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
September 30, 2024.
“This quarter we continued to invest in the user experience and
strengthen product offerings to serve our consumers. We entered
into long-term collaborations with industry peers to broaden
payment and logistics services on Taobao and Tmall platforms, which
we expect will accelerate our overall growth. Growth in our Cloud
business accelerated from prior quarters, with revenues from public
cloud products growing in double digits and AI-related product
revenue delivering triple-digit growth. We are more confident in
our core businesses than ever and will continue to invest in
supporting long-term growth. Our other businesses continued to
improve their operating efficiency, with most of them continuing to
increase their profitability or reduce losses,” said Eddie Wu,
Chief Executive Officer of Alibaba Group.
“Our revenue growth this quarter was driven by improving
monetization of Taobao and Tmall Group, which included GMV-based
service fees and merchant adoption of our marketing tool
Quanzhantui. Consistent with our strategy, we continue to invest in
our core businesses while enhancing operational efficiency. During
the quarter we repurchased US$4.1 billion of shares, achieving
earnings accretion to our shareholders through a net 2.1% reduction
in total shares outstanding since the end of June,” said Toby Xu,
Chief Financial Officer of Alibaba Group.
BUSINESS HIGHLIGHTS
In the quarter ended September 30,
2024:
- Revenue was RMB236,503 million (US$33,701 million), an
increase of 5% year-over-year.
- Income from operations was RMB35,246 million (US$5,023
million), an increase of 5% year-over-year, primarily due to the
decrease in non-cash share-based compensation expense, partly
offset by the decrease in adjusted EBITA. We excluded non-cash
share-based compensation expense from our non-GAAP measurements.
Adjusted EBITA, a non-GAAP measurement, decreased 5%
year-over-year to RMB40,561 million (US$5,780 million), was
primarily attributable to the increase in investments in our
e-commerce businesses, partly offset by revenue growth and improved
operating efficiency.
- Net income attributable to ordinary shareholders was
RMB43,874 million (US$6,252 million). Net income was
RMB43,547 million (US$6,205 million), an increase of 63%
year-over-year, primarily attributable to the mark-to-market
changes from our equity investments, decrease in impairment of our
investments and increase in income from operations. Non-GAAP net
income in the quarter ended September 30, 2024 was RMB36,518
million (US$5,204 million), a decrease of 9% compared to RMB40,188
million in the same quarter of 2023.
- Diluted earnings per ADS was RMB18.17 (US$2.59).
Diluted earnings per share was RMB2.27 (US$0.32 or HK$2.52).
Non-GAAP diluted earnings per ADS was RMB15.06 (US$2.15), a
decrease of 4% year-over-year. Non-GAAP diluted earnings per
share was RMB1.88 (US$0.27 or HK$2.08), a decrease of 4%
year-over-year.
- Net cash provided by operating activities was
RMB31,438 million (US$4,480 million), a decrease of 36% compared to
RMB49,231 million in the same quarter of 2023. Free cash
flow, a non-GAAP measurement of liquidity, was RMB13,735
million (US$1,957 million), a decrease of 70% compared to RMB45,220
million in the same quarter of 2023. The decrease in free cash flow
was mainly attributed to our investments in Alibaba Cloud
infrastructure, refund to Tmall merchants after we cancelled the
annual service fee and other working capital changes related to
factors including scale down of certain 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
During the quarter we increased investment in strategic
initiatives such as price-competitive products, customer service,
membership program benefits and technology, with the aim of
enhancing user experience. These efforts led to higher purchase
frequency and improved feedback regarding the overall shopping
experience year-over-year.
We adopted a more open approach for payment and logistics
services on our platforms to make shopping on our platforms more
convenient to a larger base of consumers and improve merchants’
operating efficiency. We have already observed much stronger
momentum in new purchasers, and we believe our focus on user growth
and retention will drive the overall growth of our platforms.
Starting from September 1, we implemented a software service fee
based on the GMV of completed transactions on our platform, which
puts us in line with the common practice of the e-commerce
industry. In the meantime, we cancelled the annual service fee for
Tmall merchants and provided software service fee rebates to
certain small and medium-sized merchants. In addition, Quanzhantui,
our AI-powered platform-wide marketing tool, saw steady increase in
merchant adoption. Merchants benefit from the use of Quanzhantui
through improvement of their marketing efficiency, and with higher
efficiency we expect merchants to increase their marketing spending
on our platform.
During the quarter, online GMV growth was supported by
double-digit order growth year-over-year, mainly driven by the
increase in purchase frequency, partly offset by the decline in
average order value. In October and November, we had a successful
11.11 Global Shopping Festival, during which Taobao and Tmall
achieved robust growth in GMV and a record number of
purchasers.
The number of 88VIP members, our highest spending consumer
group, continued to increase by double-digits year-over-year,
reaching 46 million during the quarter. Our premium shoppers are
loyal customers who increase our purchase frequency and drive GMV
growth. Accordingly, we target to continue to grow the subscription
of 88VIP membership by investing in improved benefits and
services.
Cloud Intelligence Group
For the quarter ended September 30, 2024, revenue from Cloud
Intelligence Group was RMB29,610 million (US$4,219 million), an
increase of 7% year-over-year.
During this quarter, overall revenue excluding
Alibaba-consolidated subsidiaries grew over 7% year-over-year,
driven by double-digit public cloud growth, including increasing
adoption of AI-related products. AI-related product revenue grew at
triple-digits year-over-year for the fifth consecutive quarter. We
will continue to invest in anticipation of customer growth and in
technology, particularly in AI infrastructure, to capture the
increasing trend of cloud adoption for AI and to maintain our
market leadership.
Alibaba Cloud has gained notable recognition as the service
provider of choice in China for public cloud and AI training and
applications. According to The Forrester Wave™: Public Cloud
Platforms in China 2024 report, Alibaba Cloud was named a Leader,
achieving the highest score possible in 23 out of 32 criteria, as
well as the top scores in both the current offering and strategy
categories. During the quarter, Alibaba Cloud was also recognized
as a Leader in the Omdia Universe: Chinese Commercial Foundation
Model 2024 report, ranking first in both strategy execution and
technical capabilities. These achievements underscore Alibaba
Cloud's leadership as the best-in-class public cloud and AI
platform in China.
In September, we held our 16th annual cloud computing developer
summit and exhibition, the Apsara Conference 2024, during which
Cloud Intelligence Group unveiled new technologies, including:
- Qwen (通义千问) Large Model Family Upgrades: We introduced
significant upgrades across the Qwen large model family, including
the release of the open-source Qwen 2.5 series, which has become
one of the leading models in the global open-source ecosystem, with
the flagship Qwen 2.5-72B demonstrating strong results across
benchmarks, outperforming industry players. As of September 30,
2024, more than 70,000 derivative models have been developed on
Hugging Face based on the Qwen family of models since it was first
open-sourced in 2023, demonstrating its position as one of the most
widely adopted open-source models globally.
- Cost-efficient and Accessible AI: Alibaba Cloud remains
committed to providing customers with the best value in AI
capabilities. During this quarter, we significantly improved
cost-efficiency for the customers of Qwen models by reducing the
charge rate for API calls, making advanced AI technologies more
affordable and accessible.
- Comprehensive AI Infrastructure Upgrades: To better
position ourselves to capture AI adoption, we have strengthened AI
infrastructure to enhance scalability and performance. Recently, we
launched GPU container services, and upgraded AI server as well as
high-performance network products. These improvements have
significantly enhanced model training and inference efficiency
across various industries.
Alibaba International Digital Commerce
Group (“AIDC”)
For the quarter ended September 30, 2024, revenue from AIDC grew
29% year-over-year to RMB31,672 million (US$4,513 million). The
strong performance continued to be driven by growth of cross-border
businesses, in particular AliExpress’ Choice business. AliExpress
and Trendyol platforms continued their investment to increase
mindshare in select markets in Europe and the Gulf region. At the
same time, we improved efficiency of our operations and investment.
As a result, the unit economics of the Choice business improved on
a sequential basis.
The AliExpress platform continued to enhance its value
proposition by expanding its supplier base, enriching its product
offerings and meeting the needs of local consumers. During the
quarter, AliExpress launched the “AliExpressDirect” model, aiming
to expand product choice and optimize fulfillment efficiency by
leveraging local inventories. In addition, synergies between
AliExpress and the cross-border logistics operations of Cainiao
have further strengthened AliExpress’ competitiveness, with average
delivery time shortened significantly quarter-over-quarter.
Cainiao Smart Logistics Network Limited
(“Cainiao”)
For the quarter ended September 30, 2024, revenue from Cainiao
grew 8% year-over-year to RMB24,647 million (US$3,512 million),
primarily driven by increase in revenue from cross-border
fulfillment solutions.
We will continue to drive synergies between Cainiao and our
cross-border e-commerce business. To meet the demands of an
expanding cross-border e-commerce business, Cainiao’s strategy is
to strengthen its end-to-end capabilities by developing a
highly-digitalized global logistics network. Furthermore, Cainiao
Express started providing logistics services on other e-commerce
platform in October, further expanding its market reach.
Local Services Group
For the quarter ended September 30, 2024, revenue from Local
Services Group grew by 14% year-over-year to RMB17,725 million
(US$2,526 million), driven by the order growth of both Amap and
Ele.me, as well as revenue growth from marketing services. During
this quarter, Local Services Group losses narrowed significantly
year-over-year, driven by improving operating efficiency as well as
increasing scale. During National Day holiday in October, Amap
recorded an all-time high of over 300 million peak daily active
users.
Digital Media and Entertainment
Group
During the quarter ended September 30, 2024, revenue of Digital
Media and Entertainment Group was RMB5,694 million (US$811
million), a decrease of 1% year-over-year. Loss of Digital Media
and Entertainment Group narrowed year-over-year, with Youku
progressively reducing its operating loss due to increased
advertising revenue as well as improved content investment
efficiency during the quarter.
Share Repurchases
During the quarter ended September 30, 2024, we repurchased a
total of 414 million ordinary shares (equivalent to 52 million
ADSs) for a total of US$4.1 billion. As of September 30, 2024, we
had 18,620 million ordinary shares (equivalent to 2,327 million
ADSs) outstanding, a net decrease of 405 million ordinary shares
compared to June 30, 2024, or a 2.1% net reduction in our
outstanding shares after accounting for shares issued under our
ESOP. The remaining amount of Board authorization for our share
repurchase program, which is effective through March 2027, was
US$22.0 billion as of September 30, 2024.
SEPTEMBER QUARTER SUMMARY FINANCIAL RESULTS
Three months ended September
30,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages and per share amounts)
Revenue
224,790
236,503
33,701
5%
Income from operations
33,584
35,246
5,023
5%(2)
Operating margin
15%
15%
Adjusted EBITDA(1)
49,237
47,327
6,744
(4)%(3)
Adjusted EBITDA margin(1)
22%
20%
Adjusted EBITA(1)
42,845
40,561
5,780
(5)%(3)
Adjusted EBITA margin(1)
19%
17%
Net income
26,696
43,547
6,205
63%(4)
Net income attributable to ordinary
shareholders
27,706
43,874
6,252
58%(4)
Non-GAAP net income(1)
40,188
36,518
5,204
(9)%(3)
Diluted earnings per share(5)
1.35
2.27
0.32
69%(4)(6)
Diluted earnings per ADS(5)
10.77
18.17
2.59
69%(4)(6)
Non-GAAP diluted earnings per
share(1)(5)
1.95
1.88
0.27
(4)%(3)(6)
Non-GAAP diluted earnings per
ADS(1)(5)
15.63
15.06
2.15
(4)%(3)(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 increase was primarily
due to the decrease in non-cash share-based compensation expense,
partly offset by the decrease in adjusted EBITA.
(3)
The year-over-year decreases were
primarily attributable to the increase in investments in our
e-commerce businesses, partly offset by revenue growth and improved
operating efficiency.
(4)
The year-over-year increases were
primarily attributable to the mark-to-market changes from our
equity investments, decrease in impairment of our investments and
increase in income from operations, while net income attributable
to ordinary shareholders and earnings per share/ADS would further
take into account the net loss attributable to noncontrolling
interests.
(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.
SEPTEMBER QUARTER SEGMENT RESULTS
Revenue for the quarter ended September 30, 2024 was RMB236,503
million (US$33,701 million), an increase of 5% year-over-year
compared to RMB224,790 million in the same quarter of 2023.
The following table sets forth a breakdown of our revenue by
segment for the periods indicated:
Three months ended September
30,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management
68,661
70,364
10,027
2%
- Direct sales and others(1)
23,899
22,644
3,227
(5)%
92,560
93,008
13,254
0%
China commerce wholesale
5,094
5,986
853
18%
Total Taobao and Tmall Group
97,654
98,994
14,107
1%
Cloud Intelligence Group
27,648
29,610
4,219
7%
Alibaba International Digital Commerce
Group:
International commerce retail
18,978
25,618
3,650
35%
International commerce wholesale
5,533
6,054
863
9%
Total Alibaba International Digital
Commerce Group
24,511
31,672
4,513
29%
Cainiao Smart Logistics Network
Limited
22,823
24,647
3,512
8%
Local Services Group
15,564
17,725
2,526
14%
Digital Media and Entertainment Group
5,779
5,694
811
(1)%
All others(2)
48,052
52,178
7,435
9%
Unallocated
277
469
67
Inter-segment elimination
(17,518)
(24,486)
(3,489)
Consolidated revenue
224,790
236,503
33,701
5%
Six months ended September
30,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management
148,322
150,479
21,443
1%
- Direct sales and others(1)
54,066
49,950
7,118
(8)%
202,388
200,429
28,561
(1)%
China commerce wholesale
10,219
11,938
1,701
17%
Total Taobao and Tmall Group
212,607
212,367
30,262
(0)%
Cloud Intelligence Group
52,713
56,159
8,003
7%
Alibaba International Digital Commerce
Group:
International commerce retail
36,116
49,309
7,026
37%
International commerce wholesale
10,518
11,656
1,661
11%
Total Alibaba International Digital
Commerce Group
46,634
60,965
8,687
31%
Cainiao Smart Logistics Network
Limited
45,987
51,458
7,333
12%
Local Services Group
30,014
33,954
4,838
13%
Digital Media and Entertainment Group
11,160
11,275
1,607
1%
All others(2)
93,850
99,179
14,133
6%
Unallocated
526
888
126
Inter-segment elimination
(34,545)
(46,506)
(6,627)
Consolidated revenue
458,946
479,739
68,362
5%
____________________
(1)
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.
(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 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:
Three months ended September
30,
2023
2024
RMB
RMB
US$
YoY % Change
(3)
(in millions, except
percentages)
Taobao and Tmall Group
47,077
44,590
6,354
(5)%
Cloud Intelligence Group
1,409
2,661
379
89%
Alibaba International Digital Commerce
Group
(384)
(2,905)
(414)
(657)%
Cainiao Smart Logistics Network
Limited
906
55
8
(94)%
Local Services Group
(2,564)
(391)
(56)
85%
Digital Media and Entertainment Group
(201)
(178)
(25)
11%
All others(1)
(1,437)
(1,582)
(225)
(10)%
Unallocated (2)
(1,019)
(1,271)
(181)
Inter-segment elimination
(942)
(418)
(60)
Consolidated adjusted EBITA
42,845
40,561
5,780
(5)%
Less: Non-cash share-based compensation
expense
(6,830)
(3,666)
(522)
Less: Amortization of intangible
assets
(2,431)
(1,649)
(235)
Income from operations
33,584
35,246
5,023
5%
Six months ended September
30,
2023
2024
RMB
RMB
US$
YoY % Change
(3)
(in millions, except
percentages)
Taobao and Tmall Group
96,396
93,400
13,309
(3)%
Cloud Intelligence Group
2,325
4,998
712
115%
Alibaba International Digital Commerce
Group
(804)
(6,611)
(942)
(722)%
Cainiao Smart Logistics Network
Limited
1,783
673
96
(62)%
Local Services Group
(4,546)
(777)
(111)
83%
Digital Media and Entertainment Group
(138)
(281)
(40)
(104)%
All others(1)
(3,170)
(2,845)
(405)
10%
Unallocated (2)
(2,482)
(2,142)
(305)
Inter-segment elimination
(1,148)
(819)
(117)
Consolidated adjusted EBITA
88,216
85,596
12,197
(3)%
Less: Non-cash share-based compensation
expense
(5,201)
(7,775)
(1,108)
Less: Amortization and impairment of
intangible assets
(4,910)
(3,441)
(490)
Less: Impairment of goodwill
(2,031)
–
–
Less: Provision for the shareholder class
action lawsuits
–
(3,145)
(448)
Income from operations
76,074
71,235
10,151
(6)%
____________________
(1)
All others include Sun Art, Freshippo,
Alibaba Health, Lingxi Games, Intime, Intelligent Information
Platform (which mainly consists of UCWeb and Quark businesses),
Fliggy, DingTalk and other businesses.
(2)
Unallocated primarily relates to certain
costs incurred by corporate functions and other miscellaneous items
that are not allocated to individual segments.
(3)
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 September 30, 2024 was RMB93,008
million (US$13,254 million), compared to RMB92,560 million in the
same quarter of 2023.
Customer management revenue increased by 2%
year-over-year, primarily due to the online GMV growth, while take
rate remained stable year-over-year.
Direct sales and others revenue under China
commerce retail business in the quarter ended September 30, 2024
was RMB22,644 million (US$3,227 million), a decrease of 5% compared
to RMB23,899 million in the same quarter of 2023, primarily
attributable to the decrease in sales of appliances.
- China Commerce Wholesale Business
Revenue from our China commerce wholesale
business in the quarter ended September 30, 2024 was RMB5,986
million (US$853 million), an increase of 18% compared to RMB5,094
million in the same quarter of 2023, primarily due to the increase
in revenue from value-added services provided to paying
members.
(ii) Segment adjusted EBITA
Taobao and Tmall Group adjusted EBITA
decreased by 5% to RMB44,590 million (US$6,354 million) in the
quarter ended September 30, 2024, compared to RMB47,077 million in
the same quarter of 2023, primarily due to the increase in
investment in user experience, partly offset by the increase in
revenue from customer management service.
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was
RMB29,610 million (US$4,219 million) in the quarter ended September
30, 2024, an increase of 7% compared to RMB27,648 million in the
same quarter of 2023. Overall revenue excluding
Alibaba-consolidated subsidiaries increased by 7% 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 89% to RMB2,661 million (US$379 million) in the
quarter ended September 30, 2024, compared to RMB1,409 million in
the same quarter of 2023, primarily due to shift in product mix
toward higher-margin public cloud products including AI-related
products and improving operating efficiency, partly offset by the
increasing investments in customer growth 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 September 30, 2024 was
RMB25,618 million (US$3,650 million), an increase of 35% compared
to RMB18,978 million in the same quarter of 2023, primarily driven
by the increase in revenue contributed by AliExpress’ Choice and
Trendyol. 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 September 30, 2024 was
RMB6,054 million (US$863 million), an increase of 9% compared to
RMB5,533 million in the same quarter of 2023, primarily due to the
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 RMB2,905 million (US$414 million) in
the quarter ended September 30, 2024, compared to a loss of RMB384
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 RMB24,647 million (US$3,512 million) in the quarter
ended September 30, 2024, an increase of 8% compared to RMB22,823
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 94% to RMB55 million (US$8 million) in
the quarter ended September 30, 2024, compared to RMB906 million in
the same quarter of 2023, primarily due to the increased
investments in cross-border fulfillment solutions.
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was
RMB17,725 million (US$2,526 million) in the quarter ended September
30, 2024, an increase of 14% compared to RMB15,564 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 RMB391 million (US$56 million) in the quarter ended
September 30, 2024, compared to a loss of RMB2,564 million in the
same quarter of 2023, primarily due to improved operating
efficiency and increasing scale.
Digital Media and Entertainment
Group
(i) Segment revenue
Revenue from Digital Media and Entertainment
Group was RMB5,694 million (US$811 million) in the quarter ended
September 30, 2024, a decrease of 1% compared to RMB5,779 million
in the same quarter of 2023.
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group
adjusted EBITA in the quarter ended September 30, 2024 was a loss
of RMB178 million (US$25 million), compared to a loss of RMB201
million in the same quarter of 2023.
All Others
(i) Segment revenue
Revenue from All others segment was RMB52,178
million (US$7,435 million) in the quarter ended September 30, 2024,
an increase of 9% compared to RMB48,052 million in the same quarter
of 2023, mainly due to the increase in revenue from retail
businesses including Freshippo and Alibaba Health.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the
quarter ended September 30, 2024 was a loss of RMB1,582 million
(US$225 million), compared to a loss of RMB1,437 million in the
same quarter of 2023.
SEPTEMBER QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and
expenses, share-based compensation expense, and costs and expenses
excluding share-based compensation expense by function for the
periods indicated:
Three months ended September
30,
% of Revenue YoY
change
2023
2024
RMB
% of Revenue
RMB
US$
% of Revenue
(in millions, except
percentages)
Costs and expenses:
Cost of revenue
139,664
62.1%
144,029
20,524
60.9%
(1.2)%
Product development expenses
14,218
6.3%
14,182
2,020
6.0%
(0.3)%
Sales and marketing expenses
25,485
11.3%
32,471
4,627
13.7%
2.4%
General and administrative expenses
9,408
4.2%
9,777
1,393
4.1%
(0.1)%
Amortization of intangible assets
2,431
1.1%
1,649
235
0.7%
(0.4)%
Total costs and expenses
191,206
202,108
28,799
Share-based compensation
expense:
Cost of revenue
1,244
0.6%
619
89
0.3%
(0.3)%
Product development expenses
3,006
1.3%
1,757
250
0.7%
(0.6)%
Sales and marketing expenses
850
0.4%
549
78
0.2%
(0.2)%
General and administrative expenses
1,730
0.8%
1,221
174
0.5%
(0.3)%
Total share-based compensation
expense(1)
6,830
4,146
591
Costs and expenses excluding
share-based compensation expense:
Cost of revenue
138,420
61.6%
143,410
20,435
60.6%
(1.0)%
Product development expenses
11,212
5.0%
12,425
1,770
5.3%
0.3%
Sales and marketing expenses
24,635
11.0%
31,922
4,549
13.5%
2.5%
General and administrative expenses
7,678
3.4%
8,556
1,219
3.6%
0.2%
Amortization of intangible assets
2,431
1.1%
1,649
235
0.7%
(0.4)%
Total costs and expenses excluding
share-based compensation expense
184,376
197,962
28,208
____________________
(1)
This includes both cash and non-cash
share-based compensation expenses.
Cost of revenue – Cost of revenue in the quarter ended
September 30, 2024 was RMB144,029 million (US$20,524 million), or
60.9% of revenue, compared to RMB139,664 million, or 62.1% 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 61.6% in the quarter ended
September 30, 2023 to 60.6% in the quarter ended September 30,
2024.
Product development expenses – Product development
expenses in the quarter ended September 30, 2024 were RMB14,182
million (US$2,020 million), or 6.0% of revenue, compared to
RMB14,218 million, or 6.3% 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 5.0% in the quarter ended September 30, 2023 to 5.3%
in the quarter ended September 30, 2024.
Sales and marketing expenses – Sales and marketing
expenses in the quarter ended September 30, 2024 were RMB32,471
million (US$4,627 million), or 13.7% of revenue, compared to
RMB25,485 million, or 11.3% 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 11.0% in the quarter ended September 30, 2023 to
13.5% in the quarter ended September 30, 2024, primarily due to our
increased investments in e-commerce businesses.
General and administrative expenses – General and
administrative expenses in the quarter ended September 30, 2024
were RMB9,777 million (US$1,393 million), or 4.1% of revenue,
compared to RMB9,408 million, or 4.2% 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 3.4% in the quarter ended
September 30, 2023 to 3.6% in the quarter ended September 30,
2024.
Share-based compensation expense – Total share-based
compensation expense included in the cost and expense items above
in the quarter ended September 30, 2024 was RMB4,146 million
(US$591 million), compared to RMB6,830 million in the same quarter
of 2023.
The following table sets forth our analysis of share-based
compensation expense for the quarters indicated by type of
share-based awards:
Three months ended September
30,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages)
By type of awards:
Alibaba Group share-based awards(1)
4,840
2,786
397
(42)%
Ant Group share-based awards(2)
85
12
2
(86)%
Others(3)
1,905
1,348
192
(29)%
Total share-based compensation
expense(4)
6,830
4,146
591
(39)%
____________________
(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.
(4)
This includes both cash and non-cash
share-based compensation expenses.
Share-based compensation expense related to Alibaba Group
share-based awards decreased in the quarter ended September 30,
2024 compared to the same quarter of 2023. This decrease was
primarily due to the decrease in the number of the awards
granted.
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 of intangible assets – Amortization of
intangible assets in the quarter ended September 30, 2024 was
RMB1,649 million (US$235 million), a decrease of 32% from RMB2,431
million in the same quarter of 2023.
Income from operations and operating
margin
Income from operations in the quarter ended September 30, 2024
was RMB35,246 million (US$5,023 million), or 15% of revenue, an
increase of 5% compared to RMB33,584 million, or 15% of revenue, in
the same quarter of 2023, primarily due to the decrease in non-cash
share-based compensation expense, partly offset by the decrease in
adjusted EBITA.
Adjusted EBITDA and Adjusted
EBITA
Adjusted EBITDA decreased 4% year-over-year to RMB47,327 million
(US$6,744 million) in the quarter ended September 30, 2024,
compared to RMB49,237 million in the same quarter of 2023. Adjusted
EBITA decreased 5% year-over-year to RMB40,561 million (US$5,780
million) in the quarter ended September 30, 2024, compared to
RMB42,845 million in the same quarter of 2023, primarily
attributable to the increase in investments in our e-commerce
businesses, partly offset by revenue growth and 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 “September Quarter Segment Results” above.
Interest and investment income,
net
Interest and investment income, net in the quarter ended
September 30, 2024 was RMB18,607 million (US$2,652 million), an
increase of 262% compared to RMB5,136 million in the same quarter
of 2023, primarily attributable to the mark-to-market changes from
our equity investments.
The above-mentioned investment gains and losses were excluded
from our non-GAAP net income.
Other income (expense),
net
Other income (expense), net in the quarter ended September 30,
2024 was an expense of RMB1,478 million (US$211 million), compared
to income of RMB1,391 million in the same quarter of 2023,
primarily attributable to the net exchange loss compared to the net
exchange gain in the same period last year, arising from the
exchange rate fluctuation between Renminbi and U.S. dollar.
Income tax expenses
Income tax expenses in the quarter ended September 30, 2024 were
RMB7,379 million (US$1,052 million), compared to RMB5,797 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
September 30, 2024 was a profit of RMB978 million (US$139 million),
compared to a loss of RMB5,764 million in the same quarter of 2023,
primarily due to the year-over-year decrease in impairment of
equity method investees. The following table sets forth a breakdown
of share of results of equity method investees for the periods
indicated:
Three months ended September
30,
2023
2024
RMB
RMB
US$
(in millions)
Share of profit (loss) of equity method
investees
- Ant Group
846
2,478
353
- Others
(1,146)
(746)
(106)
Impairment loss
(4,469)
–
–
Others(1)
(995)
(754)
(108)
Total
(5,764)
978
139
____________________
(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. The year-over-year increase in share of
profit of Ant Group was mainly because the share of results in the
same quarter last year reflected a RMB7.07 billion fine on Ant
Group imposed by PRC regulators announced in July 2023.
Net income and Non-GAAP net
income
Our net income in the quarter ended September 30, 2024 was
RMB43,547 million (US$6,205 million), compared to RMB26,696 million
in the same quarter of 2023, primarily attributable to the
mark-to-market changes from our equity investments, the decrease in
impairment of our investments and increase in income from
operations.
Excluding non-cash share-based compensation expense,
gains/losses of investments, and certain other items, non-GAAP net
income in the quarter ended September 30, 2024 was RMB36,518
million (US$5,204 million), a decrease of 9% compared to RMB40,188
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 September 30, 2024 was RMB43,874 million (US$6,252 million),
compared to RMB27,706 million in the same quarter of 2023,
primarily attributable to the mark-to-market changes from our
equity investments, the decrease in impairment of our investments
and increase in income from operations.
Diluted earnings per ADS/share and
non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended September 30, 2024
was RMB18.17 (US$2.59), compared to RMB10.77 in the same quarter of
2023. Excluding non-cash share-based compensation expense,
gains/losses of investments, and certain other items, non-GAAP
diluted earnings per ADS in the quarter ended September 30, 2024
was RMB15.06 (US$2.15), a decrease of 4% compared to RMB15.63 in
the same quarter of 2023.
Diluted earnings per share in the quarter ended September 30,
2024 was RMB2.27 (US$0.32 or HK$2.52), compared to RMB1.35 in the
same quarter of 2023. Excluding non-cash share-based compensation
expense, gains/losses of investments, and certain other items,
non-GAAP diluted earnings per share in the quarter ended September
30, 2024 was RMB1.88 (US$0.27 or HK$2.08), a decrease of 4%
compared to RMB1.95 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 September 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 RMB554,378 million (US$78,998 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 six months
ended September 30, 2024 was primarily due to cash used in
repurchase of ordinary shares of RMB72,889 million (US$10,387
million), dividend payment of RMB29,022 million (US$4,136 million)
and acquisition of additional equity interests in non-wholly owned
subsidiaries of RMB19,947 million (US$2,842 million), partly offset
by free cash flow generated from operations of RMB31,107 million
(US$4,433 million) and net proceeds from convertible unsecured
senior notes and the payments for capped call transactions of
RMB31,065 million (US$4,427 million).
Net cash provided by operating
activities and free cash flow
During the quarter ended September 30, 2024, net cash provided
by operating activities was RMB31,438 million (US$4,480 million), a
decrease of 36% compared to RMB49,231 million in the same quarter
of 2023. Free cash flow, a non-GAAP measurement of liquidity, was
RMB13,735 million (US$1,957 million), a decrease of 70% compared to
RMB45,220 million in the quarter ended September 30, 2023. The
decrease in free cash flow was mainly attributed to our investments
in Alibaba Cloud infrastructure, refund to Tmall merchants after we
cancelled the annual service fee and other working capital changes
related to factors including scale down of certain 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 provided by investing
activities
During the quarter ended September 30, 2024, net cash provided
by investing activities of RMB964 million (US$137 million)
primarily reflected (i) a decrease in short-term investments by
RMB18,053 million (US$2,573 million) and (ii) cash inflow of
RMB4,013 million (US$572 million) from disposal of investments.
These cash inflows were partly offset by (i) capital expenditures
of RMB17,491 million (US$2,492 million), and (ii) cash outflow of
RMB4,038 million (US$575 million) for investment and acquisition
activities.
Net cash used in financing
activities
During the quarter ended September 30, 2024, net cash used in
financing activities of RMB66,782 million (US$9,516 million)
primarily reflected cash used in repurchase of ordinary shares of
RMB30,194 million (US$4,303 million), dividend payment of RMB28,870
million (US$4,114 million) and acquisition of additional equity
interests in non-wholly owned subsidiaries of RMB11,610 million
(US$1,654 million).
Employees
As of September 30, 2024, we had a total of 197,991 employees,
compared to 198,162 as of June 30, 2024.
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group’s management will hold a conference call to
discuss the financial results at 7:30 a.m. U.S. Eastern Time (8:30
p.m. Hong Kong Time) on Friday, November 15, 2024.
All participants must pre-register to join this conference call
using the Participant Registration link below: English:
https://s1.c-conf.com/diamondpass/10042440-pohtg.html Chinese:
https://s1.c-conf.com/diamondpass/10042441-ywtss.html
Upon registration, each participant will receive details for the
conference call, including dial-in numbers, conference call
passcode and a unique access PIN. To join the conference, please
dial the number provided, enter the passcode followed by your PIN,
and you will join the conference.
A live webcast of the earnings conference call can be accessed
at
https://www.alibabagroup.com/en-US/ir-financial-reports-quarterly-results.
An archived webcast will be available through the same link
following the call. A replay of the conference call will be
available for one week from the date of the conference (Dial-in
number: +1 855 883 1031; English conference PIN 10042440; Chinese
conference PIN 10042441).
Please visit Alibaba Group’s Investor Relations website at
https://www.alibabagroup.com/en-US/investor-relations on November
15, 2024 to view the earnings release and accompanying slides prior
to the conference call.
ABOUT ALIBABA GROUP
Alibaba Group’s mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba, and that it will be a good company that lasts for 102
years.
EXCHANGE RATE INFORMATION
This results announcement contains translations of certain
Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong
dollars (“HK$”) for the convenience of the reader. Unless otherwise
stated, all translations of RMB into US$ were made at RMB7.0176 to
US$1.00, the exchange rate on September 30, 2024 as set forth in
the H.10 statistical release of the Federal Reserve Board, and all
translations of RMB into HK$ were made at RMB0.90179 to HK$1.00,
the middle rate on September 30, 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 addition, statements that are not historical facts,
including statements about Alibaba Group’s new organizational and
governance structure, 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. 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, including but not limited to: the
implementation of Alibaba Group’s new organizational and governance
structure; Alibaba’s ability to compete, innovate and maintain or
grow its business; 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; 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 U.S. Securities and Exchange Commission and announcements
on the website of The Stock Exchange of Hong Kong Limited. 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 (expense),
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 (expense),
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 September
30,
Six months ended September
30,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions, except per share
data)
(in millions, except per share
data)
Revenue
224,790
236,503
33,701
458,946
479,739
68,362
Cost of revenue
(139,664)
(144,029)
(20,524)
(282,011)
(290,135)
(41,344)
Product development expenses
(14,218)
(14,182)
(2,020)
(24,683)
(27,555)
(3,927)
Sales and marketing expenses
(25,485)
(32,471)
(4,627)
(52,532)
(65,167)
(9,286)
General and administrative expenses
(9,408)
(9,777)
(1,393)
(16,705)
(23,057)
(3,285)
Amortization and impairment of intangible
assets
(2,431)
(1,649)
(235)
(4,910)
(3,441)
(490)
Impairment of goodwill
–
–
–
(2,031)
–
–
Other gains, net
–
851
121
–
851
121
Income from operations
33,584
35,246
5,023
76,074
71,235
10,151
Interest and investment income, net
5,136
18,607
2,652
(762)
17,129
2,441
Interest expense
(1,854)
(2,427)
(346)
(3,638)
(4,615)
(658)
Other income (expense), net
1,391
(1,478)
(211)
2,755
(1,221)
(174)
Income before income tax and share of
results of equity method investees
38,257
49,948
7,118
74,429
82,528
11,760
Income tax expenses
(5,797)
(7,379)
(1,052)
(11,819)
(17,442)
(2,485)
Share of results of equity method
investees
(5,764)
978
139
(2,914)
2,483
354
Net income
26,696
43,547
6,205
59,696
67,569
9,629
Net loss attributable to noncontrolling
interests
1,151
486
70
2,393
854
121
Net income attributable to Alibaba Group
Holding Limited
27,847
44,033
6,275
62,089
68,423
9,750
Accretion of mezzanine equity
(141)
(159)
(23)
(51)
(280)
(40)
Net income attributable to ordinary
shareholders
27,706
43,874
6,252
62,038
68,143
9,710
Earnings per share attributable to
ordinary shareholders(1)
Basic
1.36
2.34
0.33
3.04
3.58
0.51
Diluted
1.35
2.27
0.32
3.01
3.50
0.50
Earnings per ADS attributable to
ordinary shareholders(1)
Basic
10.90
18.71
2.67
24.31
28.62
4.08
Diluted
10.77
18.17
2.59
24.08
28.00
3.99
Weighted average number of shares used
in calculating earnings per ordinary share (million
shares)(1)
Basic
20,335
18,761
20,414
19,045
Diluted
20,526
19,322
20,567
19,459
____________________
(1)
Each ADS represents eight ordinary
shares.
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE
SHEETS
As of March 31,
As of September 30,
2024
2024
RMB
RMB
US$
(in millions)
Assets
Current assets:
Cash and cash equivalents
248,125
182,992
26,076
Short-term investments
262,955
155,530
22,163
Restricted cash and escrow receivables
38,299
45,480
6,481
Equity securities and other
investments
59,949
50,266
7,163
Prepayments, receivables and other
assets
143,536
174,834
24,913
Total current assets
752,864
609,102
86,796
Equity securities and other
investments
220,942
344,658
49,113
Prepayments, receivables and other
assets
116,102
115,960
16,524
Investment in equity method investees
203,131
202,548
28,863
Property and equipment, net
185,161
207,917
29,628
Intangible assets, net
26,950
22,906
3,264
Goodwill
259,679
259,621
36,996
Total assets
1,764,829
1,762,712
251,184
Liabilities, Mezzanine Equity and
Shareholders’ Equity
Current liabilities:
Current bank borrowings
12,749
16,938
2,414
Current unsecured senior notes
16,252
15,786
2,249
Income tax payable
9,068
8,115
1,156
Accrued expenses, accounts payable and
other liabilities
297,883
322,743
45,991
Merchant deposits
12,737
3,813
543
Deferred revenue and customer advances
72,818
77,473
11,040
Total current liabilities
421,507
444,868
63,393
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(CONTINUED)
As of March 31,
As of September 30,
2024
2024
RMB
RMB
US$
(in millions)
Deferred revenue
4,069
4,318
615
Deferred tax liabilities
53,012
54,747
7,801
Non-current bank borrowings
55,686
51,302
7,311
Non-current unsecured senior notes
86,089
83,608
11,914
Non-current convertible unsecured senior
notes
–
34,626
4,934
Other liabilities
31,867
31,365
4,470
Total liabilities
652,230
704,834
100,438
Commitments and contingencies
Mezzanine equity
10,728
11,592
1,651
Shareholders’ equity:
Ordinary shares
1
1
–
Additional paid-in capital
397,999
380,145
54,170
Treasury shares at cost
(27,684)
(36,185)
(5,156)
Statutory reserves
14,733
15,885
2,264
Accumulated other comprehensive income
3,598
467
66
Retained earnings
597,897
593,612
84,589
Total shareholders’ equity
986,544
953,925
135,933
Noncontrolling interests
115,327
92,361
13,162
Total equity
1,101,871
1,046,286
149,095
Total liabilities, mezzanine equity and
equity
1,764,829
1,762,712
251,184
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Three months ended September
30,
Six months ended September
30,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net cash provided by operating
activities
49,231
31,438
4,480
94,537
65,074
9,273
Net cash (used in) provided by investing
activities
(23,761)
964
137
(11,166)
(34,865)
(4,968)
Net cash used in financing activities
(12,382)
(66,782)
(9,516)
(37,018)
(86,364)
(12,307)
Effect of exchange rate changes on cash
and cash equivalents, restricted cash and escrow receivables
813
(2,456)
(350)
5,132
(1,797)
(256)
Increase (Decrease) in cash and cash
equivalents, restricted cash and escrow receivables
13,901
(36,836)
(5,249)
51,485
(57,952)
(8,258)
Cash and cash equivalents, restricted cash
and escrow receivables at beginning of period
267,094
265,308
37,806
229,510
286,424
40,815
Cash and cash equivalents, restricted cash
and escrow receivables at end of period
280,995
228,472
32,557
280,995
228,472
32,557
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 September
30,
Six months ended September
30,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net income
26,696
43,547
6,205
59,696
67,569
9,629
Adjustments to reconcile net income to
adjusted EBITA and adjusted EBITDA:
Interest and investment income, net
(5,136)
(18,607)
(2,652)
762
(17,129)
(2,441)
Interest expense
1,854
2,427
346
3,638
4,615
658
Other (income) expense, net
(1,391)
1,478
211
(2,755)
1,221
174
Income tax expenses
5,797
7,379
1,052
11,819
17,442
2,485
Share of results of equity method
investees
5,764
(978)
(139)
2,914
(2,483)
(354)
Income from operations
33,584
35,246
5,023
76,074
71,235
10,151
Non-cash share-based compensation
expense
6,830
3,666
522
5,201
7,775
1,108
Amortization and impairment of intangible
assets
2,431
1,649
235
4,910
3,441
490
Impairment of goodwill
–
–
–
2,031
–
–
Provision for the shareholder class action
lawsuits
–
–
–
–
3,145
448
Adjusted EBITA
42,845
40,561
5,780
88,216
85,596
12,197
Depreciation and impairment of property
and equipment, and operating lease cost relating to land use
rights
6,392
6,766
964
13,073
12,892
1,837
Adjusted EBITDA
49,237
47,327
6,744
101,289
98,488
14,034
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 September
30,
Six months ended September
30,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net income
26,696
43,547
6,205
59,696
67,569
9,629
Adjustments to reconcile net income to
non-GAAP net income:
Non-cash share-based compensation
expense
6,830
3,666
522
5,201
7,775
1,108
Amortization and impairment of intangible
assets
2,431
1,649
235
4,910
3,441
490
Provision for the shareholder class action
lawsuits
–
–
–
–
3,145
448
(Gain) Loss on deemed disposals/disposals/
revaluation of investments
(1,731)
(12,697)
(1,809)
7,307
(8,116)
(1,157)
Impairment of goodwill and investments,
and others
7,604
756
108
11,873
5,067
722
Tax effects (1)
(1,642)
(403)
(57)
(3,877)
(1,672)
(238)
Non-GAAP net income
40,188
36,518
5,204
85,110
77,209
11,002
____________________
(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 September
30,
Six months ended September
30,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions, except per share
data)
(in millions, except per share
data)
Net income attributable to ordinary
shareholders – basic
27,706
43,874
6,252
62,038
68,143
9,710
Dilution effect on earnings arising from
non-cash share-based awards operated by equity method investees and
subsidiaries
(66)
(56)
(8)
(134)
(131)
(19)
Adjustments for interest expense
attributable to convertible unsecured senior notes
–
69
10
–
95
14
Net income attributable to ordinary
shareholders – diluted
27,640
43,887
6,254
61,904
68,107
9,705
Non-GAAP adjustments to net income
attributable to ordinary shareholders(1)
12,478
(7,524)
(1,072)
22,949
8,521
1,214
Non-GAAP net income attributable
to ordinary shareholders for computing non-GAAP diluted earnings
per share/ADS
40,118
36,363
5,182
84,853
76,628
10,919
Weighted average number of shares on a
diluted basis for computing non-GAAP diluted earnings per share/ADS
(million shares)(2)
20,526
19,322
20,567
19,459
Diluted earnings per
share(2)(3)
1.35
2.27
0.32
3.01
3.50
0.50
Non-GAAP diluted earnings per
share(2)(4)
1.95
1.88
0.27
4.13
3.94
0.56
Diluted earnings per ADS(2)(3)
10.77
18.17
2.59
24.08
28.00
3.99
Non-GAAP diluted earnings per
ADS(2)(4)
15.63
15.06
2.15
33.00
31.50
4.49
____________________
(1)
Non-GAAP adjustments excluding the
attributions to the noncontrolling interests. See the table above
for items regarding the reconciliation of net income to non-GAAP
net income (before excluding the attributions to the noncontrolling
interests).
(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 September
30,
Six months ended September
30,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net cash provided by operating
activities
49,231
31,438
4,480
94,537
65,074
9,273
Less: Purchase of property and equipment
(excluding land use rights and construction in progress relating to
office campuses)
(4,112)
(16,977)
(2,419)
(10,119)
(28,916)
(4,120)
Less: Changes in the buyer protection fund
deposits
101
(726)
(104)
(109)
(5,051)
(720)
Free cash flow
45,220
13,735
1,957
84,309
31,107
4,433
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241114291910/en/
Investor Relations Contact
Lydia Liu 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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