Alibaba share price: Second quarter revenue increases 54 percent
iNVEZZ.com, Tuesday, November 4: Alibaba Group Holding Ltd (NYSE:BABA) has enjoyed strong growth in the fiscal second quarter, bolstered by an increase in online transactions and soaring mobile revenue.
The company’s first earnings report as a public company revealed that non-GAAP net income, which excludes the impact of share-based compensation expenses and amortisation of intangible assets, increased 15.5 percent year-on-year to $1.11 billion, compared with a consensus estimate of $1.17 billion from 21 analysts polled by Thomson Reuters. Revenue soared 54 percent to $2.74 billion.
“”We delivered a strong quarter with significant growth across our key operating metrics””
The company’s chief executive officer Jonathan Lu commented on the results: “We delivered a strong quarter with significant growth across our key operating metrics.” Lu continued: “Our business continues to perform well, and our results reflect both the strength of our ecosystem and the strong foundation we have for sustainable growth.”
In today’s trading, Alibaba shares jumped 2.9 percent to $104.70, as of 15:17 UTC.
Alibaba, whose platforms account for more than 80 percent of e-commerce activity in China, has enjoyed significant growth in online transactions in the July-September quarter. The company said that its two main platforms, Taobao and Tmall, had seen 49-percent increase in gross merchandise volume year-on-year.
Even more impressive was the company’s progress on mobile. Alibaba’s mobile revenue, increased more than tenfold to $606 million, while its mobile monthly active users reached 217 million as of September 30, up 138 percent year on year. The e-commerce behemoth said that mobile transactions accounted for 35.8 percent of overall transactions on Taobao and Tmall in the second quarter, up from 14.7 percent in the corresponding period a year earlier.
“We continue to execute our focused growth strategy, and the fundamental strength of our business gives us the confidence to invest in new initiatives to add new users, improving engagement and customer experience, expand our products and services and drive long-term shareholder value,” the company’s chief financial officer Maggie Wei Wu said.
**As of 15:37 UTC buy Alibaba shares at $ 103.99**
**As of 15:37 UTC sell Alibaba shares at $103.94**
Copy expert traders easily with eToro. Invest in stocks like Tesla & Apple. Instantly trade ETFs like FTSE 100 & S&P 500. Sign-up in minutes.
77% of retail CFD accounts lose money.