Alibaba Group Holding Ltd (NYSE:BABA) announced its quarter 2 2016 fiscal results today for the quarter ended September 30, 2015.
Revenue has increased 32% to $3.49 billion comparing to last year, and diluted earning per share was $0.57, beating estimates of $0.54. GMV (gross merchandise volume), a measure of sales on its platforms, transacted on China retail marketplaces was $112 billion, an increase of 28% compare to last year. Mobile GMV contributed for 62% of total GMV transaction on China retail marketplaces, and mobile revenue was $1.66 billion, representing a year-on-year increase of 183%. Growth of cloud computing and Internet infrastructure business accelerated, with revenue increasing 128% year-over-year to $102 million;
“This was a great quarter for Alibaba Group, with strong growth across the board and particular outperformance in mobile. We continued our efforts to drive healthy GMV growth, deliver an unparalleled consumer experience and help quality merchants do business on our platform,” said Daniel Zhang, Chief Executive Officer of Alibaba Group. “We are winning in mobile and remain focused on our top strategic priorities, including internationalization, expanding our ecosystem from cities to villages, and building a world-class cloud computing business.”
Alibaba’s shares jumped 8.3% to $82.70 in premarket trading on Tuesday, as it reported September quarter 2015 results.
“We had very strong results this quarter. GMV grew to $112 billion, a year-on-year increase of $25 billion in this quarter,” said Maggie Wu, Chief Financial Officer of Alibaba Group. “We also made significant progress in monetization and our revenue growth accelerated. Meanwhile, we generated strong free cash flow of $2.1 billion this quarter. The fundamental strength of our business gives us the confidence to invest in our strategic priorities.”
Yahoo! Inc. (NASDAQ:YHOO) increase 7.63% to $35.24 in pre-market trading up after Alibaba released earnings this morning. Yahoo still owns 15% of Alibaba and the biggest Chinese ecommerce company has been struggling to stabilize its position since its record breaking IPO. Many investors can breathe a sigh of relief after Alibaba beat expectations for both revenue and earnings, because Alibaba escaped the Chinese economy’s summer slowdown. Yahoo has been trying to spin-off the remaining stake of Alibaba, but it’s still in the process of doing.