Alibaba Q1 revenue up by 34% YoY

Charles Chan
Senior Retail Analyst

Date : 21 August 2020

Alibaba has announced its Q1 results for quarter ended June 30, 2020. Total revenue was up 34% to CNY153.8bn (US$21.8bn) YoY.

Operations in China ‘fully recovered’

In a press release, Maggie Wu, Alibaba’s Chief Financial Officer, said, “Our domestic core commerce business has fully recovered to pre-COVID-19 levels across the board, while cloud computing revenue grew 59% year-over-year. Our strong profit growth and cash flow enable us to continue to strengthen our core business and invest for long term growth.”

Highlights of the Group’s performance during the first quarter are summarised below.

Strong top line figures

  • Core commerce revenue up 34% YoY to CNY133.3bn (US$18.9bn), with 23% YoY growth for customer management revenue
  • Digital media and entertainment revenue up 9% YoY to CNY7bn (US$1bn)
  • Cloud computing revenue up 59% YoY to CNY12.3bn (US$1.7bn)

Continued consumer engagement growth

  • Annual active consumers on Alibaba’s retail marketplaces in China increased 16m from the previous quarter, reaching 742m
  • Mobile monthly active users (MAUs) increased by 28m from the previous quarter, reaching 874m

Other business highlights

  • Taobao Live: GMV continued to grow over 100% YoY. Live streaming sessions hosted by merchants accounted for approximately 60% of Taobao Live GMV (excluding unpaid orders)
  • Tmall: online physical goods GMV grew 27% YoY during the June 2020 quarter, with all major categories growing at similar or faster rates compared to the December 2019 quarter, before the impact of COVID-19. Growth was primarily driven by higher purchase frequency and increased new consumer acquisitions. FMCG, home furnishings and consumer electronics categories were the fastest growing categories during the quarter
  • New Retail and Freshippo: achieved robust same-store sales growth. Ended the quarter with 214 stores. Online penetration of Freshippo’s GMV continued to be above 60%. Alibaba continues to deepen cooperation with Sun Art. Half-day delivery service (launched in September 2019) has helped Sun Art capture new online consumers living within a 20km radius from its stores. In the June 2020 quarter, Alibaba enabled about 15% of Sun Art’s total revenue
  • Local consumer services: food delivery GMV growth turned positive in April after a challenging previous quarter. It improved as lockdown measures were lifted. Merchant acquisition continued to accelerate, with the number of registered merchants growing 30% YoY. While about 45% of new customers ordering food delivery came from the Alipay app
  • Cainiao Network: in June 2020, Cainiao Post recorded over 100% YoY growth in average daily package volume
  • International: Lazada delivered strong growth momentum achieving over 100% quarterly order growth. This was driven by strong consumer demand in general merchandise, FMCG and electronics categories. It reflects an accelerating shift to online consumption in Southeast Asia. More brands are engaging and connecting with shoppers via live-streaming and mini-games on Lazada

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