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.
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.
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.
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
Hormel Foods (HRL) to report Q4 2024 earnings results, a look at what to expect
Shares of Hormel Foods Corporation (NYSE: HRL) rose over 1% on Friday. The stock has gained over 5% in the past one month. The branded food company is slated to
What to look for when Hewlett Packard (HPE) reports Q4 2024 results
Information technology company Hewlett Packard Enterprise (NYSE: HPE) is actively innovating its product portfolio to better align with the AI-driven transformation currently sweeping the industry. In recent quarters, the company's
What to expect when Dollar General (DG) reports Q3 2024 earnings
Shares of Dollar General Corporation (NYSE: DG) rose over 1% on Wednesday. The stock has dropped 38% over the past three months. The discount retailer is slated to report its earnings
Comments
Comments are closed.