Alibaba Group Holding Limited (NYSE: BABA) reported its quarterly and full fiscal 2019 financial results before the market open on Wednesday. The Chinese e-commerce giant edged out analysts expectations, sending shares 1.5% higher on Wednesday afternoon.
For the quarter, Alibaba reported earnings of RMB 8.57 (USD 1.25) per share on revenue of RMB 95.3 Billion (USD 13.6 Billion). Analysts expected earnings of RMB 6.50 (USD 0.94) per share on revenue of RMB 91.58 Billion (USD 13.3 Billion).
Alibaba witnessed its revenue grow by 51% year-over-year, largely due to the increase in active consumers and mobile users.
At the end of the quarter, Alibaba reported that annual active customers reach 654 million, an 18% increase year-over-year. Meanwhile, mobile monthly active users reach 721 million, increasing by 22 million year-over-year. Alibaba highlighted that it is committing towards expanding outwards to less developed cities.
“More and more, Alibaba is becoming synonymous with everyday consumption in China, growing our base to 654 million annual active consumers and extending our penetration in less-developed cities,” said Daniel Zhang, Chief Executive Officer of Alibaba Group.
While the active user growth played a large role in Alibaba’s stronger revenue growth, the Company’s cloud computing segment factored heavily. Alibaba’s cloud computing segment reported revenue growth of 76% year-over-year to RMB 7.72 Billion (USD 1.15 Billion).
“We are seeing significant traction and diversification of customers and revenue,” said Alibaba. “In fiscal year 2019, Alibaba Cloud served more than half of the A-share listed companies in China. We will continue to invest to further expand our market share by developing value-added products and features.”
At the end of the fiscal year, Alibaba reported that gross merchandise volume was RMB 5.72 Trillion (USD 853 Billion), representing a 19% year-over-year growth. Excluding unpaid orders, total physical goods GMV from Alibaba’s China retail marketplaces grew 25% year-over-year. Meanwhile, Tmall physical goods GMV increased 31% year-over-year and Taobao physical goods GMV increased 19% year-over-year.
“Over the years, our steady profit growth and cash flow have enabled us to strengthen our core business, invest in new businesses and create unique value for our customers. These investments have expanded our total addressable market and positioned us well for long-term growth. Looking ahead to fiscal 2020, we expect revenue to be over RMB500 billion, reflecting our confidence and positive momentum going forward.” said Alibaba Chief Financial Officer Maggie Wu.