Alibaba profit tops estimate, sales misses
Meanwhile revenues surged 40 percent, driven by growth in China commerce retail business, though not a
t the rate analysts expected, even as its active user base ballooned. Excluding items, Alibaba's adjusted earnings easily topped Wall Street estimates, but revenues fell short of expectations. Alibaba shares slid 9 percent in morning trade on the New York Stock Exchange following the announcement.
This is the first full-quarter Alibaba is reporting its financial results since its September IPO.
The company reported revenues of 26.18 billion remnibis, or $4.22 billion, up 40 percent from 18.75 billion remnibis in the prior year.
Twenty-seven analysts had a consensus revenue estimate of $4.45 billion for the quarter.
Revenue from the China commerce retail business increased 32 percent from a year ago, mainly driven by the growth in commission revenue and online marketing services revenue.
Mobile revenue from the China commerce retail business also surged, primarily due to a greater proportion of gross merchandise volume generated on mobile devices and an increase in the mobile monetization rate.
Alibaba's gross merchandise volume, or GMV, or the sum of all of the company's online commerce transactions, rose 49 percent to 787 billion remnibis, or $127 billion.
Mobile GMV more than tripled to 327 billion remnibis, or $53 billion, and accounted for 42 percent of total GMV. ■