Alibaba misses by $0.02, beats on revs (177.85)
- Reports Q1 (Jun) earnings of $1.22 per share, excluding non-recurring items, $0.02 worse than the S&P Capital IQ Consensus of $1.24; revenues rose 61.2% year/year to $12.23 bln vs the $12.02 bln S&P Capital IQ Consensus.
- Revenue from core commerce increased 61% year-over-year to RMB69,188 million (US$10,456 million).
- Revenue from cloud computing increased 93% year-over-year to RMB4,698 million (US$710 million).
- Revenue from digital media and entertainment increased 46% year-over-year to RMB5,975 million (US$903 million).
- Revenue from innovation initiatives and others increased 64% year-over-year to RMB1,059 million (US$160 million).
- Annual active consumers on the co's China retail marketplaces reached 576 million, an increase of 24 million from the 12-month period ended March 31, 2018.
- Mobile MAUs on the co's China retail marketplaces reached 634 million in June 2018, an increase of 17 million over March 2018.
- Adjusted EBITDA achieved growth of 17% to RMB29,359 million (US$4,437 million) in the quarter ended June 30, 2018, compared to RMB25,124 million in the same quarter of 2017, despite adjusted EBITDA margin decreasing from 50% in the quarter ended June 30, 2017 to 36% in the quarter ended June 30, 2018. Adjusted EBITA achieved growth of 13% to RMB26,502 million (US$4,005 million) in the quarter ended June 30, 2018, compared to RMB23,518 million in the same quarter of 2017, despite adjusted EBITA margin decreasing from 47% in the quarter ended June 30, 2017 to 33% in the quarter ended June 30, 2018. Adjusted EBITDA and EBITA margins are lower mainly because of strategic investments in New Retail (revenue of which is primarily recorded on a gross basis), the consolidation of Cainiao Network and Ele.me and investments in Lazada. Reconciliations of net income to adjusted EBITDA and adjusted EBITA are included at the end of this results announcement.