Categories Earnings, Retail

Alibaba posts solid Q2 results helped by strength in retail and cloud

Alibaba Group Holding Limited (NYSE: BABA) beat revenue and profit estimates for the second quarter of 2020, allowing the stock to gain 1.9% in premarket hours on Friday.

Total revenues of RMB119 billion ($16.6 billion) was up 40% year-over-year, and ahead of the consensus target of $16.4 billion. Revenue growth was driven mainly by strength in the China commerce retail business and Alibaba Cloud.   

Alibaba beats Q2 2020 revenue and earnings estimates

Net income attributable to ordinary shareholders was RMB72.5 billion ($10.1 billion). Adjusted net income was RMB32.7 billion ($4.5 billion).

Diluted earnings per ADS was RMB27.51 ($3.85). Adjusted diluted earnings per ADS was RMB13.10 ($1.83). Analysts had forecast adjusted EPS of $1.50.

Annual active customers on the company’s China retail marketplaces reached 693 million, up 19 million from the 12-month period ended June 30, 2019. Mobile MAUs on the China retail marketplaces reached 785 million in September 2019, up 30 million over June 2019.

Revenue from the China commerce retail business increased 40% year-over-year to RMB75.7 billion ($10.6 billion). Revenue from the China commerce wholesale business rose 31% year-over-year to RMB3.2 billion ($459 million). Revenues from the international commerce retail and wholesale businesses rose 35% and 20% respectively versus the year-ago period.

Also see: Under Armour Q3 2019 Earnings Preview

Cloud computing revenue grew 64% year-over-year to RMB9.2 billion ($1.3 billion) during the quarter, driven mainly by an increase in average revenue per customer. Revenue from the digital media and entertainment business grew 23% year-over-year. Average daily subscribers for the Youku online video platform increased 47% year-over-year.

Also Read:  Earnings: Highlights of Wayfair (W) Q2 2020 report

In September, Alibaba acquired NetEase’s import e-commerce platform Kaola and the company sees opportunities for user, revenue and cost synergies for the combined Tmall Global and Kaola businesses. Alibaba also became a 33% equity stakeholder in Ant Financial and the company recognized a one-time gain of RMB69.2 billion ($9.7 billion) upon the receipt of the equity interest in Ant Financial.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

3D Systems Corp. (DDD) Q2 2020 Earnings Call Transcript

3D Systems Corp. (NYSE: DDD) Q2 2020 earnings call dated Aug. 05, 2020 Corporate Participants: Jessica Stansell -- Investor Relations Jeffrey A. Graves -- Chief Executive Officer And President Wayne Pensky -- Interim Chief Financial Officer Analysts:

Yelp (YELP): Revenue recovery depends significantly on COVID-19 environment

Shares of Yelp (NYSE: YELP) were down over 15% on Friday, a day after the company reported a decline in revenue along with a net loss for the second quarter

US economy adds 1.8 million jobs in July; unemployment rate drops to 10.2%

The US economy added 1.8 million jobs in July, marking the third consecutive month of employment growth as the country recovers from the coronavirus pandemic that has caused widespread disruption.

Top