On November 15, Futubull reported that alibaba announced its performance for the quarter ending on September 30, 2024 (corresponding to the second fiscal quarter of 2025) in pre-market trading:

(Note: alibaba's fiscal year does not align with the calendar year, starting from April 1 each year and ending on March 31 of the following year.)

• Total revenue of 236.503 billion yuan (RMB), a year-on-year increase of 5%;

• Adjusted net income of 36.518 billion yuan, a year-on-year decrease of 9%;

• The net income is 43.547 billion yuan, a year-on-year increase of 63%;

• The adjusted earnings per ADS is 15.06 yuan, a year-on-year decrease of 4%;

• The cash flow from operating activities (cfo) is 31.438 billion yuan, a year-on-year decrease of 36%;

• free cash flow(A non-GAAP financial liquidity indicator) is 13.735 billion yuan, a year-on-year decrease of 70%.

Looking at the business segments,

• Taotian Group

Starting from September 1 this year, alibaba began charging a basic software service fee for trades on the platform based on confirmed GMV, which is in line with industry practices. At the same time, the company canceled the annual service fee for Tmall merchants and provided refunds on software service fees to selected small and medium-sized businesses. In addition, alibaba has seen a steady increase in merchant penetration for the AI-driven full-platform marketing tool "Full Site Promotion." Merchants using "Full Site Promotion" have seen their marketing efficiency improve, and with this increase in efficiency, the company expects merchants to increase their marketing investments on the alibaba platform.

In this quarter, online GMV growth was driven by a double-digit year-on-year increase in order volume, mainly propelled by an increase in purchase frequency, partially offset by a decline in average order value. In October and November of this year, the company successfully held the Double 11 shopping festival, during which Taobao and Tmall's GMV experienced robust growth, and the number of buyers reached an all-time high.

88VIP members are the highest purchasing power consumer group for alibaba, and their numbers continued to grow at a double-digit year-on-year rate this quarter, reaching 46 million. The company's high-end consumers are loyal customers who can enhance purchase frequency and drive GMV growth. Therefore, alibaba is committed to continuously increasing the number of 88VIP memberships by enhancing member benefits and service investments.

• Cloud Smart Group

As of the quarter ended September 30, 2024, revenue of Yun Intelligent Group was RMB 29.61 billion, a 7% year-on-year increase.

In this quarter, overall revenue (excluding the income from alibaba's consolidated operations) grew by more than 7% year-on-year, driven by double-digit growth in public cloud business, which included an increase in the adoption of AI-related products. Revenue from AI-related products has achieved triple-digit year-on-year growth for five consecutive quarters. Alibaba will continue to invest in customer growth and technology, especially in AI infrastructure, to seize the trend of increasing cloud adoption in the AI sector and maintain its market-leading position.

• Alibaba International Digital Commerce Group (AIDC)

As of the quarter ending September 30, 2024, AIDC revenue increased by 29% year-on-year to RMB 31.672 billion. The strong performance was driven by the growth of cross-border business, especially the AliExpress Choice business. AliExpress and Trendyol platforms continue to invest in specific markets in Europe and the Gulf region to enhance consumer awareness. At the same time, Alibaba has improved its operational and investment efficiency. As a result, the unit economic efficiency of the Choice business improved compared to the previous quarter.

The AliExpress platform continues to enhance its value proposition by expanding its supplier base, enriching product offerings, and meeting local consumer demands. In this quarter, AliExpress launched an 'Overseas Custody' model aimed at enhancing product richness and optimizing fulfillment efficiency by leveraging local inventory. Furthermore, the synergy between AliExpress and Cainiao's cross-border logistics operations has further strengthened AliExpress's competitiveness, with average fulfillment time significantly shortened quarter-on-quarter.

• Rookie Group

As of the quarter ending September 30, 2024, Rookie's revenue increased by 8% year-on-year to RMB 24.647 billion, mainly driven by the growth of cross-border logistics and fulfillment solutions revenue.

• Local Life Group

As of the quarter ending September 30, 2024, the Local Life Group's revenue increased by 14% year-on-year to RMB 17.725 billion, driven by growth in orders from Amap and Ele.me, as well as increases in marketing services revenue. This quarter, benefiting from improved operational efficiency and increased business scale, the Local Life Group's losses narrowed significantly year-on-year. During the National Day holiday in October this year, Amap's daily active users peaked at over 0.3 billion, reaching a new historical high.

• Big Entertainment Group

As of the quarter ended September 30, 2024, Dawa Entertainment Group's revenue was RMB 5.694 billion, a 1% year-on-year decrease. Dawa Entertainment Group's losses narrowed year-on-year, benefiting from increased advertising revenue and improved efficiency in content investment, leading to a gradual reduction in Youku's operating losses this quarter.

• About Repurchase As of the three months ended September 30, 2024, Tencent purchased a total of approximately 35.9 billion Hong Kong dollars (excluding expenses) on the Hong Kong Stock Exchange to repurchase a total of 94.8974 million shares. The repurchased shares have since been cancelled. The repurchase is aimed at long-term increase in shareholder value.

As of the quarter ended September 30, 2024, Alibaba repurchased a total of 0.414 billion shares of common stock for a total amount of $4.1 billion. As of September 30, 2024, Alibaba's outstanding common shares were 18.62 billion, a decrease of 0.405 billion shares from June 30, 2024, with a net decrease of 2.1%.

As of the quarter ended September 30, 2024, Alibaba still had a remaining repurchase amount of $22 billion under the share repurchase plan authorized by the board of directors, valid until March 2027.

Attachment:Alibaba's performance announcement for the quarter ended September 2024.

Editor/ping