Benefits and trials are here.
A financial report containing Alibaba ’s latest double eleven record came. Since the fourth quarter has been its best quarter in the year, it has received more attention under the influence of the current epidemic.
February 13, Alibaba released the third fiscal quarter of fiscal year 2020 as of December 30, 2019. The report shows that in the third fiscal quarter of fiscal 2020, revenue was 161.4 billion yuan, an increase of 38% year-on-year, exceeding market expectations of 159.209 billion yuan.
In the third fiscal quarter, Alibaba’s net profit reached 50.132 billion yuan, a year-on-year increase of 62%. Among them, the gain from the 33% stake in Ant Financial was 2.336 billion yuan; the net profit attributable to ordinary shareholders was 52.309 billion yuan. , An increase of 58% from 33.052 billion yuan in the same period last year; adjusted EBITDA (profit before tax, interest, depreciation and amortization) was 55.88 billion yuan, compared with 40.708 billion yuan in the same period last year.
On the day before the earnings report (February 12), Alibaba reported US $ 225.51 and its latest total market value reached US $ 604.9 billion. It has surpassed Facebook ’s current US $ 600.7 billion and became the fifth-highest US stock market company. Second only to Apple, Microsoft, Amazon and Google.
However, it may be due to the negative impact of the epidemic on the March 2020 financial report. After the financial report was released, Alibaba’s stock price performance was average and was overtaken by Facebook again.
Strong core business: Continue to sink into the market
No matter from the number of users or from the GMV contribution, Alibaba is able to take root in the sinking market with the help of Taobao Live, Are you hungry?
The report shows that Alibaba’s number of mobile monthly active users in the Chinese retail market reached 824 million, an increase of 39 million from the end of September 2019; the annual active consumer in the Chinese retail market reached 711 million, compared with the end of September 30, 2019 18 million in the 12-month period ended, of which more than 60% of newIncreasing annual active consumers come from less developed regions.
Alibaba’s core commercial business is still strong, with revenue reaching 141.475 billion yuan, accounting for 88% of total revenue, an increase of 38% year-on-year. Although the growth rate is slowing, the base is getting larger and larger. Among them, China’s retail business revenue rose 36% year-on-year to 110.458 billion yuan. Tmall Online’s paid physical goods transactions (GMV) increased by 24% year-on-year, mainly due to the growth in sales of fast-moving consumer goods and consumer electronics.
In addition, adjusted EBITA (earnings before interest and taxes) for core businesses increased by 26% year-on-year to 58.075 billion yuan, and adjusted EBITA profit margin was 41%.
Taobao Live has become one of the fastest growing and effective marketing models. As of December 2019, the GMV generated by Taobao Live and the number of monthly active users watching Taobao Live have both doubled year-on-year. In addition, 54% of the total GMV for Double 11 came from consumers in less developed regions. The quarterly income of local living services increased by 47% year-on-year to 7.548 billion yuan, and GMV from less developed regions increased by approximately 40% year-on-year.
Cainiao Network’s quarterly revenue increased by 67% year-on-year to 7.518 billion yuan, mainly due to the increase in the adoption rate of “Rookie Compliance” services in the Group’s fast-growing cross-border business. During Double 11, Cainiao Network and its logistics partners delivered 1.29 billion parcels, setting a new record again; Cainiao Post has achieved higher distribution efficiency, and the number of parcels picked up by its stations across the country reached 362 million, a year-on-year increase of 88 %. In November 2019, the Group increased its stake in Cainiao Network to support Cainiao Network’s continued investment in technology and logistics infrastructure services.
In terms of cross-border and global retail commerce, quarterly revenue increased 27% year-on-year to 7.396 billion yuan, mainly driven by Lazada’s revenue growth. During the period, Lazada’s orders increased strongly by 97% year-on-year in this quarter. Quarterly active merchantsThe number doubled year-on-year.
Cloud computing broke 10 billion for the first time, and losses have further narrowed.
As the second largest revenue business of Alibaba, this quarter’s revenue increased 62% year-on-year to RMB 10.721 billion, and the single quarter revenue exceeded 10 billion for the first time. The main reason for the increase was the public cloud and hybrid cloud Revenue contributions have all grown. Adjusted EBITA’s loss was RMB 356 million, which further narrowed the loss.
Before November 11, Alibaba Cloud migrated the core system of the group’s e-commerce business to its public cloud. During Double 11, Alibaba Cloud’s public cloud infrastructure helped the group process up to 268.4 billion yuan of single-day GMV, 544,000 orders per second to create peaks, and process 970PB of data 24 hours a day throughout the event.
Alibaba Cloud is currently competing with Amazon, Microsoft, and Google for the global cloud computing market.
On February 1, Amazon also announced the revenue of AWS cloud computing business. In fiscal 2019, AWS revenue was 35.026 billion US dollars, an increase of 36.53% year-on-year, accounting for 12.49% of Amazon’s total revenue.
In the fourth quarter, AWS revenue was US $ 9.954 billion, a year-on-year increase of 33.97%. However, AWS contributed an operating profit of $ 2,596 million, accounting for 67% of the company’s operating profit.
From the profitability of Amazon AWS, we can foresee the future situation of Alibaba Cloud to a certain extent.
Dangers and changes under the epidemic situation
The outbreak of pneumonia since the Spring Festival has become a business problem for many companies, and Alibaba is no exception.
In the earnings call, Alibaba CFO Wu Wei said that the incident is expected to affect revenue in the March quarter and it is likely that the revenue growth rate will decline significantly. The first is the direct impact, and the second is the support and funding projects for businesses.
On February 10, Alibaba Group and Ant Financial Group released the “Alibaba Report to Merchants”, which introduced 20 special measures in six areas to help the development of SMEs. These include reduction and exemption of platform business operating expenses, provision of interest-free and low-interest loans, opening up of flexible employment positions, subsidizing express logistics, providing digital services, and supporting remote office.
However, fortune and misfortune depend on each other, and crisis coexists.
Alibaba Board Chairman Zhang Yong said, “After this incident, many consumers have changed their lifestyleMany people now work remotely from home, and purchase necessities, including fresh food, at home through e-commerce channels. The outbreak of the incident has indeed brought great challenges. But it also gives people a chance to try new ways of living and working. “
Zhang Yong said that there have also been many changes in the demand for electrical goods recently. Categories such as food, daily necessities, and fast-moving goods have experienced very rapid growth. For other products like clothing and consumer electronics, there are indeed challenges. The challenge comes first from supply, and from the worst of the epidemic, consumers’ willingness to buy these categories will also temporarily decline. However, this incident also made many new users in low-tier cities begin to purchase daily necessities online, which is a very good change for the future.