Alibaba reports solid earnings beat, revenue rises most since Sept. 2021

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Alibaba Group sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. 
Aly Song | Reuters

Chinese e-commerce giant Alibaba on Thursday reported revenue grew by 14% year-on-year in the quarter ended June 30.

The company’s U.S.-traded shares rose by more than 2.5% in pre-market trading.

Here’s how Alibaba did in the June quarter versus Refinitiv consensus estimates:

  • Revenue: 234.16 billion Chinese yuan ($32.29 billion) versus 224.92 billion yuan expected, up 14% year-on-year.
  • Net income attributable to ordinary shareholders: 34.33 billion Chinese yuan versus 28.66 billion yuan expected, up 51% year-on-year.

Alibaba has been grappling with a Chinese economy that has been a mixed bag since the country eased its strict pandemic controls in December. Investors expected a strong rebound, but domestic consumer demand has remained sluggish.

The Hangzhou-headquartered company has been undergoing major changes. In March, Alibaba said it would split into six business groups, with some having the ability to raise outside funding and go public. Alibaba has already said it plans to publicly list its cloud computing division.

Current CEO and Chairman Daniel Zhang will be stepping down in September, but remain head of Alibaba’s cloud computing business, as it pushes toward a public listing. Alibaba veteran Eddie Wu will succeed him as CEO, and Joe Tsai will take over as chairman, the company said in June.

This is a breaking news story. Please check back for more.

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