BABA earnings and revenue beat expectations
Alibaba (BABA) Group announced its 3rd quarter results for the period ending December 31st. The e-commerce giant reported a revenue increase of 37% year over year and beat on earnings estimates. The company’s cloud unit achieved profitability during the quarter for the first time.
These are the results versus Wall Street analyst consensus estimates compiled by Bloomberg:
Revenue: $33.88 billion vs $33.49 billion expected
Adjusted earnings: $3.38 vs $3.17 per American depository shares
Mobile monthly active users: 902 million vs 907.4 million expected
The company’s cloud revenue grew 50% year-over-year, primarily driven by “robust growth in revenue from customers in the Internet and retail industries and the public sector,” according to the company statement.
“For the first time, Alibaba Cloud achieved positive adjusted EBITA during the quarter due to the realization of economies of scale.”
Chinese anti-trust regulators have been cracking down on big tech and finance companies like Alibaba and JD.com (JD).
Alibaba Group acknowledged it “received a notice of an investigation from the State Administration for Market Regulation (“SAMR”)” that it began an antimonopoly investigation.
“The investigation is ongoing and we are fully cooperating with the SAMR. We have established a special taskforce with leaders from our relevant business units to conduct internal reviews. We 6 will continue to actively communicate with the SAMR on compliance with regulatory requirements,” said the statement.
The company also addressed its affiliate Ant Group, which was set to set to go public last year, before regulators scrapped the $35 billion IPO following remarks from billionaire Jack Ma in which he criticized China’s banking system.
“Due to recent significant changes in the Fintech regulatory environment in China, Ant Group is in the process of developing its rectification plan, which will need to go through the relevant regulatory procedures. Therefore, Ant Group’s business prospects and IPO plans are subject to substantial uncertainties,” said the company statement.
In December Alibaba’s stock traded as low as $211.
It has since then rallied. Shares of AliBaba rose more than 4% on Monday, trading around $264 ahead of its earnings announcement on Tuesday.
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
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