Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD
Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”)
today announced its financial results for the quarter ended June
30, 2024.
“Our results this quarter demonstrated our strategy at work. Our
focus on enhancing user experience by offering quality products at
attractive prices with great service led to stabilizing market
share of Taobao and Tmall Group as we returned the business on the
growth trajectory. The cloud business achieved positive revenue
growth momentum, driven by public cloud and AI-related product
adoption as we continue to invest to maintain our market
leadership,” said Eddie Wu, Chief Executive Officer of Alibaba
Group.
“In this quarter, we continue to invest for growth in our core
businesses while reducing losses in other business units through
operating efficiency. We maintained the integrity of our margins
and delivered consistent adjusted EBITA. We also returned
significant value to shareholders at a pace higher than past
quarters, as we made US$5.8 billion of share repurchases that
included a concurrent repurchase of shares in connection with our
convertible notes offering. This transaction underscores our
confidence in our business outlook,” said Toby Xu, Chief Financial
Officer of Alibaba Group.
BUSINESS HIGHLIGHTS
In the quarter ended June 30,
2024:
- Revenue was RMB243,236 million (US$33,470 million), an
increase of 4% year-over-year.
- Income from operations was RMB35,989 million (US$4,952
million), a decrease of 15% or RMB6,501 million year-over-year,
primarily due to a reversal of share-based compensation expense of
RMB6,901 million during the same quarter in the prior year, as
discussed in “June Quarter Other Financial Results” below. We
excluded non-cash share-based compensation expense from our
non-GAAP measurements. Adjusted EBITA, a non-GAAP
measurement, decreased 1% year-over-year to RMB45,035 million
(US$6,197 million).
- Net income attributable to ordinary shareholders was
RMB24,269 million (US$3,340 million). Net income was
RMB24,022 million (US$3,306 million), a decrease of 27%
year-over-year, primarily due to a decrease in income from
operations and the increase in impairment of our investments,
partly offset by the mark-to-market changes from our equity
investments. Non-GAAP net income in the quarter ended June
30, 2024 was RMB40,691 million (US$5,599 million), a decrease of 9%
compared to RMB44,922 million in the same quarter of 2023.
- Diluted earnings per ADS was RMB9.89 (US$1.36).
Diluted earnings per share was RMB1.24 (US$0.17 or HK$1.36).
Non-GAAP diluted earnings per ADS was RMB16.44 (US$2.26), a
decrease of 5% year-over-year. Non-GAAP diluted earnings per
share was RMB2.05 (US$0.28 or HK$2.25), a decrease of 5%
year-over-year.
- Net cash provided by operating activities was RMB33,636
million (US$4,628 million), a decrease of 26% compared to RMB45,306
million in the same quarter of 2023. Free cash flow, a
non-GAAP measurement of liquidity, was RMB17,372 million (US$2,390
million), a decrease of 56% compared to RMB39,089 million in the
same quarter of 2023. The decrease in free cash flow mainly
reflected the increase in expenditure related to our investments in
Alibaba Cloud infrastructure and other working capital changes
related to factors including our planned reduction of direct sales
businesses.
Reconciliations of GAAP measures to non-GAAP measures presented
above are included at the end of this results announcement.
BUSINESS AND STRATEGIC UPDATES
Taobao and Tmall Group
We increased investment in strategic initiatives such as
price-competitive products, customer service, membership program
benefits and technology, with the aim to enhance user experience.
These efforts led to better consumer retention, increased purchase
frequency, and positive feedback regarding the overall shopping
experience.
We improved matching of products with user needs and conversion
of user traffic to purchases through investments in technology such
as recommendation and matching algorithms, as well as increasing
price-competitive offerings through diversification of suppliers.
In April, we launched our new AI-powered platform-wide marketing
tool, Quanzhantui, which features automated bidding, optimized
targeting and performance dashboard visualization. This new product
aims at increasing merchants’ marketing spending and improving
their marketing efficiency, and we have observed steady increase in
merchant adoption.
During the quarter, we achieved high-single-digit online GMV
growth and double-digit order growth year-over-year, driven by
increase in the number of purchasers and purchase frequency. In
particular, we had a successful 6.18 Shopping Festival, which
delivered strong online GMV growth year-over-year, as we
implemented user-friendly promotion mechanisms and increased
mindshare for being a comprehensive and price-competitive shopping
destination.
The number of 88VIP members continued to increase by
double-digits year-over-year, surpassing 42 million during the
quarter. We aim to enlarge our pool of premium shoppers by
continuing increasing the subscription of 88VIP membership and
enhancing their purchase willingness through improved benefits and
services.
Cloud Intelligence Group
For the quarter ended June 30, 2024, revenue from Cloud
Intelligence Group was RMB26,549 million (US$3,653 million), a
growth of 6% year-over-year.
During this quarter, overall revenue excluding
Alibaba-consolidated subsidiaries grew over 6% year-over-year,
driven by double-digit public cloud growth and increasing adoption
of AI-related products. AI-related product revenue continued to
grow at triple-digits year-over-year. We will continue to invest in
customers and technology, particularly in AI infrastructure, to
increase cloud adoption for AI and maintain our market
leadership.
Alibaba Cloud has gained notable recognition as the cloud
service provider of choice in China for AI training and
applications. According to the recently released 2024 Gartner®
“Magic Quadrant™ for Data Science and Machine Learning Platforms”
report, Alibaba Cloud has been mentioned as the only Asia-based
cloud service provider among global players.
Our ongoing commitment to open-source development has led to
widespread recognition of our Qwen 2.0 series of large language
models among global developers. Qwen 2.0 demonstrates substantial
performance improvements across areas such as reasoning, code
generation and mathematics, while enhancing safety features and
expanding to support 27 languages. The number of paying users using
Alibaba Cloud’s AI platform (百炼) increased by over 200%
quarter-over-quarter.
During the Paris 2024 Olympics, Alibaba Cloud’s technology,
which enables remote video production and transmission through
cloud infrastructure, overtook satellite as the primary means of
broadcast for the first time in Olympics history. Two-thirds of
national broadcasters used live signals transmitted by Alibaba
Cloud in real-time around the world, reaching billions of viewers.
Alibaba Cloud also hosted more than 11,000 hours of Olympic
Broadcasting Services-produced games related video content used by
the broadcasters. Additionally, this is the first Olympic Games to
extensively use AI, with Alibaba Cloud’s AI technology deployed in
14 Olympic venues to generate high-fidelity 360-degree replays in
real-time.
Alibaba International Digital Commerce
Group (“AIDC”)
For the quarter ended June 30, 2024, revenue from AIDC grew 32%
year-over-year to RMB29,293 million (US$4,031 million). The strong
performance was driven by growth of cross-border businesses, in
particular the Choice business on AliExpress. During this quarter,
our AliExpress and Trendyol platforms stepped up investments in
initiatives to increase mindshare in select markets in Europe and
the Gulf region. In addition, we continued our efforts to improve
efficiency of our operations and investment.
The AliExpress platform expanded its supplier base and now
includes local merchants to enrich its product offerings and better
meet the needs of local consumers. During the quarter, AliExpress
and Magazine Luiza (“Magalu”), a leading retailer in Brazil,
entered into a partnership in which Magalu will open and operate a
storefront on AliExpress and vice versa. In addition, during this
quarter, the unit economics of the Choice business improved
significantly on a sequential basis.
Cainiao Smart Logistics Network Limited
(“Cainiao”)
For the quarter ended June 30, 2024, revenue from Cainiao grew
16% year-over-year to RMB26,811 million (US$3,689 million),
primarily driven by increase in revenue from cross-border
fulfillment solutions.
We continue to drive synergies between Cainiao and our
cross-border e-commerce business, as Cainiao executes its strategy
to strengthen its end-to-end capabilities through developing a
highly-digitalized global logistics network.
Local Services Group
For the quarter ended June 30, 2024, revenue from Local Services
Group grew by 12% year-over-year to RMB16,229 million (US$2,233
million), driven by order growth of both Amap and Ele.me, as well
as revenue growth from marketing services. For this quarter, Local
Services Group’s losses narrowed significantly on a year-over-year
basis due to improving operating efficiency and increasing
scale.
Digital Media and Entertainment
Group
During the quarter ended June 30, 2024, revenue of Digital Media
and Entertainment Group was RMB5,581 million (US$768 million), an
increase of 4% year-over-year, primarily driven by GMV and revenue
growth of its online ticketing platform for live events.
ESG Updates
In July, we published our 2024 Environmental, Social and
Governance Report. The report provides updates on our key ESG
strategic dimensions, including progress and performance in key
initiatives such as our carbon neutrality pledges. The full version
of the report is available on our official website.
Share Repurchases
During the quarter ended June 30, 2024, we repurchased a total
of 613 million ordinary shares (equivalent to 77 million ADSs) for
a total of US$5.8 billion, including the repurchase of
approximately US$1.2 billion of ADSs through privately negotiated
transactions concurrently with the issuance of our convertible
notes on May 23, 2024.
As of June 30, 2024, we had 19,024 million ordinary shares
(equivalent to 2,378 million ADSs) outstanding, a net decrease of
445 million ordinary shares compared to March 31, 2024, or a 2.3%
net reduction in our outstanding shares after accounting for shares
issued under our ESOP.
JUNE QUARTER SUMMARY FINANCIAL
RESULTS
Three months ended June
30,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages and per share amounts)
Revenue
234,156
243,236
33,470
4%
Income from operations
42,490
35,989
4,952
(15)%(2)
Operating margin
18%
15%
Adjusted EBITDA(1)
52,052
51,161
7,040
(2)%(3)
Adjusted EBITDA margin(1)
22%
21%
Adjusted EBITA(1)
45,371
45,035
6,197
(1)%(3)
Adjusted EBITA margin(1)
19%
19%
Net income
33,000
24,022
3,306
(27)%(4)
Net income attributable to ordinary
shareholders
34,332
24,269
3,340
(29)%(4)
Non-GAAP net income(1)
44,922
40,691
5,599
(9)%(4)
Diluted earnings per share(5)
1.66
1.24
0.17
(26)%(4)(6)
Diluted earnings per ADS(5)
13.30
9.89
1.36
(26)%(4)(6)
Non-GAAP diluted earnings per share(1)
(5)
2.17
2.05
0.28
(5)%(4)(6)
Non-GAAP diluted earnings per ADS(1)
(5)
17.37
16.44
2.26
(5)%(4)(6)
____________________
(1)
See the sections entitled
“Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP
Measures to the Nearest Comparable U.S. GAAP Measures” for more
information about the non-GAAP measures referred to within this
results announcement.
(2)
The year-over-year decrease was
primarily due to a reversal of share-based compensation expense of
RMB6,901 million during the quarter ended June 30, 2023, as
discussed in “June Quarter Other Financial Results” below.
(3)
The year-over-year decreases were
primarily attributable to the increase in investments in our
e-commerce businesses, partly offset by improved operating
efficiency.
(4)
The year-over-year decreases were
primarily due to a decrease in income from operations and the
increase in impairment of our investments, partly offset by the
mark-to-market changes from our equity investments, while net
income attributable to ordinary shareholders and earnings per
share/ADS would further take into account the net loss attributable
to noncontrolling interests. We excluded non-cash share-based
compensation expense, gains/losses of investments, impairment of
goodwill and intangible assets, and certain other items from our
non-GAAP measurements.
(5)
Each ADS represents eight
ordinary shares.
(6)
The year-over-year percentages as
stated are calculated based on the exact amount and there may be
minor differences from the year-over-year percentages calculated
based on the RMB amounts after rounding.
JUNE QUARTER SEGMENT RESULTS
Revenue for the quarter ended June 30, 2024 was RMB243,236
million (US$33,470 million), an increase of 4% year-over-year
compared to RMB234,156 million in the same quarter of 2023.
The following table sets forth a breakdown of our revenue by
segment for the periods indicated(1):
Three months ended June
30,
2023
2024
YoY %
RMB
RMB
US$
Change
(in millions, except
percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management
79,661
80,115
11,024
1%
- Direct sales and others(2)
30,167
27,306
3,758
(9)%
109,828
107,421
14,782
(2)%
China commerce wholesale
5,125
5,952
819
16%
Total Taobao and Tmall Group
114,953
113,373
15,601
(1)%
Cloud Intelligence Group
25,065
26,549
3,653
6%
Alibaba International Digital Commerce
Group:
International commerce retail
17,138
23,691
3,260
38%
International commerce wholesale
4,985
5,602
771
12%
Total Alibaba International Digital
Commerce Group
22,123
29,293
4,031
32%
Cainiao Smart Logistics Network
Limited
23,164
26,811
3,689
16%
Local Services Group
14,450
16,229
2,233
12%
Digital Media and Entertainment Group
5,381
5,581
768
4%
All others(3)
45,798
47,001
6,468
3%
Total segment revenue
250,934
264,837
36,443
6%
Unallocated
249
419
58
Inter-segment elimination
(17,027)
(22,020)
(3,031)
Consolidated revenue
234,156
243,236
33,470
4%
____________________
(1)
Starting from the quarter ended
September 30, 2023, we reclassified the revenue of our DingTalk
business, which was previously reported under Cloud Intelligence
Group, to All others, the purpose of which was to provide DingTalk
with greater autonomy to promote innovation and enhance
competitiveness. Our CODM started to review information under this
new reporting structure and segment reporting has been updated to
conform to this change as well as the way we manage and monitor
segment performance. Comparative figures were reclassified to
conform to this presentation.
(2)
Direct sales and others revenue
under Taobao and Tmall Group primarily represents Tmall
Supermarket, Tmall Global and other direct sales businesses, where
revenue and cost of inventory are recorded on a gross basis.
(3)
All others include Sun Art,
Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent
Information Platform (which mainly consists of UCWeb and Quark
businesses), Fliggy, DingTalk (previously reported under Cloud
Intelligence Group segment) and other businesses. The majority of
revenue within All others consists of direct sales revenue, which
is recorded on a gross basis.
The following table sets forth a breakdown of our adjusted EBITA
by segment for the periods indicated(1):
Three months ended June
30,
2023
2024
YoY %
RMB
RMB
US$
Change(4)
(in millions, except
percentages)
Taobao and Tmall Group
49,319
48,810
6,716
(1)%
Cloud Intelligence Group
916
2,337
322
155%
Alibaba International Digital Commerce
Group
(420)
(3,706)
(510)
(782)%
Cainiao Smart Logistics Network
Limited
877
618
85
(30)%
Local Services Group
(1,982)
(386)
(53)
81%
Digital Media and Entertainment Group
63
(103)
(14)
N/A
All others(2)
(1,733)
(1,263)
(174)
27%
Total segment adjusted EBITA
47,040
46,307
6,372
(2)%
Unallocated(3)
(1,463)
(871)
(120)
Inter-segment elimination
(206)
(401)
(55)
Consolidated adjusted EBITA
45,371
45,035
6,197
(1)%
Less: Non-cash share-based compensation
expense
1,629
(4,109)
(565)
Less: Amortization and impairment of
intangible assets
(2,479)
(1,792)
(247)
Less: Impairment of goodwill
(2,031)
–
–
Less: Provision for the shareholder class
action lawsuits
–
(3,145)
(433)
Income from operations
42,490
35,989
4,952
(15)%
____________________
(1)
Starting from the quarter ended
September 30, 2023, we reclassified the results of our DingTalk
business, which was previously reported under Cloud Intelligence
Group, to All others, the purpose of which was to provide DingTalk
with greater autonomy to promote innovation and enhance
competitiveness. Our CODM started to review information under this
new reporting structure and segment reporting has been updated to
conform to this change as well as the way we manage and monitor
segment performance. Comparative figures were reclassified to
conform to this presentation.
(2)
All others include Sun Art,
Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent
Information Platform (which mainly consists of UCWeb and Quark
businesses), Fliggy, DingTalk (previously reported under Cloud
Intelligence Group segment) and other businesses.
(3)
Unallocated primarily relates to
certain costs incurred by corporate functions and other
miscellaneous items that are not allocated to individual
segments.
(4)
For a more intuitive
presentation, widening of loss in YoY% is shown in terms of
negative growth rate, and narrowing of loss in YoY% is shown in
terms of positive growth rate.
Taobao and Tmall Group
(i) Segment revenue
- China Commerce Retail Business Revenue from our China
commerce retail business in the quarter ended June 30, 2024 was
RMB107,421 million (US$14,782 million), a decrease of 2% compared
to RMB109,828 million in the same quarter of 2023 due to the 9%
decrease in direct sales revenue described below. Customer
management revenue increased by 1% year-over-year, primarily due to
a high-single-digit year-over-year growth in online GMV, partly
offset by a decline in take rate. The year-over-year decrease in
take rate was primarily due to increasing proportion of GMV
generated from new models that currently have lower monetization
rates. Direct sales and others revenue under China commerce retail
business in the quarter ended June 30, 2024 was RMB27,306 million
(US$3,758 million), a decrease of 9% compared to RMB30,167 million
in the same quarter of 2023, primarily attributable to the decline
in sales of consumer electronics and appliances due to our planned
reduction of certain direct sales businesses, partly offset by the
increase in sales of groceries.
- China Commerce Wholesale Business Revenue from our China
commerce wholesale business in the quarter ended June 30, 2024 was
RMB5,952 million (US$819 million), an increase of 16% compared to
RMB5,125 million in the same quarter of 2023, primarily due to an
increase in revenue from value-added services provided to paying
members.
(ii) Segment adjusted EBITA
Taobao and Tmall Group adjusted EBITA
decreased by 1% to RMB48,810 million (US$6,716 million) in the
quarter ended June 30, 2024, compared to RMB49,319 million in the
same quarter of 2023, primarily due to the increase in investments
in user experience (which resulted in enhanced consumer retention
and increased purchase frequency) and technology infrastructure,
partly offset by the narrowing losses in certain businesses.
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was
RMB26,549 million (US$3,653 million) in the quarter ended June 30,
2024, an increase of 6% compared to RMB25,065 million in the same
quarter of 2023. Overall revenue excluding Alibaba-consolidated
subsidiaries increased by 6% year-over-year, mainly driven by the
double-digit revenue growth of public cloud products including
AI-related products, partly offset by the decrease in non-public
cloud revenue as we transition away from the low-margin
project-based revenues to focus on high-quality revenues.
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA
increased by 155% to RMB2,337 million (US$322 million) in the
quarter ended June 30, 2024, compared to RMB916 million in the same
quarter of 2023, primarily due to improving product mix through our
focus on public cloud adoption and operating efficiency, partly
offset by the increasing investments in customers and
technology.
Alibaba International Digital Commerce
Group
(i) Segment revenue
- International Commerce Retail Business Revenue from our
International commerce retail business in the quarter ended June
30, 2024 was RMB23,691 million (US$3,260 million), an increase of
38% compared to RMB17,138 million in the same quarter of 2023,
primarily driven by order growth from AliExpress’ Choice, as well
as improvements in monetization. As certain of our international
businesses generate revenue in local currencies while our reporting
currency is Renminbi, AIDC’s revenue is affected by exchange rate
fluctuations.
- International Commerce Wholesale Business Revenue from
our International commerce wholesale business in the quarter ended
June 30, 2024 was RMB5,602 million (US$771 million), an increase of
12% compared to RMB4,985 million in the same quarter of 2023,
primarily due to an increase in revenue generated by
cross-border-related value-added services.
(ii) Segment adjusted EBITA
Alibaba International Digital Commerce Group
adjusted EBITA was a loss of RMB3,706 million (US$510 million) in
the quarter ended June 30, 2024, compared to a loss of RMB420
million in the same quarter of 2023, primarily due to the increase
in investments in AliExpress and Trendyol’s cross-border
businesses, partly offset by Lazada’s significant reduction in
operating loss from improvements in its monetization and operating
efficiency.
Cainiao Smart Logistics Network
Limited
(i) Segment revenue
Revenue from Cainiao Smart Logistics Network
Limited was RMB26,811 million (US$3,689 million) in the quarter
ended June 30, 2024, an increase of 16% compared to RMB23,164
million in the same quarter of 2023, primarily driven by the
increase in revenue from cross-border fulfillment solutions.
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited
adjusted EBITA decreased by 30% to RMB618 million (US$85 million)
in the quarter ended June 30, 2024, compared to RMB877 million in
the same quarter of 2023, primarily due to increased investments in
cross-border fulfillment solutions, partly offset by improved
operating efficiency.
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was
RMB16,229 million (US$2,233 million) in the quarter ended June 30,
2024, an increase of 12% compared to RMB14,450 million in the same
quarter of 2023, driven by the order growth of both Amap and
Ele.me, as well as revenue growth from marketing services.
(ii) Segment adjusted EBITA
Local Services Group adjusted EBITA was a
loss of RMB386 million (US$53 million) in the quarter ended June
30, 2024, compared to a loss of RMB1,982 million in the same
quarter of 2023, primarily due to improving operating efficiency
and increasing scale.
Digital Media and Entertainment
Group
(i) Segment revenue
Revenue from Digital Media and Entertainment
Group was RMB5,581 million (US$768 million) in the quarter ended
June 30, 2024, an increase of 4% compared to RMB5,381 million in
the same quarter of 2023.
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group
adjusted EBITA in the quarter ended June 30, 2024 was a loss of
RMB103 million (US$14 million), compared to a profit of RMB63
million in the same quarter of 2023.
All Others
(i) Segment revenue
Revenue from All others segment was RMB47,001
million (US$6,468 million) in the quarter ended June 30, 2024, an
increase of 3% compared to RMB45,798 million in the same quarter of
2023, primarily due to the increase in revenue from Freshippo,
Alibaba Health and Intelligent Information Platform, partly offset
by the decrease in revenue from Lingxi Games and Sun Art.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the
quarter ended June 30, 2024 was a loss of RMB1,263 million (US$174
million), compared to a loss of RMB1,733 million in the same
quarter of 2023, primarily due to improved operating results from
Sun Art, Freshippo, Alibaba Health and Lingxi Games, partly offset
by increased investment in technology businesses.
JUNE QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and
expenses, share-based compensation expense, and costs and expenses
excluding share-based compensation expense by function for the
periods indicated:
Three months ended June
30,
% of Revenue YoY
change
2023
2024
RMB
% of Revenue
RMB
US$
% of Revenue
(in millions, except
percentages)
Costs and expenses:
Cost of revenue
142,347
60.8%
146,106
20,105
60.1%
(0.7)%
Product development expenses
10,465
4.5%
13,373
1,840
5.5%
1.0%
Sales and marketing expenses
27,047
11.6%
32,696
4,499
13.4%
1.8%
General and administrative expenses
7,297
3.1%
13,280
1,827
5.5%
2.4%
Amortization and impairment of intangible
assets
2,479
1.1%
1,792
247
0.7%
(0.4)%
Impairment of goodwill
2,031
0.9%
–
–
–
(0.9)%
Total costs and expenses
191,666
207,247
28,518
Share-based compensation
expense:
Cost of revenue
(307)
(0.1)%
586
80
0.2%
0.3%
Product development expenses
(242)
(0.1)%
1,803
248
0.7%
0.8%
Sales and marketing expenses
(125)
(0.1)%
399
55
0.2%
0.3%
General and administrative expenses
(955)
(0.4)%
1,343
185
0.6%
1.0%
Total share-based compensation expense
(1,629)
4,131
568
Costs and expenses excluding
share-based compensation expense:
Cost of revenue
142,654
60.9%
145,520
20,025
59.8%
(1.1)%
Product development expenses
10,707
4.6%
11,570
1,592
4.8%
0.2%
Sales and marketing expenses
27,172
11.6%
32,297
4,444
13.3%
1.7%
General and administrative expenses
8,252
3.5%
11,937
1,642
4.9%
1.4%
Amortization and impairment of intangible
assets
2,479
1.1%
1,792
247
0.7%
(0.4)%
Impairment of goodwill
2,031
0.9%
–
–
–
(0.9)%
Total costs and expenses excluding
share-based compensation expense
193,295
203,116
27,950
Cost of revenue – Cost of revenue in the quarter ended
June 30, 2024 was RMB146,106 million (US$20,105 million), or 60.1%
of revenue, compared to RMB142,347 million, or 60.8% of revenue, in
the same quarter of 2023. Without the effect of share-based
compensation expense, cost of revenue as a percentage of revenue
would have decreased from 60.9% in the quarter ended June 30, 2023
to 59.8% in the quarter ended June 30, 2024.
Product development expenses – Product development
expenses in the quarter ended June 30, 2024 were RMB13,373 million
(US$1,840 million), or 5.5% of revenue, compared to RMB10,465
million, or 4.5% of revenue, in the same quarter of 2023. Without
the effect of share-based compensation expense, product development
expenses as a percentage of revenue would have increased from 4.6%
in the quarter ended June 30, 2023 to 4.8% in the quarter ended
June 30, 2024.
Sales and marketing expenses – Sales and marketing
expenses in the quarter ended June 30, 2024 were RMB32,696 million
(US$4,499 million), or 13.4% of revenue, compared to RMB27,047
million, or 11.6% of revenue, in the same quarter of 2023. Without
the effect of share-based compensation expense, sales and marketing
expenses as a percentage of revenue would have increased from 11.6%
in the quarter ended June 30, 2023 to 13.3% in the quarter ended
June 30, 2024, primarily due to our increased investments in
e-commerce businesses.
General and administrative expenses – General and
administrative expenses in the quarter ended June 30, 2024 were
RMB13,280 million (US$1,827 million), or 5.5% of revenue, compared
to RMB7,297 million, or 3.1% of revenue, in the same quarter of
2023. Without the effect of share-based compensation expense,
general and administrative expenses as a percentage of revenue
would have increased from 3.5% in the quarter ended June 30, 2023
to 4.9% in the quarter ended June 30, 2024, primarily due to a
one-time provision for the previously disclosed shareholder class
action lawsuits of RMB3,145 million (US$433 million) during the
quarter.
Share-based compensation expense – Total share-based
compensation expense included in the cost and expense items above
in the quarter ended June 30, 2024 was RMB4,131 million (US$568
million), compared to a net reversal of RMB1,629 million in the
same quarter of 2023.
The following table sets forth our analysis of share-based
compensation expense for the quarters indicated by type of
share-based awards:
Three months ended June
30,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages)
By type of awards:
Alibaba Group share-based awards(1)
4,267
3,091
425
(28)%
Ant Group share-based awards(2)
(6,834)
(27)
(4)
(100)%
Others(3)
938
1,067
147
14%
Total share-based compensation expense
(1,629)
4,131
568
N/A
____________________
(1)
This represents Alibaba Group
share-based awards granted to our employees.
(2)
This represents Ant Group
share-based awards granted to our employees, which is subject to
mark-to-market accounting treatment.
(3)
This represents share-based
awards of our subsidiaries.
Share-based compensation expense related to Alibaba Group
share-based awards decreased in the quarter ended June 30, 2024
compared to the same quarter of 2023. This decrease was primarily
due to the general decrease in the average fair market value and
number of the awards granted.
Share-based compensation expense related to Ant Group
share-based awards was a net reversal for the quarter ended June
30, 2023 because we made a mark-to-market adjustment during the
quarter relating to Ant Group share-based awards granted to our
employees, reflecting a decrease in the value of Ant Group.
We expect that our share-based compensation expense will
continue to be affected by changes in the fair value of the
underlying awards and the quantity of awards we grant in the
future.
Amortization and impairment of intangible assets –
Amortization and impairment of intangible assets in the quarter
ended June 30, 2024 was RMB1,792 million (US$247 million), a
decrease of 28% from RMB2,479 million in the same quarter of
2023.
Impairment of goodwill – Impairment of goodwill of
RMB2,031 million was recorded in the quarter ended June 30, 2023
because the carrying value of a reporting unit within All others
segment exceeded its fair value.
Income from operations and operating
margin
Income from operations in the quarter ended June 30, 2024 was
RMB35,989 million (US$4,952 million), or 15% of revenue, a decrease
of 15% compared to RMB42,490 million, or 18% of revenue, in the
same quarter of 2023, primarily due to the reversal of share-based
compensation expense of RMB6,901 million during the quarter ended
June 30, 2023 in relation to the mark-to-market adjustment of Ant
Group share-based awards granted to our employees.
Adjusted EBITDA and Adjusted
EBITA
Adjusted EBITDA decreased 2% year-over-year to RMB51,161 million
(US$7,040 million) in the quarter ended June 30, 2024, compared to
RMB52,052 million in the same quarter of 2023. Adjusted EBITA
decreased 1% year-over-year to RMB45,035 million (US$6,197 million)
in the quarter ended June 30, 2024, compared to RMB45,371 million
in the same quarter of 2023, primarily attributable to the increase
in investments in our e-commerce businesses, partly offset by
improved operating efficiency. A reconciliation of net income to
adjusted EBITDA and adjusted EBITA is included at the end of this
results announcement.
Adjusted EBITA by
segment
Adjusted EBITA by segment as well as a reconciliation of income
from operations to adjusted EBITA are set forth in the section
entitled “June Quarter Segment Results” above.
Interest and investment income,
net
Interest and investment income, net in the quarter ended June
30, 2024 was a loss of RMB1,478 million (US$203 million), compared
to a loss of RMB5,898 million in the same quarter of 2023,
primarily due to a decrease in net loss from our investments in
publicly-traded companies as a result of mark-to-market
changes.
The above-mentioned investment gains and losses were excluded
from our non-GAAP net income.
Other income, net
Other income, net in the quarter ended June 30, 2024 was RMB257
million (US$35 million), a decrease of 81% compared to RMB1,364
million in the same quarter of 2023.
Income tax expenses
Income tax expenses in the quarter ended June 30, 2024 were
RMB10,063 million (US$1,384 million), compared to RMB6,022 million
in the same quarter of 2023.
Share of results of equity method
investees
Share of results of equity method investees in the quarter ended
June 30, 2024 was RMB1,505 million (US$207 million), a decrease of
47% compared to RMB2,850 million in the same quarter of 2023. The
following table sets forth a breakdown of share of results of
equity method investees for the periods indicated:
Three months ended June
30,
2023
2024
RMB
RMB
US$
(in millions)
Share of profit (loss) of equity method
investees
- Ant Group
4,364
3,917
539
- Others
(502)
(588)
(81)
Impairment loss
(12)
(2,157)
(297)
Others(1)
(1,000)
333
46
Total
2,850
1,505
207
____________________
(1)
“Others” mainly include basis
differences arising from equity method investees, share-based
compensation expense related to share-based awards granted to
employees of our equity method investees, as well as gain or loss
arising from the deemed disposal of the equity method
investees.
We record our share of results of all equity method investees
one quarter in arrears. We recorded an impairment loss of RMB2,157
million (US$297 million) in this quarter with respect to equity
method investees, primarily due to a prolonged decline in the
public market value of an equity method investee against its
carrying value.
Net income and Non-GAAP net
income
Our net income in the quarter ended June 30, 2024 was RMB24,022
million (US$3,306 million), compared to RMB33,000 million in the
same quarter of 2023, primarily due to a decrease in income from
operations, and the increase in impairment of our investments,
partly offset by the mark-to-market changes from our equity
investments.
Excluding non-cash share-based compensation expense,
gains/losses of investments, impairment of goodwill and intangible
assets, and certain other items, non-GAAP net income in the quarter
ended June 30, 2024 was RMB40,691 million (US$5,599 million), a
decrease of 9% compared to RMB44,922 million in the same quarter of
2023. A reconciliation of net income to non-GAAP net income is
included at the end of this results announcement.
Net income attributable to ordinary
shareholders
Net income attributable to ordinary shareholders in the quarter
ended June 30, 2024 was RMB24,269 million (US$3,340 million),
compared to RMB34,332 million in the same quarter of 2023,
primarily due to a decrease in income from operations, and the
increase in impairment of our investments, partly offset by the
mark-to-market changes from our equity investments.
Diluted earnings per ADS/share and
non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended June 30, 2024 was
RMB9.89 (US$1.36), compared to RMB13.30 in the same quarter of
2023. Excluding non-cash share-based compensation expense,
gains/losses of investments, impairment of goodwill and intangible
assets, and certain other items, non-GAAP diluted earnings per ADS
in the quarter ended June 30, 2024 was RMB16.44 (US$2.26), a
decrease of 5% compared to RMB17.37 in the same quarter of
2023.
Diluted earnings per share in the quarter ended June 30, 2024
was RMB1.24 (US$0.17 or HK$1.36), compared to RMB1.66 in the same
quarter of 2023. Excluding non-cash share-based compensation
expense, gains/losses of investments, impairment of goodwill and
intangible assets, and certain other items, non-GAAP diluted
earnings per share in the quarter ended June 30, 2024 was RMB2.05
(US$0.28 or HK$2.25), a decrease of 5% compared to RMB2.17 in the
same quarter of 2023.
A reconciliation of diluted earnings per ADS/share to non-GAAP
diluted earnings per ADS/share is included at the end of this
results announcement. Each ADS represents eight ordinary
shares.
Cash and cash
equivalents, short-term investments
and other treasury investments
As of June 30, 2024, cash and cash equivalents, short-term
investments and other treasury investments included in equity
securities and other investments on the consolidated balance
sheets, were RMB613,678 million (US$84,445 million), compared to
RMB617,230 million as of March 31, 2024. Other treasury investments
consist of fixed deposits, certificate of deposits and marketable
debt securities with original maturities over one year for treasury
purposes. The decrease in cash and cash equivalents, short-term
investments and other treasury investments during the quarter ended
June 30, 2024 was primarily due to cash used in repurchase of
ordinary shares of RMB42,695 million (US$5,875 million) and
acquisition of additional equity interests in non-wholly owned
subsidiaries of RMB8,337 million (US$1,147 million), partly offset
by free cash flow generated from operations of RMB17,372 million
(US$2,390 million) and the net proceeds from the issuance of
convertible unsecured senior notes and the purchase of capped call
of RMB31,065 million (US$4,275 million).
Net cash provided by operating
activities and free cash flow
During the quarter ended June 30, 2024, net cash provided by
operating activities was RMB33,636 million (US$4,628 million), a
decrease of 26% compared to RMB45,306 million in the same quarter
of 2023. Free cash flow, a non-GAAP measurement of liquidity, was
RMB17,372 million (US$2,390 million), a decrease of 56% compared to
RMB39,089 million in the same quarter of 2023. The year-over-year
decrease mainly reflected the increase in expenditure related to
our investments in Alibaba Cloud infrastructure and other working
capital changes related to factors including our planned reduction
of direct sales businesses. A reconciliation of net cash provided
by operating activities to free cash flow is included at the end of
this results announcement.
Net cash used in investing
activities
During the quarter ended June 30, 2024, net cash used in
investing activities of RMB35,829 million (US$4,930 million)
primarily reflected (i) an increase in other treasury investments
by RMB112,148 million (US$15,432 million), (ii) capital expenditure
of RMB12,094 million (US$1,664 million), and (iii) cash outflow of
RMB1,769 million (US$243 million) for investment and acquisition
activities. These cash outflows were partly offset by a decrease in
short-term investments by RMB87,417 million (US$12,029 million) and
cash inflow of RMB2,496 million (US$343 million) from disposal of
investments.
Net cash used in financing
activities
During the quarter ended June 30, 2024, net cash used in
financing activities of RMB19,582 million (US$2,695 million)
primarily reflected cash used in repurchase of ordinary shares of
RMB42,695 million (US$5,875 million) and acquisition of additional
equity interests in non-wholly owned subsidiaries of RMB8,337
million (US$1,147 million), partly offset by the net proceeds from
the issuance of convertible unsecured senior notes and the purchase
of capped call of RMB31,065 million (US$4,275 million).
Employees
As of June 30, 2024, we had a total of 198,162 employees,
compared to 204,891 as of March 31, 2024.
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group’s management will hold a conference call to
discuss the financial results at 7:30 a.m. U.S. Eastern Time (7:30
p.m. Hong Kong Time) on Thursday, August 15, 2024.
All participants must pre-register to join this conference call
using the Participant Registration link below: English:
https://s1.c-conf.com/diamondpass/10040376-uTdhw.html Chinese:
https://s1.c-conf.com/diamondpass/10040377-puyhg.html
Upon registration, each participant will receive details for the
conference call, including dial-in numbers, conference call
passcode and a unique access PIN. To join the conference, please
dial the number provided, enter the passcode followed by your PIN,
and you will join the conference.
A live webcast of the earnings conference call can be accessed
at
https://www.alibabagroup.com/en-US/ir-financial-reports-quarterly-results.
An archived webcast will be available through the same link
following the call. A replay of the conference call will be
available for one week from the date of the conference (Dial-in
number: +1 855 883 1031; English conference PIN 10040376; Chinese
conference PIN 10040377).
Please visit Alibaba Group’s Investor Relations website at
https://www.alibabagroup.com/en-US/investor-relations on August 15,
2024 to view the earnings release and accompanying slides prior to
the conference call.
ABOUT ALIBABA GROUP
Alibaba Group’s mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba, and that it will be a good company that lasts for 102
years.
EXCHANGE RATE INFORMATION
This results announcement contains translations of certain
Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong
dollars (“HK$”) for the convenience of the reader. Unless otherwise
stated, all translations of RMB into US$ were made at RMB7.2672 to
US$1.00, the exchange rate on June 28, 2024 as set forth in the
H.10 statistical release of the Federal Reserve Board, and all
translations of RMB into HK$ were made at RMB0.91268 to HK$1.00,
the middle rate on June 28, 2024 as published by the People’s Bank
of China. The percentages stated in this announcement are
calculated based on the RMB amounts and there may be minor
differences due to rounding.
SAFE HARBOR STATEMENTS
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,”
“intend,” “seek,” “plan,” “believe,” “potential,” “continue,”
“ongoing,” “target,” “guidance,” “is/are likely to” and similar
statements. In particular, the settlement in principle of our
shareholder class action lawsuits is subject to various conditions,
including completion of confirmatory discovery, negotiation and
execution of the full settlement agreement and approval by the
court. In addition, statements that are not historical facts,
including statements about Alibaba Group’s new organizational and
governance structure, Alibaba’s plan to convert to primary listing
in Hong Kong, Alibaba’s strategies and business and operational
plans, Alibaba’s beliefs, expectations and guidance regarding the
growth of its business, revenue and return on investments, share
repurchases and the business outlook and quotations from management
in this announcement, are or contain forward-looking statements.
Alibaba may also make forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the “SEC”),
in announcements made on the website of The Stock Exchange of Hong
Kong Limited (the “Hong Kong Stock Exchange”), in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement. These factors include
but are not limited to the following: Alibaba’s corporate
structure, including the VIE structure it uses to operate certain
businesses in the PRC; the implementation of Alibaba Group’s new
organizational and governance structure; Alibaba’s ability to
maintain the trusted status of its ecosystem; Alibaba’s ability to
compete, innovate and maintain or grow its business, including
expanding its international and cross-border businesses and
operations and managing a large and complex organization; risks
associated with sustained investments in Alibaba’s businesses;
fluctuations in general economic and business conditions in China
and globally; uncertainties arising from competition among
countries and geopolitical tensions, including national trade,
investment, protectionist or other policies and export control,
economic or trade sanctions; risks associated with Alibaba’s
acquisitions, investments and alliances; uncertainties and risks
associated with a broad range of complex laws and regulations
(including in the areas of privacy and data protection and
cybersecurity, anti-monopoly and anti-unfair competition, content
regulation, consumer protection and regulation of Internet
platforms) in the PRC and globally; cybersecurity risks; Alibaba’s
plan to convert to primary listing in Hong Kong; and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in Alibaba’s filings
with the SEC and announcements on the website of the Hong Kong
Stock Exchange. All information provided in this results
announcement is as of the date of this results announcement and are
based on assumptions that we believe to be reasonable as of this
date, and Alibaba does not undertake any obligation to update any
forward-looking statement, except as required under applicable
law.
NON-GAAP FINANCIAL MEASURES
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the
following non-GAAP financial measures: for our consolidated
results, adjusted EBITDA (including adjusted EBITDA margin),
adjusted EBITA (including adjusted EBITA margin), non-GAAP net
income, non-GAAP diluted earnings per share/ADS and free cash flow.
For more information on these non-GAAP financial measures, please
refer to the table captioned “Reconciliations of Non-GAAP Measures
to the Nearest Comparable U.S. GAAP Measures” in this results
announcement.
We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net
income and non-GAAP diluted earnings per share/ADS help identify
underlying trends in our business that could otherwise be distorted
by the effect of certain income or expenses that we include in
income from operations, net income and diluted earnings per
share/ADS. We believe that these non-GAAP measures provide useful
information about our core operating results, enhance the overall
understanding of our past performance and future prospects and
allow for greater visibility with respect to key metrics used by
our management in its financial and operational decision-making. We
present three different income measures, namely adjusted EBITDA,
adjusted EBITA and non-GAAP net income in order to provide more
information and greater transparency to investors about our
operating results.
We consider free cash flow to be a liquidity measure that
provides useful information to management and investors about the
amount of cash generated by our business that can be used for
strategic corporate transactions, including investing in our new
business initiatives, making strategic investments and acquisitions
and strengthening our balance sheet.
Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP
diluted earnings per share/ADS and free cash flow should not be
considered in isolation or construed as an alternative to income
from operations, net income, diluted earnings per share/ADS, cash
flows or any other measure of performance or as an indicator of our
operating performance. These non-GAAP financial measures presented
here do not have standardized meanings prescribed by U.S. GAAP and
may not be comparable to similarly titled measures presented by
other companies. Other companies may calculate similarly titled
measures differently, limiting their usefulness as comparative
measures to our data.
Adjusted EBITDA represents net income before interest and
investment income, net, interest expense, other income, net, income
tax expenses, share of results of equity method investees, certain
non-cash expenses, consisting of share-based compensation expense,
amortization and impairment of intangible assets, impairment of
goodwill, depreciation and impairment of property and equipment,
and operating lease cost relating to land use rights, and others
(including provision in relation to matters outside the ordinary
course of business), which we do not believe are reflective of our
core operating performance during the periods presented.
Adjusted EBITA represents net income before interest and
investment income, net, interest expense, other income, net, income
tax expenses, share of results of equity method investees, certain
non-cash expenses, consisting of share-based compensation expense,
amortization and impairment of intangible assets, impairment of
goodwill, and others (including provision in relation to matters
outside the ordinary course of business), which we do not believe
are reflective of our core operating performance during the periods
presented.
Non-GAAP net income represents net income before non-cash
share-based compensation expense, amortization and impairment of
intangible assets, gain or loss on deemed
disposals/disposals/revaluation of investments, impairment of
goodwill and investments, and others (including provision in
relation to matters outside the ordinary course of business), and
adjustments for the tax effects.
Non-GAAP diluted earnings per share represents non-GAAP
net income attributable to ordinary shareholders divided by the
weighted average number of outstanding ordinary shares for
computing non-GAAP diluted earnings per share on a diluted basis.
Non-GAAP diluted earnings per ADS represents non-GAAP
diluted earnings per share after adjusting for the ordinary
share-to-ADS ratio.
Free cash flow represents net cash provided by operating
activities as presented in our consolidated cash flow statement
less purchases of property and equipment (excluding acquisition of
land use rights and construction in progress relating to office
campuses) and intangible assets (excluding those acquired through
acquisitions), as well as adjustments to exclude from net cash
provided by operating activities the buyer protection fund deposits
from merchants on our marketplaces. We deduct certain items of cash
flows from investing activities in order to provide greater
transparency into cash flow from our revenue-generating business
operations. We exclude “acquisition of land use rights and
construction in progress relating to office campuses” because the
office campuses are used by us for corporate and administrative
purposes and are not directly related to our revenue-generating
business operations. We also exclude buyer protection fund deposits
from merchants on our marketplaces because these deposits are
restricted for the purpose of compensating buyers for claims
against merchants.
The table captioned “Reconciliations of Non-GAAP Measures to the
Nearest Comparable U.S. GAAP Measures” in this results announcement
has more details on the non-GAAP financial measures that are most
directly comparable to GAAP financial measures and the related
reconciliations between these financial measures.
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED INCOME
STATEMENTS
Three months ended June
30,
2023
2024
RMB
RMB
US$
(in millions, except per share
data)
Revenue
234,156
243,236
33,470
Cost of revenue
(142,347)
(146,106)
(20,105)
Product development expenses
(10,465)
(13,373)
(1,840)
Sales and marketing expenses
(27,047)
(32,696)
(4,499)
General and administrative expenses
(7,297)
(13,280)
(1,827)
Amortization and impairment of intangible
assets
(2,479)
(1,792)
(247)
Impairment of goodwill
(2,031)
–
–
Income from operations
42,490
35,989
4,952
Interest and investment income, net
(5,898)
(1,478)
(203)
Interest expense
(1,784)
(2,188)
(301)
Other income, net
1,364
257
35
Income before income tax and share of
results of equity method investees
36,172
32,580
4,483
Income tax expenses
(6,022)
(10,063)
(1,384)
Share of results of equity method
investees
2,850
1,505
207
Net income
33,000
24,022
3,306
Net loss attributable to noncontrolling
interests
1,242
368
50
Net income attributable to Alibaba Group
Holding Limited
34,242
24,390
3,356
Accretion of mezzanine equity
90
(121)
(16)
Net income attributable to ordinary
shareholders
34,332
24,269
3,340
Earnings per share attributable to
ordinary shareholders(1)
Basic
1.68
1.26
0.17
Diluted
1.66
1.24
0.17
Earnings per ADS attributable to
ordinary shareholders(1)
Basic
13.40
10.04
1.38
Diluted
13.30
9.89
1.36
Weighted average number of shares used
in calculating earnings per ordinary share (million
shares)(1)
Basic
20,493
19,329
Diluted
20,608
19,595
____________________
(1)
Each ADS represents eight
ordinary shares.
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE
SHEETS
As of March 31,
As of June 30,
2024
2024
RMB
RMB
US$
(in millions)
Assets
Current assets:
Cash and cash equivalents
248,125
219,167
30,158
Short-term investments
262,955
176,030
24,223
Restricted cash and escrow receivables
38,299
46,141
6,349
Equity securities and other
investments
59,949
53,727
7,393
Prepayments, receivables and other
assets
143,536
158,625
21,828
Total current assets
752,864
653,690
89,951
Equity securities and other
investments
220,942
330,935
45,538
Prepayments, receivables and other
assets
116,102
117,340
16,146
Investment in equity method investees
203,131
203,873
28,054
Property and equipment, net
185,161
194,222
26,726
Intangible assets, net
26,950
25,272
3,478
Goodwill
259,679
259,722
35,739
Total assets
1,764,829
1,785,054
245,632
Liabilities, Mezzanine Equity and
Shareholders’ Equity
Current liabilities:
Current bank borrowings
12,749
13,567
1,867
Current unsecured senior notes
16,252
16,343
2,249
Income tax payable
9,068
6,868
945
Accrued expenses, accounts payable and
other liabilities
297,883
339,279
46,686
Merchant deposits
12,737
12,449
1,713
Deferred revenue and customer advances
72,818
74,384
10,236
Total current liabilities
421,507
462,890
63,696
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(CONTINUED)
As of March 31,
As of June 30,
2024
2024
RMB
RMB
US$
(in millions)
Deferred revenue
4,069
4,313
593
Deferred tax liabilities
53,012
54,279
7,469
Non-current bank borrowings
55,686
55,631
7,655
Non-current unsecured senior notes
86,089
86,574
11,913
Non-current convertible unsecured senior
notes
–
35,822
4,929
Other liabilities
31,867
32,185
4,429
Total liabilities
652,230
731,694
100,684
Commitments and contingencies
Mezzanine equity
10,728
10,903
1,501
Shareholders’ equity:
Ordinary shares
1
1
–
Additional paid-in capital
397,999
381,469
52,492
Treasury shares at cost
(27,684)
(27,687)
(3,810)
Statutory reserves
14,733
15,056
2,072
Accumulated other comprehensive income
3,598
4,446
612
Retained earnings
597,897
564,740
77,711
Total shareholders’ equity
986,544
938,025
129,077
Noncontrolling interests
115,327
104,432
14,370
Total equity
1,101,871
1,042,457
143,447
Total liabilities, mezzanine equity and
equity
1,764,829
1,785,054
245,632
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Three months ended June
30,
2023
2024
RMB
RMB
US$
(in millions)
Net cash provided by operating
activities
45,306
33,636
4,628
Net cash provided by (used in) investing
activities
12,595
(35,829)
(4,930)
Net cash used in financing activities
(24,636)
(19,582)
(2,695)
Effect of exchange rate changes on cash
and cash equivalents, restricted cash and escrow receivables
4,319
659
91
Increase (Decrease) in cash and cash
equivalents, restricted cash and escrow receivables
37,584
(21,116)
(2,906)
Cash and cash equivalents, restricted cash
and escrow receivables at beginning of period
229,510
286,424
39,413
Cash and cash equivalents, restricted cash
and escrow receivables at end of period
267,094
265,308
36,507
ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF
NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP
MEASURES
The table below sets forth a reconciliation of our net income to
adjusted EBITA and adjusted EBITDA for the periods indicated:
Three months ended June
30,
2023
2024
RMB
RMB
US$
(in millions)
Net income
33,000
24,022
3,306
Adjustments to reconcile net income to
adjusted EBITA and adjusted EBITDA:
Interest and investment income, net
5,898
1,478
203
Interest expense
1,784
2,188
301
Other income, net
(1,364)
(257)
(35)
Income tax expenses
6,022
10,063
1,384
Share of results of equity method
investees
(2,850)
(1,505)
(207)
Income from operations
42,490
35,989
4,952
Non-cash share-based compensation
expense
(1,629)
4,109
565
Amortization and impairment of intangible
assets
2,479
1,792
247
Impairment of goodwill
2,031
–
–
Provision for the shareholder class action
lawsuits
–
3,145
433
Adjusted EBITA
45,371
45,035
6,197
Depreciation and impairment of property
and equipment, and operating lease cost relating to land use
rights
6,681
6,126
843
Adjusted EBITDA
52,052
51,161
7,040
ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF
NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES
(CONTINUED)
The table below sets forth a reconciliation of our net income to
non-GAAP net income for the periods indicated:
Three months ended June
30,
2023
2024
RMB
RMB
US$
(in millions)
Net income
33,000
24,022
3,306
Adjustments to reconcile net income to
non-GAAP net income:
Non-cash share-based compensation
expense
(1,629)
4,109
565
Amortization and impairment of intangible
assets
2,479
1,792
247
Provision for the shareholder class action
lawsuits
–
3,145
433
Loss on deemed
disposals/disposals/revaluation of investments
9,038
4,581
630
Impairment of goodwill and investments,
and others
4,269
4,311
593
Tax effects (1)
(2,235)
(1,269)
(175)
Non-GAAP net income
44,922
40,691
5,599
____________________
(1)
Tax effects primarily comprise
tax effects relating to non-cash share-based compensation expense,
amortization and impairment of intangible assets and certain gains
and losses from investments, and others.
ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF
NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES
(CONTINUED)
The table below sets forth a reconciliation of our diluted
earnings per share/ADS to non-GAAP diluted earnings per share/ADS
for the periods indicated:
Three months ended June
30,
2023
2024
RMB
RMB
US$
(in millions, except per share
data)
Net income attributable to ordinary
shareholders – basic
34,332
24,269
3,340
Dilution effect on earnings arising from
non-cash share-based awards operated by equity method investees and
subsidiaries
(68)
(75)
(10)
Adjustments for interest expense
attributable to convertible unsecured senior notes
–
26
4
Net income attributable to ordinary
shareholders – diluted
34,264
24,220
3,334
Non-GAAP adjustments to net income
attributable to ordinary shareholders(1)
10,471
16,045
2,207
Non-GAAP net income attributable
to ordinary shareholders for computing non-GAAP diluted earnings
per share/ADS
44,735
40,265
5,541
Weighted average number of shares on a
diluted basis for computing non-GAAP diluted earnings per share/ADS
(million shares)(2)
20,608
19,595
Diluted earnings per
share(2)(3)
1.66
1.24
0.17
Non-GAAP diluted earnings per
share(2)(4)
2.17
2.05
0.28
Diluted earnings per ADS(2)(3)
13.30
9.89
1.36
Non-GAAP diluted earnings per
ADS(2)(4)
17.37
16.44
2.26
____________________
(1)
See the table above for the
reconciliation of net income to non-GAAP net income for more
information of these non-GAAP adjustments.
(2)
Each ADS represents eight
ordinary shares.
(3)
Diluted earnings per share is
derived from dividing net income attributable to ordinary
shareholders by the weighted average number of outstanding ordinary
shares, on a diluted basis. Diluted earnings per ADS is derived
from the diluted earnings per share after adjusting for the
ordinary share-to-ADS ratio.
(4)
Non-GAAP diluted earnings per
share is derived from dividing non-GAAP net income attributable to
ordinary shareholders by the weighted average number of outstanding
ordinary shares for computing non-GAAP diluted earnings per share,
on a diluted basis. Non-GAAP diluted earnings per ADS is derived
from the non-GAAP diluted earnings per share after adjusting for
the ordinary share-to-ADS ratio.
ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF
NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES
(CONTINUED)
The table below sets forth a reconciliation of net cash provided
by operating activities to free cash flow for the periods
indicated:
Three months ended June
30,
2023
2024
RMB
RMB
US$
(in millions)
Net cash provided by operating
activities
45,306
33,636
4,628
Less: Purchase of property and equipment
(excluding land use rights and construction in progress relating to
office campuses)
(6,007)
(11,939)
(1,643)
Less: Changes in the buyer protection fund
deposits
(210)
(4,325)
(595)
Free cash flow
39,089
17,372
2,390
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240813557982/en/
Investor Relations Contact Rob Lin Head of Investor
Relations Alibaba Group Holding Limited investor@alibaba-inc.com
Media Contacts Cathy Yan cathy.yan@alibaba-inc.com Ivy Ke
ivy.ke@alibaba-inc.com
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