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.

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

MCD Earnings: McDonald’s comp sales up 12.6% in Q4; profit increases

Fast-food chain McDonald’s Corporation (NYSE: MCD) on Tuesday reported an increase in adjusted earnings for the fourth quarter of 2022 when its revenues remained broadly unchanged. The company said fourth-quarter

GM Earnings: All you need to know about General Motors Q4 2022 earnings results

General Motors Co. (NYSE: GM) reported fourth quarter 2022 earnings results today. Revenue increased 28.4% year-over-year to $43.1 billion. Net income attributable to stockholders increased 14.8% to $2 billion while EPS rose 19.8%

CAT Earnings: Highlights of Caterpillar’s Q4 2022 results

Construction-equipment manufacturer Caterpillar Inc. (NYSE: CAT) reported double-digit growth in fourth-quarter revenues and adjusted earnings. Adjusted net profit increased to $3.86 per share in the December quarter from $2.69 per

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top