Chinese ecommerce giant Alibaba Group (NYSE: BABA) reported a 38% increase in third quarter 2020 revenue, which beat analysts’ estimates. The company reported revenue of RMB 161.5 billion or $23.2 billion. Despite beating the targets, BABA stock was down about 2% on NYSE during the pre-market trading session as investors had doubts on how the company is going to handle the impact of coronavirus outbreak in the future.
Earnings per ADS was RMB19.55 or $2.81 on a GAAP basis and RMB18.19 or $2.61 on a non-GAAP basis. EPS was RMB2.44 or $0.35 on a GAAP basis and RMB2.27 or $0.33 on a non-GAAP basis.
Revenue growth in the recently ended quarter was aided by record Single Day sales and strong performance of cloud computing business. It’s worth noting that on November 11, 2019, the company generated $38.4 billion of gross merchandise volume (GMV), which increased 26% compared to 2018.
For the first time, Alibaba’s cloud computing business generated more than RMB10 billion in a single quarter, driven by the increased revenue contributions from public cloud and hybrid cloud businesses.
Commenting on the coronavirus outbreak, CEO Daniel Zhang said, “We mobilized Alibaba ecosystem’s powerful forces of commerce and technology to fully support the fight against the outbreak, ensure supply of daily necessities for our communities and introduced practical relief measures for our merchants.”
Hong Kong Listing
At the end of November, Alibaba listed its ordinary shares on the Hong Kong Stock Exchange with a global offering of 575 million ordinary shares, comprised of an international offering and a Hong Kong public offering. The company plans to use the gross proceeds of $13 billion for the further implementation to drive user growth and engagement, empower businesses to facilitate digital transformation and improve operational efficiency.
Alibaba shares have gained 23% in the past three months and 33% from this time last year.