Alibaba Group Holding Limited (NYSE: BABA) reported strong first quarter earnings for the 2018 fiscal year for the quarter ended on June 3th, 2017
The company reported a revenue overall of $7.4 billion, a 56 percent increase year over year. Notably, revenue from commerce increased 58 percent year over year and cloud computing revenue increased 96 percent year over year. The company reported a net income of $2.07 billion, a 96 percent increase year over year. Diluted EPS was $0.83 and a non-GAAP EPS was $1.17, a 92 percent increase year over year now.
Alibaba reached 466 million annual active users on its China retail marketplaces, a 12 million increase year over year. Mobile active users increased 529 million, 22 million increase year over year. Paying customers for its cloud computing service increased from 874,000 to 1.01 million from the previous quarter.
“Alibaba had a strong start to fiscal 2018, reflecting the strength and diversity of our businesses and the value we bring to customers on our platforms. Our technology is driving significant growth across our business and strengthening our position beyond core commerce,” said Daniel Zhang, Chief Executive Officer of Alibaba Group.
“We delivered excellent results in the first quarter, with robust revenue growth of 56%. The significant growth in customer management revenue represents the differentiated business value we provide to our customers,” said Maggie Wu, Chief Financial Officer of Alibaba Group.
Alibaba’s Tmall increased users by 49 percent year over year. The company says that it has established Tmall as a leading brand-building and distribution platform to increase consumer base and products in China as well as internationally.
Alibaba’s cloud computing service hit all an time high of over a million users, driven by a large paying customer growth and improving revenue with added services. The company says that market expansion remains its top priority, and that it will continue to invest to acquire customers by developing innovative solutions and deploying efficient and cost effective products and services.
In May, Alibaba acquired Intime Retail Group for $1.6 billion. Intime is the leading department store and mall operator in China. The company hopes Intime to support Alibaba’s strategy to transform conventional retail, by maximizing its consumer reach with insight and technology. “It is our intention to continue investing in long-term growth opportunities, some of which are already delivering significant value to customers and investors.” said Wu.