Alibaba Group, a Chinese multinational technology company, surpassed revenue forecasts for the fourth quarter, reporting a 7% year-over-year growth to RMB221.87 billion (or around $30.73 billion).
According to Alibaba Group, this growth was attributed to successes in its core e-commerce and cloud businesses, outpacing Bloomberg’s consensus estimate of around RMB219.80 billion. The revenue for the fiscal year 2024 climbed 8% year-over-year to RMB941.17 billion.
“We’ve seen early results from increased investment in our strategic business priorities and are confident in our business outlook,” Toby Xu, chief financial officer, Alibaba Group, said in a statement.
Despite a 5% decrease in adjusted earnings before interest, taxes, and amortization (EBITA) to RMB23.97 billion due to heightened investments, Alibaba’s focus on its e-commerce and cloud divisions fueled double-digit growth in key metrics like gross merchandise value (GMV).
“This quarter’s results demonstrate that our strategies are working and we are returning to growth,” said Eddie Wu, CEO of Alibaba.
E-commerce
The company’s e-commerce segment witnessed an increase in purchasing frequency and customer retention, even amidst a slowdown in China’s retail growth. Alibaba’s Taobao and Tmall Group (TTG) reported a 4% year-on-year revenue growth to RMB93.22 billion. TTG’s adjusted EBITA slightly declined to RMB38.5 billion as it ramped up investments in areas like customer service and technology.
Alibaba’s membership in the 88VIP loyalty program surged to over 35 million members, a double-digit increase year-over-year, driven by enhanced service and benefits. Taobao and Tmall introduced user-friendly measures like a simplified sales structure and website updates to improve customer experience.
Alibaba Cloud’s revenue rose 3% to RMB25.60 billion, with notable growth in its public cloud offerings, particularly in AI-related revenue, which saw triple-digit growth. The company slashed the prices of over 100 core public cloud products to attract startups and small businesses, extending these reductions internationally in April.
AliExpress
The International Digital Commerce Group (AIDC) witnessed a 45% year-over-year revenue growth to RMB27.45 billion, fueled by a 20% increase in combined orders. Increased synergies between AliExpress and Cainiao led to a doubling of delivery completion rates for Choice orders.
Despite a loss in adjusted EBITA for AIDC due to increased investment, Alibaba remains committed to delivering value to shareholders. The company announced a $4 billion dividend distribution, part of its commitment to returning value to investors.
Alibaba’s proactive measures in strategic investments across its core businesses, coupled with its commitment to shareholder value, position the company for sustained growth and resilience in a competitive market landscape.