Alibaba Group Holding Limited reported its fourth-quarter fiscal 2024 results, showcasing resilience in revenue growth despite a significant decline in profit. Its share fall by over 6% after Alibaba reported that the company’s net income plunged by 86% year-on-year, reaching 3.27 billion yuan ($451.94 million) compared to 23.52 billion yuan in the same period last year.
Alibaba Q4 results released on Tuesday
The e-commerce giant’s revenue for the quarter stood at 221.87 billion yuan ($30.73 billion), surpassing analysts’ estimates of 219.66 billion yuan. This growth was primarily driven by the solid performance of Alibaba’s core e-commerce and cloud businesses, with revenue rising 7% year-on-year.
Toby Xu, Chief Financial Officer of Alibaba Group, expressed confidence in the company’s business outlook, citing early results from increased investments in strategic priorities. “We’ve seen early results from increased investment in our strategic business priorities and are confident in our business outlook”, he said.
Despite challenges such as cautious consumer spending and economic slowdown, Alibaba’s e-commerce segment, including Taobao and Tmall Group, demonstrated resilience with a 4% year-over-year growth in revenue.
CEO Eddie Wu highlighted the success of their strategies in returning to growth, particularly evident in double-digit growth across key metrics like gross merchandise value (GMV) and order volume. He asserted that “This quarter’s results demonstrate that our strategies are working and we are returning to growth.” Investments in enhancing user experience and expanding the customer base yielded positive results, reflected in the growth of Alibaba’s international commerce businesses by 45% year-on-year.
The company’s cloud computing division also saw growth, albeit at a slower pace, with revenue up 3% year-on-year. Alibaba remains focused on its strategic priorities, particularly in the AI domain, where it experienced triple-digit revenue growth from various sectors including financial services and automotive.
Despite the profit decline, Alibaba is committed to delivering value to shareholders. The board approved a two-part dividend totaling $4 billion, comprising an annual cash dividend and a one-time extraordinary cash dividend. This move underscores the company’s commitment to returning value to shareholders amidst challenging market conditions.
Looking ahead, Alibaba continues to invest in key areas like cloud computing, AI, and international expansion to drive future growth. With preparations underway for a dual-primary listing on both the New York and Hong Kong stock exchanges by the end of August 2024, Alibaba remains focused on navigating challenges and capitalizing on opportunities in the dynamic global market landscape.
