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    Alibaba’s Beats Earnings Estimates in Fiscal First Quarter

    The group also announced its plan to increase its share repurchase program to $15 billion.

    By Harold Henry - Aug 4, 2021
    Alibaba’s Beats Earnings Estimates in Fiscal First Quarter

    Alibaba announced its financial results for the quarter ending June 30th, 2021 outpacing earnings estimates. The e-commerce giant saw revenue grow 34% to $31.8 billion year-over-year. More than 1.1 billion consumers frequented the online shopping center in the past year.

    In a release, Daniel Zhang, Chairman and Chief Executive Officer, spoke of Alibaba’s alignment with the Chinese economy.

    “We believe in the growth of the Chinese economy and long-term value creation of Alibaba, and we will continue to strengthen our technology advantage in improving the consumer experience and helping our
    enterprise customers to accomplish successful digital transformations.”

     
     

    Key Insights:

    • Revenue was RMB205,740 million (US$31,865 million), an increase of 34% year-over-year.
      Excluding the consolidation of Sun Art, revenue would have grown 22% year-over-year to
      RMB187,306 million (US$29,010 million).
    • Annual active consumers of the Alibaba Ecosystem across the world reached approximately 1.18
      billion, an increase of 45 million from the twelve months prior. This included 912 million consumers in China and 265 million consumers overseas served by Lazada, AliExpress, Trendyol and Daraz.
    • Income from operations was RMB30,847 million (US$4,778 million), a decrease of 11% year over-
      year. Adjusted EBITDA, a non-GAAP measurement, decreased 5% year-over-year to RMB48,628 million (US$7,532 million). Adjusted EBITA, a non-GAAP measurement, decreased 8% year-over-year to RMB41,731 million (US$6,463 million).

    The company also announced a plan to increase its share repurchase program to $15 billion, up from the current $10 billion.

    “We delivered strong revenue growth of 34% year-over-year. As we said in last quarter’s results announcement, we are investing our excess profits and additional capital to support our merchants and invest in strategic areas to better serve customers and penetrate into new addressable markets,” said Maggie Wu, Chief Financial Officer of Alibaba Group.

    “We are increasing our share repurchase program from US$10 billion to US$15 billion, the largest share repurchase program in the Company’s history, because we are confident of our long-term growth prospects. Our net cash position remains strong and we have repurchased approximately US$3.7 billion of our ADSs since April 1, 2021.”

     
     

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