Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988, “Alibaba” or “Alibaba Group”) today announced its financial results for the quarter ended June 30, 2020.
The cloud unit of China’s largest e-commerce company delivered first quarter revenue of $1.75 billion, good for an annual revenue run rate of $7 billion. Alibaba Cloud saw sales jump 59% in the quarter due to strong demand from public cloud and hybrid cloud offerings such as AnalyticDB.
“Alibaba delivered excellent results this past quarter. We were well positioned to capture growth from the ongoing digital transformation, which has been accelerated by the pandemic, in both consumption and enterprise operations,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group. “We mobilized our entire digital infrastructure to support the economic recovery of businesses across a wide range of sectors, while broadening and diversifying our consumer base by addressing their changing preferences in a post-COVID-19 environment. Despite these unusual times, we remain focused on the long term, on fulfilling our mission, and on creating true value for our consumers and business customers.”
“We delivered a very strong start to our new fiscal year, with revenue growing 34% year-over-year and adjusted EBITDA growing 30% year-over-year,” said Maggie Wu, Chief Financial Officer of Alibaba Group. “Our domestic core commerce business has fully recovered to pre-COVID-19 levels across the board, while cloud computing revenue grew 59% year-over-year. Our strong profit growth and cash flow enable us to continue to strengthen our core business and invest for long term growth.”
Zhang added that the China cloud market is 1/8 the size of the US market today but is seeing faster growth due to the economy’s digitization. Overall, Alibaba reported first quarter revenue of $21.76 billion, up 34%, with 742 million active consumers. Net income for the quarter ending June 30 was $6.74 billion.
CFO Maggie Wu noted that Alibaba’s core commerce business has returned to pre-COVID-19 levels across the board.
