Alibaba slides 10% after reporting financial results
- The company recorded total revenue of $31.1 million, representing a 29% year-over-year increase.
- Operations income came to around $2.3 million, representing a 10% year-over-year increase.
- The company’s ecosystem reaches roughly 1.24 billion annual active users.
Alibaba Group Holding Ltd (NYSE: BABA) announced its third-quarter financial report for 2021 and slid down by 10% .
How top management feelsCopy link to section
Alibaba Group’s Chief Executive Officer and Chairman, Daniel Zhang, believes that in this third quarter of 2021, the company continued to invest strongly in its three main strategic pillars. These pillars are cloud computing, globalization, and domestic consumption to create solid foundations for its long-term goal of attaining sustainable growth.
Mr. Zhang said:
Our global annual active consumers across the Alibaba Ecosystem reached approximately 1.24 billion, with a quarterly net increase of 62 million consumers, and we are on track to achieve our longer-term target of serving two billion consumers globally.
The company’s Chief Financial Officer, Maggie Wu, claimed that they recorded a 29% year-over-year increase in revenue because of the performance of the company’s diversified businesses. The CFO said:
During this quarter, our continued investments in key strategic areas have resulted in robust growth for these young businesses.
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What are some of the business highlights?Copy link to section
In the third quarter of this financial year, Alibaba had roughly 863 million annual active users in its retail marketplaces in China and other new retail business operations, with more consumers coming from low-tier cities. This helped showcase how successful it is at offering products that meet diverse consumer demands.
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Its Community Marketplaces business segment continues to expand its coverage and grow rapidly in lower-tier cities. All this while GMV still increased to more than 150% quarter-over-quarter.
The company claims that it’ll continue to strengthen both customer support and consumer experiences by ensuring on-time delivery and quality product supply.
The eCommerce business claims that it can leverage Sun Art’s supply chain capabilities, FMCG, and general merchandise segments.
Excluding Sun Art’s consolidation, the company’s revenue would’ve increased 16% year-over-year. This increase would be equivalent to $28 million. Aggregate revenue of its international commerce wholesale and retail business came to around $2.3 million, representing a 34% year-over-year increase.
Lastly, its cloud computing revenue came to about $3.1 million, representing a 33% year-over-year increase.