Alibaba Delivers Q2 Financial Results, Indicates Largest Share Repurchase Program in Company’s History

alibaba
(Source: Alizila)

Alibaba Group on Tuesday announced its financial results for the quarter ended June 30, 2021. The company continues to show confidence in its long-term prospects by increasing its share repurchase program from $10 billion to $15 billion.

In the quarter ended June 30, 2021, its revenue was 205,740 million yuan ($31,865 million), an increase of 34% year-over-year, powered by multiple business engines across its digital ecosystem.

“For the June quarter, global annual active consumers across the Alibaba Ecosystem reached 1.18 billion, an increase of 45 million from the March quarter, which includes 912 million consumers in China,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group.

Annual active consumers of the Alibaba Ecosystem worldwide include 912 million consumers in China and 265 million consumers overseas served by Lazada, AliExpress, Trendyol, and Daraz.

Taobao Deals’ (淘特) annual active consumers grew to over 190 million due to its high quality, value-for-money products.

Adjusted EBITDA, a non-GAAP measurement, decreased 5% year-over-year to 48,628 million yuan ($7,532 million), primarily due to our investments in strategic areas to capture incremental opportunities. Its cloud computing revenue grew 29% year-over-year to 16,051 million yuan ($2,486 million).

The internet giant has also seen rapid development of its Cainiao Network’s domestic business. For example, users are increasingly adopting Cainiao Guoguo, their crowd source delivery platform, with the number of orders in the June quarter growing 63% year-over-year.

SEE ALSO: Alibaba and Tencent to Open up Services to Each Other

“As we said in last quarter’s results announcement, we are investing our excess profits and additional capital to support our merchants and invest in strategic areas to better serve our customers and penetrate into new markets,” said Maggie Wu, Chief Financial Officer of Alibaba Group.

In its conference call this evening, Alibaba said the impact of losing big customers for its cloud services would continue until the end of the fiscal year, when its international business is completely separated from Alibaba Cloud. In addition, Chinese governments’ regulation on the online education industry will also affect Alibaba Cloud’s revenue.