Chinese e-commerce giant Alibaba Group has recorded a 61% YoY growth in revenue in the quarter ended March 31, 2018, reaching $9,873 million. The growth was mainly driven by the revenue growth of our China commerce retail business, international commerce retail business and Alibaba Cloud, as well as the consolidation of Cainiao Network.
In its quarterly results, Alibaba said that annual active consumers on China retail marketplaces reached 552 million, an increase of 37 million from the 12-month period, while mobile monthly active users reached 617 million in this period. The net increase of 37 million in annual active consumers represents the largest net add in the past 12 quarters.
Revenue from core commerce increased 62% year-over-year to $ 8,176 million. It said that it is the highest revenue growth rate since its IPO in 2014. Alibaba’s core commerce enterprises include Taobao, Tmall, Hema among others. Revenue from international commerce retail business reported 94% YoY growth, driven by the strong growth of Southeast Asian platform Lazada and global retail marketplace AliExpress.
Cloud computing revenue grew 103% YoY to $699 million, driven by growth in paying customers and increasing revenue-per-customer, reflecting higher value-added products, said Alibaba. According to IDC, Alibaba Cloud is the leader in China’s market for infrastructure-as-a-service (IaaS) with a 47.6% market share as measured by revenue in the first half of 2017, an increase from 42.4% in the first half of 2016.
In the March 2018 quarter, Alibaba Cloud launched 316 new products and features, over 60 of which were focused on artificial intelligence, data management and security. Most recently, we launched Link Edge, a proprietary edge computing software to enable the development of IoT applications in industries such as manufacturing, real estate and public facilities, such as airports and train stations.
Alibaba Cloud will further continue to expand its global footprint and customer base, most recently adding a new data center in Indonesia, increasing Alibaba Cloud’s global footprint to 18 countries and regions worldwide.
Revenue from digital media and entertainment increased 34% year-over-year to $840 million. The group said that through its investment in technology, content and talent during fiscal year 2018, it is now set to expand into the digital media and entertainment beyond its core commerce business.
During the quarter, Alibaba’s online video unit Youku registered growth of daily average subscribers by over 160% year-over-year.
Revenue from innovation initiatives and others increased 8% year-over-year to $158 million. Alibaba’s tech innovation products include AutoNavi, provider of mobile digital maps, navigation and real-time traffic information in China, and enterprise communication platform DingTalk.
Ele.me’s full acquisition
During the quarter, Alibaba fully acquired online delivery service in China- Ele.me The group said that with the acquisition, it will integrate Ele.me into its ecosystem boosting its retail strategy. And that it will combine it with Koubei, Alibaba affiliate company focused on enabling local commerce. Ele.me operates in over 600 cities in China.
In the fiscal year
- Revenue at $39,898 million, up 58%
- Revenue from core commerce increased 60% to $34,120 million.
- Revenue from cloud computing increased 101% to $2,135 million.
- Revenue from digital media and entertainment increased 33% to $3,119 million.
- Revenue from innovation initiatives and others increased 10% to $524 million.
- Annual active consumers on our China retail marketplaces reached 552 million, an increase of 98
million from the 12-month period ended March 31, 2017.
- Mobile monthly active users reached 617 million in March 2018, an increase of 110 million over March 2017.