Alibaba Group Holding Limited (NYSE: BABA) raised its revenue outlook as the Chinese e-commerce giant posted a strong third quarter revenue, thanks to robust sales in core commerce and cloud computing. The company said revenue rose 54 percent to 53.2 billion yuan ($7.76 billion) in the fiscal third quarter. Analysts polled by Thomson Reuters had projected revenue of 50.1 billion yuan.
Revenue from core commerce increased 45 percent to $6.7 billion, accounting for 87 percent of total revenue. The company benefited from a record sales on its Singles’ Day Shopping Festival on Nov. 11, 2016. Revenue from other segments also continued their robust growth. Revenue from digital media and entertainment jump 273 percent year-over-year. While sales from cloud computing and innovation initiatives rose 115 percent and 61 percent respectively.
Alibaba had reported more than 50 percent revenue growth for consecutive three quarters. The company said it will increase investments in its digital media and cloud businesses.
“Our robust December quarter demonstrates the strength of the Chinese consumer and Alibaba’s ability to create value across our vast ecosystem,” said Daniel Zhang, Chief Executive Officer of Alibaba Group. “The 11.11 Shopping Festival featured Alibaba at its best, integrating commerce, entertainment and social engagement, all happening globally at record scale. We are driving the age of ‘New Retail,’ which leverages big data and innovation to provide a seamless online and offline experience for nearly half a billion mobile monthly active users. Retail transformation will make it even easier and more efficient for brands and retailers to engage with these consumers anywhere, anytime.”