leadership.”
Excellent quarter, 60% YoY revenue growth, highest since IPO and huge beat
FY2017 revenue growth was 56% YoY, exceeding guidance
Strong Core Commerce revenue and US$10 billion in free cash flow for FY2017 powering investment in high-growth Cloud Computing and Digital Media & Entertainment
Board authorised US$6 billion stock repurchase plan over 2 years
Total revenue growth of 60% YoY to US$5.6 billion, beating consensus
Strong Core Commerce revenue growth of 47% YoY to US$4.6 billion
Triple-digit YoY revenue growth continues in Cloud Computing (+103%) and Digital Media & Entertainment (+234%)
Strong non-GAAP free cash flow of US$1.2 billion for March Q and US$10 billion for FY2017
Diluted EPS of US$0.60
Business and Strategic Updates
High App Engagement: The Taobao app’s highly relevant and engaging content continues to drive robust growth in active users and engagement. In the three months since December 2016, Taobao added 14 million mobile MAUs on its China retail marketplaces, increasing mobile MAUs to 507 million in March 2017.
Brand Power – Tmall is a leading brand-building platform that is capturing increasing marketing spend from owners of both domestic and international branded products doing business in China. As of March 2017, 75% of the consumer brands that ranked in Forbes Top 100 World’s Most Valuable Brands have established digital operations Artificial
Artifical Intelligence – Since November 2015, Alibaba has been using artificial intelligence to handle the massive volume of inquiries from consumers through chatbots. As of March 2017, this AI technology is able to handle on a real-time basis millions of customer inquiries daily. During this quarter, the company also made its AI technology available to merchants doing business on our China retail marketplaces through a service named “Store Concierge.” This proprietary technology uses natural-language processing to help merchants to efficiently handle consumer inquiries such as returns and refunds, especially during peak promotional seasons. It also supports other services, such as providing personalized recommendations and promotion and discount information.
During this quarter, Alibaba also made its AI technology available to merchants doing business on our China retail marketplaces through a service named “Store Concierge.” This proprietary technology uses natural-language processing to help merchants to efficiently handle consumer inquiries such as returns and refunds, especially during peak promotional seasons. It also supports other services, such as providing personalised recommendations and promotion and discount information.
Cross Border: laying the foundation for long-term growth – During the quarter, Alibaba joined forces with government entities to launch an e-hub for trade clearance and logistics in Malaysia under our Electronic World Trade Platform (eWTP) initiative to facilitate cross-border trade between China and Southeast Asia and among Southeast Asian countries. This digital free trade zone will offer simple and straightforward regulations, lower barriers for entry into new markets and provide small businesses with easier access to financing.