BABA June Quarter 2023 Earnings Note
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KEY Figures:
● Total revenue grew by 14% year-on-year (YoY) to $32,29 billion, above the Refinitiv consensus estimates of $31.02 billion.
● Net income (attributable to ordinary shareholders) was $4.73 billion, above the Refinitiv consensus estimates of $3.95 billion, up 51% YoY. Non-GAAP net income was $6.20 billion, an increase of 48% YoY, mainly due to a rise in adjusted EBITA and an increase in the share of results of equity method investees.
● Diluted earnings per ADS was $1.83 and diluted earnings per share was $0.23. Non-GAAP diluted earnings per share was $0.30, an increase of 48% YoY.
● Net cash provided by operating activities was $6.25 billion, an increase of 34% compared to the same quarter last year. Free cash flow, a non-GAAP liquidity measurement, was $5.39 billion, an increase of 76% YoY.
● Alibaba repurchased $3.1 billion worth of ADSs this quarter, which is supported by the company's continuous generation of strong free cash flow.
● "Alibaba continues to execute its reorganization, which is beginning to unleash new energy across businesses. We look forward to positive impacts on strengthening competitiveness, sustainable growth, and shareholder value creation," said the Chairman of Alibaba Group.
More statistics: Cost of Revenue and Operating Expenses
*Source: Company IR, 2023
KEY Points:
● For Taobao and Tmall Group, Alibaba remains focused on (i) increasing media content that strengthens consumer engagement; (ii) enhancing price competitiveness through effective targeting and introduction of new marketing features; (iii) catering to consumers' time-sensitive needs for high-frequency everyday necessities through its neighborhood businesses.
● For Alibaba International Digital Commerce Group (AIDC), the combined order growth of its retail businesses was around 25% YoY, driven by a solid performance from all major retail platforms. Specifically, Lazada recorded double-digit order growth YoY, and it continued to improve its monetization rate by offering more value-added services to merchants.
● For Cloud Intelligence Group, from a product perspective, Alibaba Cloud was driven by storage, networks and AI computing-related products, partly offset by the normalization of CDN demand YoY. For the company's AI Community, ModelScope hosted over 1,000 AI models and received over 45 million downloads in aggregate as of July 2023.
● Starting this quarter, Alibaba has implemented a new organizational and governance structure, under which the parent company is a holding company of six major business groups, with each business operating with a high degree of independence.
● Considering weak China consumer spending data, investors seem uncomfortable owning Chinese tech stocks, which will likely limit Alibaba's return potential.
The KEY in your hands:
By August 11, 2023, BABA shares had risen more than 8.66% since the beginning of 2023, underperforming the S&P 500 (.SPX), which was up about 16% during the same period (Source: moomoo APP).
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Disclaimer
Comments above are made available for informational purposes only. Before investing, please consult a licensed professional. *Source of data: https://news.moomoo.com/notice/149625093; BABA's earnings conference call* This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Before investing, please consult a licensed professional. See this link for more information.
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romancer : concerns remain about Alibaba's future revenue growth and macro factors.
Srikanth Reddy : The company's operational efficiencies and cost reductions contributed to Alibaba's strong performance.
Deep Value : Alibaba's stock remains cheap and undervalued, despite risks such as competition in Chinese e-commerce and tense US-China relations.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Cloud D Investor : Alibaba is still the number one e-commerce company in China and when china grows, Alibaba will grow bigger as well.
小阿远 romancer : China's competitive pressure is increasing day by day, and objective factors such as the continuous decline in Taobao's net profit and market share all have an impact
我悄悄地忽悠你去荷兰 : Need to restructure the business
RAF Trader 108 : Still concerned about Baba and china equities in general - due to real estate situation in china is unclear!
MoneyMoney Come : Alibaba will become more and more powerful, and the first key factor still depends on what policies the company has implemented. Second, it depends on how the direct relationship between China and the US develops. If countries strengthen diplomatic relations with other countries, then there are also great opportunities
Woonsc : Good stock but only downside is it’s focus is mostly in China. With regulatory downside there, the upside potential will be muted