Alibaba Earnings

Alibaba reports 14% revenue growth in April-June quarter

Rebbeca Ren

posted on August 10, 2023 11:37 pm

Alibaba on Thursday reported revenue of 234.16 billion yuan ($32.29 billion) for the quarter ended June 30, up 14% from a year earlier.

Net income attributable to ordinary shareholders came in at 34.33 billion yuan, up 51% year on year.

It was Alibaba's strongest quarterly revenue growth in nearly two years and its first quarterly earnings report since splitting the business into six divisions.

Alibaba in March said it would split into six business groups, with some having the ability to raise outside funding and go public. The six business units are Taobao Tmall commerce, global digital commerce, cloud intelligence, local services, Cainiao smart logistics, digital media & entertainment.

Revenue from Taobao and Tmall commerce rose 12% year-on-year to 114.95 billion yuan in the quarter, benefiting from a recovery in consumer purchases on the two online marketplaces. The 618 Shopping Festival, China's second largest online shopping festival held in June, helped boost online sales.

Revenue from international commerce, which includes Lazada, AliExpress, Trendyol,, surged by 60% year on year to 17.14 billion yuan. Lazada, which specializes in the Southeast Asian market, saw double-digit year-over-year growth in order intake and continued to improve unit economics year-over-year.

Cainiao logistics business grew 34% to 23.16 billion yuan over the same period.

Cloud business, which includes Alibaba Cloud, DingTalk and other businesses, reported a 4% increase in revenue to 25.12 billion yuan. Alibaba said it saw “strong demand” in its cloud business for training artificial intelligence models and related services. The tech giant launched its large language model (LLM) Tongyi Qianwen in April.

Revenue from local services came in at 14.45 billion ($1.99 billion), up 30% year-over-year, driven by growth in both the food delivery platform Ele. me and the mobile digital map Amap.

Revenue from digital media and entertainment stood at 5.381 billion ($742 million).

During the earnings call with analysts, Daniel Zhang, Alibaba Group CEO and Chairman, said "The latest macro data indicates some uncertainties in the pace of post-COVID recovery, but as economic and consumer activities continue to resume, our businesses demonstrated encouraging trends."

China's economic growth was sluggish in the second quarter as domestic and foreign demand weakened. Gross domestic product (GDP) grew by 6.3% in the quarter, well below expectations of 7.3%. This growth came on top of a weak performance of 0.4% in the same period last year.

Retail sales figures rose just 3.1% in June, a sharp slowdown from May's 12.7% increase. Analysts had previously forecast growth of 3.2%.