Alibaba Sees Cloud Growth In Otherwise Slow Q1, Clocks $3.3B Free Cash Flow, CFO Talks Listing Plans

Articles From: Benzinga
Website: Benzinga


Benzinga Staff Writer

Alibaba Group Holding Limited reported first-quarter FY22 flat revenue growth year-on-year to $30.69 billion, beating the consensus of $30.05 billion.


The China commerce segment declined by 1% Y/Y to $21.19 billion, Cloud grew by 10% Y/Y to $1.59 billion, Local consumer services increased by 5% Y/Y to $1.59 billion, and International commerce rose by 2% Y/Y to $2.31 billion.

China Commerce (69% of revenue): 

The online physical goods GMV for Taobao and Tmall, excluding unpaid orders, recorded a mid-single-digit year-over-year decline due to Covid-19 resurgence and restrictions.

International Commerce (7% of revenue): 

The combined number of orders of Lazada, AliExpress, Trendyol, and Daraz declined by 4% Y/Y due to the declining orders of AliExpress due to change in the European Union’s VAT rules, depreciation of the Euro against the U.S dollar and ongoing supply chain and logistics disruptions due to the Russia-Ukraine conflict. 

Cainiao (6% of revenue): 

Revenue grew 7% Y/Y to $2.58 billion.

Non-GAAP earnings per ADS of $1.75 beat the consensus of $1.52. Alibaba generated $3.3 billion in free cash flow.

Daniel Zhang, Chair and CEO, said, “Following a relatively slow April and May, we saw signs of recovery across our businesses in June.”

Tobu Xu, CFO, said, “We recently shared our plan to add Hong Kong as another primary listing venue. By becoming primary listed on both Hong Kong and New York stock exchanges, we aim to further expand and diversify our investor base.”

Price Action: 

BABA shares traded higher by 5% at $100.51 in the premarket on the last check Thursday.

Originally Posted August 4, 2022 – Alibaba Sees Cloud Growth In Otherwise Slow Q1, Clocks $3.3B Free Cash Flow, CFO Talks Listing Plans

Disclosure: Benzinga

© 2022 Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.