Alibaba Group announced its financial results for the first quarter of the 2020 fiscal year ended June 30, 2019. The Chinese tech behemoth had a strong quarter across the board, beating estimates on revenue and earnings despite the uncertain market conditions due to the US-China trade tensions.
The company generated total revenue of 114.9 billion yuan ($16.7 billion), up 42% year-over-year. Due to significantly higher share-based compensation expenses last year, the net income attributable to ordinary shareholders increased significantly to 21.3 billion yuan ($3.1 billion) .
“Alibaba had a great quarter, expanding our user base to 674 million annual active consumers, demonstrating our superior user experience,” said Alibaba CEO Daniel Zhang.
In June 2019, Alibaba’s retail marketplaces had 755 million mobile MAUs, representing a quarterly net increase of 34 million. Annual active consumers on the company’s China retail marketplaces totaled to 674 million for the 12 months ended June 30, 2019, compared to 654 million for the 12 months ended March 31, 2019. The strong user growth reflects successful user acquisition programs which deepened the company’s penetration into less developed areas.
“We will continue to expand our customer base, increase operating efficiency and deliver robust growth. With strong cash flow from our core commerce business, we will continue to invest in technology and bring digital transformation to millions of businesses globally,” said Daniel Zhang.