Alibaba Group Holding Limited (BABA) reported revenues of RMB114.9 billion (US$16.74 billion), up 42% from the prior-year quarter. The revenue increase was driven by strength in the company’s China commerce retail business, Ele.me and strong sales growth of Alibaba Cloud. It reported first-quarter fiscal 2020 earnings of $1.83 per share, surpassing the Zacks Consensus Estimate of $1.50. Also, the bottom line increased 56% year over year.
Alibaba has four reportable segments — Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives. The details of these segments are discussed below.
Core Commerce: This segment comprises marketplaces operating in retail and wholesale commerce in China, and international commerce. The segment’s revenues in the quarter totaled RMB99.5 billion (US$14.5 billion), reflecting an increase of 44% on a year-over-year basis.
Cloud Computing: This segment comprises Alibaba Cloud that offers a complete suite of cloud services. Revenues in the quarter were RMB7.8 billion (US$1.1 billion), up 66% from the year-ago quarter, driven by an increase in average spending per customer.
Digital Media and Entertainment: The segment operates businesses through media properties that include UCWeb, Youku Tudou, OTT TV service, Alibaba Music and Alibaba Sports. Revenues from the segment were RMB6.3 billion (US$920 million), reflecting an increase of 6% on a year-over-year basis. The segment’s top-line growth was driven by consolidation of Alibaba Pictures.
Innovation Initiatives and Others: This segment includes businesses such as the YunOS operating system, AutoNavi, DingTalk enterprise messaging and others. Revenues in the quarter were RMB1.28 billion (US$187 million), up 21% year over year, driven by an increase in revenues from Amap.
Source: Yahoo Finance / Alibaba
