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Alibaba’s Q1 revenue surges 56% to $7.4bn

RBR Staff Writer Published 18 August 2017

Alibaba has reported that its revenue in the first quarter ended 30 June 2017 increased 56% to $7.4bn, compared to $5.01bn for the same period last year.

The Chinese e-commerce giant said that its revenue in Q1 2017 from core commerce surged 58% to $6.35bn while revenue from its cloud computing business increased 96% to $359m compared to Q1 2016.

Alibaba stated that the strong growth in average spending per merchant and also the historic increase in the number of paying merchants have helped its revenue accelerate in the China retail marketplaces.

The group’s other main source of revenue which comes from its digital media and entertainment channels moved up by 30% to $602m in comparison to the same period last year.

Alibaba Group CEO Daniel Zhang says that the company has made a strong start to fiscal 2018 showcasing the strength and diversity of its businesses and the value provided to customers across its platforms.

Zhang added: “Our technology is driving significant growth across our business and strengthening our position beyond core commerce.

“We are excited about the future as we continue to innovate and drive synergies among the businesses throughout the Alibaba ecosystem.”

Alibaba’s revenue from its China commerce retail business increased 57% year-over-year to $5.4bn in the first quarter. The company said that the surge in revenue was driven by the strong growth of customer management and commission revenues with the former seeing an increase in revenue by 65% year-over-year.

Alibaba Group chief financial officer Maggie Wu said: “The significant growth in customer management revenue represents the differentiated business value we provide to our customers.

“It is our intention to continue investing in long-term growth opportunities, some of which are already delivering significant value to customers and investors.”

Alibaba revealed that it had made considerable progress in the first quarter in bringing awareness to the US market about its business. The company also spread the word about the opportunities it provides for all sizes of business to leverage on its platform to grow their brands to millions of Chinese consumers looking to buy quality American goods.

Image: Alibaba Group’s corporate campus in Xixi, Hangzhou, China. Photo: courtesy of Alibaba Group Holding Limited.