Alibaba-SW released its first-quarter financial results, with a net profit of 24.022 billion yuan, a year-on-year decrease of 27%

According to the financial news from Zhitong Finance App, Alibaba-SW (09988) released its first quarter financial results for the three months ending June 30, 2024. The group achieved a revenue of RMB 243.236 billion, a year-on-year increase of 4%. Adjusted EBITDA was RMB 51.161 billion, a year-on-year decrease of 2%. Net profit was RMB 24.022 billion, a year-on-year decrease of 27%. Net profit attributable to ordinary shareholders was RMB 24.269 billion, a year-on-year decrease of 29%. Diluted earnings per share were RMB 1.24.

Eddie Wu, CEO of Alibaba Group, stated: "The performance of this quarter demonstrates the effectiveness of our strategy. We are focused on enhancing user experience through good products, good prices, and good services, driving Taotian Group to stabilize market share and return to a growth trajectory. The cloud computing business revenue has shown positive growth momentum, thanks to the increased adoption of public cloud and AI-related products. We will continue to invest to maintain our market leadership position."

Xu Hong, CFO of Alibaba Group, mentioned: "This quarter, we continued to invest to drive growth in core businesses, while other businesses achieved reduced losses through improved operational efficiency. We maintained a good profit margin and achieved stable adjusted EBITA. We have repurchased $5.8 billion in shares, exceeding the intensity of the past few quarters, to create substantial returns for shareholders, including repurchasing shares when issuing convertible notes. This transaction highlights our confidence in the business outlook."

During this quarter, the company achieved high single-digit year-on-year growth in online GMV and double-digit year-on-year growth in order volume, driven by growth in the number of buyers and purchase frequency. In particular, the company successfully held the Taobao Tmall 618 Shopping Festival, with strong year-on-year growth in online GMV, benefiting from the company's implementation of more convenient user promotion mechanisms and strengthening its position as a comprehensive shopping platform with price competitiveness in consumers' minds.

During this quarter, the number of 88VIP members continued to grow by double digits year-on-year, exceeding 42 million. The company is committed to expanding the number of high-end consumers by enhancing member benefits and services, increasing 88VIP member subscriptions, and improving their purchasing willingness.

For the quarter ending June 30, 2024, the revenue of the Cloud Intelligence Group was RMB 26.549 billion (USD 3.653 billion), a 6% year-on-year growth.

In this quarter, overall revenue (excluding revenue from Alibaba's consolidated businesses) grew by over 6%, driven by double-digit growth in the public cloud business and increased adoption of AI-related products. Revenue from AI-related products continued to achieve triple-digit year-on-year growth. The company will continue to invest in customers and technology, especially in AI infrastructure, to increase AI cloud adoption and maintain its market leadership position