Ali’s revenue for the 11 consecutive quarters increased by more than 40%.
On November 1, Alibaba Group (NYSE: BABA) announced its second quarter financial results for the fiscal year 2020 before the US stock market.
Financial report shows that Alibaba’s second-quarter revenue was RMB119.02 billion, up 40% year-on-year, and the market expectation was 116.695 billion yuan;non-GAAP net profit of 327.5 100 million yuan, a year-on-year increase of 40%, the market is expected to be 26.93 billion yuan. The net profit attributable to ordinary shareholders was RMB 72.54 billion, and the market expectation was 16.93 billion yuan, compared with 20.03 billion yuan in the same period last year, an increase of 262%.
This quarter China’s retail market mobile monthly active users reached 785 million, an increase of 30 million from June 2019; annual active consumer growth of 19 million to 693 million. In the past nine quarters, Taobao Tmall mobile active users and annual active consumers continued to grow, with an increase of 256 million and 227 million respectively.
Alibaba has seen revenue growth of over 40% for 11 consecutive quarters, which is higher than industry growth. The sustained high-speed growth of revenue has a lot to do with the growth of core e-commerce business and cloud computing business. Taobao Tmall users have maintained high-speed user growth in the sinking markets in the first and second tier cities and below the third tier. Currently, more than 50% of Tmall merchants interact with consumers via live streaming.
The third quarter of e-commerce in the past year was often the low season of revenue and user growth, but this year, major e-commerce companies are increasing their efforts to increase and retain. During the 618 period, tens of billions of subsidies were introduced, and then Jingdong and Suning all introduced relevant subsidy policies, and Ali launched the third shopping festival “99-e-sales section”.
In addition, Ali bought Netease koala for $2 billion this time As the market concentration of the head platform continues to rise, both Tmall International and Koala’s market share will Improved, The market share of the two mergers will reach 58%, much higher than other platforms. The increase in the rate of s in Haitao Market also brought new revenue increments to Ali.
In terms of local living services, due to the increase in the number of orders, this quarter hungry, the word-of-mouth revenue was 6.835 billion yuan, up 36% from the 5.01 billion yuan in the same period last year.
Cloud computing business quarterly revenue 92.9100 million, surpassing analyst expectations. Alibaba’s investment in core technology is driving Alibaba Cloud into a new stage of growth.
In addition, the continued growth of 88VIP membership business has also brought new users to Ali. On August 8, 2019, 88VIP added the eco members of Feizhu, Marriott International Group and Aikang Guobin. The number of brands with 5% discount increased from 88 to 388.
CITIC Construction Securities Research and Development Department believes that 88VIP allows high-end users to transfer within the ecology. The 88VIP diversion effect is obvious. According to the Alibaba 2019 Investor Conference, every 100 88VIP members have added 38 users to Youku. When they are hungry, they add 32 users, and the Taobao ticket adds 27 users. In addition, as of June 2019, the number of active domestic buyers in Alibaba was 730 million, and the number of active users in Ant Financial was 900 million. The number of active users combined was 960 million. There are at least 200 million growth opportunities for Ali’s active buyers, which can be diverted by ants.
The rapid growth of net profit is related to the equity gains obtained from Ant Financial Services. The financial report showed that Alibaba became a 33% equity holder of Ant Financial on September 23. Alibaba’s one-time receipt of the equity of Ant Financial Services generated a revenue of 69.2 billion yuan.
In recent days, the market has once again heard the news that Ali will go public in Hong Kong. Earlier, the news said that if Hong Kong stocks rebounded, Alibaba Group plans to list in Hong Kong as early as November, raising up to 15 billion US dollars. In response, Alibaba responded that it would not comment.
Before the earnings report, analysts were also optimistic about Ali’s revenue for the quarter. Recently, HSBC, Dahe, Anxin and CITIC Jiantou have all reiterated their “Buy” rating on Ali.