Chinese e-commerce giant Alibaba, headed by Jack Ma, blew past Wall Street analyst estimates as the company posted a record 132% increase in net income during the second quarter.
Alibaba reported second quarter revenue of 55.12 billion yuan, compared to 34.3 billion yuan last year, a growth rate of 60.6%. Wall Street analysts were expecting revenue of 52.2 billion yuan. The solid earnings numbers allowed Alibaba to revise its revenue growth outlook for the year from 49% to 53%.
Alibaba’s customer base continued to expand as the company’s China retail marketplaces reported 488 million annual active consumers in the 12 months ended September 30, 2017, compared to 466 million in the 12 months ended June 30, 2017. Revenue from retail shopping platforms Tmall and Taobao increased 63% during the quarter to hit 46.5 billion yuan.
Alibaba has steadily expanded its reach outside the retail segment, and all of them reported solid growth numbers during the quarter. Cloud computing revenues reached 2,975 million yuan, growing 99% compared to last quarter, while revenue from Digital Media and Entertainment grew by 33% and Innovation and Other Initiatives grew by 27%.
Alibaba’s bread and butter retail segment continues to lead the way. Revenue growth in this core segment accelerated to 63% during the second quarter, from 58% during the first quarter.
The acceleration was due to strong growth from the international retail segment, which grew at triple digit rates during the first half the year thanks to strong growth in revenues generated from Lazada and AliExpress.
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