2023-08-10 08:03:02 ET
Alibaba ( NYSE: BABA ) stock rose about 3% premarket on Thursday after Q1 results beat estimates.
Non-GAAP earnings per ADS rose 48% Y/Y to RMB17.37 ($2.40). Revenue grew 14% Y/Y to RMB234.16B ($32.29B).
Alibaba said that starting from the quarter ended June 30, it implemented a new organizational structure, under which it is the holding company of six major business groups and some other businesses.
The six major units are Taobao and Tmall, Alibaba International Digital Commerce (AIDC), Local Services, Cainiao Smart Logistics Network, and Digital Media and Entertainment.
"Revenue and adjusted EBITA increased 14% and 32% year-on-year, respectively, due to improvements across all business segments," said Alibaba's CFO Toby Xu.
Revenue from Cloud Intelligence , which is developing AI models, rose 4% Y/Y to RMB25.12B (~$3.47B).
The growth of Alibaba Cloud was driven by storage, networks and AI computing related products, but partly offset by the normalization of CDN demand compared to the year ago period, according to the company.
Total Taobao and Tmall Group revenue grew +12%% Y/Y to RMB114.95B ($15.85B). Taobao app grew average daily active users (DAU) by +6.5% Y/Y; while Xianyu, a community and marketplace, grew with DAU up 18% Y/Y.
The company added that the 6.18 Shopping Festival generated solid growth in order volume and average order value. During the festival, spending by 88VIP members grew double digits, while the number of paying subscribers also recorded strong growth.
Revenue from AIDC increased +41% Y/y to RMB22.12B ($3.05B). In Q1, the combined order growth of AIDC's retail businesses was around 25%Y/Y, driven by solid performance from all major retail platforms, the company added.
Local Services Revenue jumped +30% Y/Y to RMB14.45b ($1.99B), driven by strong revenue growth in both Ele.me and Amap businesses.
Revenue from Cainiao Smart Logistics Network rose +34% Y/Y to RMB23.16B ($3.19B), steered by increase of revenue from international fulfillment solution services and domestic consumer logistics services.
Digital Media and Entertainment revenue rose +36% Y/Y to RMB5.38B ($742M). Alibaba noted that Youku’s total subscription revenue grew 5% Y/Y mainly due to increasing ARPU, and benefiting from high-quality original content.
Buyback : Toby Xu noted that the company bought back $3.1B worth of ADSs in the quarter.
Following the result, other Chinese stocks were also in the green premarket — Baidu ( BIDU ), Bilibili ( BILI ), JD.com ( JD ) were all up ~2% , each.
BABA +3% to $97.70 premarket Aug. 10
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Alibaba stock rises after quarterly revenue soars 14% on all-round show