NYREADERS.COM - China's tech giant Alibaba Group Holding on Wednesday reported revenues of $36.19 billion (RMB260.348) for the three months ended Dec. 31, 2023, missed analysts' estimates for third-quarter revenue, undermined by sagging economic recovery in China.
The revenues were 5% higher year-on-year, compared with the 262.28 billion yuan expected by 19 analysts polled by LSEG.
Its income from operations was RMB22,511 million (US$3,171 million), a decrease of 36% year-over-year. The year-over-year decrease was primarily attributable to the impairment of the intangible assets of Sun Art and the impairment of the goodwill of Youku.
Its net income attributable to ordinary shareholders was RMB14,433 million (US$2,033 million). Meanwhile, its net income was RMB10,717 million (US$1,509 million), a decrease of 77% or RMB35,029 million year-over-year, primarily attributable to mark-to-market changes from our equity investments and the decrease in income from operations due to the impairment as mentioned above.
Excluding share-based compensation expense, gains/losses of investments, impairment of intangible assets and goodwill, and certain other items, non-GAAP net income in the quarter ended December 31, 2023, was RMB47,951 million (US$6,754 million), a decrease of 4% compared to RMB49,932 million in the same quarter of 2022.
“We delivered a solid quarter as we are executing our focused strategies across the organization. Our top priority is to reignite the growth of our core businesses, e-commerce and cloud computing,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
“We will step up investment to improve users’ core experiences to drive growth in Taobao and Tmall Group and strengthen market leadership in the coming year. We will also focus our resources on developing public cloud products and sustaining the strong growth momentum in international commerce business,” Eddie said.
In the period, the company recorded revenues from Cloud Intelligence Group of RMB28,066 million (US$3,953 million), a growth of 3% year-over-year. The revenues from public cloud products and services grew healthily which contributed to profitability improvement.
Alibaba is in the process of revitalizing Taobao and Tmall Group and positioning it for future growth. Its growth strategy is to put users first, build an ecosystem for brands and merchants to thrive on our platform, and realize technology-driven innovation.
The company said it is committed to building an e-commerce ecosystem where brands, merchants and manufacturers operate with high efficiency, thereby providing multi-tiered Chinese consumers with good products and services at attractive prices.
