Chinese Ecommerce Giant Alibaba Reports First Post-IPO Income Gains

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Will be used in accordance with our Privacy Policy
Chinese Ecommerce Giant Alibaba Reports First Post-IPO Income Gains
Image credit: Reuters | Chance Chan
Alibaba's logo is seen at its headquarters on the outskirts of Hangzhou, Zhejiang province.
2 min read
This story originally appeared on Reuters

Alibaba Group Holding Ltd reported quarterly results which showed net income rising 15.5 percent to $1.11 billion for the July-September period, meeting forecasts.

It was the Chinese e-commerce giant's first report to investors since its record-setting $25 billion listing in September.

The non-GAAP net income - which excludes the share-based compensation expenses and amortisation of intangible assets - compared with a consensus estimate of $1.17 billion based on a Thomson Reuters SmartEstimate poll of 21 analysts.

Revenue rose 53.7 percent to $2.74 billion, versus expected sales of $2.7 billion, its fastest growth in three quarters. Diluted earnings per share were $0.20, while non-GAAP diluted earnings per share were $0.45, up 9.4 percent year-on-year.

"We delivered a strong quarter with significant growth across our key operating metrics," said Jonathan Lu, chief executive officer of Alibaba in its earnings statement.

Mobile revenue was more than ten times higher than in the same period last year and accounted for 22 percent of total revenues, as Alibaba continued to successfully ramp up its mobile monetisation.

Meanwhile, profit margins shrank to a two-year low of 18 percent.

The shares were flat in pre-market trading in New York, from $101.80 at Monday's close. The stock has risen about 50 percent from its debut price.

(Reporting by Paul Carsten; Editing by David Goodman and Elaine Hardcastle)

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.