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Thursday, June 1, 2023

Alibaba Reports Better-Than-Expected Results Despite COVID-19 Impact

BusinessCompaniesAlibaba Reports Better-Than-Expected Results Despite COVID-19 Impact

Chinese tech giant Alibaba Group Holding Ltd has posted impressive financial results for the October-December period, with total revenue standing at 247.76 billion yuan ($35.9 billion), up 2 percent YoY. Its net income soared by 138 percent YoY, reaching 45.75 billion yuan, while the non-GAAP net income increased by 12 percent YoY, reaching 49.93 billion yuan. Daniel Zhang, chairman and CEO of Alibaba, said the company delivered a solid quarter despite the softer demand, supply chain and logistics disruptions caused by the COVID-19 pandemic.

During this period, the gross merchandise volume of its core e-commerce business, which refers to Taobao and Tmall platforms, fell by mid-single digits from a year earlier due to soft consumption demand and a surge in COVID-19 cases in China that resulted in supply chain and logistics disruptions in December. However, revenue in the cloud computing business amounted to 20.18 billion yuan during this period, an increase of 3 percent YoY, mainly driven by public cloud growth.

Alibaba Cloud has increased its international presence and launched its third data center in Japan in December to support the growing cloud service demands from local customers. The company also added new data centers in Saudi Arabia, Germany, Thailand, South Korea, and Japan in 2022.

Daniel Zhang said that the company is focused on driving growth for its customers amid the competitive landscape and creating sustainable, long-term value for shareholders. The company expects continued recovery in consumer sentiment and economic activity.

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