>>> Alibaba Investor Day Notes

Alibaba Investor Day Notes (125.64)
  • Most important thing is to build an infrastructure, to make all transactions easier.
  • The Alibaba economy is driven by big data.
  • Over 500 million monthly active users.
  • 75% of top 100 consumers brands are in the Tmall.
  • Wants to help merchants become a digital operation by digitizing 5 retail components: customers, product inventory, orders, payment, and loyalty.
    • Customers, digitize customer footprints.
    • Get product listing to be digitized, so inventories can be shared both online and offline w/merchants.
    • Orders, digitize orders to be electronic.
    • Payment, Ali Pay helps merchants digitize payments.
    • Loyalty, if able to get all 4, will drive loyalty to merchants.
  • Seeing demand from merchants to help them do marketing more efficiently.
    • Can help retail customers manage platform across the Alibaba economy.
    • All data can be collected and managed, which allows merchants to manage their customer footprints across platforms.
  • Alibaba Cloud is evolving from infrastructure service.
  • Digital Media Entertainment Platform Expansion
    • People will need more and more digital content on top of physical products to give people more selection in their consumption.
    • Trying to build a content generation ecosystem system to generate content in different formats: video, news feed, live, events, movies.
    • Will continue to invest in content to enhance content.
    • Working to improve monetization in digital media.
    • Wants to cross entire customer life cycle when they are in different apps.
  • Reached $547 billion in GMV in FY17.
    • Ahead of Walmart (WMT).
    • 79% of GMV revenue from mobile.
    • Represents 11% of China retail sales.
    • Aims to achieve $1 trillion in GMV by FY2020.
    • Only giving annual GMV metrics moving forward.
  • The advantage to mobile is that there is more data.
  • Metric changes
    • "Annual Active Buyer" will change to "Annual Active Consumer".
    • "Online Management Revenue" will change to "Customer Management Revenue".
  • Financial Guidance
    • Expecting 45-49% revenue growth in FY18. 10% points higher than the consensus number.
    • With growing base, can continue to accelerate revenue growth.
    • Not talking about next quarters margins.
    • Willing to invest money into the expansion of the consumer base.
Shares of Alibaba are trading up 12.7% in pre-market trading at $141.60/share.