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 and fiscal
year ended March 31, 2024.
“This quarter’s results demonstrate that our strategies are
working and we are returning to growth. Our China and international
commerce businesses realized double-digit year-over-year GMV growth
through our focus on the customer experience. We are also excited
by the accelerated growth of customers and cloud computing revenues
related to our AI products. We will remain focused on our strategic
priorities and capture future growth opportunities,” said Eddie Wu,
Chief Executive Officer of Alibaba Group.
“Alibaba Group delivered a strong quarter with revenue growth of
7% year-over-year. We’ve seen early results from increased
investment in our strategic business priorities and are confident
in our business outlook. We are committed to continuing to return
value to our shareholders. During fiscal year 2024, we repurchased
US$12.5 billion of shares and our board of directors has approved a
US$4.0 billion dividend for fiscal year 2024,” said Toby Xu, Chief
Financial Officer of Alibaba Group.
BUSINESS HIGHLIGHTS
In the quarter ended March 31,
2024:
- Revenue was RMB221,874 million (US$30,729 million), an
increase of 7% year-over-year.
- Income from operations was RMB14,765 million (US$2,045
million), a decrease of 3% year-over-year. Adjusted EBITA, a
non-GAAP measurement, decreased 5% year-over-year to RMB23,969
million (US$3,320 million), primarily attributable to increased
investments in our e-commerce businesses and retention incentives
granted to Cainiao employees.
- Net income attributable to ordinary shareholders was
RMB3,270 million (US$453 million). Net income was RMB919
million (US$127 million), a decrease of 96% or RMB21,077 million
year-over-year, primarily attributable to a net loss from our
investments in publicly-traded companies during the quarter,
compared to a net gain in the same quarter last year, due to the
mark-to-market changes. Excluding share-based compensation expense,
gains/losses of investments, impairment of intangible assets, and
certain other items, non-GAAP net income in the quarter
ended March 31, 2024 was RMB24,418 million (US$3,382 million), a
decrease of 11% compared to RMB27,375 million in the same quarter
of 2023.
- Diluted earnings per ADS was RMB1.30 (US$0.18) and
diluted earnings per share was RMB0.16 (US$0.02 or HK$0.18).
Non-GAAP diluted earnings per ADS was RMB10.14 (US$1.40), a
decrease of 5% year-over-year and non-GAAP diluted earnings per
share was RMB1.27 (US$0.18 or HK$1.40), a decrease of 5%
year-over-year.
- Net cash provided by operating activities was RMB23,340
million (US$3,233 million), a decrease of 26% compared to RMB31,401
million in the same quarter of 2023. Free cash flow, a
non-GAAP measurement of liquidity, was RMB15,361 million (US$2,127
million), a decrease of 52% compared to RMB32,267 million in the
same quarter of 2023. The year-over-year decrease in free cash flow
mainly reflected the increase in capital expenditure during the
quarter, the majority of which reflected our investments in Alibaba
Cloud infrastructure, as well as a special dividend of RMB10,519
million from Ant Group in the same quarter of 2023.
In the fiscal year ended March 31,
2024:
- Revenue was RMB941,168 million (US$130,350 million), an
increase of 8% year-over-year.
- Income from operations was RMB113,350 million (US$15,699
million), an increase of 13% year-over-year. The year-over-year
increase was primarily attributable to an increase in adjusted
EBITA and a decrease in share-based compensation expense, partly
offset by the increase in impairment of intangible assets and
goodwill. During the fiscal year, impairment of intangible assets
was mainly related to Sun Art, while the impairment of goodwill was
mainly related to Youku. Adjusted EBITA, a non-GAAP
measurement (excluding share-based compensation expense, impairment
of intangible assets and goodwill and certain other items),
increased 12% year-over-year to RMB165,028 million (US$22,856
million).
- Net income attributable to ordinary shareholders was
RMB79,741 million (US$11,044 million). Net income was
RMB71,332 million (US$9,879 million), an increase of 9% or RMB5,759
million year-over-year, primarily attributable to the increase in
income from operations, partly offset by the increase in net loss
from our equity investments due to mark-to-market changes.
Excluding share-based compensation expense, gains/losses of
investments, impairment of intangible assets and goodwill, and
certain other items, non-GAAP net income in fiscal year 2024
was RMB157,479 million (US$21,811 million), an increase of 11%
compared to RMB141,379 million in fiscal year 2023.
- Diluted earnings per ADS was RMB31.24 (US$4.33) and
diluted earnings per share was RMB3.91 (US$0.54 or HK$4.31).
Non-GAAP diluted earnings per ADS was RMB62.23 (US$8.62), an
increase of 14% year-over-year and non-GAAP diluted earnings per
share was RMB7.78 (US$1.08 or HK$8.58), an increase of 14%
year-over-year.
- Net cash provided by operating activities was RMB182,593
million (US$25,289 million), a decrease of 9% compared to
RMB199,752 million in fiscal year 2023. Free cash flow, a
non-GAAP measurement of liquidity, was RMB156,210 million
(US$21,635 million), a decrease of 9% compared to RMB171,663
million in fiscal year 2023. The year-over-year decrease mainly
reflected special dividends of RMB14,464 million from Ant Group in
fiscal year 2023 and changes in working capital, partially offset
by the year-over-year increase in adjusted EBITA.
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
Under our strategy to put users first and develop systems for
brands, merchants and industrial belt manufacturers to operate with
high efficiency on our platform, we aim to provide a shopping
experience that satisfies all aspects of consumption needs with
quality products and services at attractive prices. We are
increasing strategic investment in areas such as price competitive
product supplies, customer service, membership program benefits and
technology, aiming to enhance user experience, which resulted in
improved consumer retention and higher purchase frequency.
Our strategy of price-competitiveness and focus on user
experience is yielding results. During the quarter, we achieved
double-digit online GMV and order growth year-over-year, driven by
strong increase in the number of purchasers and purchase
frequency.
Importantly, the number of 88VIP members increased by double
digits year-over-year, surpassing 35 million during the quarter. We
will continue to increase the subscription of 88VIP membership
among our premium shoppers by improving customer service and
enhancing program benefits.
For the quarter ended March 31, 2024, revenue from Taobao and
Tmall Group grew 4% year-over-year to RMB93,216 million (US$12,910
million). Notably, customer management revenue grew 5%
year-over-year, driven by robust revenue growth from search and
recommendations.
Cloud Intelligence Group
For the quarter ended March 31, 2024, revenue from Cloud
Intelligence Group was RMB25,595 million (US$3,545 million), a
growth of 3% year-over-year.
We are committed to our strategy of focusing on high quality
revenues from increasing public cloud adoption while reducing
low-margin project-based contracts. During the quarter, our core
public cloud offerings, which include products such as elastic
compute, database and AI products, recorded double-digit
year-over-year growth in revenue. Overall revenue excluding
Alibaba-consolidated subsidiaries decreased slightly year-over-year
as we transition away from low-margin project-based revenues. We
expect the strong revenue growth in public cloud and AI-related
products will offset the impact of the roll-off of project-based
revenues.
The cost benefits from our infrastructure scale and advanced
technologies enabled us to reduce prices across more than 100
public cloud products this quarter. Our goal is to enhance cost
efficiency for our customers and boost public cloud adoption in
China. In April 2024, we extended these price reductions to our
overseas public cloud offerings, further improving our
competitiveness in global markets.
During this quarter, AI-related revenue experienced accelerated
growth and continued to record triple-digit growth year-over-year.
AI-related revenue was generated from various sectors including
foundational model companies, Internet companies, as well as
customers from industries such as financial services and
automotive.
Alibaba International Digital Commerce
Group (“AIDC”)
For the quarter ended March 31, 2024, revenue from AIDC grew 45%
year-over-year to RMB27,448 million (US$3,802 million), and the
combined orders of AIDC’s marketplaces grew 20% year-over-year. The
strong performance was driven by growth of AIDC’s cross-border
businesses, in particular growth contributed by the Choice business
on AliExpress. We are committing more resources to cross-border
e-commerce because of the clear customer value proposition of price
competitiveness and timely delivery to consumers around the world.
To further expand our geographic footprint and deliver
differentiated services to a broader customer base, we increased
investments in our cross-border initiatives this quarter.
During the quarter, AliExpress continued to deliver robust
year-over-year order growth, driven by Choice, which provides price
competitiveness and high delivery speed to customers. Synergies
between AliExpress and the cross-border logistics operations of
Cainiao have further strengthened AliExpress’ competitiveness with
both the 5-day and 10-day delivery completion rates doubling
year-over-year. We increased our investment in key markets to
enhance customer experience, expand consumer base and strengthen
our market position. Choice represented around 70% of AliExpress’
total orders in April 2024.
During the quarter, Trendyol continued its double-digit order
growth. While maintaining its leading e-commerce position in
Türkiye, Trendyol has further expanded its cross-border business in
the Gulf region. Since the launch of Trendyol’s cross-border
initiatives, we increased our investment in customer experience by
expanding merchandise categories as well as providing speedy and
reliable delivery. As a result, Trendyol has become one of the most
downloaded e-commerce apps in the Gulf region during the
quarter.
Lazada continued to focus on improving its operating efficiency.
With further increased monetization and optimized operations,
Lazada’s loss per order narrowed significantly year-over-year
during the quarter.
Cainiao Smart Logistics Network Limited
(“Cainiao”)
For the quarter ended March 31, 2024, revenue from Cainiao grew
30% year-over-year to RMB24,557 million (US$3,401 million),
primarily driven by revenue from cross-border fulfillment services
supporting AliExpress.
In March, Cainiao withdrew its initial public offering on the
Hong Kong Stock Exchange in order to align its business to better
realize strategic synergies with our e-commerce businesses. This
will enable Cainiao to work more closely with AliExpress to
strengthen its comprehensive end-to-end cross-border delivery
capabilities. During the quarter, Cainiao extended its premium
delivery (i.e., five to ten-day delivery) to four additional
countries, bringing the total coverage to 14 countries.
Cainiao will continue to execute its strategy of building a
global smart logistics network, leveraging its e-commerce insights
and proprietary technology to optimize efficiency in first-mile
pick-up, line haul, customs clearance, sortation, and last-mile
delivery.
Local Services Group
For the quarter ended March 31, 2024, revenue from Local
Services Group grew by 19% year-over-year to RMB14,628 million
(US$2,026 million), driven by both Ele.me and Amap. During this
quarter, the number of Ele.me orders grew strongly year-over-year,
resulting from increasing transacting users and purchase frequency.
Amap’s business grew rapidly during this quarter, benefiting from
mobility services and “To-Destination” services. For this quarter,
Local Services Group’s losses continued to narrow year-over-year
due to improving business scale and efficiency.
Digital Media and Entertainment
Group
During the quarter ended March 31, 2024, revenue of Digital
Media and Entertainment Group was RMB4,945 million (US$685
million), a decrease of 1% year-over-year due to a modest decline
in Youku’s revenue. Alibaba Pictures’ movie business revenue grew,
while revenue of its online ticketing platform for live events,
Damai, grew rapidly year-over-year.
Share Repurchases
During the quarter ended March 31, 2024, we repurchased a total
of 524 million ordinary shares (equivalent of 65 million ADSs) for
a total of US$4.8 billion. These purchases were made in both the
U.S. and Hong Kong markets under our share repurchase program. For
the fiscal year ended March 31, 2024, we repurchased a total of
1,249 million ordinary shares (equivalent of 156 million ADSs) for
a total of US$12.5 billion.
As of March 31, 2024, we had 19,469 million ordinary shares
(equivalent of 2,434 million ADSs) outstanding, a net decrease of
520 million ordinary shares during the quarter, or a 2.6% net
reduction in our outstanding shares after accounting for shares
issued under our equity incentive plan. For the full fiscal year
ended March 31, 2024, our share repurchase program resulted in a
net decrease of 1,057 million ordinary shares, or a 5.1% net
reduction in our outstanding shares after accounting for shares
issued under our equity incentive plan.
Dividends
Our board of directors has approved a two-part dividend
comprised of (i) an annual regular cash dividend for fiscal year
2024 in the amount of US$0.125 per ordinary share or US$1.00 per
ADS, and (ii) a one-time extraordinary cash dividend as a
distribution of proceeds from disposition of certain financial
investments in the amount of US$0.0825 per ordinary share or
US$0.66 per ADS, in each case payable in U.S. dollars, to holders
of ordinary shares and holders of ADSs, as of the close of business
on June 13, 2024, Hong Kong Time and New York Time, respectively.
The aggregate amount of the dividend will be approximately US$4.0
billion.
For holders of ordinary shares, in order to qualify for the
dividend, all valid documents for the transfers of shares
accompanied by the relevant share certificates must be lodged with
the Company’s Hong Kong branch share registrar, Computershare Hong
Kong Investor Services Limited, at Shops 1712-1716, 17th Floor,
Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, not
later than 4:30 p.m. on June 13, 2024, Hong Kong Time. The payment
date is expected to be on or around July 3, 2024 for holders of
ordinary shares and on or around July 12, 2024 for holders of
ADSs.
Update on Progress of Voluntary
Conversion to Dual Listing on the Hong Kong Stock
Exchange
We have been preparing for our primary listing in Hong Kong and
currently expect to complete this conversion by the end of August
2024. We will make a further announcement on the primary conversion
date in due course.
CHANGES OF BUSINESS GROUP DIRECTORS AND CEOS
Our board of directors has approved certain changes to the
directors and CEOs of the six major business groups. As of the date
of this announcement, the directors and CEOs of the six major
business groups are:
Business Group
Board of Directors
Taobao and Tmall Group
- Eddie Yongming WU, Chairman and CEO (Director and CEO of
Alibaba Group, Chairman and CEO of Cloud Intelligence Group)
- Joseph C. TSAI, Director (Chairman of Alibaba Group, Chairman
of Cainiao Smart Logistics Network Limited)
- Fan JIANG, Director (Co-Chairman and CEO of Alibaba
International Digital Commerce Group)
- Zeming WU, Director (Chief Technology Officer of Alibaba Group,
Co-Chairman of Local Services Group)
- Jane Fang JIANG, Director (Chief People Officer of Alibaba
Group)
Cloud Intelligence Group
- Eddie Yongming WU, Chairman and CEO (Director and CEO of
Alibaba Group, Chairman and CEO of Taobao and Tmall Group)
- Jian WANG, Director (Chairman of Alibaba Group Technology
Steering Committee)
- Jessie Junfang ZHENG, Director (CFO of Cloud Intelligence
Group)
- Jane Fang JIANG, Director (Chief People Officer of Alibaba
Group)
- Zeming WU, Director (Chief Technology Officer of Alibaba Group,
Co-Chairman of Local Services Group)
Alibaba International Digital
Commerce Group
- J. Michael EVANS, Co-Chairman (Director and President of
Alibaba Group)
- Fan JIANG, Co-Chairman and CEO
- Lucy Lei PENG, Director (Partner of Alibaba Partnership)
- Eddie Yongming WU, Director (Director and CEO of Alibaba Group,
Chairman and CEO of Taobao and Tmall Group, Chairman and CEO of
Cloud Intelligence Group)
- Joseph C. TSAI, Director (Chairman of Alibaba Group, Chairman
of Cainiao Smart Logistics Network Limited)
Cainiao Smart Logistics Network
Limited
- Joseph C. TSAI, Chairman (Chairman of Alibaba Group)
- Lin WAN, Director and CEO
- Zheng LIU, Director and CFO
- Fan JIANG, Director (Co-Chairman and CEO of Alibaba
International Digital Commerce Group)
- Jane Fang JIANG, Director (Chief People Officer of Alibaba
Group)
Local Services Group
- Eddie Yongming WU, Director (Director and CEO of Alibaba Group,
Chairman and CEO of Taobao and Tmall Group, Chairman and CEO of
Cloud Intelligence Group)
- Zeming WU, Co-Chairman (Chief Technology Officer of Alibaba
Group, Chairman of Ele.me)
- Shunyan ZHU, Director (Chairman and CEO of Alibaba Health)
- Zhenfei LIU, Co-Chairman (Chairman of Amap)
- Lucy Lei PENG, Director (Partner of Alibaba Partnership)
Digital Media and Entertainment
Group
- Luyuan FAN, Chairman and CEO
- Winnie Jia WEN, Director (President of Alibaba Group Public
Affairs)
- Judy Wenhong TONG, Director (Partner of Alibaba
Partnership)
- Maggie Wei WU, Director (Director of Alibaba Group)
- Sara Siying YU, Director (General Counsel of Alibaba
Group)
MARCH QUARTER SUMMARY FINANCIAL
RESULTS
Three months ended March
31,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages and per share amounts)
Revenue
208,200
221,874
30,729
7%
Income from operations
15,240
14,765
2,045
(3)%
Operating margin
7%
7%
Adjusted EBITDA(1)
32,123
30,807
4,267
(4)%(2)
Adjusted EBITDA margin(1)
15%
14%
Adjusted EBITA(1)
25,280
23,969
3,320
(5)%(2)
Adjusted EBITA margin(1)
12%
11%
Net income
21,996
919
127
(96)%(3)
Net income attributable to ordinary
shareholders
23,516
3,270
453
(86)%(3)
Non-GAAP net income(1)
27,375
24,418
3,382
(11)%(3)
Diluted earnings per share(4)
1.12
0.16
0.02
(86)%(3)(5)
Diluted earnings per ADS(4)
9.00
1.30
0.18
(86)%(3)(5)
Non-GAAP diluted earnings per
share(1)(4)
1.34
1.27
0.18
(5)%(3)(5)
Non-GAAP diluted earnings per
ADS(1)(4)
10.71
10.14
1.40
(5)%(3)(5)
____________________
(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 decreases were
primarily attributable to the increase in investments in our
e-commerce businesses and retention incentives granted to Cainiao
employees, partly offset by revenue growth and improved operating
efficiency.
(3)
The year-over-year decrease in
net income was primarily attributable to a net loss from our
investments in publicly-traded companies during the quarter,
compared to a net gain in the same quarter last year, due to
mark-to-market changes, 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 share-based compensation expense, gains/losses of
investments, impairment of intangible assets, and certain other
items from our non-GAAP measurements.
(4)
Each ADS represents eight
ordinary shares.
(5)
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.
MARCH QUARTER SEGMENT RESULTS
Revenue for the quarter ended March 31, 2024 was RMB221,874
million (US$30,729 million), an increase of 7% year-over-year
compared to RMB208,200 million in the same quarter of 2023.
Starting from the quarter ended June 30, 2023, we have
implemented a new organizational structure which includes six major
business groups and various other businesses (the
“Reorganization”). Our segment reporting has been updated to
reflect our Reorganization and how our chief operating decision
maker (“CODM”) review information under our new structure.
The following table sets forth a breakdown of our revenue by
segment for the periods indicated(1):
Three months ended March
31,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management
60,545
63,574
8,805
5%
- Direct sales and others(2)
25,212
24,690
3,419
(2)%
85,757
88,264
12,224
3%
China commerce wholesale
4,132
4,952
686
20%
Total Taobao and Tmall Group
89,889
93,216
12,910
4%
Cloud Intelligence Group
24,742
25,595
3,545
3%
Alibaba International Digital Commerce
Group:
International commerce retail
14,247
22,278
3,086
56%
International commerce wholesale
4,668
5,170
716
11%
Total Alibaba International Digital
Commerce Group
18,915
27,448
3,802
45%
Cainiao Smart Logistics Network
Limited
18,915
24,557
3,401
30%
Local Services Group
12,340
14,628
2,026
19%
Digital Media and Entertainment Group
4,989
4,945
685
(1)%
All others(3)
53,303
51,458
7,126
(3)%
Total segment revenue
223,093
241,847
33,495
8%
Unallocated
232
397
55
Inter-segment elimination
(15,125)
(20,370)
(2,821)
Consolidated revenue
208,200
221,874
30,729
7%
____________________
(1)
During fiscal year 2024, our
segment reporting has been updated to reflect our Reorganization
and the reclassification of 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 consist 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 March
31,
2023
2024
RMB
RMB
US$
YoY % Change (4)
(in millions, except
percentages)
Taobao and Tmall Group
39,041
38,501
5,332
(1)%
Cloud Intelligence Group
987
1,432
198
45%
Alibaba International Digital Commerce
Group
(2,171)
(4,085)
(566)
(88)%
Cainiao Smart Logistics Network
Limited
(319)
(1,342)
(186)
(321)%
Local Services Group
(4,063)
(3,198)
(443)
21%
Digital Media and Entertainment Group
(1,129)
(884)
(122)
22%
All others(2)
(1,855)
(2,818)
(390)
(52)%
Total segment adjusted EBITA
30,491
27,606
3,823
(9)%
Unallocated (3)
(4,364)
(2,900)
(402)
Inter-segment elimination
(847)
(737)
(101)
Consolidated adjusted EBITA
25,280
23,969
3,320
(5)%
Less: Share-based compensation expense
(7,546)
(7,123)
(987)
Less: Amortization and impairment of
intangible assets
(2,494)
(2,081)
(288)
Income from operations
15,240
14,765
2,045
(3)%
____________________
(1)
During fiscal year 2024, our
segment reporting has been updated to reflect our Reorganization
and the reclassification of 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 March 31, 2024 was
RMB88,264 million (US$12,224 million), an increase of 3% compared
to RMB85,757 million in the same quarter of 2023. Customer
management revenue increased by 5% year-over-year, primarily due to
a double-digit year-over-year growth in online GMV, excluding
unpaid orders, partly offset by a decline in overall take rate. The
overall take rate (customer management revenue divided by online
GMV, which represents revenue as a percentage of overall volume
generated on major marketplaces of Taobao and Tmall Group)
decreased year-over-year primarily due to the increase in online
GMV mainly coming from Taobao merchants and the introduction of new
models that currently have low monetization rates. Direct sales and
others revenue under China commerce retail business in the quarter
ended March 31, 2024 was RMB24,690 million (US$3,419 million), a
decrease of 2% compared to RMB25,212 million in the same quarter of
2023.
- China Commerce Wholesale Business Revenue from our China
commerce wholesale business in the quarter ended March 31, 2024 was
RMB4,952 million (US$686 million), an increase of 20% compared to
RMB4,132 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 was
RMB38,501 million (US$5,332 million) in the quarter ended March 31,
2024, compared to RMB39,041 million in the same quarter of 2023,
primarily due to the increase in investment in user experience
(which resulted in improved consumer retention and higher purchase
frequency) and technology infrastructure, partly offset by the
increase in revenue from customer management service.
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was
RMB25,595 million (US$3,545 million) in the quarter ended March 31,
2024, an increase of 3% compared to RMB24,742 million in the same
quarter of 2023. Year-over-year revenue growth was mainly driven by
Alibaba-consolidated businesses. Overall revenue excluding
Alibaba-consolidated subsidiaries decreased slightly year-over-year
as we transition away from low-margin project-based revenues. We
expect the strong revenue growth in public cloud and AI-related
products will offset the impact of the roll-off of project-based
revenues.
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA
increased by 45% to RMB1,432 million (US$198 million) in the
quarter ended March 31, 2024, compared to RMB987 million in the
same quarter of 2023, primarily due to improving product mix
through our focus on public cloud and operating efficiency.
Alibaba International Digital Commerce
Group
(i) Segment revenue
- International Commerce Retail Business Revenue from our
International commerce retail business in the quarter ended March
31, 2024 was RMB22,278 million (US$3,086 million), an increase of
56% compared to RMB14,247 million in the same quarter of 2023. The
increase in revenue was primarily due to the solid combined order
growth of AIDC’s retail businesses, revenue contribution 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
March 31, 2024 was RMB5,170 million (US$716 million), an increase
of 11% compared to RMB4,668 million in the same quarter of 2023.
The increase was 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 RMB4,085 million (US$566 million) in
the quarter ended March 31, 2024, compared to a loss of RMB2,171
million in the same quarter of 2023. Loss increased year-over-year
primarily because of increased investment in businesses including
AliExpress’ Choice and Trendyol’s cross-border business, partly
offset by improvements in monetization.
Cainiao Smart Logistics Network
Limited
(i) Segment revenue
Revenue from Cainiao Smart Logistics Network
Limited was RMB24,557 million (US$3,401 million) in the quarter
ended March 31, 2024, an increase of 30% compared to RMB18,915
million in the same quarter of 2023, primarily contributed by the
increase in revenue from cross-border fulfillment services.
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited
adjusted EBITA was a loss of RMB1,342 million (US$186 million) in
the quarter ended March 31, 2024, compared to a loss of RMB319
million in the same quarter of 2023, primarily due to retention
incentives granted to Cainiao employees in connection with the
withdrawal of its initial public offering.
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was
RMB14,628 million (US$2,026 million) in the quarter ended March 31,
2024, an increase of 19% compared to RMB12,340 million in the same
quarter of 2023, primarily due to the order growth of Ele.me and
Amap.
(ii) Segment adjusted EBITA
Local Services Group adjusted EBITA was a
loss of RMB3,198 million (US$443 million) in the quarter ended
March 31, 2024, compared to a loss of RMB4,063 million in the same
quarter of 2023, primarily due to the continued narrowing of loss
from our “To-Home” business driven by Ele.me’s improved unit
economics and increasing business scale.
Digital Media and Entertainment
Group
(i) Segment revenue
Revenue from Digital Media and Entertainment
Group was RMB4,945 million (US$685 million) in the quarter ended
March 31, 2024, a decrease of 1% compared to RMB4,989 million in
the same quarter of 2023.
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group
adjusted EBITA in the quarter ended March 31, 2024 was a loss of
RMB884 million (US$122 million), compared to a loss of RMB1,129
million in the same quarter of 2023. Loss reduced year-over-year
primarily due to the reduced loss of Youku.
All Others
(i) Segment revenue
Revenue from All others segment was RMB51,458
million (US$7,126 million) in the quarter ended March 31, 2024, a
decrease of 3% compared to RMB53,303 million in the same quarter of
2023, mainly due to the decrease in revenue from Sun Art and
Alibaba Health, partly offset by the increase in revenue from
Freshippo. The decrease in revenue from Sun Art was mainly driven
by the scale-down of supply chain business and decrease in basket
size.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the
quarter ended March 31, 2024 was a loss of RMB2,818 million (US$390
million), compared to a loss of RMB1,855 million in the same
quarter of 2023, primarily due to the increased loss from Freshippo
and the decrease in profitability of Lingxi Games.
MARCH QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and
expenses, share-based compensation expense, and costs and expenses
excluding share-based compensation expense by function for the
periods indicated:
Three months ended March
31,
% of Revenue YoY
change
2023
2024
RMB
% of Revenue
RMB
US$
% of Revenue
(in millions, except
percentages)
Costs and expenses:
Cost of revenue
138,823
67%
148,098
20,511
67%
0%
Product development expenses
13,880
7%
14,085
1,951
6%
(1)%
Sales and marketing expenses
24,931
12%
28,826
3,992
13%
1%
General and administrative expenses
12,832
6%
14,019
1,942
6%
0%
Amortization and impairment of intangible
assets
2,494
1%
2,081
288
1%
0%
Total costs and expenses
192,960
93%
207,109
28,684
93%
0%
Share-based compensation
expense:
Cost of revenue
1,235
1%
891
124
0%
(1)%
Product development expenses
2,938
2%
2,037
282
1%
(1)%
Sales and marketing expenses
858
0%
735
102
0%
0%
General and administrative expenses
2,515
1%
3,460
479
2%
1%
Total share-based compensation expense
7,546
4%
7,123
987
3%
(1)%
Costs and expenses excluding
share-based compensation expense:
Cost of revenue
137,588
66%
147,207
20,387
67%
1%
Product development expenses
10,942
5%
12,048
1,669
5%
0%
Sales and marketing expenses
24,073
12%
28,091
3,890
13%
1%
General and administrative expenses
10,317
5%
10,559
1,463
4%
(1)%
Amortization and impairment of intangible
assets
2,494
1%
2,081
288
1%
0%
Total costs and expenses excluding
share-based compensation expense
185,414
89%
199,986
27,697
90%
1%
Cost of revenue – Cost of revenue in the quarter ended
March 31, 2024 was RMB148,098 million (US$20,511 million), or 67%
of revenue, compared to RMB138,823 million, or 67% 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 increased from 66% in the quarter ended March 31, 2023
to 67% in the quarter ended March 31, 2024.
Product development expenses – Product development
expenses in the quarter ended March 31, 2024 were RMB14,085 million
(US$1,951 million), or 6% of revenue, compared to RMB13,880
million, or 7% 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 remained stable at
5% in the quarter ended March 31, 2024 compared to the same quarter
last year.
Sales and marketing expenses – Sales and marketing
expenses in the quarter ended March 31, 2024 were RMB28,826 million
(US$3,992 million), or 13% of revenue, compared to RMB24,931
million, or 12% 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 12%
in the quarter ended March 31, 2023 to 13% in the quarter ended
March 31, 2024.
General and administrative expenses – General and
administrative expenses in the quarter ended March 31, 2024 were
RMB14,019 million (US$1,942 million), or 6% of revenue, compared to
RMB12,832 million, or 6% 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
decreased from 5% in the quarter ended March 31, 2023 to 4% in the
quarter ended March 31, 2024.
Share-based compensation expense – Total share-based
compensation expense included in the cost and expense items above
in the quarter ended March 31, 2024 was RMB7,123 million (US$987
million), compared to RMB7,546 million in the same quarter of 2023.
Share-based compensation expense as a percentage of revenue
decreased from 4% in the quarter ended March 31, 2023 to 3% in the
quarter ended March 31, 2024.
The following table sets forth our analysis of share-based
compensation expense for the quarters indicated by type of
share-based awards:
Three months ended March
31,
2023
2024
RMB
% of Revenue
RMB
US$
% of Revenue
YoY % Change
(in millions, except
percentages)
By type of awards:
Alibaba Group share-based awards(1)
5,972
3%
4,350
602
2%
(27)%
Ant Group share-based awards(2)
126
0%
25
4
0%
(80)%
Others(3)
1,448
1%
2,748
381
1%
90%
Total share-based compensation expense
7,546
4%
7,123
987
3%
(6)%
____________________
(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 March 31, 2024
compared to the same quarter of 2023. This decrease was primarily
due to the general decrease in the average fair market value 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 and impairment of intangible assets –
Amortization and impairment of intangible assets in the quarter
ended March 31, 2024 was RMB2,081 million (US$288 million), a
decrease of 17% from RMB2,494 million in the same quarter of
2023.
Income from operations and operating
margin
Income from operations in the quarter ended March 31, 2024 was
RMB14,765 million (US$2,045 million), or 7% of revenue, a decrease
of 3% compared to RMB15,240 million, or 7% of revenue, in the same
quarter of 2023.
Adjusted EBITDA and Adjusted
EBITA
Adjusted EBITDA decreased 4% year-over-year to RMB30,807 million
(US$4,267 million) in the quarter ended March 31, 2024, compared to
RMB32,123 million in the same quarter of 2023. Adjusted EBITA
decreased 5% year-over-year to RMB23,969 million (US$3,320 million)
in the quarter ended March 31, 2024, compared to RMB25,280 million
in the same quarter of 2023, primarily attributable to the increase
in investments in our e-commerce businesses and retention
incentives granted to Cainiao employees, partly offset by the
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 “March Quarter Segment Results” above.
Interest and investment income,
net
Interest and investment income, net in the quarter ended March
31, 2024 was a loss of RMB5,702 million (US$790 million), compared
to a gain of RMB10,496 million in the same quarter of 2023,
primarily due to a net loss from our investments in publicly-traded
companies during the quarter, compared to a net gain in the same
quarter last year, due to the mark-to-market changes.
The above-mentioned gains and losses were excluded from our
non-GAAP net income.
Other income, net
Other income, net in the quarter ended March 31, 2024 was
RMB2,963 million (US$410 million), compared to RMB1,308 million in
the same quarter of 2023. The year-over-year increase was primarily
due to the net exchange gain compared to the net exchange loss 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 March 31, 2024 were
RMB5,722 million (US$793 million), compared to RMB3,758 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
March 31, 2024 was a loss of RMB3,208 million (US$444 million),
compared to a profit of RMB446 million in the same quarter of 2023.
The following table sets forth a breakdown of share of results of
equity method investees for the periods indicated:
Three months ended March
31,
2023
2024
RMB
RMB
US$
(in millions)
Share of profit (loss) of equity method
investees
- Ant Group
3,180
2,570
356
- Others
(183)
358
50
Impairment loss
(989)
(5,403)
(748)
Others(1)
(1,562)
(733)
(102)
Total
446
(3,208)
(444)
____________________
(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 RMB5,403
million (US$748 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 March 31, 2024 was RMB919
million (US$127 million), compared to RMB21,996 million in the same
quarter of 2023, which was primarily attributable to a net loss
from our investments in publicly-traded companies during the
quarter, compared to a net gain in the same quarter last year, due
to the mark-to-market changes.
Excluding share-based compensation expense, revaluation and
disposal gains/losses of investments, impairment of investments,
amortization and impairment of intangible assets and certain other
items, non-GAAP net income in the quarter ended March 31, 2024 was
RMB24,418 million (US$3,382 million), a decrease of 11% compared to
RMB27,375 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 March 31, 2024, which takes into account the relevant
attributions to noncontrolling interests, was RMB3,270 million
(US$453 million), compared to RMB23,516 million in the same quarter
of 2023, which was primarily attributable to a net loss from our
investments in publicly-traded companies during the quarter,
compared to a net gain in the same quarter last year, due to the
mark-to-market changes.
Diluted earnings per ADS/share and
non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended March 31, 2024 was
RMB1.30 (US$0.18), compared to RMB9.00 in the same quarter in 2023.
Excluding share-based compensation expense, revaluation and
disposal gains/losses of investments, impairment of goodwill and
investments, amortization and impairment of intangible assets and
certain other items, non-GAAP diluted earnings per ADS in the
quarter ended March 31, 2024 was RMB10.14 (US$1.40), a decrease of
5% compared to RMB10.71 in the same quarter of 2023.
Diluted earnings per share in the quarter ended March 31, 2024
was RMB0.16 (US$0.02 or HK$0.18), compared to RMB1.12 in the same
quarter of 2023. Excluding share-based compensation expense,
revaluation and disposal gains/losses of investments, impairment of
goodwill and investments, amortization and impairment of intangible
assets and certain other items, non-GAAP diluted earnings per share
in the quarter ended March 31, 2024 was RMB1.27 (US$0.18 or
HK$1.40), a decrease of 5% compared to RMB1.34 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.
Net cash provided by operating
activities and free cash flow
During the quarter ended March 31, 2024, net cash provided by
operating activities was RMB23,340 million (US$3,233 million), a
decrease of 26% compared to RMB31,401 million in the same quarter
of 2023. Free cash flow, a non-GAAP measurement of liquidity, was
RMB15,361 million (US$2,127 million), a decrease of 52% compared to
RMB32,267 million in the same quarter of 2023. The year-over-year
decrease in free cash flow mainly reflected the increase in capital
expenditure during the quarter, the majority of which reflected our
investments in Alibaba Cloud infrastructure, as well as a special
dividend of RMB10,519 million from Ant Group in the same quarter of
2023.
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 March 31, 2024, net cash provided by
investing activities of RMB20,267 million (US$2,807 million)
primarily reflected a decrease in short-term investments by
RMB39,373 million (US$5,453 million) and cash inflow of RMB10,325
million (US$1,430 million) from disposal of investments. These cash
inflows were partly offset by (i) capital expenditures of RMB11,153
million (US$1,545 million), (ii) cash outflow of RMB10,653 million
(US$1,475 million) for investment and acquisition activities, and
(iii) an increase in other treasury investments by RMB7,894 million
(US$1,093 million).
Net cash used in financing
activities
During the quarter ended March 31, 2024, net cash used in
financing activities of RMB54,012 million (US$7,481 million)
primarily reflected cash used in repurchase of ordinary shares of
RMB34,014 million (US$4,711 million) and dividend paid of RMB17,946
million (US$2,485 million).
Employees
As of March 31, 2024, we had a total of 204,891 employees,
compared to 219,260 as of December 31, 2023.
FULL FISCAL YEAR SUMMARY FINANCIAL
RESULTS
Year ended March 31,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages and per share amounts)
Revenue
868,687
941,168
130,350
8%
Income from operations
100,351
113,350
15,699
13%(2)
Operating margin
12%
12%
Adjusted EBITDA(1)
175,710
191,668
26,546
9%(3)
Adjusted EBITDA margin(1)
20%
20%
Adjusted EBITA(1)
147,911
165,028
22,856
12%(3)
Adjusted EBITA margin(1)
17%
18%
Net income
65,573
71,332
9,879
9%(4)
Net income attributable to ordinary
shareholders
72,509
79,741
11,044
10%(4)
Non-GAAP net income(1)
141,379
157,479
21,811
11%(4)
Diluted earnings per share(5)
3.43
3.91
0.54
14%(4)(6)
Diluted earnings per ADS(5)
27.46
31.24
4.33
14%(4)(6)
Non-GAAP diluted earnings per
share(1)(5)
6.82
7.78
1.08
14%(4)(6)
Non-GAAP diluted earnings per
ADS(1)(5)
54.56
62.23
8.62
14%(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 increase was
primarily attributable to an increase in adjusted EBITA and a
decrease in share-based compensation expense, partly offset by the
increase in impairment of intangible assets and goodwill. During
the fiscal year, the impairment of intangible assets and goodwill
was mainly in relation to Sun Art and Youku respectively.
(3)
The year-over-year increases were
primarily contributed by revenue growth and improved operating
efficiency that was partly offset by the increase in investments in
our e-commerce businesses.
(4)
The year-over-year increase in
net income was primarily attributable to the increase in income
from operations, partly offset by the increase in net loss from our
equity investments due to mark-to-market changes, while net income
attributable to ordinary shareholders and earnings per share/ADS
further take into account the relevant attributions to
noncontrolling interests. We excluded share-based compensation
expense, gains/losses of investments, impairment of intangible
assets and goodwill, 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.
FULL FISCAL YEAR SEGMENT RESULTS
Revenue for fiscal year 2024 was RMB941,168 million (US$130,350
million), an increase of 8% year-over-year compared to RMB868,687
million in fiscal year 2023.
Starting from the quarter ended June 30, 2023, we have
implemented a new organizational structure which includes six major
business groups and various other businesses. Our segment reporting
has been updated to reflect our Reorganization and how our chief
operating decision maker review information under our new
structure.
The following table sets forth a breakdown of our revenue by
segment for the periods indicated(1):
Year ended March 31,
2023
2024
RMB
RMB
US$
YoY % Change
(in millions, except
percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management
291,541
304,009
42,105
4%
- Direct sales and others(2)
103,811
110,405
15,291
6%
395,352
414,414
57,396
5%
China commerce wholesale
17,854
20,479
2,836
15%
Total Taobao and Tmall Group
413,206
434,893
60,232
5%
Cloud Intelligence Group
103,497
106,374
14,733
3%
Alibaba International Digital Commerce
Group:
International commerce retail
50,933
81,654
11,309
60%
International commerce wholesale
19,573
20,944
2,901
7%
Total Alibaba International Digital
Commerce Group
70,506
102,598
14,210
46%
Cainiao Smart Logistics Network
Limited
77,512
99,020
13,714
28%
Local Services Group
50,249
59,802
8,282
19%
Digital Media and Entertainment Group
18,444
21,145
2,929
15%
All others(3)
197,115
192,331
26,637
(2)%
Total segment revenue
930,529
1,016,163
140,737
9%
Unallocated
866
1,297
180
Inter-segment elimination
(62,708)
(76,292)
(10,567)
Consolidated revenue
868,687
941,168
130,350
8%
____________________
(1)
During fiscal year 2024, our
segment reporting has been updated to reflect our Reorganization
and the reclassification of 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 consist 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):
Year ended March 31,
2023
2024
RMB
RMB
US$
YoY % Change (4)
(in millions, except
percentages)
Taobao and Tmall Group
189,140
194,827
26,983
3%
Cloud Intelligence Group
4,101
6,121
848
49%
Alibaba International Digital Commerce
Group
(4,944)
(8,035)
(1,113)
(63)%
Cainiao Smart Logistics Network
Limited
(391)
1,402
194
N/A
Local Services Group
(13,148)
(9,812)
(1,359)
25%
Digital Media and Entertainment Group
(2,789)
(1,539)
(213)
45%
All others(2)
(9,388)
(9,160)
(1,268)
2%
Total segment adjusted EBITA
162,581
173,804
24,072
7%
Unallocated (3)
(12,143)
(6,190)
(857)
Inter-segment elimination
(2,527)
(2,586)
(359)
Consolidated adjusted EBITA
147,911
165,028
22,856
12%
Less: Share-based compensation expense
(30,831)
(18,546)
(2,569)
Less: Amortization and impairment of
intangible assets
(13,504)
(21,592)
(2,990)
Less: Impairment of goodwill, and
others
(3,225)
(11,540)
(1,598)
Income from operations
100,351
113,350
15,699
13%
____________________
(1)
During fiscal year 2024, our
segment reporting has been updated to reflect our Reorganization
and the reclassification of 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 fiscal year 2024 was RMB414,414 million
(US$57,396 million), an increase of 5% compared to RMB395,352
million in fiscal year 2023. Customer management revenue increased
by 4% year-over-year, primarily due to healthy growth in online
GMV, excluding unpaid orders. Direct sales and others revenue under
China commerce retail business in fiscal year 2024 was RMB110,405
million (US$15,291 million), an increase of 6% compared to
RMB103,811 million in fiscal year 2023, primarily due to strong
sales driven by consumer electronics and appliances.
- China Commerce Wholesale Business Revenue from our China
commerce wholesale business in fiscal year 2024 was RMB20,479
million (US$2,836 million), an increase of 15% compared to
RMB17,854 million in fiscal year 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
increased by 3% to RMB194,827 million (US$26,983 million) in fiscal
year 2024, compared to RMB189,140 million in fiscal year 2023. The
increase was primarily due to an increase in revenue from customer
management service and narrowing losses in certain businesses,
partly offset by an increase in investment in user experience and
technology infrastructure.
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was
RMB106,374 million (US$14,733 million) in fiscal year 2024, an
increase of 3% compared to RMB103,497 million in fiscal year 2023.
Year-over-year revenue growth was mainly driven by
Alibaba-consolidated businesses. Overall revenue excluding
Alibaba-consolidated subsidiaries decreased slightly year-over-year
as we transition away from low-margin project-based revenues. We
expect the strong revenue growth in public cloud and AI-related
products will offset the impact of the roll-off of project-based
revenues.
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA
increased by 49% to RMB6,121 million (US$848 million) in fiscal
year 2024, compared to RMB4,101 million in fiscal year 2023,
primarily due to improving product mix through our focus on public
cloud and operating efficiency.
Alibaba International Digital Commerce
Group
(i) Segment revenue
- International Commerce Retail Business Revenue from our
International commerce retail business in fiscal year 2024 was
RMB81,654 million (US$11,309 million), an increase of 60% compared
to RMB50,933 million in fiscal year 2023. The increase in revenue
was primarily due to solid combined order growth of AIDC’s retail
businesses, revenue contribution 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 fiscal year 2024
was RMB20,944 million (US$2,901 million), an increase of 7%
compared to RMB19,573 million in fiscal year 2023. The increase was
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 RMB8,035 million (US$1,113 million) in
fiscal year 2024, compared to a loss of RMB4,944 million in fiscal
year 2023. Losses increased year-over-year primarily because of
increased investment in businesses including AliExpress’ Choice,
Trendyol’s cross-border business and Miravia, partly offset by
improvements in monetization.
Cainiao Smart Logistics Network
Limited
(i) Segment revenue
Revenue from Cainiao Smart Logistics Network
Limited was RMB99,020 million (US$13,714 million) in fiscal year
2024, an increase of 28% compared to RMB77,512 million in fiscal
year 2023, primarily contributed by the increase in revenue from
cross-border fulfillment services.
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited
adjusted EBITA was a profit of RMB1,402 million (US$194 million) in
fiscal year 2024, compared to a loss of RMB391 million in fiscal
year 2023. The year-over-year increase was primarily due to the
improved operating results from cross-border fulfillment services
as well as domestic logistics services partly offset by retention
incentives granted to Cainiao employees in connection with the
withdrawal of its initial public offering.
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was
RMB59,802 million (US$8,282 million) in fiscal year 2024, an
increase of 19% compared to RMB50,249 million in fiscal year 2023,
primarily due to the order growth of Ele.me and Amap.
(ii) Segment adjusted EBITA
Local Services Group adjusted EBITA was a
loss of RMB9,812 million (US$1,359 million) in fiscal year 2024,
compared to a loss of RMB13,148 million in fiscal year 2023,
primarily due to the continued narrowing of loss from our “To-Home”
business driven by Ele.me’s improved unit economics and increasing
business scale.
Digital Media and Entertainment
Group
(i) Segment revenue
Revenue from Digital Media and Entertainment
Group was RMB21,145 million (US$2,929 million) in fiscal year 2024,
an increase of 15% compared to RMB18,444 million in fiscal year
2023, primarily driven by the strong revenue growth of offline
entertainment businesses of Alibaba Pictures.
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group
adjusted EBITA in fiscal year 2024 was a loss of RMB1,539 million
(US$213 million), compared to a loss of RMB2,789 million in fiscal
year 2023. Loss reduced year-over-year primarily due to the
increase in profitability of Alibaba Pictures.
All Others
(i) Segment revenue
Revenue from All others segment was
RMB192,331 million (US$26,637 million) in fiscal year 2024, a
decrease of 2% compared to RMB197,115 million in fiscal year 2023,
mainly due to the decrease in revenue from Sun Art, partly offset
by the increase in revenue from Freshippo. The decrease in revenue
from Sun Art was mainly driven by the scale down of supply chain
business and the decrease in basket size.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in
fiscal year 2024 was a loss of RMB9,160 million (US$1,268 million),
compared to a loss of RMB9,388 million in fiscal year 2023.
FULL FISCAL YEAR OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and
expenses, share-based compensation expense, and costs and expenses
excluding share-based compensation expense by function for the
periods indicated:
Year ended March 31,
% of Revenue YoY
change
2023
2024
RMB
% of Revenue
RMB
US$
% of Revenue
(in millions, except
percentages)
Costs and expenses:
Cost of revenue
549,695
63%
586,323
81,205
62%
(1)%
Product development expenses
56,744
7%
52,256
7,237
6%
(1)%
Sales and marketing expenses
103,496
12%
115,141
15,947
12%
0%
General and administrative expenses
42,183
5%
41,985
5,815
5%
0%
Amortization and impairment of intangible
assets
13,504
1%
21,592
2,990
2%
1%
Impairment of goodwill
2,714
0%
10,521
1,457
1%
1%
Total costs and expenses
768,336
88%
827,818
114,651
88%
0%
Share-based compensation
expense:
Cost of revenue
5,710
1%
3,012
417
0%
(1)%
Product development expenses
13,514
2%
7,623
1,056
1%
(1)%
Sales and marketing expenses
3,710
0%
2,265
314
0%
0%
General and administrative expenses
7,897
1%
5,646
782
1%
0%
Total share-based compensation expense
30,831
4%
18,546
2,569
2%
(2)%
Costs and expenses excluding
share-based compensation expense:
Cost of revenue
543,985
62%
583,311
80,788
62%
0%
Product development expenses
43,230
5%
44,633
6,181
5%
0%
Sales and marketing expenses
99,786
12%
112,876
15,633
12%
0%
General and administrative expenses
34,286
4%
36,339
5,033
4%
0%
Amortization and impairment of intangible
assets
13,504
1%
21,592
2,990
2%
1%
Impairment of goodwill
2,714
0%
10,521
1,457
1%
1%
Total costs and expenses excluding
share-based compensation expense
737,505
84%
809,272
112,082
86%
2%
Cost of revenue – Cost of revenue in fiscal year 2024 was
RMB586,323 million (US$81,205 million), or 62% of revenue, compared
to RMB549,695 million, or 63% of revenue, in fiscal year 2023.
Without the effect of share-based compensation expense, cost of
revenue as a percentage of revenue would have remained stable at
62% in fiscal year 2024 compared to fiscal year 2023.
Product development expenses – Product development
expenses in fiscal year 2024 were RMB52,256 million (US$7,237
million), or 6% of revenue, compared to RMB56,744 million, or 7% of
revenue, in fiscal year 2023. Without the effect of share-based
compensation expense, product development expenses as a percentage
of revenue would have remained stable at 5% in fiscal year 2024
compared to fiscal year 2023.
Sales and marketing expenses – Sales and marketing
expenses in fiscal year 2024 were RMB115,141 million (US$15,947
million), or 12% of revenue, compared to RMB103,496 million, or 12%
of revenue, in fiscal year 2023. Without the effect of share-based
compensation expense, sales and marketing expenses as a percentage
of revenue would have remained stable at 12% in fiscal year 2024
compared to fiscal year 2023.
General and administrative expenses – General and
administrative expenses in fiscal year 2024 were RMB41,985 million
(US$5,815 million), or 5% of revenue, compared to RMB42,183
million, or 5% of revenue, in fiscal year 2023. Without the effect
of share-based compensation expense, general and administrative
expenses as a percentage of revenue would have remained stable at
4% in fiscal year 2024 compared to fiscal year 2023.
Share-based compensation expense – Total share-based
compensation expense included in the cost and expense items above
in fiscal year 2024 was RMB18,546 million (US$2,569 million),
compared to RMB30,831 million in fiscal year 2023. Share-based
compensation expense as a percentage of revenue decreased from 4%
in fiscal year 2023 to 2% in fiscal year 2024.
The following table sets forth our analysis of share-based
compensation expense for the periods indicated by type of
share-based awards:
Year ended March 31,
2023
2024
RMB
% of Revenue
RMB
US$
% of Revenue
YoY % Change
(in millions, except
percentages)
By type of awards:
Alibaba Group share-based awards(1)
24,900
3%
17,974
2,489
2%
(28)%
Ant Group share-based awards(2)
668
0%
(6,691)
(927)
(1)%
N/A
Others(3)
5,263
1%
7,263
1,007
1%
38%
Total share-based compensation expense
30,831
4%
18,546
2,569
2%
(40)%
____________________
(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 fiscal year 2024 compared to fiscal
year 2023. This decrease was primarily due to the general decrease
in the average fair market value of the awards granted.
Share-based compensation expense related to Ant Group reflected
a reversal of share-based compensation expense of RMB6,901 million
(US$956 million) recorded in fiscal year 2024. This is the result
of a mark-to-market adjustment during the fiscal year relating to
Ant Group share-based awards granted to our employees because of 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 fiscal year
2024 was RMB21,592 million (US$2,990 million), an increase of 60%
from RMB13,504 million in fiscal year 2023. During fiscal year
2024, an impairment of intangible assets of RMB12,084 million
(US$1,673 million) was recorded relating to Sun Art within All
others segment, which mainly include trade names, trademarks and
domain names, considering lower than expected profitability as a
result of uncertainties in the market environment. During fiscal
year 2023, impairment of intangible assets of RMB2,811 million was
recorded mainly relating to one of our import e-commerce platforms
in China.
Impairment of goodwill – Impairment of goodwill in fiscal
year 2024 was RMB10,521 million (US$1,457 million), an increase of
288%, from RMB2,714 million in fiscal year 2023. Impairment
recorded in fiscal year 2024 represents the impairment of goodwill
relating to Youku.
Income from operations and operating
margin
Income from operations in fiscal year 2024 was RMB113,350
million (US$15,699 million), or 12% of revenue, an increase of 13%
compared to RMB100,351 million, or 12% of revenue, in fiscal year
2023, primarily attributable to an increase in adjusted EBITA and a
decrease in share-based compensation expense, partly offset by the
increase in impairment of intangible assets and goodwill. During
fiscal year 2024, the impairment of intangible assets and goodwill
was mainly in relation to Sun Art and Youku respectively.
Adjusted EBITDA and Adjusted
EBITA
Adjusted EBITDA increased 9% year-over-year to RMB191,668
million (US$26,546 million) in fiscal year 2024, compared to
RMB175,710 million in fiscal year 2023. Adjusted EBITA increased
12% year-over-year to RMB165,028 million (US$22,856 million) in
fiscal year 2024, compared to RMB147,911 million in fiscal year
2023, primarily contributed by revenue growth and improved
operating efficiency that was partly offset by the increase in
investments in our e-commerce businesses. 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 “Full Fiscal Year Segment Results” above.
Interest and investment income,
net
Interest and investment income, net in fiscal year 2024 was a
loss of RMB9,964 million (US$1,380 million), compared to a loss of
RMB11,071 million in fiscal year 2023.
The above-mentioned gains and losses were excluded from our
non-GAAP net income.
Other income, net
Other income, net in fiscal year 2024 was RMB6,157 million
(US$853 million), compared to RMB5,823 million in fiscal year
2023.
Income tax expenses
Income tax expenses in fiscal year 2024 were RMB22,529 million
(US$3,120 million), compared to RMB15,549 million in fiscal year
2023.
Share of results of equity method
investees
Share of results of equity method investees in fiscal year 2024
was a loss of RMB7,735 million (US$1,072 million), compared to a
loss of RMB8,063 million in fiscal year 2023. The following table
sets forth a breakdown of share of results of equity method
investees for the periods indicated:
Year ended March 31,
2023
2024
RMB
RMB
US$
(in millions)
Share of profit (loss) of equity method
investees
- Ant Group
10,294
7,860
1,088
- Others
(5,481)
(2,154)
(298)
Impairment loss
(8,310)
(9,895)
(1,371)
Others(1)
(4,566)
(3,546)
(491)
Total
(8,063)
(7,735)
(1,072)
____________________
(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 decrease in share of
profit of Ant Group reflected a RMB7.07 billion fine on Ant Group
imposed by PRC regulators as announced in July 2023.
During the quarter ended September 30, 2023, Ant Group
repurchased approximately 7% equity interest from its existing
shareholders and the shares repurchased were allocated to the
employee incentive plans of Ant Group. The number of shares held by
us in Ant Group remains unchanged from a legal perspective, and our
equity interest in Ant Group on a fully diluted basis remains
unchanged at 33%.
For U.S. GAAP accounting purposes, we will take into
consideration a proportionate share of equity interest held by the
employee incentive plans of Ant Group to account for our share of
results from our investment in Ant Group, subject to dilution as
the equity interest under the employee incentive plans of Ant Group
is transferred out.
Net income and Non-GAAP net
income
Our net income in fiscal year 2024 was RMB71,332 million
(US$9,879 million), an increase of 9% or RMB5,759 million, compared
to RMB65,573 million in fiscal year 2023. The year-over-year
increase was primarily attributable to the increase in income from
operations, partly offset by the increase in net loss from our
equity investments due to mark-to-market changes.
Excluding share-based compensation expense, revaluation and
disposal gains/losses of investments, impairment of goodwill and
investments, amortization and impairment of intangible assets and
certain other items, non-GAAP net income in fiscal year 2024 was
RMB157,479 million (US$21,811 million), an increase of 11% compared
to RMB141,379 million in fiscal year 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 fiscal year
2024, which takes into account the relevant attributions to
noncontrolling interests, was RMB79,741 million (US$11,044
million), an increase of 10% or RMB7,232 million, compared to
RMB72,509 million in fiscal year 2023. The year-over-year increase
was primarily attributable to the increase in income from
operations and the attribution of the impairment of intangible
assets to noncontrolling interests, partly offset by increase in
net loss from our equity investments due to mark-to-market
changes.
Diluted earnings per ADS/share and
non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in fiscal year 2024 was RMB31.24
(US$4.33), compared to RMB27.46 in fiscal year 2023. Excluding
share-based compensation expense, revaluation and disposal
gains/losses of investments, impairment of goodwill and
investments, amortization and impairment of intangible assets and
certain other items, non-GAAP diluted earnings per ADS in fiscal
year 2024 was RMB62.23 (US$8.62), an increase of 14% compared to
RMB54.56 in fiscal year 2023.
Diluted earnings per share in fiscal year 2024 was RMB3.91
(US$0.54 or HK$4.31), compared to RMB3.43 in fiscal year 2023.
Excluding share-based compensation expense, revaluation and
disposal gains/losses of investments, impairment of goodwill and
investments, amortization and impairment of intangible assets and
certain other items, non-GAAP diluted earnings per share in fiscal
year 2024 was RMB7.78 (US$1.08 or HK$8.58), an increase of 14%
compared to RMB6.82 in fiscal year 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 March 31, 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 RMB617,230 million (US$85,485 million), compared to
RMB560,314 million as of March 31, 2023. Other treasury investments
consist of fixed deposits and certificate of deposits with original
maturities over one year. The increase in cash and cash
equivalents, short-term investments and other treasury investments
during the fiscal year ended March 31, 2024 was primarily due to
free cash flow generated from operations of RMB156,210 million
(US$21,635 million), and effect of exchange rate gain of RMB13,270
million (US$1,838 million) mainly due to the appreciation of the
U.S. dollar against Renminbi, partly offset by cash used in
repurchase of ordinary shares of RMB88,745 million (US$12,291
million) and dividend payment of RMB17,946 million (US$2,485
million).
Net cash provided by operating
activities and free cash flow
Net cash provided by operating activities in fiscal year 2024
was RMB182,593 million (US$25,289 million), a decrease of 9%
compared to RMB199,752 million in fiscal year 2023. Free cash flow
decreased by 9% in fiscal year 2024 to RMB156,210 million
(US$21,635 million), from RMB171,663 million in fiscal year 2023.
The year-over-year decrease in free cash flow mainly reflected
special dividends of RMB14,464 million from Ant Group in fiscal
year 2023 and changes in working capital, partially offset by the
year-over-year increase in adjusted EBITA. 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 fiscal year 2024, net cash used in investing activities
of RMB21,824 million (US$3,023 million) primarily reflected (i) an
increase in other treasury investments by RMB64,392 million
(US$8,918 million), (ii) capital expenditures of RMB32,087 million
(US$4,444 million), as well as (iii) cash outflow of RMB20,969
million (US$2,904 million) for investment and acquisition
activities. These cash outflows were partially offset by (i) a
decrease in short-term investments by RMB71,426 million (US$9,892
million) and (ii) cash inflow of RMB23,930 million (US$3,314
million) from disposal of investments.
Net cash used in financing
activities
During fiscal year 2024, net cash used in financing activities
of RMB108,244 million (US$14,992 million) primarily reflected cash
used in repurchase of ordinary shares of RMB88,745 million
(US$12,291 million) and dividend paid of RMB17,946 million
(US$2,485 million).
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group’s management will hold a conference call to
discuss the financial results at 7:30 a.m. U.S. Eastern Time (7:30
p.m. Hong Kong Time) on Tuesday, May 14, 2024.
All participants must pre-register to join this conference call
using the Participant Registration link below: English:
https://s1.c-conf.com/diamondpass/10038090-62edot.html Chinese:
https://s1.c-conf.com/diamondpass/10038092-il07se.html
Upon registration, each participant will receive details for the
conference call, including dial-in numbers, conference call
passcode and a unique access PIN. To join the conference, please
dial the number provided, enter the passcode followed by your PIN,
and you will join the conference.
A live webcast of the earnings conference call can be accessed
at
https://www.alibabagroup.com/en-US/ir-financial-reports-quarterly-results.
An archived webcast will be available through the same link
following the call. A replay of the conference call will be
available for one week from the date of the conference (Dial-in
number: +1 855 883 1031; English conference PIN 10038090; Chinese
conference PIN 10038092).
Please visit Alibaba Group’s Investor Relations website at
https://www.alibabagroup.com/en-US/investor-relations on May 14,
2024 to view the earnings release and accompanying slides prior to
the conference call.
ABOUT ALIBABA GROUP
Alibaba Group’s mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba, and that it will be a good company that lasts for 102
years.
EXCHANGE RATE INFORMATION
This results announcement contains translations of certain
Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong
dollars (“HK$”) for the convenience of the reader. Unless otherwise
stated, all translations of RMB into US$ were made at RMB7.2203 to
US$1.00, the exchange rate on March 29, 2024 as set forth in the
H.10 statistical release of the Federal Reserve Board, and all
translations of RMB into HK$ were made at RMB0.90655 to HK$1.00,
the middle rate on March 29, 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 plan to convert to primary listing
in Hong Kong, Alibaba’s strategies and business plans, Alibaba’s
beliefs, expectations and guidance regarding the growth of its
business, revenue and return on investments, share repurchases, the
business outlook and quotations from management in this
announcement, as well as Alibaba’s strategic and operational plans,
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 revenue or 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 protectionist or national security
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 data security and
privacy protection, anti-monopoly and anti-unfair competition,
content regulation, consumer protection and regulation of Internet
platforms) in the PRC and globally; cybersecurity risks; impact of
the COVID-19 pandemic; 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,
share-based compensation expense, amortization and impairment of
intangible assets, depreciation and impairment of property and
equipment, and operating lease cost relating to land use rights,
impairment of goodwill, and others (including provision in relation
to matters outside the ordinary course of business, as well as
equity-settled donation expense), 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,
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, as well as equity-settled donation expense), which we do
not believe are reflective of our core operating performance during
the periods presented.
Non-GAAP net income represents net income before
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, as
well as equity-settled donation expense), 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 March
31,
Year ended March 31,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions, except per share
data)
(in millions, except per share
data)
Revenue
208,200
221,874
30,729
868,687
941,168
130,350
Cost of revenue
(138,823)
(148,098)
(20,511)
(549,695)
(586,323)
(81,205)
Product development expenses
(13,880)
(14,085)
(1,951)
(56,744)
(52,256)
(7,237)
Sales and marketing expenses
(24,931)
(28,826)
(3,992)
(103,496)
(115,141)
(15,947)
General and administrative expenses
(12,832)
(14,019)
(1,942)
(42,183)
(41,985)
(5,815)
Amortization and impairment of intangible
assets
(2,494)
(2,081)
(288)
(13,504)
(21,592)
(2,990)
Impairment of goodwill
—
—
—
(2,714)
(10,521)
(1,457)
Income from operations
15,240
14,765
2,045
100,351
113,350
15,699
Interest and investment income, net
10,496
(5,702)
(790)
(11,071)
(9,964)
(1,380)
Interest expense
(1,736)
(2,177)
(301)
(5,918)
(7,947)
(1,101)
Other income, net
1,308
2,963
410
5,823
6,157
853
Income before income tax and share of
results of equity method investees
25,308
9,849
1,364
89,185
101,596
14,071
Income tax expenses
(3,758)
(5,722)
(793)
(15,549)
(22,529)
(3,120)
Share of results of equity method
investees
446
(3,208)
(444)
(8,063)
(7,735)
(1,072)
Net income
21,996
919
127
65,573
71,332
9,879
Net loss attributable to noncontrolling
interests
1,648
2,446
339
7,210
8,677
1,202
Net income attributable to Alibaba Group
Holding Limited
23,644
3,365
466
72,783
80,009
11,081
Accretion of mezzanine equity
(128)
(95)
(13)
(274)
(268)
(37)
Net income attributable to ordinary
shareholders
23,516
3,270
453
72,509
79,741
11,044
Earnings per share attributable to
ordinary shareholders(1)
Basic
1.14
0.17
0.02
3.46
3.95
0.55
Diluted
1.12
0.16
0.02
3.43
3.91
0.54
Earnings per ADS attributable to
ordinary shareholders(1)
Basic
9.11
1.32
0.18
27.65
31.61
4.38
Diluted
9.00
1.30
0.18
27.46
31.24
4.33
Weighted average number of shares used
in calculating earnings per ordinary share (million
shares)(1)
Basic
20,651
19,763
20,980
20,182
Diluted
20,882
19,980
21,114
20,359
____________________
(1)
Each ADS represents eight
ordinary shares.
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE
SHEETS
As of March 31,
As of March 31,
2023
2024
RMB
RMB
US$
(in millions)
Assets
Current assets:
Cash and cash equivalents
193,086
248,125
34,365
Short-term investments
326,492
262,955
36,419
Restricted cash and escrow receivables
36,424
38,299
5,304
Equity securities and other
investments
4,892
59,949
8,303
Prepayments, receivables and other
assets
137,072
143,536
19,879
Total current assets
697,966
752,864
104,270
Equity securities and other
investments
245,737
220,942
30,600
Prepayments, receivables and other
assets
110,926
116,102
16,080
Investment in equity method investees
207,380
203,131
28,133
Property and equipment, net
176,031
185,161
25,645
Intangible assets, net
46,913
26,950
3,733
Goodwill
268,091
259,679
35,965
Total assets
1,753,044
1,764,829
244,426
Liabilities, Mezzanine Equity and
Shareholders’ Equity
Current liabilities:
Current bank borrowings
7,466
12,749
1,766
Current unsecured senior notes
4,800
16,252
2,251
Income tax payable
12,543
9,068
1,256
Accrued expenses, accounts payable and
other liabilities
275,950
297,883
41,256
Merchant deposits
13,297
12,737
1,764
Deferred revenue and customer advances
71,295
72,818
10,085
Total current liabilities
385,351
421,507
58,378
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(CONTINUED)
As of March 31,
As of March 31,
2023
2024
RMB
RMB
US$
(in millions)
Deferred revenue
3,560
4,069
564
Deferred tax liabilities
61,745
53,012
7,342
Non-current bank borrowings
52,023
55,686
7,712
Non-current unsecured senior notes
97,065
86,089
11,923
Other liabilities
30,379
31,867
4,414
Total liabilities
630,123
652,230
90,333
Commitments and contingencies
Mezzanine equity
9,858
10,728
1,486
Shareholders’ equity:
Ordinary shares
1
1
—
Additional paid-in capital
416,880
397,999
55,122
Treasury shares at cost
(28,763)
(27,684)
(3,834)
Subscription receivables
(49)
—
—
Statutory reserves
12,977
14,733
2,040
Accumulated other comprehensive (loss)
income
(10,417)
3,598
498
Retained earnings
599,028
597,897
82,809
Total shareholders’ equity
989,657
986,544
136,635
Noncontrolling interests
123,406
115,327
15,972
Total equity
1,113,063
1,101,871
152,607
Total liabilities, mezzanine equity and
equity
1,753,044
1,764,829
244,426
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Three months ended March
31,
Year ended March 31,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net cash provided by operating
activities
31,401
23,340
3,233
199,752
182,593
25,289
Net cash (used in) provided by investing
activities
(26,808)
20,267
2,807
(135,506)
(21,824)
(3,023)
Net cash used in financing activities
(9,319)
(54,012)
(7,481)
(65,619)
(108,244)
(14,992)
Effect of exchange rate changes on cash
and cash equivalents, restricted cash and escrow receivables
(1,201)
1,900
263
3,530
4,389
608
(Decrease) Increase in cash and cash
equivalents, restricted cash and escrow receivables
(5,927)
(8,505)
(1,178)
2,157
56,914
7,882
Cash and cash equivalents, restricted cash
and escrow receivables at beginning of period
235,437
294,929
40,847
227,353
229,510
31,787
Cash and cash equivalents, restricted cash
and escrow receivables at end of period
229,510
286,424
39,669
229,510
286,424
39,669
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 March
31,
Year ended March 31,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net income
21,996
919
127
65,573
71,332
9,879
Adjustments to reconcile net income to
adjusted EBITA and adjusted EBITDA:
Interest and investment income, net
(10,496)
5,702
790
11,071
9,964
1,380
Interest expense
1,736
2,177
301
5,918
7,947
1,101
Other income, net
(1,308)
(2,963)
(410)
(5,823)
(6,157)
(853)
Income tax expenses
3,758
5,722
793
15,549
22,529
3,120
Share of results of equity method
investees
(446)
3,208
444
8,063
7,735
1,072
Income from operations
15,240
14,765
2,045
100,351
113,350
15,699
Share-based compensation expense
7,546
7,123
987
30,831
18,546
2,569
Amortization and impairment of intangible
assets
2,494
2,081
288
13,504
21,592
2,990
Impairment of goodwill, and others
—
—
—
3,225
11,540
1,598
Adjusted EBITA
25,280
23,969
3,320
147,911
165,028
22,856
Depreciation and impairment of property
and equipment, and operating lease cost relating to land use
rights
6,843
6,838
947
27,799
26,640
3,690
Adjusted EBITDA
32,123
30,807
4,267
175,710
191,668
26,546
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 March
31,
Year ended March 31,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net income
21,996
919
127
65,573
71,332
9,879
Adjustments to reconcile net income to
non-GAAP net income:
Share-based compensation expense
7,546
7,123
987
30,831
18,546
2,569
Amortization and impairment of intangible
assets
2,494
2,081
288
13,504
21,592
2,990
(Gain) Loss on deemed disposals/disposals/
revaluation of investments
(11,804)
4,994
692
13,857
21,659
3,000
Impairment of goodwill and investments,
and others
7,290
10,657
1,476
24,862
33,679
4,664
Tax effects (1)
(147)
(1,356)
(188)
(7,248)
(9,329)
(1,291)
Non-GAAP net income
27,375
24,418
3,382
141,379
157,479
21,811
____________________
(1)
Tax effects primarily comprise
tax effects relating to 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 March
31,
Year ended March 31,
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
23,516
3,270
453
72,509
79,741
11,044
Dilution effect on earnings arising from
share-based awards operated by equity method investees and
subsidiaries
(29)
(15)
(2)
(38)
(228)
(32)
Net income attributable to ordinary
shareholders – diluted
23,487
3,255
451
72,471
79,513
11,012
Non-GAAP adjustments to net income
attributable to ordinary shareholders(1)
4,469
22,073
3,057
71,520
78,846
10,920
Non-GAAP net income attributable
to ordinary shareholders for computing non-GAAP diluted earnings
per share/ADS
27,956
25,328
3,508
143,991
158,359
21,932
Weighted average number of shares on a
diluted basis for computing non-GAAP diluted earnings per share/ADS
(million shares)(2)
20,882
19,980
21,114
20,359
Diluted earnings per
share(2)(3)
1.12
0.16
0.02
3.43
3.91
0.54
Non-GAAP diluted earnings per
share(2)(4)
1.34
1.27
0.18
6.82
7.78
1.08
Diluted earnings per ADS(2)(3)
9.00
1.30
0.18
27.46
31.24
4.33
Non-GAAP diluted earnings per
ADS(2)(4)
10.71
10.14
1.40
54.56
62.23
8.62
____________________
(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 March
31,
Year ended March 31,
2023
2024
2023
2024
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net cash provided by operating
activities
31,401
23,340
3,233
199,752
182,593
25,289
Less: Purchase of property and equipment
(excluding land use rights and construction in progress relating to
office campuses)
(2,513)
(10,174)
(1,410)
(30,373)
(27,579)
(3,820)
Less: Purchase of intangible assets
(excluding those acquired through acquisitions)
—
—
—
(22)
(842)
(116)
Less: Changes in the buyer protection fund
deposits
3,379
2,195
304
2,306
2,038
282
Free cash flow
32,267
15,361
2,127
171,663
156,210
21,635
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240513641121/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
Alibaba (NYSE:BABA)
過去 株価チャート
から 5 2024 まで 6 2024
Alibaba (NYSE:BABA)
過去 株価チャート
から 6 2023 まで 6 2024