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On August 15, 2024
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Alibaba Non-GAAP EPADR of $2.26 beats by $0.17, revenue of $33.47B misses by $1.15B
Alibaba press release (NYSE:BABA): Q1 Non-GAAP EPADR of $2.26 beats by $0.17. Revenue of $33.47B (+4% Y/Y) misses by $1.15B. More on Alibaba Alibaba: Stay Calm And Keep Buying Alibaba: Buybacks To Fuel Growth In FY Q1 Earnings Alibaba's Future: International Commerce And Cloud AI Deployment Michael Burry's Scion Asset sheds Safe Bulkers, adds Hudson Pacific, others in Q2 Alibaba Q1 earnings on deck: What to expect
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Alibaba dips after Q1 revenue misses estimates despite ongoing revival efforts
For the fiscal first quarter ended June 30, non-GAAP earnings per American depositary share, or ADS, fell 5% year-over-year to RMB16.44 ($2.26), but beat estimates. Meanwhile, revenue grew about 4% year-over-year to RMB243.24B ($33.47B) but missed analysts' expectations. "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," said Alibaba's CFO Toby Xu. Alibaba, once China's best contender to become a trillion-dollar company, has been facing competition from rivals such as PDD (PDD) and JD. com (JD). Net income declined 27% year-over-year to RMB24.02B ($3.31B) for the quarter, starting April 1 to June 30, 2024. "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," said Alibaba's CEO Eddie Wu. Revenue from Cloud Intelligence, which is developing AI models, rose 6% year-over-year to about RMB26.55B or roughly $3.65B. Alibaba said AI-related product revenue continued to grow at triple-digits year-over-year. The company noted that it will continue to invest in customers and technology, mainly in AI infrastructure, to increase cloud adoption for AI and maintain its market leadership. Alibaba International Digital Commerce -- which operates various retail and wholesale marketplaces including Lazada, AliExpress, Trendyol, Daraz, Miravia and Alibaba.com -- saw revenues increase 32% year-over-year to RMB29.29B ($4.03B). Taobao and Tmall Group's revenue fell about 1% year-over-year to RMB113.37B ($15.60B). Revenue from the company's China commerce retail business in the quarter ended June 30 dipped 2% year-on-year to RMB107.42B ($14.78B). Revenue from China commerce wholesale business in the quarter was RMB5.95B ($819M), an increase of 16% year-over-year. Local Services Group revenue increased 12% year-over-year to RMB16.23B ($2.03B), driven by the order growth of Amap and Ele.me, and revenue growth from marketing services. Revenue from Cainiao Smart Logistics Network grew 16% year-over-year to RMB26.81B ($3.69B), mainly due to increase in revenue from cross-border fulfillment solutions. Digital Media and Entertainment's revenue climbed 4% year-over-year to RMB5.58B ($768M). Stock Buyback: Alibaba said that during the quarter it bought back 613M ordinary shares (equivalent to 77M ADSs) for $5.8B, including the repurchase of about $1.2B of ADSs.
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Alibaba Group reports mixed Q1 2024 results with earnings beat but revenue miss. The company's ongoing revival efforts show progress amid challenges in the Chinese e-commerce market.
Alibaba Group Holding Limited (NYSE: BABA) has released its financial results for the first quarter of fiscal year 2024, revealing a mixed performance that has caught the attention of investors and analysts alike. The Chinese e-commerce giant reported earnings that surpassed expectations but fell short on revenue projections 1.
In a positive development, Alibaba's non-GAAP earnings per ADS (American Depositary Share) came in at $2.26, exceeding analyst estimates by $0.17. This performance demonstrates the company's ability to maintain profitability despite challenging market conditions 1.
However, the company's revenue for the quarter stood at $33.47 billion, falling short of expectations by $1.15 billion. This miss on the top line has led to a dip in Alibaba's stock price, reflecting investor concerns about the company's growth trajectory 2.
Alibaba has been actively pursuing a revival strategy to address challenges in the Chinese e-commerce market. These efforts include:
Despite the revenue miss, there are indications that these revival efforts are showing some progress. The company's management remains committed to long-term growth and market leadership 2.
Alibaba's performance reflects broader challenges in the Chinese e-commerce sector, including:
These factors have contributed to the pressure on Alibaba's revenue growth, despite the company's dominant market position 1.
The mixed Q1 results have left investors with a nuanced view of Alibaba's prospects. While the earnings beat demonstrates the company's ability to manage costs and maintain profitability, the revenue miss raises questions about future growth potential. Analysts and investors will be closely monitoring Alibaba's performance in the coming quarters to assess the effectiveness of its revival strategy and its ability to navigate the challenging market environment 2.
Reference
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Alibaba Group reported mixed results for its fiscal first quarter, with slowing core business growth but accelerating cloud segment performance. The company's free cash flow declined significantly year-over-year.
2 Sources
Alibaba's stock experiences volatility as the company navigates regulatory pressures, economic headwinds, and internal restructuring. Investors remain cautious despite the company's efforts to adapt and grow.
3 Sources
Alibaba Group faces challenges but shows promising signs of recovery and growth. Investors remain cautiously optimistic about the company's future prospects and strategic moves.
2 Sources
Alibaba's Q1 results reveal a complex picture of challenges and potential growth. While facing headwinds, the company shows resilience in certain areas, sparking debates about its future trajectory in the evolving Chinese market.
2 Sources
Alibaba Group shows promising developments in its cloud business, international digital commerce, and margin expansion efforts. The company's stock performance and strategic decisions are drawing investor attention.
2 Sources