Alibaba Shares Surge 5% as Q1 Earnings and Revenue Easily Beat Expectations

alibaba-baba-logoChinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) on Thursday posted Street-beating fiscal Q1 profit and revenue, sending the stock surging higher in premarket trading.

BABA reported adjusted Q1 EPS of $0.74, easily beating analysts’ outlook for $0.63. Revenue jumped 59% from last year to $4.84 billion, also beating estimates.

Other notes from the earnings call included:

  • China retail marketplaces revenue was $3.518 billion, up 49%.
  • Mobile revenue of China retail marketplaces was $2.635 billion, up 119%.
  • Mobile MAUs in June reached 427 million.
  • GMV transacted on China retail marketplaces was $126 billion, up 24%.
  • Cloud computing revenue rose 156% to $187 million.
  • Company spent $2.0 billion on buybacks in fiscal Q1.

CFO Maggie Wu commented:

“The acceleration of our revenue growth reflects the deep value propositions that we bring to our customers. We are changing the way our 434 million active buyers engage with our platform, as we introduce social, community and personalization driven by smart data into our e-commerce marketplaces, realizing our vision of ‘[email protected]’ We are poised for strong profitable growth into the future.

We delivered excellent results this quarter. The 59% revenue growth for the company overall and the 49% revenue growth of our China retail marketplaces represent the highest growth rates we’ve achieved since our IPO. We passed an important milestone this quarter in achieving higher monetization of mobile users than non-mobile users for the first time, reflecting the success of our strategy to stay ahead of the curve by embracing mobile.”

Alibaba shares rose $4.15 (+4.75%) to $91.48 in premarket trading Thursday. Prior to today’s report, BABA had gained 7.5% year-to-date, which was in-line with the performance of the S&P 500 index during the same period.

BABA-2016-08-11

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico