Despite Alibaba beating estimates, it is the first time in its history that Alibaba posted flat growth.
Alibaba Group has released its quarterly results that beat Wall Street’s expectations after the platform company cut costs during a resurgence of the coronavirus pandemic across China.
A recovery is underway, the company said, as the number of shoppers swelled and supply chains began opening said Alibaba Group’s Chairman and Chief Executive Officer, Daniel Zhang.
“Following a relatively slow April and May, we saw signs of recovery across our businesses in June.”
Shares rose despite the company reporting revenue of nearly 205.6 billion yuan (about $30.4 billion) in the quarter ended June, which was similar to what it recorded the same time last year. But that beat analysts forecasts, and net income was also higher than expected, at 22.7 billion yuan ($3.4 billion).
Alibaba’s cloud business posted 10% revenue growth year-over-year. While cloud computing is just 9% of Alibaba’s overall revenue, it is viewed as an important part of the company’s future growth.
Looking ahead Zhang was cautious in his outlook.
“The external uncertainties, including but not limited to international geopolitical dynamics, Covid resurgence, and China’s macroeconomic policies and social trends, are beyond what we as a company can influence,” Zhang told analysts. “The only things we can do at this moment is to focus on improving ourselves.”