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Shares of Alibaba Group Holding were trading slightly lower on Thursday, despite the June quarter results slightly above Wall Street expectations.
For the quarter, the China-based e-commerce giant posted revenue of $ 21.8 billion, up 34% from a year ago, and slightly ahead of analyst consensus from Street at $ 21.3 billion. Non-GAAP earnings were $ 2.10 per share, beating Street’s consensus to $ 1.99. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) stood at $ 7.2 billion, up 30%.
Alibaba (ticker: BABA) said annual active consumers in its retail markets in China reached 742 million, up 16 million from the rolling 12-month period ended March 30. Monthly active mobile users reached 874 million, up 28 million from the March quarter. The company said its cloud computing revenue was $ 1.7 billion, up 59% year-over-year. Alibaba’s core e-commerce business, which accounts for around two-thirds of revenue, grew 34% from a year ago.
“Alibaba delivered excellent results in the past quarter,” CEO Daniel Zhang said in a statement. “We were well positioned to capture the growth of the ongoing digital transformation, which has been accelerated by the pandemic, both in consumer and business operations. We have mobilized all of our digital infrastructure to support the economic recovery of businesses across a wide range of sectors, while expanding and diversifying our consumer base by responding to their changing preferences in a post-Covid-19 environment. “
CFO Maggie Wu added in the statement that the company’s core business activity “has fully recovered to pre-Covid-19 levels across the board … our strong profit growth and cash flow has brought us back to life. allow us to continue to strengthen our core business and invest for long-term growth. “
Atlantic Equities analyst James Cordwell wrote in a brief note Thursday morning that revenue and Adjusted EBITDA “were well ahead” of estimates, “driven by strong performance in e-commerce activity base and continued loss reduction in investment areas. ”
He added that a continued gap between gross value of goods (GMV) growth and e-commerce revenue growth “will likely lead to continued competitive concerns,” noting that the GMV of physical goods has increased by 27%. , while the growth in commission income was 21% more modest. He noted that the company said the gap reflects the composition of categories and ongoing promotional incentives for traders.
But Cordwell said he sees this concern as offset by re-acceleration in the cloud, “where Alibaba is well positioned to capitalize on structural change in IT.”
Alibaba shares were down 1.6%, to $ 256.35 on Thursday morning, while the Nasdaq Composite gained 0.5%, the S&P 500 was little changed and the Dow Jones Industrial Average is 0, 2%. Alibaba’s stock is up about 21% year-to-date.
Write to Eric J. Savitz at [email protected]
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