earnings per share in the last quarter exceeded analysts’ expectations, although earnings missed estimates. The largely positive earnings come at a difficult time for China’s tech giants.
Alibaba reported sales of 205.7 billion Chinese yuan ($ 31.8 billion) in the three months ending in late June, which the company reports as its fiscal first quarter of 2021. The revenue figures are below analysts’ estimates of nearly 251 billion RMB, according to the FactSet consensus.
The Chinese e-commerce giant also said on Tuesday it would increase its share buyback program, the largest in its history, by 50% from $ 10 billion to $ 15 billion.
But that failed to woo investors: the stock fell 3.4% in U.S. exchanges, after
Hong Kong-listed stocks rose 0.8% before the results were released. Like its U.S. counterpart Amazon, earnings at the Chinese e-commerce giant show revenue growth has started to slow, from 64 percent year-on-year growth in the first three months of 2021 to 34 percent in the year. last trimestre.
The industry has been the subject of a regulatory crackdown that has intensified in recent weeks and caused the largest monthly decline in Chinese technology companies listed in the United States since the 2008-09 financial crisis.
“For the June quarter, global annual active consumers in Alibaba’s ecosystem reached 1.18 billion, an increase of 45 million from the March quarter, which includes 912 million consumers in China,” he said. said Daniel Zhang, chairman and CEO of Alibaba.
Profit growth continued at a strong pace for Alibaba’s closely watched cloud computing segment, with a sales flow representing an alternative to its core e-commerce offerings and positioning it as a corporate rival. like
“We believe in the growth of the Chinese economy and the long-term value creation of Alibaba,” added Zhang. “We will continue to strengthen our technological advantage by improving the customer experience and helping our corporate clients achieve successful digital transformations. “
Cloud division revenue grew 29% year-on-year, with Adjusted EBITDA rising to RMB 340 million, with a profit margin of 2%, marking a marked improvement from a loss of 1 , 1 billion RMB in the period 2020. In the last quarter, the adjusted cloud computing EBITda was 308 million RMB with a margin of 2%.
The growth of cloud computing is mainly driven by strong revenue growth from customers in the Internet, financial services and retail industries, Alibaba said.
Write to Jack Denton at [email protected]