Alibaba Group Holding Ltd (NYSE:BABA) announced its financial results of June quarter 2016. Revenue increased 59% year-over-year, which is the biggest gain since Alibaba’s debut on the New York Stock Exchange in 2014.
According to the statement, revenue for the quarter ended June 30, 2016 increased 59% year-over-year to RMB32.15 billion ($4.84 billion) from RMB20.25 billion the same period last year. Revenue results beat RMB30.17 billion estimates by analyst. China retail marketplaces including TMall and Taobao rose 49% to RMB 23.38 billion ($3.52 billion) and mobile revenue of China retail marketplace surged 119% year-over-year, which was 75% of total China retail marketplaces revenue.
Net income of Alibaba decreased from RMB30.84 billion last year to RMB7.55 billion the latest quarter. According the the company, the decrease in net earnings was attribute to its investment regarding its moviemaking business, Alibaba Pictures last year. Adjusted earnings per share was RMB4.9 ($0.74) in the June quarter, which was above analyst’s forcast of RMB4.17 per share.
As for the investigation by SEC starting from May, executives of Alibaba didn’t update any information regarding the investigation, but provided more insight by adding new key metrics in the report. The company also disclosed the GMV in the June quarter was RMB837 billion, increasing 24% year-over-year. GMV is related to the SEC’s interest in the company’s operating data for Single’s Day. Maggie Wu, the CFO of Alibaba said that the company would report GMV on an annual basis, and not on a quarterly basis any more.
“Alibaba Group had an outstanding quarter. Our results show the scale and leverage of our ecosystem, as we strengthen our competitive positions in core commerce, cloud computing and digital media and entertainment,” Daniel Zhang, the Chief Executive Officer of Alibaba, said in the statement. “We are poised for strong profitable growth into the future.”
Shares of Alibaba rose 5.65% to $92.26 per share in afternoon trading Thursday.