Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD
Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”)
today announced its financial results for the quarter ended
December 31, 2023.
“We delivered a solid quarter as we are executing our focused
strategies across the organization. Our top priority is to reignite
the growth of our core businesses, e-commerce and cloud computing.
We will step up investment to improve users’ core experiences to
drive growth in Taobao and Tmall Group and strengthen market
leadership in the coming year. We will also focus our resources on
developing public cloud products and sustaining the strong growth
momentum in international commerce business,” said Eddie Wu, Chief
Executive Officer of Alibaba Group.
“Alibaba Group delivered a healthy quarter with revenue growth
of 5% year-over-year. We increased our investment in strategic
priorities and improved shareholder return by leveraging our strong
balance sheet and cash flow. Our board of directors approved
an increase of US$25 billion to our share repurchase program,
demonstrating our confidence in the outlook of our business and
cash flow. Our consistent share repurchase has also reduced
outstanding share count while achieving EPS and cash flow per share
accretion,” said Toby Xu, Chief Financial Officer of Alibaba
Group.
BUSINESS HIGHLIGHTS
In the quarter ended December 31,
2023:
- Revenue was RMB260,348 million (US$36,669 million), an
increase of 5% year-over-year.
- Income from operations was RMB22,511 million (US$3,171
million), a decrease of 36% year-over-year. The year-over-year
decrease was primarily attributable to impairment of intangible
assets of Sun Art and impairment of goodwill of Youku. Adjusted
EBITA, a non-GAAP measurement (excluding share-based
compensation expense, impairment of intangible assets and goodwill
and certain other items), increased 2% year-over-year to RMB52,843
million (US$7,443 million).
- Net income attributable to ordinary shareholders was
RMB14,433 million (US$2,033 million). Net income was
RMB10,717 million (US$1,509 million), a decrease of 77% or
RMB35,029 million year-over-year, primarily attributable to
mark-to-market changes from our equity investments and the decrease
in income from operations due to the impairment as mentioned above.
Excluding share-based compensation expense, gains/losses of
investments, impairment of intangible assets and goodwill, and
certain other items, non-GAAP net income in the quarter
ended December 31, 2023 was RMB47,951 million (US$6,754 million), a
decrease of 4% compared to RMB49,932 million in the same quarter of
2022.
- Diluted earnings per ADS was RMB5.65 (US$0.80) and
diluted earnings per share was RMB0.71 (US$0.10 or
HK$0.78). Non-GAAP diluted earnings per ADS was
RMB18.97 (US$2.67), a decrease of 2% year-over-year and non-GAAP
diluted earnings per share was RMB2.37 (US$0.33 or HK$2.62), a
decrease of 2% year-over-year.
- Net cash provided by operating activities was RMB64,716
million (US$9,115 million), a decrease of 26% compared to RMB87,370
million in the same quarter of 2022. Free cash flow, a
non-GAAP measurement of liquidity, was RMB56,540 million (US$7,963
million), a decrease of 31% compared to RMB81,514 million in the
same quarter of 2022. The decrease in free cash flow was attributed
to increased capex and several one-time factors including timing of
income tax payments and working capital changes related to several
of our businesses.
BUSINESS AND STRATEGIC UPDATES
Taobao and Tmall Group
We are in the process of revitalizing Taobao and Tmall Group and
positioning it for future growth. Our growth strategy is to put
users first, build ecosystem for brands and merchants to thrive on
our platform, and realize technology-driven innovation. We are
committed to building an e-commerce ecosystem where brands,
merchants and manufacturers operate with high efficiency, thereby
providing multi-tiered Chinese consumers with good products and
services at attractive prices. In December 2023, we appointed a new
management team to execute Taobao and Tmall Group’s strategy and
drive business growth through technological innovation.
For the quarter ended December 31, 2023, revenue from Taobao and
Tmall Group was RMB129,070 million (US$18,179 million), a growth of
2% year-over-year. During the quarter, online GMV achieved healthy
growth year-over-year, with the number of transacting buyers and
order volume growing strongly, partly offset by decrease in average
order value. Under our user engagement and price-competitive
strategies, we continued to increase interactive content and
broaden the assortment of value-for-money products. Additionally,
we continued our efforts to onboard a wider range of brands and
merchants. The number of merchants operating on our platform during
the quarter continued to grow at double digits year-over-year, and
this double-digit growth trend has sustained over the past four
quarters.
Following a successful 11.11 Global Shopping Festival, order
volume grew double digits year-over-year during the second half of
the quarter. This reflected increasing consumer demand and
willingness to make purchases on our platform driven by our
price-competitive strategy.
On the other hand, we have been successful in retaining and
growing premium shoppers as the number of 88VIP members continued
to increase double digits year-over-year, surpassing 32
million.
Cloud Intelligence Group
For the quarter ended December 31, 2023, revenue from Cloud
Intelligence Group was RMB28,066 million (US$3,953 million), a
growth of 3% year-over-year. We continue to improve revenue quality
by reducing the revenue from low-margin project-based contracts. On
the other hand, revenue from public cloud products and services
grew healthily which contributed to profitability improvement.
Recent highlights of our proprietary products and technology
include:
- Elastic Compute: In January 2024, Alibaba Cloud unveiled
its newest general-purpose ECS instance g8i, which significantly
boosts overall performance and AI inferencing capabilities.
- Database: In the 2023 Gartner® Magic Quadrant™ for Cloud
Database Management Systems report, Alibaba Cloud was named a
Leader for the fourth year in a row.
Alibaba International Digital Commerce
Group (“AIDC”)
For the quarter ended December 31, 2023, revenue from AIDC grew
44% year-over-year to RMB28,516 million (US$4,016 million), and the
combined orders of AIDC grew 24% year-over-year. The strong
performance was driven by solid growth across all of AIDC’s retail
platforms, especially from the cross-border AliExpress Choice
business. Our cross-border businesses exhibited rapid
year-over-year growth in response to increasing global demand for
high-quality products at attractive prices. To sustain this
momentum and provide differentiated services to customers, we
increased investments during this quarter and will continue to
invest in further growth.
During the quarter, AliExpress delivered over 60% year-over-year
order growth, driven by Choice, which provides an enhanced
experience to consumers by combining better product selection,
price and quality with speed of logistics and great customer
support. Choice represented about half of AliExpress’ total orders
in January 2024 and continues to deliver rapid order growth.
During the quarter, Trendyol continued its robust double-digit
order growth. While maintaining its leading e-commerce position in
Türkiye, Trendyol has further extended its operations into the
Middle East with a wide range of merchandise as well as speedy and
reliable logistics experience.
Lazada continues to focus on optimizing its operating
efficiency. With further increased monetization and decreased
logistics costs, Lazada’s loss per order continued to narrow
year-over-year during the quarter.
Cainiao Smart Logistics Network Limited
(“Cainiao”)
For the quarter ended December 31, 2023, revenue from Cainiao
grew 24% year-over-year to RMB28,476 million (US$4,011 million),
primarily driven by revenue from cross-border fulfillment
solutions.
Cainiao continues to execute its strategy of building a global
smart logistics network, reinforcing comprehensive end-to-end
capabilities in first-mile pick-up, line haul, customs clearance,
sortation, and last-mile delivery. To support cross-border business
development, with the upgrade of end-to-end capabilities, Cainiao
further expanded its premium 5-day delivery service coverage,
adding two more countries during the quarter. The order volume for
the premium 5-day delivery service achieved robust triple-digit
quarter-over-quarter growth.
Local Services Group
For the quarter ended December 31, 2023, revenue from Local
Services Group grew 13% year-over-year to RMB15,160 million
(US$2,135 million), driven by healthy growth of Ele.me and rapid
growth of Amap. During this quarter, order growth of Local Services
Group exceeded 20% year-over-year. Local Services Group’s annual
active consumers reached over 390 million and their annual
purchasing frequency grew strongly year-over-year for the twelve
months ended December 31, 2023. For this quarter, its losses
continued to narrow driven by improving business scale and
efficiency.
Digital Media and Entertainment
Group
During the quarter ended December 31, 2023, revenue of Digital
Media and Entertainment Group was RMB5,040 million (US$710
million), an increase of 18% year-over-year, driven by strong
revenue growth of offline entertainment businesses of Alibaba
Pictures. During the quarter, Damai, a subsidiary of Alibaba
Pictures, consolidated its industry-leading position by servicing
almost all the major concerts in China, which contributed to rapid
GMV growth year-over-year. Total box office of movies produced,
promoted and distributed by Alibaba Pictures’ movie segment
accounted for more than half of China’s total box office during the
quarter.
Updates on ESG
Initiatives
Progress in Decarbonization
We continue to accelerate our transition to clean energy. In
November 2023, Bloomberg New Energy Finance released the “China's
Top Clean Energy Buyers and Sellers in 2023.” Alibaba Group, with a
green electricity transaction volume of 1,610 gigawatt-hours,
became the national leader for green electricity procurement for
the first time.
In November 2023, Alibaba Group was the first Asian Internet
technology company to join the World Business Council for
Sustainable Development (WBCSD), a group of over 200 businesses, to
support WBCSD’s drive to make global value chains more sustainable.
At COP28, Alibaba Group together with WBCSD and other corporate
members, advocated for “Scope 3+” carbon reduction actions by
promoting the "Guidance on Avoided Emissions" report.
Upsize of Share Repurchase
Program
As previously announced, during the quarter ended December 31,
2023, we repurchased a total of 292.7 million ordinary shares
(equivalent of 36.6 million ADSs) for a total of US$2.9 billion,
and a total of 897.9 million ordinary shares (equivalent of 112.2
million ADSs) for a total of US$9.5 billion during the 2023
calendar year. As of December 31, 2023, we had 20.0 billion
ordinary shares (equivalent of 2.5 billion ADSs) outstanding. Our
share repurchase program resulted in a net reduction of 3.3% in our
outstanding shares in the 2023 calendar year after accounting for
shares issued under our ESOP.
Our board of directors has approved an increase of US$25 billion
to our share repurchase program through the end of March 2027.
Following this upsize, we currently have US$35.3 billion available
under our share repurchase program through the next three fiscal
years. We have undertaken to update investors on our share
repurchases immediately after the end of each quarter with the next
update expected to be published in early April.
DECEMBER QUARTER SUMMARY FINANCIAL
RESULTS
Three months ended December
31,
2022
2023
RMB
RMB
US$
YoY % Change
(in millions, except
percentages and per share amounts)
Revenue
247,756
260,348
36,669
5%
Income from operations
35,031
22,511
3,171
(36)%(2)
Operating margin
14%
9%
Adjusted EBITDA(1)
59,162
59,572
8,391
1%(3)
Adjusted EBITDA margin(1)
24%
23%
Adjusted EBITA(1)
52,048
52,843
7,443
2%(3)
Adjusted EBITA margin(1)
21%
20%
Net income
45,746
10,717
1,509
(77)%(4)
Net income attributable to ordinary
shareholders
46,815
14,433
2,033
(69)%(4)
Non-GAAP net income(1)
49,932
47,951
6,754
(4)%(4)
Diluted earnings per share(5)
2.24
0.71
0.10
(68)%(4)(6)
Diluted earnings per ADS(5)
17.91
5.65
0.80
(68)%(4)(6)
Non-GAAP diluted earnings per
share(1)(5)
2.41
2.37
0.33
(2)%(4)(6)
Non-GAAP diluted earnings per
ADS(1)(5)
19.26
18.97
2.67
(2)%(4)(6)
____________________
(1)
See the sections entitled
“Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP
Measures to the Nearest Comparable U.S. GAAP Measures” for more
information about the non-GAAP measures referred to within this
results announcement.
(2)
The year-over-year decrease was
primarily attributable to impairment of intangible assets of Sun
Art and impairment of goodwill of Youku.
(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
certain businesses.
(4)
The year-over-year decrease in
net income was primarily attributable to mark-to-market changes
from our equity investments and the decrease in income from
operations due to the impairment as mentioned above. 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.
DECEMBER QUARTER SEGMENT RESULTS
Revenue for the quarter ended December 31, 2023 was RMB260,348
million (US$36,669 million), an increase of 5% year-over-year
compared to RMB247,756 million in the same quarter of 2022.
Starting from the quarter ended June 30, 2023, we have
implemented a new organizational structure which includes six major
business groups and various other businesses (the
“Reorganization”). Our segment reporting has been updated to
reflect our Reorganization and how our chief operating decision
maker (“CODM”) review information under our new structure.
The following table sets forth a breakdown of our revenue by
segment for the periods indicated(1):
Three months ended December
31,
2022
2023
RMB
RMB
US$
YoY % Change
(in millions, except
percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management
91,694
92,113
12,974
0%
- Direct sales and others(2)
31,042
31,649
4,458
2%
122,736
123,762
17,432
1%
China commerce wholesale
4,329
5,308
747
23%
Total Taobao and Tmall Group
127,065
129,070
18,179
2%
Cloud Intelligence Group
27,364
28,066
3,953
3%
Alibaba International Digital Commerce
Group:
International commerce retail
14,954
23,260
3,276
56%
International commerce wholesale
4,870
5,256
740
8%
Total Alibaba International Digital
Commerce Group
19,824
28,516
4,016
44%
Cainiao Smart Logistics Network
Limited
23,023
28,476
4,011
24%
Local Services Group
13,397
15,160
2,135
13%
Digital Media and Entertainment Group
4,261
5,040
710
18%
All others(3)
50,334
47,023
6,623
(7)%
Total segment revenue
265,268
281,351
39,627
6%
Unallocated
225
374
53
Inter-segment elimination
(17,737)
(21,377)
(3,011)
Consolidated revenue
247,756
260,348
36,669
5%
Nine months ended December
31,
2022
2023
RMB
RMB
US$
YoY % Change
(in millions, except
percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management
230,996
240,435
33,864
4%
- Direct sales and others(2)
78,599
85,715
12,073
9%
309,595
326,150
45,937
5%
China commerce wholesale
13,722
15,527
2,187
13%
Total Taobao and Tmall Group
323,317
341,677
48,124
6%
Cloud Intelligence Group
78,755
80,779
11,377
3%
Alibaba International Digital Commerce
Group:
International commerce retail
36,686
59,376
8,363
62%
International commerce wholesale
14,905
15,774
2,222
6%
Total Alibaba International Digital
Commerce Group
51,591
75,150
10,585
46%
Cainiao Smart Logistics Network
Limited
58,597
74,463
10,488
27%
Local Services Group
37,909
45,174
6,363
19%
Digital Media and Entertainment Group
13,455
16,200
2,282
20%
All others(3)
143,812
140,873
19,841
(2)%
Total segment revenue
707,436
774,316
109,060
9%
Unallocated
634
900
127
Inter-segment elimination
(47,583)
(55,922)
(7,877)
Consolidated revenue
660,487
719,294
101,310
9%
____________________
(1)
During the nine months ended
December 31, 2023, 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 December
31,
2022
2023
RMB
RMB
US$
YoY % Change (4)
(in millions, except
percentages)
Taobao and Tmall Group
59,245
59,930
8,441
1%
Cloud Intelligence Group
1,269
2,364
333
86%
Alibaba International Digital Commerce
Group
(645)
(3,146)
(443)
(388)%
Cainiao Smart Logistics Network
Limited
(12)
961
135
N/A
Local Services Group
(2,923)
(2,068)
(291)
29%
Digital Media and Entertainment Group
(391)
(517)
(73)
(32)%
All others(2)
(1,698)
(3,172)
(447)
(87)%
Total segment adjusted EBITA
54,845
54,352
7,655
(1)%
Unallocated (3)
(2,173)
(808)
(114)
Inter-segment elimination
(624)
(701)
(98)
Consolidated adjusted EBITA
52,048
52,843
7,443
2%
Less: Share-based compensation expense
(8,773)
(6,222)
(876)
Less: Amortization and impairment of
intangible assets
(5,530)
(14,601)
(2,056)
Less: Impairment of goodwill, and
others
(2,714)
(9,509)
(1,340)
Income from operations
35,031
22,511
3,171
(36)%
Nine months ended December
31,
2022
2023
RMB
RMB
US$
YoY % Change (4)
(in millions, except
percentages)
Taobao and Tmall Group
150,099
156,326
22,018
4%
Cloud Intelligence Group
3,114
4,689
660
51%
Alibaba International Digital Commerce
Group
(2,773)
(3,950)
(556)
(42)%
Cainiao Smart Logistics Network
Limited
(72)
2,744
387
N/A
Local Services Group
(9,085)
(6,614)
(932)
27%
Digital Media and Entertainment Group
(1,660)
(655)
(92)
61%
All others(2)
(7,533)
(6,342)
(893)
16%
Total segment adjusted EBITA
132,090
146,198
20,592
11%
Unallocated (3)
(7,779)
(3,290)
(463)
Inter-segment elimination
(1,680)
(1,849)
(261)
Consolidated adjusted EBITA
122,631
141,059
19,868
15%
Less: Share-based compensation expense
(23,285)
(11,423)
(1,609)
Less: Amortization and impairment of
intangible assets
(11,010)
(19,511)
(2,748)
Less: Impairment of goodwill, and
others
(3,225)
(11,540)
(1,626)
Income from operations
85,111
98,585
13,885
16%
____________________
(1)
During the nine months ended
December 31, 2023, our segment reporting has been updated to
reflect our Reorganization and the reclassification of the result
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 December 31, 2023 was
RMB123,762 million (US$17,432 million), an increase of 1% compared
to RMB122,736 million in the same quarter of 2022. Customer
management revenue remained stable year-over-year, primarily due to
healthy growth in online GMV generated on Taobao and Tmall,
excluding unpaid orders, partly offset by decline in overall take
rate. The overall take rate decreased slightly year-over-year
mainly because the increase in GMV came from Taobao merchants.
Direct sales and others revenue under China commerce retail
business in the quarter ended December 31, 2023 was RMB31,649
million (US$4,458 million), an increase of 2% compared to RMB31,042
million in the same quarter of 2022.
- China Commerce Wholesale Business Revenue from our China
commerce wholesale business in the quarter ended December 31, 2023
was RMB5,308 million (US$747 million), an increase of 23% compared
to RMB4,329 million in the same quarter of 2022, 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 1% to RMB59,930 million (US$8,441 million) in the
quarter ended December 31, 2023, compared to RMB59,245 million in
the same quarter of 2022. The increase was primarily due to
narrowing losses in certain businesses, partly offset by an
increase in investment in content, user acquisition and retention
of Taobao app, as well as technological innovation.
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was
RMB28,066 million (US$3,953 million) in the quarter ended December
31, 2023, an increase of 3% compared to RMB27,364 million in the
same quarter of 2022. Year-over-year revenue growth was mainly
driven by Alibaba-consolidated businesses. Revenue excluding
Alibaba-consolidated businesses decreased year-over-year, primarily
due to the decrease in revenue from low-margin project-based
contracts as a result of continued effort to improve revenue
quality. However, revenue from our public cloud products and
services experienced healthy year-over-year growth.
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA
increased by 86% to RMB2,364 million (US$333 million) in the
quarter ended December 31, 2023, compared to RMB1,269 million in
the same quarter of 2022, 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
December 31, 2023 was RMB23,260 million (US$3,276 million), an
increase of 56% compared to RMB14,954 million in the same quarter
of 2022. The increase in revenue was primarily due to solid
combined order growth of AIDC’s retail businesses driven by the
strong performance of all its major retail platforms, the 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
December 31, 2023 was RMB5,256 million (US$740 million), an
increase of 8% compared to RMB4,870 million in the same quarter of
2022. 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 RMB3,146 million (US$443 million) in
the quarter ended December 31, 2023, compared to a loss of RMB645
million in the same quarter of 2022. Losses increased
year-over-year primarily because of increased investment in
businesses including AliExpress Choice and Trendyol’s international
business, partly offset by improvement in monetization.
Cainiao Smart Logistics Network
Limited
(i) Segment revenue
Revenue from Cainiao Smart Logistics Network
Limited was RMB28,476 million (US$4,011 million) in the quarter
ended December 31, 2023, an increase of 24% compared to RMB23,023
million in the same quarter of 2022, primarily contributed by the
increase in revenue from cross-border fulfillment solutions.
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited
adjusted EBITA was a profit of RMB961 million (US$135 million) in
the quarter ended December 31, 2023, compared to a loss of RMB12
million in the same quarter of 2022. The year-over-year increase
reflected economies of scale that leads to cost optimization as
well as optimized operating expenditure spending. This also
reflected Cainiao’s continuous effort in cost optimization in
line-haul transportation and last-mile delivery.
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was
RMB15,160 million (US$2,135 million) in the quarter ended December
31, 2023, an increase of 13% compared to RMB13,397 million in the
same quarter of 2022, primarily due to the order growth of Amap and
Ele.me.
(ii) Segment adjusted EBITA
Local Services Group adjusted EBITA was a
loss of RMB2,068 million (US$291 million) in the quarter ended
December 31, 2023, compared to a loss of RMB2,923 million in the
same quarter of 2022, primarily due to the continued narrowing of
loss from our “To-Home” business driven by Ele.me’s improved unit
economics and increasing scale.
Digital Media and Entertainment
Group
(i) Segment revenue
Revenue from Digital Media and Entertainment
Group was RMB5,040 million (US$710 million) in the quarter ended
December 31, 2023, an increase of 18% compared to RMB4,261 million
in the same quarter of 2022, 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 the quarter ended December 31, 2023 was a loss of
RMB517 million (US$73 million), compared to a loss of RMB391
million in the same quarter of 2022. Losses increased
year-over-year primarily due to the increased losses of Youku.
All Others
(i) Segment revenue
Revenue from All others segment was RMB47,023
million (US$6,623 million) in the quarter ended December 31, 2023,
a decrease of 7% compared to RMB50,334 million in the same quarter
of 2022, mainly due to the decrease in revenue from Sun Art, driven
by the scale down of supply chain business and the decrease in
ticket size.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the
quarter ended December 31, 2023 was a loss of RMB3,172 million
(US$447 million), compared to a loss of RMB1,698 million in the
same quarter of 2022, primarily due to an increase in
year-over-year loss from Sun Art due to scale down of certain of
its businesses.
DECEMBER QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and
expenses, share-based compensation expense, and costs and expenses
excluding share-based compensation expense by function for the
periods indicated:
Three months ended December
31,
% of Revenue YoY
change
2022
2023
RMB
% of Revenue
RMB
US$
% of Revenue
(in millions, except
percentages)
Costs and expenses:
Cost of revenue
150,005
61%
156,214
22,002
60%
(1)%
Product development expenses
13,521
6%
13,488
1,900
5%
(1)%
Sales and marketing expenses
30,628
12%
33,783
4,758
13%
1%
General and administrative expenses
10,327
4%
11,261
1,586
4%
0%
Amortization and impairment of intangible
assets
5,530
2%
14,601
2,056
6%
4%
Impairment of goodwill
2,714
1%
8,490
1,196
3%
2%
Total costs and expenses
212,725
86%
237,837
33,498
91%
5%
Share-based compensation
expense:
Cost of revenue
1,660
1%
1,184
167
0%
(1)%
Product development expenses
3,755
2%
2,822
397
1%
(1)%
Sales and marketing expenses
1,081
0%
805
113
0%
0%
General and administrative expenses
2,277
1%
1,411
199
1%
0%
Total share-based compensation expense
8,773
4%
6,222
876
2%
(2)%
Costs and expenses excluding
share-based compensation expense:
Cost of revenue
148,345
60%
155,030
21,835
60%
0%
Product development expenses
9,766
4%
10,666
1,503
4%
0%
Sales and marketing expenses
29,547
12%
32,978
4,645
13%
1%
General and administrative expenses
8,050
3%
9,850
1,387
3%
0%
Amortization and impairment of intangible
assets
5,530
2%
14,601
2,056
6%
4%
Impairment of goodwill
2,714
1%
8,490
1,196
3%
2%
Total costs and expenses excluding
share-based compensation expense
203,952
82%
231,615
32,622
89%
7%
Cost of revenue – Cost of revenue in the quarter ended
December 31, 2023 was RMB156,214 million (US$22,002 million), or
60% of revenue, compared to RMB150,005 million, or 61% of revenue,
in the same quarter of 2022. Without the effect of share-based
compensation expense, cost of revenue as a percentage of revenue
would have remained stable at 60% in the quarter ended December 31,
2023 compared to the same quarter last year.
Product development expenses – Product development
expenses in the quarter ended December 31, 2023 were RMB13,488
million (US$1,900 million), or 5% of revenue, compared to RMB13,521
million, or 6% of revenue, in the same quarter of 2022. Without the
effect of share-based compensation expense, product development
expenses as a percentage of revenue would have remained stable at
4% in the quarter ended December 31, 2023 compared to the same
quarter last year.
Sales and marketing expenses – Sales and marketing
expenses in the quarter ended December 31, 2023 were RMB33,783
million (US$4,758 million), or 13% of revenue, compared to
RMB30,628 million, or 12% of revenue, in the same quarter of 2022.
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 December 31, 2022 to 13% in the
quarter ended December 31, 2023.
General and administrative expenses – General and
administrative expenses in the quarter ended December 31, 2023 were
RMB11,261 million (US$1,586 million), or 4% of revenue, compared to
RMB10,327 million, or 4% of revenue, in the same quarter of 2022.
Without the effect of share-based compensation expense, general and
administrative expenses as a percentage of revenue would have
remained stable at 3% in the quarter ended December 31, 2023
compared to the same quarter last year.
Share-based compensation expense – Total share-based
compensation expense included in the cost and expense items above
in the quarter ended December 31, 2023 was RMB6,222 million (US$876
million), compared to RMB8,773 million in the same quarter of 2022.
Share-based compensation expense as a percentage of revenue
decreased from 4% in the quarter ended December 31, 2022 to 2% in
the quarter ended December 31, 2023.
The following table sets forth our analysis of share-based
compensation expense for the quarters indicated by type of
share-based awards:
Three months ended December
31,
2022
2023
RMB
% of Revenue
RMB
US$
% of Revenue
YoY %
Change
(in millions, except
percentages)
By type of awards:
Alibaba Group share-based awards(1)
6,841
3%
4,517
636
2%
(34)%
Ant Group share-based awards(2)
354
0%
33
5
0%
(91)%
Others(3)
1,578
1%
1,672
235
0%
6%
Total share-based compensation expense
8,773
4%
6,222
876
2%
(29)%
____________________
(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 December 31, 2023
compared to the same quarter of 2022. 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 December 31, 2023 was RMB14,601 million (US$2,056 million),
an increase of 164% from RMB5,530 million in the same quarter of
2022. During the quarter ended December 31, 2023, an impairment of
intangible assets of RMB12,084 million (US$1,702 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 the quarter ended
December 31, 2022, 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 the
quarter ended December 31, 2023 was RMB8,490 million (US$1,196
million), an increase of 213%, from RMB2,714 million in the same
quarter of 2022. Impairment recorded in the quarter ended December
31, 2023 represents the impairment of goodwill relating to
Youku.
Income from operations and operating
margin
Income from operations in the quarter ended December 31, 2023
was RMB22,511 million (US$3,171 million), or 9% of revenue, a
decrease of 36% compared to RMB35,031 million, or 14% of revenue,
in the same quarter of 2022, primarily attributable to impairment
of intangible assets of Sun Art and impairment of goodwill of
Youku.
Adjusted EBITDA and Adjusted
EBITA
Adjusted EBITDA increased 1% year-over-year to RMB59,572 million
(US$8,391 million) in the quarter ended December 31, 2023, compared
to RMB59,162 million in the same quarter of 2022. Adjusted EBITA
increased 2% year-over-year to RMB52,843 million (US$7,443 million)
in the quarter ended December 31, 2023, compared to RMB52,048
million in the same quarter of 2022, primarily contributed by
revenue growth and improved operating efficiency that was partly
offset by the increase in investments in certain 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 “December Quarter Segment Results” above.
Interest and investment income,
net
Interest and investment income, net in the quarter ended
December 31, 2023 was a loss of RMB3,500 million (US$493 million),
compared to a gain of RMB15,516 million in the same quarter of
2022, primarily due to mark-to-market changes from our equity
investments.
The above-mentioned gains and losses were excluded from our
non-GAAP net income.
Other income, net
Other income, net in the quarter ended December 31, 2023 was
RMB439 million (US$62 million), compared to RMB1,462 million in the
same quarter of 2022. The year-over-year decrease was primarily due
to a change in China VAT tax rule which reduced input VAT
super-credit rate from 10% to 5%.
Income tax expenses
Income tax expenses in the quarter ended December 31, 2023 were
RMB4,988 million (US$702 million), compared to RMB3,820 million in
the same quarter of 2022.
Share of results of equity method
investees
Share of results of equity method investees in the quarter ended
December 31, 2023 was a loss of RMB1,613 million (US$228 million),
compared to a loss of RMB893 million in the same quarter of 2022.
The following table sets forth a breakdown of share of results of
equity method investees for the periods indicated:
Three months ended December
31,
2022
2023
RMB
RMB
US$
(in millions)
Share of profit (loss) of equity method
investees
- Ant Group
1,005
80
11
- Others
(807)
(864)
(122)
Impairment loss
(132)
(11)
(2)
Others(1)
(959)
(818)
(115)
Total
(893)
(1,613)
(228)
____________________
(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 was mainly due to the increase in Ant Group’s
net investment loss, whilst its operating profit was largely
flat.
Net income and Non-GAAP net
income
Our net income in the quarter ended December 31, 2023 was
RMB10,717 million (US$1,509 million), compared to RMB45,746 million
in the same quarter of 2022, which was primarily attributable to
mark-to-market changes from our equity investments and the decrease
in income from operations due to impairment.
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 the quarter ended
December 31, 2023 was RMB47,951 million (US$6,754 million), a
decrease of 4% compared to RMB49,932 million in the same quarter of
2022. 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 December 31, 2023 was RMB14,433 million (US$2,033 million),
compared to RMB46,815 million in the same quarter of 2022, which
was primarily attributable to mark-to-market changes from our
equity investments and the decrease in income from operations due
to impairment, partly offset by an increase in impairment of
intangible assets attributable to noncontrolling interests.
Diluted earnings per ADS/share and
non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended December 31, 2023
was RMB5.65 (US$0.80), compared to RMB17.91 in the same quarter in
2022. 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 December 31, 2023 was RMB18.97 (US$2.67), a decrease
of 2% compared to RMB19.26 in the same quarter of 2022.
Diluted earnings per share in the quarter ended December 31,
2023 was RMB0.71 (US$0.10 or HK$0.78), compared to RMB2.24 in the
same quarter of 2022. 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 December 31, 2023 was RMB2.37 (US$0.33 or
HK$2.62), a decrease of 2% compared to RMB2.41 in the same quarter
of 2022.
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 December 31, 2023, cash and cash equivalents, short-term
investments and other treasury investments included in equity
securities and other investments on the consolidated balance
sheets, were RMB652,962 million (US$91,968 million), compared to
RMB560,314 million as of March 31, 2023. Other treasury investments
mainly comprise of investments in fixed deposits and certificates
of deposits with original maturities over one year for treasury
purposes. The increase in cash and cash equivalents, short-term
investments and other treasury investments during the nine months
ended December 31, 2023 was primarily due to free cash flow
generated from operations of RMB140,849 million (US$19,838
million), effect of exchange gain of RMB8,949 million (US$1,260
million) mainly due to the appreciation of the U.S. dollar against
Renminbi, and net cash provided by investment and acquisition
activities of RMB3,289 million (US$463 million), partly offset by
cash used in repurchase of ordinary shares of RMB54,731 million
(US$7,709 million) and repayment of unsecured senior notes of
US$700 million.
Net cash provided by operating
activities and free cash flow
During the quarter ended December 31, 2023, net cash provided by
operating activities was RMB64,716 million (US$9,115 million), a
decrease of 26% compared to RMB87,370 million in the same quarter
of 2022. Free cash flow, a non-GAAP measurement of liquidity, was
RMB56,540 million (US$7,963 million), a decrease of 31% compared to
RMB81,514 million in the quarter ended December 31, 2022. The
decrease in free cash flow was attributed to increased capex and
several one-time factors including timing of income tax payments
and working capital changes related to several of our businesses. A
reconciliation of net cash provided by operating activities to free
cash flow is included at the end of this results announcement.
Net cash used in investing
activities
During the quarter ended December 31, 2023, net cash used in
investing activities of RMB30,925 million (US$4,356 million)
primarily reflected (i) an increase in other treasury investments
by RMB14,559 million (US$2,051 million), (ii) capital expenditure
of RMB8,857 million (US$1,247 million), (iii) an increase in
short-term investments by RMB5,477 million (US$771 million), and
(iv) cash outflow of RMB4,833 million (US$680 million) for
investment and acquisition activities. These cash outflows were
partially offset by cash inflow of RMB3,333 million (US$469
million) from disposal of investments.
Net cash used in financing
activities
During the quarter ended December 31, 2023, net cash used in
financing activities of RMB17,214 million (US$2,424 million)
primarily reflected cash used in repurchase of ordinary shares of
RMB20,706 million (US$2,916 million), partially offset by net
proceeds from bank borrowings of RMB2,955 million (US$416
million).
Employees
As of December 31, 2023, we had a total of 219,260 employees,
compared to 224,955 as of September 30, 2023.
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group’s management will hold a conference call to
discuss the financial results at 7:30 a.m. U.S. Eastern Time (8:30
p.m. Hong Kong Time) on Wednesday, February 7, 2024.
All participants must pre-register to join this conference call
using the Participant Registration link below: English:
https://s1.c-conf.com/diamondpass/10035621-gh7t8u.html Chinese:
https://s1.c-conf.com/diamondpass/10035625-fh86y7.html
Upon registration, each participant will receive details for the
conference call, including dial-in numbers, conference call
passcode and a unique access PIN. To join the conference, please
dial the number provided, enter the passcode followed by your PIN,
and you will join the conference.
A live webcast of the earnings conference call can be accessed
at
https://www.alibabagroup.com/en-US/ir-financial-reports-quarterly-results.
An archived webcast will be available through the same link
following the call. A replay of the conference call will be
available for one week from the date of the conference (Dial-in
number: +1 855 883 1031; English conference PIN 10035621; Chinese
conference PIN 10035625).
Please visit Alibaba Group’s Investor Relations website at
https://www.alibabagroup.com/en-US/investor-relations on February
7, 2024 to view the earnings release and accompanying slides prior
to the conference call.
ABOUT ALIBABA GROUP
Alibaba Group’s mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba, and that it will be a good company that lasts for 102
years.
EXCHANGE RATE INFORMATION
This results announcement contains translations of certain
Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong
dollars (“HK$”) for the convenience of the reader. Unless otherwise
stated, all translations of RMB into US$ were made at RMB7.0999 to
US$1.00, the exchange rate on December 29, 2023 as set forth in the
H.10 statistical release of the Federal Reserve Board, and all
translations of RMB into HK$ were made at RMB0.90622 to HK$1.00,
the middle rate on December 29, 2023 as published by the People’s
Bank of China. The percentages stated in this announcement are
calculated based on the RMB amounts and there may be minor
differences due to rounding.
SAFE HARBOR STATEMENTS
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,”
“intend,” “seek,” “plan,” “believe,” “potential,” “continue,”
“ongoing,” “target,” “guidance,” “is/are likely to” and similar
statements. In addition, statements that are not historical facts,
including statements about Alibaba Group’s new organizational and
governance structure, Alibaba’s strategies and business 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 and the execution of spin-off or capital
raising plans of its subsidiaries; 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 and 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 and 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 December
31,
Nine months ended December
31,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
(in millions, except per share
data)
(in millions, except per share
data)
Revenue
247,756
260,348
36,669
660,487
719,294
101,310
Cost of revenue
(150,005)
(156,214)
(22,002)
(410,872)
(438,225)
(61,723)
Product development expenses
(13,521)
(13,488)
(1,900)
(42,864)
(38,171)
(5,376)
Sales and marketing expenses
(30,628)
(33,783)
(4,758)
(78,565)
(86,315)
(12,157)
General and administrative expenses
(10,327)
(11,261)
(1,586)
(29,351)
(27,966)
(3,939)
Amortization and impairment of intangible
assets
(5,530)
(14,601)
(2,056)
(11,010)
(19,511)
(2,748)
Impairment of goodwill
(2,714)
(8,490)
(1,196)
(2,714)
(10,521)
(1,482)
Income from operations
35,031
22,511
3,171
85,111
98,585
13,885
Interest and investment income, net
15,516
(3,500)
(493)
(21,567)
(4,262)
(600)
Interest expense
(1,550)
(2,132)
(301)
(4,182)
(5,770)
(813)
Other income, net
1,462
439
62
4,515
3,194
450
Income before income tax and share of
results of equity method investees
50,459
17,318
2,439
63,877
91,747
12,922
Income tax expenses
(3,820)
(4,988)
(702)
(11,791)
(16,807)
(2,367)
Share of results of equity method
investees
(893)
(1,613)
(228)
(8,509)
(4,527)
(638)
Net income
45,746
10,717
1,509
43,577
70,413
9,917
Net loss attributable to noncontrolling
interests
1,167
3,838
541
5,562
6,231
878
Net income attributable to Alibaba Group
Holding Limited
46,913
14,555
2,050
49,139
76,644
10,795
Accretion of mezzanine equity
(98)
(122)
(17)
(146)
(173)
(24)
Net income attributable to ordinary
shareholders
46,815
14,433
2,033
48,993
76,471
10,771
Earnings per share attributable to
ordinary shareholders(1)
Basic
2.25
0.72
0.10
2.32
3.76
0.53
Diluted
2.24
0.71
0.10
2.31
3.72
0.52
Earnings per ADS attributable to
ordinary shareholders(1)
Basic
18.00
5.73
0.81
18.59
30.04
4.24
Diluted
17.91
5.65
0.80
18.49
29.73
4.19
Weighted average number of shares used
in calculating earnings per ordinary share (million
shares)(1)
Basic
20,805
20,138
21,089
20,322
Diluted
20,912
20,321
21,190
20,485
____________________
(1)
Each ADS represents eight
ordinary shares.
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE
SHEETS
As of March 31,
As of December 31,
2023
2023
RMB
RMB
US$
(in millions)
Assets
Current assets:
Cash and cash equivalents
193,086
254,804
35,889
Short-term investments
326,492
300,419
42,313
Restricted cash and escrow receivables
36,424
40,125
5,651
Equity securities and other
investments
4,892
59,176
8,335
Prepayments, receivables and other
assets
137,072
152,718
21,510
Total current assets
697,966
807,242
113,698
Equity securities and other
investments
245,737
222,038
31,273
Prepayments, receivables and other
assets
110,926
115,035
16,202
Investment in equity method investees
207,380
207,166
29,179
Property and equipment, net
176,031
181,608
25,579
Intangible assets, net
46,913
28,355
3,994
Goodwill
268,091
259,522
36,553
Total assets
1,753,044
1,820,966
256,478
Liabilities, Mezzanine Equity and
Shareholders’ Equity
Current liabilities:
Current bank borrowings
7,466
10,396
1,464
Current unsecured senior notes
4,800
15,958
2,248
Income tax payable
12,543
11,017
1,552
Accrued expenses, accounts payable and
other liabilities
275,950
315,242
44,401
Merchant deposits
13,297
23,901
3,366
Deferred revenue and customer advances
71,295
72,240
10,175
Total current liabilities
385,351
448,754
63,206
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(CONTINUED)
As of March 31,
As of December 31,
2023
2023
RMB
RMB
US$
(in millions)
Deferred revenue
3,560
4,048
570
Deferred tax liabilities
61,745
53,583
7,547
Non-current bank borrowings
52,023
55,034
7,751
Non-current unsecured senior notes
97,065
84,538
11,907
Other liabilities
30,379
32,579
4,589
Total liabilities
630,123
678,536
95,570
Commitments and contingencies
Mezzanine equity
9,858
10,561
1,487
Shareholders’ equity:
Ordinary shares
1
1
—
Additional paid-in capital
416,880
406,515
57,256
Treasury shares at cost
(28,763
)
(27,905
)
(3,930
)
Subscription receivables
(49
)
—
—
Statutory reserves
12,977
14,555
2,050
Accumulated other comprehensive (loss)
income
(10,417
)
403
57
Retained earnings
599,028
617,021
86,906
Total shareholders’ equity
989,657
1,010,590
142,339
Noncontrolling interests
123,406
121,279
17,082
Total equity
1,113,063
1,131,869
159,421
Total liabilities, mezzanine equity and
equity
1,753,044
1,820,966
256,478
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Three months ended December
31,
Nine months ended December
31,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net cash provided by operating
activities
87,370
64,716
9,115
168,351
159,253
22,430
Net cash used in investing activities
(72,943
)
(30,925
)
(4,356
)
(108,698
)
(42,091
)
(5,928
)
Net cash used in financing activities
(23,808
)
(17,214
)
(2,424
)
(56,300
)
(54,232
)
(7,638
)
Effect of exchange rate changes on cash
and cash equivalents, restricted cash and escrow receivables
(2,032
)
(2,643
)
(372
)
4,731
2,489
350
(Decrease) Increase in cash and cash
equivalents, restricted cash and escrow receivables
(11,413
)
13,934
1,963
8,084
65,419
9,214
Cash and cash equivalents, restricted cash
and escrow receivables at beginning of period
246,850
280,995
39,577
227,353
229,510
32,326
Cash and cash equivalents, restricted cash
and escrow receivables at end of period
235,437
294,929
41,540
235,437
294,929
41,540
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 December
31,
Nine months ended December
31,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net income
45,746
10,717
1,509
43,577
70,413
9,917
Adjustments to reconcile net income to
adjusted EBITA and adjusted EBITDA:
Interest and investment income, net
(15,516
)
3,500
493
21,567
4,262
600
Interest expense
1,550
2,132
301
4,182
5,770
813
Other income, net
(1,462
)
(439
)
(62
)
(4,515
)
(3,194
)
(450
)
Income tax expenses
3,820
4,988
702
11,791
16,807
2,367
Share of results of equity method
investees
893
1,613
228
8,509
4,527
638
Income from operations
35,031
22,511
3,171
85,111
98,585
13,885
Share-based compensation expense
8,773
6,222
876
23,285
11,423
1,609
Amortization and impairment of intangible
assets
5,530
14,601
2,056
11,010
19,511
2,748
Impairment of goodwill, and others
2,714
9,509
1,340
3,225
11,540
1,626
Adjusted EBITA
52,048
52,843
7,443
122,631
141,059
19,868
Depreciation and impairment of property
and equipment, and operating lease cost relating to land use
rights
7,114
6,729
948
20,956
19,802
2,789
Adjusted EBITDA
59,162
59,572
8,391
143,587
160,861
22,657
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 December
31,
Nine months ended December
31,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net income
45,746
10,717
1,509
43,577
70,413
9,917
Adjustments to reconcile net income to
non-GAAP net income:
Share-based compensation expense
8,773
6,222
876
23,285
11,423
1,609
Amortization and impairment of intangible
assets
5,530
14,601
2,056
11,010
19,511
2,748
(Gain) Loss on deemed disposals/disposals/
revaluation of investments
(11,187
)
9,358
1,318
25,661
16,665
2,347
Impairment of goodwill and investments,
and others
3,927
11,149
1,571
17,572
23,022
3,243
Tax effects (1)
(2,857
)
(4,096
)
(576
)
(7,101
)
(7,973
)
(1,123
)
Non-GAAP net income
49,932
47,951
6,754
114,004
133,061
18,741
____________________
(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 December
31,
Nine months ended December
31,
2022
2023
2022
2023
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
46,815
14,433
2,033
48,993
76,471
10,771
Dilution effect on earnings arising from
share-based awards operated by equity method investees and
subsidiaries
(8
)
(79
)
(11
)
(9
)
(213
)
(30
)
Net income attributable to ordinary
shareholders – diluted
46,807
14,354
2,022
48,984
76,258
10,741
Non-GAAP adjustments to net income
attributable to ordinary shareholders(1)
3,526
33,824
4,764
67,051
56,773
7,996
Non-GAAP net income attributable
to ordinary shareholders for computing non-GAAP diluted earnings
per share/ADS
50,333
48,178
6,786
116,035
133,031
18,737
Weighted average number of shares on a
diluted basis for computing non-GAAP diluted earnings per share/ADS
(million shares)(2)
20,912
20,321
21,190
20,485
Diluted earnings per
share(2)(3)
2.24
0.71
0.10
2.31
3.72
0.52
Non-GAAP diluted earnings per
share(2)(4)
2.41
2.37
0.33
5.48
6.50
0.91
Diluted earnings per ADS(2)(3)
17.91
5.65
0.80
18.49
29.73
4.19
Non-GAAP diluted earnings per
ADS(2)(4)
19.26
18.97
2.67
43.80
51.97
7.32
____________________
(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 December
31,
Nine months ended December
31,
2022
2023
2022
2023
RMB
RMB
US$
RMB
RMB
US$
(in millions)
(in millions)
Net cash provided by operating
activities
87,370
64,716
9,115
168,351
159,253
22,430
Less: Purchase of property and equipment
(excluding land use rights and construction in progress relating to
office campuses)
(5,793
)
(7,286
)
(1,026
)
(27,860
)
(17,405
)
(2,451
)
Less: Purchase of intangible assets
(excluding those acquired through acquisitions)
—
(842
)
(119
)
(22
)
(842
)
(119
)
Less: Changes in the buyer protection fund
deposits
(63
)
(48
)
(7
)
(1,073
)
(157
)
(22
)
Free cash flow
81,514
56,540
7,963
139,396
140,849
19,838
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240205735477/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 4 2024 まで 5 2024
Alibaba (NYSE:BABA)
過去 株価チャート
から 5 2023 まで 5 2024