GMV transacted on its China retail marketplaces was RMB837 billion (US$126 billion), a boost of RMB164 billion (US$25 billion), or 24% year-over-year, with mobile GMV accounting for 75% of total GMV.
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Shares of Alibaba soared more than 6 percent Wednesday after the company announced strong quarterly revenue.
In terms of profitability, Alibaba’s adjusted EBITDA grew by 26% year-over-year to RMB 49 billion in 2015.
A rise in revenue was bolstered by a jump in mobile users, with 427m customers using the site every month – and increase of 39 per cent on the year before. The company experienced an 18% YoY increase in annual active buyers in the local retail market space and had 434 million annual active buyers this quarter, with that number having stood at 423 million last quarter.
Alibaba is China’s dominant player in online commerce, with its Taobao platform estimated to hold more than 90 percent of the consumer-to-consumer market, and its Tmall platform is believed to have over half of business-to-consumer transactions. And she added that this was the first time Alibaba made more money from mobile users than desktop users.
The mobile monetization rate during the period climbed to 2.80%, crossing the non-mobile rate for the first time since 4QFY13. “Alibaba Group Holding Limited is headquartered in Hangzhou, the People’s Republic of China”. Alibaba says more than 8,700 new branded stores opened on Tmall during this quarter, including storefronts for US eyewear retailer Sunglass Hut and toymaker Hasbro Inc., as well as Japanese premium cosmetics brand Clé de Peau.
The earnings report highlights the loyalty of its customers, even as the company is faced with controversy over counterfeit goods.
The firm hiked its price target to $124 from $95 on shares of the Chinese e-commerce giant.
Alibaba executives said the new detailed information should help analysts and investors better understand its businesses. The results showed global sales increased by 123 percent to 1.1bn Yuan ($165m) from April to June.
Alibaba invested massively in cloud computing over the last 12 months, and results are starting to show.
However, Alibaba said in June it would in the future only release GMV figures, a measure it had previously strongly emphasized, on an annual basis. “It has moved to underlying services such as finance, cloud services and logistics”. Revenue beat the 30.17 billion yuan forecast.
The e-commerce vendor’s revenue rose to RMB 32.2 billion ($4.8 billion), placing it 59 percent higher than a year ago.
Mobile revenue of China retail marketplaces was 17,514 million yuan ($2,635 million), an increase of 119%, representing 75% of total China retail marketplace revenue.
The company’s cloud computing business continued its rapid expansion, with revenue in this quarter increasing 156% year-over-year to RMB1,243 million (US$187 million).
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Net income of 7.142 billion yuan ($1.075 million), a decrease of 77% from the year-ago quarter, but up 50% when discounting investment gains during the year-ago quarter.
