[May 04, 2018] |
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Alibaba Group Announces March Quarter 2018 Results and Full Fiscal Year 2018 Results
Alibaba Group Holding Limited (NYSE:BABA) today announced its financial
results for the quarter ended March 31, 2018 and fiscal year then ended.
"Alibaba Group had an excellent quarter and fiscal year, driven by
robust growth in our core commerce business and investments we have made
over the past several years in longer-term growth initiatives," said
Daniel Zhang, Chief Executive Officer of Alibaba Group. "With the
continuing roll out of our New Retail strategy, our e-commerce platform
is developing into the leading retail infrastructure of China. During
the past year we also doubled down on technology development, cloud
computing, logistics, digital entertainment and local services so that
we are in a position to capture consumption growth in China and other
emerging markets."
"Fiscal 2018 culminated with a quarter we are very proud of. Full year
revenue grew 58%, core commerce revenue grew 60%, with profit growth of
over 40% and annual free cash flow of US$15.8 billion," said Maggie Wu,
Chief Financial Officer of Alibaba Group. "Looking ahead to fiscal 2019,
we expect overall revenue growth above 60%, reflecting our confidence in
our core business as well as positive momentum in new businesses. We
expect our new growth initiatives will drive long-term, sustainable
value for our customers and partners and increase our total addressable
market."
BUSINESS HIGHLIGHTS
In the quarter ended March 31, 2018:
-
Revenue was RMB61,932 million (US$9,873 million), an increase
of 61% year-over-year.
-
Revenue from core commerce increased 62% year-over-year to
RMB51,287 million (US$8,176 million).
-
Revenue from cloud computing increased 103% year-over-year to
RMB4,385 million (US$699 million).
-
Revenue from digital media and entertainment increased 34%
year-over-year to RMB5,272 million (US$840 million).
-
Revenue from innovation initiatives and others increased 8%
year-over-year to RMB988 million (US$158 million).
-
Annual active consumers on our China retail marketplaces
reached 552 million, an increase of 37 million from the 12-month
period ended December 31, 2017.
-
Mobile MAUs on our China retail marketplaces reached 617
million in March 2018, an increase of 37 million over December 2017.
-
Income from operations was RMB9,221 million (US$1,470 million)
and adjusted EBITA increased 11% year-over-year to RMB16,805
million (US$2,679 million); adjusted EBITA for core commerce
was RMB22,186 million (US$3,537 million), an increase of 19%
year-over-year.
-
Adjusted EBITA margin for core commerce was 43%. Excluding New
Retail, revenue of which we primarily record on a gross basis, the
consolidation of Cainiao Network and investments in Lazada, adjusted
core commerce EBITA margin was similar to the prior year period. Our
New Retail businesses primarily include Hema, Intime and Tmall Import.
-
Net income attributable to ordinary shareholders was RMB7,561
million (US$1,206 million) and net income was RMB6,641 million
(US$1,059 million). Non-GAAP net income was RMB14,099 million
(US$2,248 million), an increase of 35% year-over-year.
-
Diluted EPS was RMB2.88 (US$0.46) and non-GAAP diluted EPS
was RMB5.73 (US$0.91), an increase of 32% year-over-year.
-
Net cash provided by operating activities was RMB14,180 million
(US$2,261 million) and non-GAAP free cash flow was RMB8,564
million (US$1,365 million).
In the fiscal year ended March 31, 2018:
-
Revenue was RMB250,266 million (US$39,898 million), an increase
of 58% year-over-year.
-
Revenue from core commerce increased 60% year-over-year to
RMB214,020 million (US$34,120 million).
-
Revenue from cloud computing increased 101% year-over-year to
RMB13,390 million (US$2,135 million).
-
Revenue from digital media and entertainment increased 33%
year-over-year to RMB19,564 million (US$3,119 million).
-
Revenue from innovation initiatives and others increased 10%
year-over-year to RMB3,292 million (US$524 million).
-
Annual active consumers on our China retail marketplaces
reached 552 million, an increase of 98 million from the 12-month
period ended March 31, 2017.
-
Mobile MAUs on our China retail marketplaces reached 617
million in March 2018, an increase of 110 million over March 2017.
-
GMV transacted on our China retail marketplaces was RMB4,820
billion (US$768 billion), representing an accelerated year-over-year
growth rate of 28% (compared to an annual growth rate of 22% in fiscal
year 2017). Tmall physical goods GMV increased 45%
year-over-year.
-
Income from operations was RMB69,314 million (US$11,050
million) and adjusted EBITA increased 40% year-over-year to
RMB97,003 million (US$15,465 million); adjusted EBITA for core
commerce was RMB114,100 million (US$18,190 million), an increase
of 38% year-over-year.
-
Adjusted EBITA margin for core commerce was 53%. Excluding New
Retail, revenue of which we primarily record on a gross basis, the
consolidation of Cainiao Network and investments in Lazada, adjusted
core commerce EBITA margin would have been 63%. Our New Retail
businesses primarily include Intime, Hema and Tmall Import.
-
Net income attributable to ordinary shareholders was RMB63,985
million (US$10,201 million) and net income was RMB61,412
million (US$9,791 million). Non-GAAP net income was RMB83,214
million (US$13,266 million), an increase of 44% year-over-year.
-
Diluted EPS was RMB24.51 (US$3.91) and non-GAAP diluted EPS
was RMB32.86 (US$5.24), an increase of 40% year-over-year.
-
Net cash provided by operating activities was RMB125,171
million (US$19,955 million) and non-GAAP free cash flow was
RMB99,362 million (US$15,841 million).
BUSINESS AND STRATEGIC UPDATES
Core Commerce
Our Core Commerce segment delivered 60% in year-over-year revenue growth
in fiscal year 2018, the highest revenue growth rate since our IPO. The
robust performance in this segment benefited from significant
contributions from several areas: personalization of our China retail
marketplaces through investments in content and technology, expansion of
our global and cross-border retail marketplaces through organic growth
and acquisitions, and expansion of our total addressable market beyond
e-commerce to capture consumer wallet share through online/offline
integration (i.e., New Retail).
During fiscal year 2018, our China retail marketplaces recorded total
GMV of RMB4,820 billion (US$768 billion), up 28% year-over-year. This
robust growth was driven by Tmall physical goods GMV, which increased
45% year-over-year, demonstrating Tmall's ability to capture incremental
B2C market share while operating at scale.
Taobao - redefining the shopping experience. Fiscal year 2018
witnessed the success of Taobao App's strategy to redefine the
shopping experience through innovative content formats and intelligent
personal recommendations. These initiatives drove strong growth in user
engagement, purchase conversion and annual active consumers. A robust
content ecosystem has developed around the Taobao App to propel it into
one of the most popular mobile apps in China. As of March 31, 2018,
approximately 1.5 million content creators were actively supporting the
Taobao App and helping brands on our platform engage with consumers
through curated posts, short-form videos and live-broadcast events.
We achieved strong results from investments in user acquisition,
engagement and repeat visits and transactions. In March 2018, we
achieved a net increase from the prior quarter of 37 million mobile MAUs
on our China retail marketplaces to a total of 617 million mobile MAUs.
The robust growth of mobile users and a successful Chinese New Year
promotional campaign resulted in the increase of annual active consumers
to 552 million for the 12 months ended March 31, 2018.
Tmall - reaccelerating growth and furthering market leadership.
Tmall continued to gain wallet share and expand our B2C market
leadership, with physical goods GMV up 45% year-over-year in fiscal year
2018. For fiscal year 2018, Tmall recorded 45% year-over-year growth for
physical goods GMV, reflecting strength in apparels, FMCG, home
appliances and consumer electronics categories. Tmall demonstrated its
strong value proposition to brands and merchants not only as a
distribution platform but also an enabler for brands and merchants to
reach new customers and service repeat customers through our marketing
tools and consumer data insights.
Tmall continues to be the platform of choice for the world's top brands.
H&M, Marni and Yonex established flagship stores on Tmall this
quarter. As of March 31, 2018, there were over 150,000 brands on Tmall.
Our newly established Luxury Pavilion now counts close to 50 brands,
including Burberry, Dom Perignon, Tod's, Zenith, La Mer, Maserati, and
Guerlain.
New Retail - capturing consumption patterns of the future.
Through incubation of new concepts and technologies and strategic
alliances, our New Retail strategy is shaping consumer behavior of the
future by offering a seamless integration of online/offline shopping
experience. In the process, we are driving a massive transformation of
the traditional retail industry by digitizing the entire retail
operation, with a focus on in-store technology, digitized inventory and
supply chain systems, consumer insights and mobile payments.
Hema, our unique proprietary grocery retail format, exemplifies the
convergence of online and offline activities by using retail stores to
warehouse and fulfill online orders in addition to offering a rich and
fun experience for customers who shop in-store. Because of the proximity
of store locations to consumer communities, Hema can deliver to
customers who order online within 30 minutes. Recently, Hema started a
24-hour delivery service in Shanghai and Beijing with an expanding
selection of products.
International - investments for long-term growth. Our
cross-border and international retail businesses continue to show
promising growth. Revenue from our international commerce retail
business grew 94% year-over-year in fiscal year 2018.
Over the past year, we have integrated Lazada's operations into the
Alibaba ecosystem by re-architecting its core technology infrastructure
and strengthening its management team. Southeast Asia has developed into
a very competitive market but is still in the early stages of online
retail penetration. Our commitment to the region is reflected in our
recent decision to invest US$2 billion, in addition to the approximately
US$2 billion we have already invested, into Lazada to accelerate its
growth and customer reach.
On the cross-border trade front, Tmall Global is the premier platform
for overseas brands and retailers to reach Chinese consumers, build
brand awareness and gain valuable Chinese consumer insights without the
need for physical operations in China. As of March, 2018, there were
18,000 brands from 74 countries and regions selling into China through
Tmall Global. According to Analysys, during the nine months ended in
December 2017, Tmall Global was the number one cross-border e-commerce
platform in China based on transaction value.
Cainiao Network - data enabled logistics. Cainiao Network
continued to develop its data platform and technology as the
infrastructure for our New Retail strategy and means to ensure faster
and more accurate delivery to consumers. In March, we launched the first
e-commerce dedicated intercontinental flight, significantly shortening
the delivery time of packages shipped from China to Russia.
Cloud Computing
Cloud computing revenue grew 101% year-over-year to RMB13,390 million
(US$2,135 million) in fiscal year 2018, driven by robust growth of
paying customers and increasing revenue-per-customer, reflecting higher
value-added products. According to IDC, Alibaba Cloud is the leader in
China's market for infrastructure-as-a-service (IaaS) with a 47.6%
market share as measured by revenue in the first half of 2017, an
increase from 42.4% in the first half of 2016. We are seeing significant
traction and diversification of customers and revenue, and will continue
to invest to further expand the market by developing value-added
products and features.
In the March 2018 quarter, Alibaba Cloud launched 316 new products and
features, over 60 of which were focused on artificial intelligence, data
management and security. Most recently, we launched Link Edge, a
proprietary edge computing software to enable the development of IoT
applications in industries such as manufacturing, real estate and public
facilities such as airports and train stations.
Alibaba Cloud continues to expand its global footprint and customer
base, most recently adding a new data center in Indonesia, increasing
Alibaba Cloud's global footprint to 18 countries and regions worldwide.
For the March 2018 quarter, selected large enterprise customers and
major partnerships included:
-
China National Petroleum Corporation, one of the largest
petroleum companies in China, is building its procurement platform on
Alibaba Cloud, leveraging our private cloud, big data, and security
products and services.
-
Malaysia Digital Economy Corporation: The Malaysian Government
is adopting our City Brain platform for traffic management in
Malaysia's capital city of Kuala Lumpur. This platform leverages
advanced technologies, including AI, big data analytics and computer
vision to manage and optimize city traffic.
-
Cathay Pacific, a leading global airline headquartered in Hong
Kong, adopted our security and data protection consultancy services to
protect its operations in China.
Digital Media and Entertainment
We believe consumer spending on entertainment will continue to increase
in China as the country's growing middle class increase their share of
consumption of discretionary items beyond basic material needs. Through
our investment in technology, content and talent during fiscal year
2018, we have built a solid foundation to expand into the digital
consumption economy beyond our core commerce business. We are
well-positioned to execute our strategy to grow the digital media and
entertainment business as we leverage our customer base of 552 million
annual active consumers and insights about their interests and
preferences. The synergy between our commerce business and entertainment
can deliver a superior user experience while increasing customer loyalty
and subscription revenue, as well as return on investment for
advertisers.
During the quarter, our online video unit Youku demonstrated the
powerful effects of original content development, as our proprietary
reality shows and exclusive drama series drove the growth of daily
average subscribers by over 160% year-over-year.
Innovation Initiatives & Technology Development
During fiscal year 2018, several of our innovation initiatives resulted
in products that have acquired significant user scale.
AutoNavi is the largest provider of mobile digital maps, navigation and
real-time traffic information in China by daily active users as of March
2018, with the number of daily active users reaching approximately 60
million, according to QuestMobile. AutoNavi's open digital map platform
also powers major mobile apps for food delivery, ride hailing service
and social networking. During this quarter, AutoNavi's proprietary
navigation system for vehicles (AMAP AUTO 3.0) was launched and
implemented in select vehicles of major China automakers.
DingTalk, with messaging as its core product feature, has successfully
penetrated the enterprise communication and collaboration market.
DingTalk unifies the critical tasks of communication and collaboration
in the work place, offering text, photo, voice and video communication,
collaboration features and workflow management, such as convenient
attendance recording and expense approval features.
Local Services
Ele.me - strategic acquisition that will enlarge our addressable
market and better service our consumers. On April 2, 2018, we
announced our agreement to acquire the remaining outstanding equity
interest in Ele.me, one of the two leading online food delivery
platforms in China. According to Analysys, the size of the online food
delivery industry in China was RMB208 billion (US$33 billion) in 2017.
Through this acquisition, we will integrate Ele.me, which operates in
over 600 cities serving millions of consumers, into our ecosystem and
its local delivery network will become a core piece of our New Retail
strategy. Ele.me's consumer reach and its relationship with restaurants
will be complementary with Koubei, our joint venture with Ant Financial
that provides listings of local service establishments including
restaurants, bars and beauty salons. By combining Ele.me's online
delivery service with Koubei's consumer engagement capability for a
range of food and beverage-related and other service establishments, we
will be able to offer an integrated local services experience to
consumers.
Ant Financial
During fiscal year 2018, we agreed to take a 33% equity stake in Ant
Financial to strengthen our strategic relationship pursuant to a series
of agreements reached with Ant Financial in 2014.
We believe deepening our relationship through an equity stake in Ant
Financial would bring key strategic benefits to us, including advancing
our New Retail strategy with mobile payments, increasing user
acquisition and retention through collaboration with the Alipay digital
wallet, and enhancing the execution of our international expansion. In
addition, the equity stake in Ant Financial enables Alibaba and our
shareholders to participate in the future growth of the financial
technology sector.
Ant Financial has built a unique value proposition through its
capability to offer integrated financial solutions, such as wealth
management and consumer finance services, leading to a fast expanding
user base and business scale.
During the March 2018 quarter, Ant Financial continued to aggressively
invest in their business leading to robust user acquisition and
engagement. These investments resulted in a net loss for Ant Financial
in the quarter. During the fiscal year ended March 31, 2018, Alipay,
together with its global JV partners, served around 870 million annual
active users globally. Ant Financial also supports economic development
in China by serving more than 15 million small businesses as of March
2018 through lending, cash management and insurance services.
Cash Flow from Operating Activities and Free
Cash Flow
Net cash provided by operating activities in the quarter ended March 31,
2018 was RMB14,180 million (US$2,261 million), an increase of 32%
compared to RMB10,746 million in the same quarter of 2017. Free cash
flow, a non-GAAP measurement of liquidity, in the quarter ended March
31, 2018 was RMB8,564 million (US$1,365 million), an increase of 7%
compared to RMB7,980 million in the same quarter of 2017. A
reconciliation of net cash provided by operating activities to free cash
flow is included at the end of this results announcement.
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KEY OPERATIONAL METRICS*
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March 31, 2017
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December 31, 2017
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March 31, 2018
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% Change
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|
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YoY
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QoQ
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|
|
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China Commerce Retail:
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|
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|
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|
|
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Annual active consumers(1) (in millions)
|
|
|
454
|
|
|
515
|
|
|
552
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22%
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|
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7%
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Mobile monthly active users (MAUs)(2) (in millions)
|
|
|
507
|
|
|
580
|
|
|
617
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22%
|
|
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6%
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__________________
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*
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For definitions of terms used but not defined in this results
announcement, please refer to our annual report on Form 20-F for the
fiscal year ended March 31, 2017.
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(1)
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For the twelve months ended on the respective dates.
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(2)
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For the month ended on the respective dates.
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MARCH QUARTER SUMMARY FINANCIAL RESULTS
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Three months ended March 31,
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2017
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2018
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RMB
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RMB
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|
|
US$(1)
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YoY % Change
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(in millions, except percentages and per share amounts)
|
|
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Revenue
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|
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38,579
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|
|
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61,932
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|
|
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9,873
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61
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%
|
|
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|
|
|
|
|
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Income from operations
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|
|
9,532
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9,221
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|
|
|
1,470
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(3
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)%(3)
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Operating margin
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25
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%
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15
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%
|
|
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|
|
|
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Adjusted EBITDA(2)
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16,597
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19,454
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|
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3,101
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17
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%
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Adjusted EBITDA margin(2)
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43
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%
|
|
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31
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%
|
|
|
|
|
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Adjusted EBITA(2)
|
|
|
15,151
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|
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16,805
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|
|
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2,679
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|
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11
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%
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Adjusted EBITA margin(2)
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|
|
39
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%
|
|
|
27
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%
|
|
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|
|
|
|
|
|
|
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|
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Net income
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9,852
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|
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6,641
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1,059
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(33
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)%(4)
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Net income attributable to ordinary shareholders
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|
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10,647
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|
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7,561
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|
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1,206
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(29
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)%(4)
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Non-GAAP net income(2)
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10,440
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|
|
|
14,099
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|
|
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2,248
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35
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%
|
|
|
|
|
|
|
|
|
|
|
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Diluted earnings per share/ADS (EPS)
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4.12
|
|
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|
2.88
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|
|
|
0.46
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(30
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)%(4)
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Non-GAAP diluted EPS(2)
|
|
|
4.35
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|
|
|
5.73
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|
|
|
0.91
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32
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%
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__________________
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(1)
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This results announcement contains translations of certain Renminbi
("RMB") amounts into U.S. dollars ("US$") for the convenience of the
reader. Unless otherwise stated, all translations of RMB into US$
were made at RMB6.2726 to US$1.00, the exchange rate on March 30,
2018 as set forth in the H.10 statistical release of the Federal
Reserve Board. The percentages stated in this announcement are
calculated based on the RMB amounts.
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(2)
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See the sections entitled "Information about Segments," "Non-GAAP
Financial Measures" and "Reconciliations of Non-GAAP Measures to the
Nearest Comparable GAAP Measures" for more information about the
non-GAAP measures referred to within this results announcement.
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(3)
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The year-over-year decrease was primarily due to the increase in
share-based compensation expenses by RMB1,949 million, from RMB4,306
million in the quarter ended March 31, 2017 to RMB6,255 million in
the quarter ended March 31, 2018.
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(4)
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The year-over-year decrease was primarily due to non-recurring
disposal gains arising from sale of certain investments in the same
quarter of 2017.
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MARCH QUARTER INFORMATION BY SEGMENTS
The table below sets forth selected financial information of our
operating segments for the periods indicated:
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Three months ended March 31, 2018
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Digital media
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|
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Innovation
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|
|
|
|
|
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Core
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|
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Cloud
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|
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and
|
|
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initiatives
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|
|
|
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commerce
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computing
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entertainment
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and others
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Unallocated(1)
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|
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Consolidated
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
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(in millions, except percentages)
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Revenue
|
|
|
51,287
|
|
|
4,385
|
|
|
5,272
|
|
|
988
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|
|
-
|
|
|
61,932
|
|
|
9,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
18,660
|
|
|
(1,063)
|
|
|
(3,541)
|
|
|
(2,019)
|
|
|
(2,816)
|
|
|
9,221
|
|
|
1,470
|
Add: Share-based compensation expense
|
|
|
2,693
|
|
|
707
|
|
|
536
|
|
|
1,153
|
|
|
1,166
|
|
|
6,255
|
|
|
997
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Add: Amortization of intangible assets
|
|
|
833
|
|
|
3
|
|
|
410
|
|
|
6
|
|
|
77
|
|
|
1,329
|
|
|
212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA
|
|
|
22,186
|
|
|
(353)
|
|
|
(2,595)
|
|
|
(860)
|
|
|
(1,573)
|
|
|
16,805
|
|
|
2,679
|
Adjusted EBITA margin
|
|
|
43%(2)
|
|
|
(8)%
|
|
|
(49)%
|
|
|
(87)%
|
|
|
|
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2017
|
|
|
|
|
|
|
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Digital media
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|
Innovation
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
Cloud
|
|
|
and
|
|
|
initiatives
|
|
|
|
|
|
|
|
|
|
commerce
|
|
|
computing
|
|
|
entertainment
|
|
|
and others
|
|
|
Unallocated(1)
|
|
|
Consolidated
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
|
(in millions, except percentages)
|
Revenue
|
|
|
31,570
|
|
|
2,163
|
|
|
3,927
|
|
|
919
|
|
|
-
|
|
|
38,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
16,500
|
|
|
(505)
|
|
|
(2,586)
|
|
|
(1,888)
|
|
|
(1,989)
|
|
|
9,532
|
Add: Share-based compensation expense
|
|
|
1,477
|
|
|
335
|
|
|
418
|
|
|
1,043
|
|
|
1,033
|
|
|
4,306
|
Add: Amortization of intangible assets
|
|
|
602
|
|
|
1
|
|
|
457
|
|
|
163
|
|
|
90
|
|
|
1,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA
|
|
|
18,579
|
|
|
(169)
|
|
|
(1,711)
|
|
|
(682)
|
|
|
(866)
|
|
|
15,151
|
Adjusted EBITA margin
|
|
|
59%
|
|
|
(8)%
|
|
|
(44)%
|
|
|
(74)%
|
|
|
|
|
|
39%
|
__________________
|
(1)
|
|
|
Unallocated expenses are primarily related to corporate
administrative costs and other miscellaneous items that are not
allocated to individual segments.
|
(2)
|
|
|
Adjusted EBITA margin is lower than prior year period mainly due
to New Retail, the consolidation of Cainiao Network, investments
in Lazada and spending in growing user base and improving user
experience. Revenue of New Retail, which is included in the core
commerce segment, is primarily recorded on a gross basis, which
implies lower gross margins. Our New Retail businesses primarily
include Hema, Intime and Tmall Import.
|
MARCH QUARTER OPERATIONAL AND FINANCIAL RESULTS
Revenue
Revenue for the quarter ended March 31, 2018 was RMB61,932 million
(US$9,873 million), an increase of 61% compared to RMB38,579 million in
the same quarter of 2017. The increase was mainly driven by the robust
revenue growth of our China commerce retail business, Alibaba Cloud and
international commerce retail business, as well as the consolidation of
Cainiao Network and Intime.
The following table sets forth a breakdown of our revenue by segment for
the periods indicated:
|
|
|
Three months ended March 31,
|
|
|
|
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
% of
|
|
|
YoY %
|
|
|
|
RMB
|
|
|
Revenue
|
|
|
RMB
|
|
|
US$
|
|
|
Revenue
|
|
|
Change
|
|
|
|
(in millions, except percentages)
|
Core commerce:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China commerce retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Customer management
|
|
|
17,086
|
|
|
44%
|
|
|
22,993
|
|
|
3,666
|
|
|
37%
|
|
|
35%
|
- Commission
|
|
|
8,205
|
|
|
21%
|
|
|
11,367
|
|
|
1,812
|
|
|
18%
|
|
|
39%
|
- Others
|
|
|
524
|
|
|
2%
|
|
|
5,825
|
|
|
928
|
|
|
10%
|
|
|
1,012%
|
|
|
|
25,815
|
|
|
67%
|
|
|
40,185
|
|
|
6,406
|
|
|
65%
|
|
|
56%
|
China commerce wholesale
|
|
|
1,469
|
|
|
4%
|
|
|
1,883
|
|
|
300
|
|
|
3%
|
|
|
28%
|
International commerce retail
|
|
|
2,429
|
|
|
6%
|
|
|
3,967
|
|
|
632
|
|
|
6%
|
|
|
63%
|
International commerce wholesale
|
|
|
1,509
|
|
|
4%
|
|
|
1,699
|
|
|
271
|
|
|
3%
|
|
|
13%
|
Cainiao logistics services
|
|
|
-
|
|
|
-
|
|
|
2,852
|
|
|
455
|
|
|
5%
|
|
|
N/A
|
Others
|
|
|
348
|
|
|
1%
|
|
|
701
|
|
|
112
|
|
|
1%
|
|
|
101%
|
Total core commerce
|
|
|
31,570
|
|
|
82%
|
|
|
51,287
|
|
|
8,176
|
|
|
83%
|
|
|
62%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud computing
|
|
|
2,163
|
|
|
6%
|
|
|
4,385
|
|
|
699
|
|
|
7%
|
|
|
103%
|
Digital media and entertainment
|
|
|
3,927
|
|
|
10%
|
|
|
5,272
|
|
|
840
|
|
|
8%
|
|
|
34%
|
Innovation initiatives and others
|
|
|
919
|
|
|
2%
|
|
|
988
|
|
|
158
|
|
|
2%
|
|
|
8%
|
Total
|
|
|
38,579
|
|
|
100%
|
|
|
61,932
|
|
|
9,873
|
|
|
100%
|
|
|
61%
|
|
Core commerce
-
China commerce retail business
Revenue -
Revenue from our China commerce retail business in the quarter ended
March 31, 2018 was RMB40,185 million (US$6,406 million), or 65% of
total revenue, an increase of 56% compared to RMB25,815 million in the
same quarter of 2017. This robust revenue growth reflected the growth
of our New Retail initiatives (included in "China commerce retail -
Others" above) in the China commerce retail business, mainly the Hema
fresh food grocery business, the import business and Intime Department
Stores. In addition, revenue from our China retail marketplaces
(mainly comprised of Taobao and Tmall) continued to see strong growth.
Customer management revenue grew by 35% year-over-year, driven largely
by increases in the average unit price per click and to a lesser
extent the volume of clicks, reflecting our ability to deliver highly
relevant recommendations to consumers through personalization
technology and the higher value that merchants put on such technology
to reach the relevant users and increase conversion. This growth
resulted in higher average spending per merchant on our customer
management services. Commission revenue grew by 39% year-over-year,
primarily due to strong 40% year-over-year growth in physical goods
GMV on Tmall. Other revenue was RMB5,825 million (US$928 million), a
significant increase compared to RMB524 million in the same quarter of
2017, primarily driven by our New Retail businesses, including
consolidation of Intime and contribution from Tmall Import and Hema.
Annual
active consumers - Our China retail marketplaces had 552
million annual active consumers in the 12 months ended March 31, 2018,
compared to 515 million in the 12 months ended December 31, 2017,
representing a net addition of 37 million from the prior quarter, and
a 22% increase from 454 million in the 12 months ended March 31, 2017.
The increase in annual active consumers is primarily due to better new
customer acquisition in lower tier cities and the successful Chinese
New Year promotional campaign. The longer consumers have been with our
platform, the more they spend and the more orders they place across
more product categories.
Mobile MAUs - Mobile MAUs
on our China retail marketplaces grew to 617 million in March 2018,
compared to 580 million in December 2017, representing a net addition
of 37 million MAUs in the quarter and a 22% increase from 507 million
in March 2017.
-
China commerce wholesale business
Revenue
from our China commerce wholesale business in the quarter ended March
31, 2018 was RMB1,883 million (US$300 million), an increase of 28%
compared to RMB1,469 million in the same quarter of 2017. The increase
was primarily due to an increase in the average revenue from paying
members on our 1688.com platform.
-
International commerce retail business
Revenue
from our international commerce retail business in the quarter ended
March 31, 2018 was RMB3,967 million (US$632 million), an increase of
63% compared to RMB2,429 million in the same quarter of 2017. The
increase was primarily due to the growth in revenue generated from
Lazada and AliExpress, driven by strong GMV growth on these two
marketplaces.
-
International commerce wholesale business
Revenue
from our international commerce wholesale business in the quarter
ended March 31, 2018 was RMB1,699 million (US$271 million), an
increase of 13% compared to RMB1,509 million in the same quarter of
2017.
-
Cainiao logistics services
Revenue from
Cainiao logistics services represents revenue from the domestic and
cross-border fulfilment services provided by Cainiao Network, after
elimination of inter-company transactions. We started to consolidate
Cainiao Network in mid-October 2017.
Cloud computing
Revenue from our cloud computing business in the quarter ended March 31,
2018 was RMB4,385 million (US$699 million), an increase of 103% compared
to RMB2,163 million in the same quarter of 2017, primarily driven by an
increase in the number of paying customers and also by an increase in
their usage of our cloud computing services including more complex
offerings, such as content delivery network and database services.
Digital media and entertainment
Revenue from our digital media and entertainment business in the quarter
ended March 31, 2018 was RMB5,272 million (US$840 million), an increase
of 34% compared to RMB3,927 million in the same quarter of 2017. The
increase was primarily due to an increase in subscription revenue from
Youku Tudou and an increase in revenue from mobile value-added services
provided by UCWeb, such as news feeds and mobile search.
Innovation initiatives and others
Revenue from innovation initiatives and others in the quarter ended
March 31, 2018 was RMB988 million (US$158 million), an increase of 8%
compared to RMB919 million in the same quarter of 2017.
Costs and Expenses
The following tables set forth a breakdown of our costs and expenses,
share-based compensation expense and costs and expenses excluding
share-based compensation expense by function for the periods indicated.
|
|
|
Three months ended March 31,
|
|
|
% of Revenue YoY change
|
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
RMB
|
|
|
% of Revenue
|
|
|
RMB
|
|
|
US$
|
|
|
% of Revenue
|
|
|
|
|
|
(in millions, except percentages)
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
15,490
|
|
|
40%
|
|
|
32,504
|
|
|
5,182
|
|
|
53%
|
|
|
13%
|
Product development expenses
|
|
|
4,518
|
|
|
12%
|
|
|
6,686
|
|
|
1,066
|
|
|
11%
|
|
|
(1)%
|
Sales and marketing expenses
|
|
|
4,332
|
|
|
11%
|
|
|
7,641
|
|
|
1,218
|
|
|
12%
|
|
|
1%
|
General and administrative expenses
|
|
|
3,394
|
|
|
9%
|
|
|
4,551
|
|
|
725
|
|
|
7%
|
|
|
(2)%
|
Amortization of intangible assets
|
|
|
1,313
|
|
|
3%
|
|
|
1,329
|
|
|
212
|
|
|
2%
|
|
|
(1)%
|
Total costs and expenses
|
|
|
29,047
|
|
|
75%
|
|
|
52,711
|
|
|
8,403
|
|
|
85%
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense by function:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
1,226
|
|
|
3%
|
|
|
1,680
|
|
|
268
|
|
|
3%
|
|
|
0%
|
Product development expenses
|
|
|
1,394
|
|
|
4%
|
|
|
2,461
|
|
|
392
|
|
|
4%
|
|
|
0%
|
Sales and marketing expenses
|
|
|
461
|
|
|
1%
|
|
|
671
|
|
|
107
|
|
|
1%
|
|
|
0%
|
General and administrative expenses
|
|
|
1,225
|
|
|
3%
|
|
|
1,443
|
|
|
230
|
|
|
2%
|
|
|
(1)%
|
Total share-based compensation expense
|
|
|
4,306
|
|
|
11%
|
|
|
6,255
|
|
|
997
|
|
|
10%
|
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses excluding share-based compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
14,264
|
|
|
37%
|
|
|
30,824
|
|
|
4,914
|
|
|
50%
|
|
|
13%
|
Product development expenses
|
|
|
3,124
|
|
|
8%
|
|
|
4,225
|
|
|
674
|
|
|
7%
|
|
|
(1)%
|
Sales and marketing expenses
|
|
|
3,871
|
|
|
10%
|
|
|
6,970
|
|
|
1,111
|
|
|
11%
|
|
|
1%
|
General and administrative expenses
|
|
|
2,169
|
|
|
6%
|
|
|
3,108
|
|
|
495
|
|
|
5%
|
|
|
(1)%
|
Amortization of intangible assets
|
|
|
1,313
|
|
|
3%
|
|
|
1,329
|
|
|
212
|
|
|
2%
|
|
|
(1)%
|
Total costs and expenses excluding share-based compensation expense
|
|
|
24,741
|
|
|
64%
|
|
|
46,456
|
|
|
7,406
|
|
|
75%
|
|
|
11%
|
|
Cost of revenue - Cost of revenue in the quarter ended March 31,
2018 was RMB32,504 million (US$5,182 million), or 53% of revenue,
compared to RMB15,490 million, or 40% of revenue, in the same quarter of
2017. Without the effect of share-based compensation expense, cost of
revenue as a percentage of revenue would have increased from 37% in the
quarter ended March 31, 2017 to 50% in the quarter ended March 31, 2018.
The increase was primarily due to cost of inventory in our New Retail
businesses and Lazada, as well as investments in Cainiao Network and our
spending in growing user base and improving user experience.
Product development expenses - Product development expenses in
the quarter ended March 31, 2018 were RMB6,686 million (US$1,066
million), or 11% of revenue, compared to RMB4,518 million, or 12% of
revenue, in the same quarter of 2017. Without the effect of share-based
compensation expense, product development expenses as a percentage of
revenue would have decreased from 8% in the quarter ended March 31, 2017
to 7% in the quarter ended March 31, 2018.
Sales and marketing expenses - Sales and marketing expenses in
the quarter ended March 31, 2018 were RMB7,641 million (US$1,218
million), or 12% of revenue, compared to RMB4,332 million, or 11% of
revenue, in the same quarter of 2017. Without the effect of share-based
compensation expense, sales and marketing expenses as a percentage of
revenue would have increased from 10% in the quarter ended March 31,
2017 to 11% in the quarter ended March 31, 2018, primarily due to an
increase in our discretionary advertising and promotional spending for
user acquisition that led to a significant increase in annual active
consumers and MAUs during the quarter.
General and administrative expenses - General and administrative
expenses in the quarter ended March 31, 2018 were RMB4,551 million
(US$725 million), or 7% of revenue, compared to RMB3,394 million, or 9%
of revenue, in the same quarter of 2017. Without the effect of
share-based compensation expense, general and administrative expenses as
a percentage of revenue would have decreased from 6% in the quarter
ended March 31, 2017 to 5% in the quarter ended March 31, 2018.
Share-based compensation expense - Total share-based compensation
expense included in the cost and expense items above in the quarter
ended March 31, 2018 was RMB6,255 million (US$997 million), an increase
of 45% compared to RMB4,306 million in the same quarter of 2017.
Share-based compensation expense as a percentage of revenue decreased to
10% in the quarter ended March 31, 2018 from 11% in the same quarter of
2017. The following table sets forth our analysis of share-based
compensation expense for the quarters indicated by type of share-based
awards:
|
|
|
Three months ended
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
December 31, 2017
|
|
|
March 31, 2018
|
|
|
% Change
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
|
RMB
|
|
|
Revenue
|
|
|
RMB
|
|
|
Revenue
|
|
|
RMB
|
|
|
US$
|
|
|
Revenue
|
|
|
YoY
|
|
|
QoQ
|
|
|
|
(in millions, except percentages)
|
By type of awards:
|
|
|
|
Alibaba Group share-based awards granted to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Our employees
|
|
|
3,180
|
|
|
8%
|
|
|
4,371
|
|
|
5%
|
|
|
4,176
|
|
|
666
|
|
|
7%
|
|
|
31%
|
|
|
(4)%
|
- Ant Financial employees and other consultants(1)
|
|
|
579
|
|
|
2%
|
|
|
293
|
|
|
1%
|
|
|
389
|
|
|
62
|
|
|
1%
|
|
|
(33)%
|
|
|
33%
|
Ant Financial share-based awards granted to our employees(1)
|
|
|
339
|
|
|
1%
|
|
|
232
|
|
|
0%
|
|
|
1,483
|
|
|
236
|
|
|
2%
|
|
|
337%
|
|
|
539%
|
Others
|
|
|
208
|
|
|
0%
|
|
|
219
|
|
|
0%
|
|
|
207
|
|
|
33
|
|
|
0%
|
|
|
0%
|
|
|
(5)%
|
Total share-based compensation expense
|
|
|
4,306
|
|
|
11%
|
|
|
5,115
|
|
|
6%
|
|
|
6,255
|
|
|
997
|
|
|
10%
|
|
|
45%
|
|
|
22%
|
__________________
|
(1)
|
|
|
Awards subject to mark-to-market accounting treatment.
|
Share-based compensation expense related to Alibaba Group share-based
awards granted to our employees in this quarter remained relatively
stable as compared to the previous quarter.
Share-based compensation expense related to Ant Financial share-based
awards granted to our employees increased in this quarter compared to
the previous quarter, mainly due to the effect of mark-to-market
accounting treatment.
We expect that our share-based compensation expense will continue to be
affected by changes in the fair value of our shares, our subsidiaries'
share-based awards and the quantity of awards we grant to our employees
and consultants in the future. Furthermore, our share-based compensation
expense will also be affected by the anticipated increase in fair value
of share-based awards of Ant Financial Services. As a result of these
factors, we expect that our share-based compensation expense will likely
increase, although any such increase will be non-cash and will not
result in any economic cost or equity dilution to our shareholders.
Amortization of intangible assets - Amortization of intangible
assets in the quarter ended March 31, 2018 was RMB1,329 million (US$212
million), an increase of 1% from RMB1,313 million in the same quarter of
2017.
Income from operations and operating margin
Income from operations in the quarter ended March 31, 2018 was RMB9,221
million (US$1,470 million), or 15% of revenue, a decrease of 3% compared
to RMB9,532 million, or 25% of revenue, in the same quarter of 2017.
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA achieved growth of 17% to RMB19,454 million (US$3,101
million) in the quarter ended March 31, 2018, compared to RMB16,597
million in the same quarter of 2017, despite adjusted EBITDA margin
decreasing from 43% in the quarter ended March 31, 2017 to 31% in the
quarter ended March 31, 2018. Adjusted EBITA achieved growth of 11% to
RMB16,805 million (US$2,679 million) in the quarter ended March 31,
2018, compared to RMB15,151 million in the same quarter of 2017, despite
adjusted EBITA margin decreasing from 39% in the quarter ended March 31,
2017 to 27% in the quarter ended March 31, 2018. Adjusted EBITA margin
is lower mainly because of New Retail, the consolidation of Cainiao
Network, investments in Lazada and spending in growing user base and
improving user experience. Revenue of New Retail, which is included in
the core commerce segment, is primarily recorded on a gross basis, which
implies lower gross margins. Reconciliations of net income to adjusted
EBITDA and adjusted EBITA are included at the end of this results
announcement.
As many of our newly developed and acquired businesses have different
cost structures, we expect that our margin will continue to be
negatively impacted by these businesses and the accounting treatment of
revenue recorded on a gross basis.
Adjusted EBITA and adjusted EBITA margin by
segments
Adjusted EBITA and adjusted EBITA margin by segments are set forth in
the table below. See the section entitled "Information about Segments"
above for a reconciliation of income from operations to adjusted EBITA.
|
|
|
Three months ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
RMB
|
|
|
Revenue
|
|
|
RMB
|
|
|
US$
|
|
|
Revenue
|
|
|
|
(in millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core commerce
|
|
|
18,579
|
|
|
59%
|
|
|
22,186
|
|
|
3,537
|
|
|
43%
|
Cloud computing
|
|
|
(169)
|
|
|
(8)%
|
|
|
(353)
|
|
|
(56)
|
|
|
(8)%
|
Digital media and entertainment
|
|
|
(1,711)
|
|
|
(44)%
|
|
|
(2,595)
|
|
|
(414)
|
|
|
(49)%
|
Innovation initiatives and others
|
|
|
(682)
|
|
|
(74)%
|
|
|
(860)
|
|
|
(137)
|
|
|
(87)%
|
|
Core commerce segment - Adjusted EBITA achieved growth of
19% to RMB22,186 million (US$3,537 million) in the quarter ended March
31, 2018, compared to RMB18,579 million in the same quarter of 2017,
despite adjusted EBITA margin decreasing from 59% in the quarter ended
March 31, 2017 to 43% in the quarter ended March 31, 2018. Adjusted
EBITA margin is lower mainly because of New Retail, Cainiao Network,
Lazada and spending to increase user base and improve user experience.
Excluding New Retail, the consolidation of Cainiao Network and
investments in Lazada, adjusted core commerce EBITA margin was similar
to the prior year period. Our New Retail businesses primarily include
Hema, Intime and Tmall Import.
Cloud computing segment - Adjusted EBITA in the quarter ended
March 31, 2018 was a loss of RMB353 million (US$56 million), compared to
a loss of RMB169 million in the same quarter of 2017. Adjusted EBITA
margin remained stable at negative 8% in the quarter ended March 31,
2018 compared to the same quarter in 2017.
Digital media and entertainment segment - Adjusted EBITA in the
quarter ended March 31, 2018 was a loss of RMB2,595 million (US$414
million), compared to a loss of RMB1,711 million in the same quarter of
2017. Adjusted EBITA margin decreased to negative 49% in the quarter
ended March 31, 2018 from negative 44% in the quarter ended March 31,
2017, primarily due to an increase in investment in content costs of
Youku Tudou.
Innovation initiatives and others segment - Adjusted EBITA in the
quarter ended March 31, 2018 was a loss of RMB860 million (US$137
million), compared to a loss of RMB682 million in the same quarter of
2017. Adjusted EBITA margin decreased to negative 87% in the quarter
ended March 31, 2018, compared to negative 74% in the quarter ended
March 31, 2017, primarily due to investments in new business initiatives.
Interest and investment income, net
Interest and investment income, net in the quarter ended March 31, 2018
was RMB1,945 million (US$310 million), compared to RMB6,553 million in
the same quarter of 2017, which included non-recurring gains arising
from disposals of certain investments and businesses in the quarter
ended March 31, 2017.
Other income, net
Other income, net in the quarter ended March 31, 2018 was RMB884 million
(US$141 million), compared to RMB440 million in the same quarter of
2017. The increase was primarily due to an increase in exchange gain,
offset by the net loss sustained by Ant Financial during the quarter as
a result of its aggressive marketing and promotion activities which
increased expenses. This spending had brought substantial additions in
new users of Alipay Wallet. Ant Financial's net loss in the quarter, in
turn, resulted in our reversal of income recognized in respect of
royalty fees and software technology services fees from Ant Financial
under our profit sharing arrangement. The reversal of income amounted to
a charge of RMB713 million (US$114 million) in the quarter ended March
31, 2018, compared to income of RMB789 million recognized in the same
quarter ended March 31, 2017.
Income tax expenses
Income tax expenses in the quarter ended March 31, 2018 were RMB4,164
million (US$664 million), compared to RMB4,553 million in the same
quarter of 2017.
Our effective tax rate was 38% in the quarter ended March 31, 2018,
compared to 29% in the same quarter of 2017. Excluding share-based
compensation expense, impairment of investments and other unrealized
investment gain/loss, our effective tax rate would have been 24% in the
quarter ended March 31, 2018, compared to 23% in the same quarter of
2017. The increase in effective tax rate was primarily due to an
increase in operating losses sustained by Youku Tudou, Lazada and
Cainiao.
Share of results of equity investees
Share of results of equity investees in the quarter ended March 31, 2018
was a loss of RMB70 million (US$11 million), compared to a loss of
RMB1,444 million in the same quarter of 2017 and a loss of RMB18,452
million in the quarter ended December 31, 2017. We record our share of
results of equity investees one quarter in arrears. Share of results of
equity investees in the quarter ended March 31, 2018 and the comparative
periods consisted of the following:
|
|
|
Three months ended
|
|
|
|
March 31, 2017
|
|
|
December 31, 2017
|
|
|
March 31, 2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
Share of (loss) profit of equity investees:
|
|
|
|
|
|
|
|
|
|
|
|
|
- Koubei(1)
|
|
|
(505)
|
|
|
(580)
|
|
|
-
|
|
|
-
|
- Cainiao Network(2)
|
|
|
(375)
|
|
|
-
|
|
|
-
|
|
|
-
|
- Other equity investees
|
|
|
(41)
|
|
|
681
|
|
|
480
|
|
|
77
|
Impairment losses
|
|
|
-
|
|
|
(18,153)
|
|
|
-
|
|
|
-
|
Dilution losses
|
|
|
(61)
|
|
|
(10)
|
|
|
(75)
|
|
|
(12)
|
Others(3)
|
|
|
(462)
|
|
|
(390)
|
|
|
(475)
|
|
|
(76)
|
Total
|
|
|
(1,444)
|
|
|
(18,452)
|
|
|
(70)
|
|
|
(11)
|
__________________
|
(1)
|
|
|
Our cumulative share of Koubei's losses had brought down the
carrying value of our investment in Koubei to zero. As a result, we
have ceased to recognize further losses for this investment.
|
(2)
|
|
|
We started to consolidate Cainiao Network in mid-October 2017 after
obtaining control over Cainiao Network.
|
(3)
|
|
|
Others mainly include amortization of intangible assets of equity
investees and share-based compensation expense.
|
Net income and Non-GAAP net income
Our net income in the quarter ended March 31, 2018 was RMB6,641 million
(US$1,059 million), a decrease of 33% compared to RMB9,852 million in
the same quarter of 2017. The year-over-year decrease was primarily due
to non-recurring disposal gains arising from sale of certain investments
in the same quarter of 2017. Excluding non-recurring disposal gains, net
income in the quarter ended March 31, 2018 would have increased by 27%.
Excluding share-based compensation expense, non-recurring disposal gains
and certain other items, non-GAAP net income in the quarter ended March
31, 2018 was RMB14,099 million (US$2,248 million), an increase of 35%
compared to RMB10,440 million in the same quarter of 2017. A
reconciliation of net income to non-GAAP net income is included at the
end of this results announcement.
Net income attributable to ordinary shareholders
Net income attributable to ordinary shareholders in the quarter ended
March 31, 2018 was RMB7,561 million (US$1,206 million), a decrease of
29% compared to RMB10,647 million in the same quarter of 2017.
Diluted EPS and non-GAAP diluted EPS
Diluted EPS in the quarter ended March 31, 2018 was RMB2.88 (US$0.46) on
a weighted average of 2,619 million diluted shares outstanding during
the quarter, a decrease of 30% compared to RMB4.12 on a weighted average
of 2,581 million diluted shares outstanding during the same quarter of
2017. Excluding share-based compensation expense, non-recurring disposal
gains and certain other items, non-GAAP diluted EPS in the quarter ended
March 31, 2018 was RMB5.73 (US$0.91), an increase of 32% compared to
RMB4.35 in the same quarter of 2017. A reconciliation of diluted EPS to
non-GAAP diluted EPS is included at the end of this results announcement.
Cash, cash equivalents and short-term
investments
As of March 31, 2018, cash, cash equivalents and short-term investments
were RMB205,395 million (US$32,745 million), compared to RMB220,380
million as of December 31, 2017. The decrease in cash, cash equivalents
and short-term investments during the quarter ended March 31, 2018 was
primarily due to cash used in investing activities, including
investments in Wanda Cinemas and Easyhome, and cash used to acquire
additional shares of Intime, partly offset by free cash flow generated
from operations of RMB8,564 million (US$1,365 million).
Cash flow from operating activities and free
cash flow
Net cash provided by operating activities in the quarter ended March 31,
2018 was RMB14,180 million (US$2,261 million), an increase of 32%
compared to RMB10,746 million in the same quarter of 2017. Free cash
flow, a non-GAAP measurement of liquidity, in the quarter ended March
31, 2018 was RMB8,564 million (US$1,365 million), compared to RMB7,980
million in the same quarter of 2017. A reconciliation of net cash
provided by operating activities to free cash flow is included at the
end of this results announcement.
Net cash used in investing activities
During the quarter ended March 31, 2018, net cash used in investing
activities of RMB19,816 million (US$3,159 million) primarily reflected
cash outflow of RMB15,572 million (US$2,483 million) for investment and
acquisition activities, including investments in Wanda Cinemas and
Easyhome, as well as capital expenditures and acquisition of intangible
assets of RMB7,152 million (US$1,141 million), which included cash
outflow for acquisition of land use rights and construction in progress
of RMB1,536 million (US$245 million).
Employees
As of March 31, 2018, we had a total of 66,421 employees, compared to
63,809 as of December 31, 2017. The number of employees as of March 31,
2018 increased by 2,612 from December 31, 2017.
FULL FISCAL YEAR 2018 SUMMARY FINANCIAL RESULTS*
|
|
|
|
|
Year ended March 31,
|
|
|
|
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$(1)
|
|
|
YoY % Change
|
|
|
|
(in millions, except percentages and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual GMV (in billions)
|
|
|
3,767
|
|
|
4,820
|
|
|
768
|
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
158,273
|
|
|
250,266
|
|
|
39,898
|
|
|
58%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
48,055
|
|
|
69,314
|
|
|
11,050
|
|
|
44%
|
Operating margin
|
|
|
30%
|
|
|
28%
|
|
|
|
|
|
|
Adjusted EBITDA(2)
|
|
|
74,456
|
|
|
105,792
|
|
|
16,866
|
|
|
42%
|
Adjusted EBITDA margin(2)
|
|
|
47%
|
|
|
42%
|
|
|
|
|
|
|
Adjusted EBITA(2)
|
|
|
69,172
|
|
|
97,003
|
|
|
15,465
|
|
|
40%
|
Adjusted EBITA margin(2)
|
|
|
44%
|
|
|
39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
41,226
|
|
|
61,412
|
|
|
9,791
|
|
|
49%
|
Net income attributable to ordinary shareholders
|
|
|
43,675
|
|
|
63,985
|
|
|
10,201
|
|
|
47%
|
Non-GAAP net income(2)
|
|
|
57,871
|
|
|
83,214
|
|
|
13,266
|
|
|
44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share/ADS (EPS)
|
|
|
16.97
|
|
|
24.51
|
|
|
3.91
|
|
|
44%
|
Non-GAAP diluted EPS(2)
|
|
|
23.44
|
|
|
32.86
|
|
|
5.24
|
|
|
40%
|
__________________
|
*
|
|
|
Our fiscal year ends on March 31 and references to fiscal years 2017
and 2018 are to the fiscal years ended March 31, 2017 and 2018,
respectively.
|
(1)
|
|
|
This results announcement contains translation of certain Renminbi
("RMB") amounts into U.S. dollars ("US$") for the convenience of the
reader. Unless otherwise stated, all translations of RMB into US$
were made at RMB6.2726 to US$1.00, the exchange rate on March 30,
2018 as set forth in the H.10 statistical release of the Federal
Reserve Board. The percentages stated in this release are calculated
based on the RMB amounts.
|
(2)
|
|
|
See the sections entitled "Non-GAAP Financial Measures" and
"Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP
Measures" for more information about the non-GAAP measures referred
to within this results announcement.
|
FULL FISCAL YEAR 2018 INFORMATION ABOUT SEGMENTS
The table below sets forth selected financial information of our
operating segments for fiscal year 2018:
|
|
|
Year ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
Digital media
|
|
|
Innovation
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
Cloud
|
|
|
and
|
|
|
initiatives
|
|
|
|
|
|
|
|
|
|
commerce
|
|
|
computing
|
|
|
entertainment
|
|
|
and others
|
|
|
Unallocated(1)
|
|
|
Consolidated
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions, except percentages)
|
Revenue
|
|
|
214,020
|
|
|
13,390
|
|
|
19,564
|
|
|
3,292
|
|
|
-
|
|
|
250,266
|
|
|
39,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
102,743
|
|
|
(3,085)
|
|
|
(14,140)
|
|
|
(6,901)
|
|
|
(9,303)
|
|
|
69,314
|
|
|
11,050
|
Add: Share-based compensation expense
|
|
|
8,466
|
|
|
2,274
|
|
|
2,142
|
|
|
3,707
|
|
|
3,486
|
|
|
20,075
|
|
|
3,201
|
Add: Amortization of intangible assets
|
|
|
2,891
|
|
|
12
|
|
|
3,693
|
|
|
198
|
|
|
326
|
|
|
7,120
|
|
|
1,135
|
Add: Impairment of goodwill
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
494
|
|
|
494
|
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA
|
|
|
114,100
|
|
|
(799)
|
|
|
(8,305)
|
|
|
(2,996)
|
|
|
(4,997)
|
|
|
97,003
|
|
|
15,465
|
Adjusted EBITA margin
|
|
|
53%(2)
|
|
|
(6)%
|
|
|
(42)%
|
|
|
(91)%
|
|
|
|
|
|
39%
|
|
|
|
|
|
|
|
Year ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
Digital media
|
|
|
Innovation
|
|
|
|
|
|
|
|
|
|
Core
|
|
|
Cloud
|
|
|
and
|
|
|
initiatives
|
|
|
|
|
|
|
|
|
|
commerce
|
|
|
computing
|
|
|
entertainment
|
|
|
and others
|
|
|
Unallocated(1)
|
|
|
Consolidated
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
|
(in millions, except percentages)
|
Revenue
|
|
|
133,880
|
|
|
6,663
|
|
|
14,733
|
|
|
2,997
|
|
|
-
|
|
|
158,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
|
74,180
|
|
|
(1,681)
|
|
|
(9,882)
|
|
|
(6,798)
|
|
|
(7,764)
|
|
|
48,055
|
Add: Share-based compensation expense
|
|
|
5,994
|
|
|
1,201
|
|
|
1,454
|
|
|
3,017
|
|
|
4,329
|
|
|
15,995
|
Add: Amortization of intangible assets
|
|
|
2,258
|
|
|
4
|
|
|
1,886
|
|
|
656
|
|
|
318
|
|
|
5,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA
|
|
|
82,432
|
|
|
(476)
|
|
|
(6,542)
|
|
|
(3,125)
|
|
|
(3,117)
|
|
|
69,172
|
Adjusted EBITA margin
|
|
|
62%
|
|
|
(7)%
|
|
|
(44)%
|
|
|
(104)%
|
|
|
|
|
|
44%
|
__________________
|
(1)
|
|
|
Unallocated expenses are primarily related to corporate
administrative costs and other miscellaneous items that are not
allocated to individual segments.
|
(2)
|
|
|
Adjusted EBITA margin is lower than prior year mainly due to New
Retail, the consolidation of Cainiao Network, investments in
Lazada and spending in growing user base and improving user
experience. Revenue of New Retail, which is included in the core
commerce segment, is primarily recorded on a gross basis, which
implies lower gross margins. Our New Retail businesses primarily
include Intime, Hema and Tmall Import.
|
FULL FISCAL YEAR 2018 OPERATIONAL AND FINANCIAL RESULTS
Revenue
Revenue in fiscal year 2018 was RMB250,266 million (US$39,898 million),
an increase of 58% compared to RMB158,273 million in fiscal year 2017.
The increase was mainly driven by the continued rapid growth of our
China and international commerce retail business, Alibaba Cloud as well
as the consolidation of newly acquired businesses, mainly Cainiao
Network and Intime. The following table sets forth a breakdown of our
revenue for the periods indicated.
|
|
|
Year ended March 31,
|
|
|
|
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
% of
|
|
|
YoY %
|
|
|
|
RMB
|
|
|
Revenue
|
|
|
RMB
|
|
|
US$
|
|
|
Revenue
|
|
|
Change
|
|
|
|
(in millions, except percentages)
|
Core commerce:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China commerce retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Customer management
|
|
|
77,530
|
|
|
49%
|
|
|
114,285
|
|
|
18,220
|
|
|
46%
|
|
|
47%
|
- Commission
|
|
|
34,066
|
|
|
21%
|
|
|
46,525
|
|
|
7,417
|
|
|
19%
|
|
|
37%
|
- Others
|
|
|
2,513
|
|
|
2%
|
|
|
15,749
|
|
|
2,511
|
|
|
6%
|
|
|
527%
|
|
|
|
114,109
|
|
|
72%
|
|
|
176,559
|
|
|
28,148
|
|
|
71%
|
|
|
55%
|
China commerce wholesale
|
|
|
5,679
|
|
|
4%
|
|
|
7,164
|
|
|
1,142
|
|
|
3%
|
|
|
26%
|
International commerce retail
|
|
|
7,336
|
|
|
5%
|
|
|
14,216
|
|
|
2,266
|
|
|
6%
|
|
|
94%
|
International commerce wholesale
|
|
|
6,001
|
|
|
4%
|
|
|
6,625
|
|
|
1,056
|
|
|
2%
|
|
|
10%
|
Cainiao logistics services
|
|
|
-
|
|
|
-
|
|
|
6,759
|
|
|
1,078
|
|
|
3%
|
|
|
N/A
|
Others
|
|
|
755
|
|
|
0%
|
|
|
2,697
|
|
|
430
|
|
|
1%
|
|
|
257%
|
Total core commerce
|
|
|
133,880
|
|
|
85%
|
|
|
214,020
|
|
|
34,120
|
|
|
86%
|
|
|
60%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud computing
|
|
|
6,663
|
|
|
4%
|
|
|
13,390
|
|
|
2,135
|
|
|
5%
|
|
|
101%
|
Digital media and entertainment
|
|
|
14,733
|
|
|
9%
|
|
|
19,564
|
|
|
3,119
|
|
|
8%
|
|
|
33%
|
Innovation initiatives and others
|
|
|
2,997
|
|
|
2%
|
|
|
3,292
|
|
|
524
|
|
|
1%
|
|
|
10%
|
Total
|
|
|
158,273
|
|
|
100%
|
|
|
250,266
|
|
|
39,898
|
|
|
100%
|
|
|
58%
|
Core commerce segment
-
China commerce retail business
Revenue -
Revenue from our China commerce retail business in fiscal year 2018
was RMB176,559 million (US$28,148 million), or 71% of total revenue,
an increase of 55% compared to RMB114,109 million in fiscal year 2017.
This robust revenue growth reflected the growth of our New Retail
initiatives, including Hema fresh food grocery business, the import
business and Intime Department Stores.
In addition, revenue
from our China retail marketplaces (mainly comprised of Taobao and
Tmall) continued to see strong growth. The growth was primarily driven
by the robust growth of customer management revenue, which grew 47%
year-over-year, primarily driven by increases in the average unit
price per clicks and the volume of clicks, reflecting our ability to
deliver more relevant recommendations to consumers through
personalization technology and the higher value that merchants put on
such technology to reach the relevant users and increase conversion.
This resulted in higher average spending on our customer management
services by an increasing number of brands and merchants. Commission
revenue grew by 37% year-over-year, primarily due to strong growth in
physical goods GMV on Tmall. The commission revenue growth rate was
lower than the physical goods GMV growth rate, because of discounts
and rebates we provided to merchants during promotions. Other revenue
was RMB15,749 million (US$2,511 million) in fiscal year 2018, a
significant increase compared to RMB2,513 million in fiscal year 2017,
primarily driven by our New Retail businesses, including the
consolidation of Intime and contribution from Tmall Import and Hema.
GMV
- GMV transacted on our China retail marketplaces in fiscal
year 2018 was RMB4,820 billion (US$768 billion), an increase of 28%
compared to RMB3,767 billion in fiscal year 2017. GMV transacted on
Taobao Marketplace in fiscal year 2018 was RMB2,689 billion (US$428
billion), an increase of 22% compared to fiscal year 2017. GMV
transacted on Tmall in fiscal year 2018 was RMB2,131 billion (US$340
billion), an increase of 36% compared to fiscal year 2017. The growth
of total GMV transacted on our China retail marketplaces was primarily
driven by an increase in the number of active consumers and an
increase in average annual spend per active consumer.
-
China commerce wholesale business
Revenue
from our China commerce wholesale business in fiscal year 2018 was
RMB7,164 million (US$1,142 million), an increase of 26% compared to
RMB5,679 million in fiscal year 2017. The increase was due to an
increase in average revenue from paying members on our 1688.com
platform.
-
International commerce retail business
Revenue
from our international commerce retail business in fiscal year 2018
was RMB14,216 million (US$2,266 million), an increase of 94% compared
to RMB7,336 million in fiscal year 2017. The increase was primarily
due to an increase in revenue generated from Lazada and AliExpress,
primarily driven by robust GMV growth on these two marketplaces.
-
International commerce wholesale business
Revenue
from our international commerce wholesale business in fiscal year 2018
was RMB6,625 million (US$1,056 million), an increase of 10% compared
to RMB6,001 million in fiscal year 2017.
-
Cainiao logistics services
Revenue from
Cainiao logistics services represents revenue from the domestic and
cross-border fulfilment services provided by Cainiao Network, after
elimination of inter-company transactions. We started to consolidate
Cainiao Network in mid-October 2017.
Cloud computing
Revenue from our cloud computing business in fiscal year 2018 was
RMB13,390 million (US$2,135 million), an increase of 101% compared to
RMB6,663 million in fiscal year 2017, primarily driven by an increase in
the number of paying customers, and also to an increase in their
usage of our cloud computing services including more complex offerings,
such as our content delivery network and database services.
Digital media and entertainment
Revenue from our digital media and entertainment business in fiscal year
2018 was RMB19,564 million (US$3,119 million), an increase of 33%
compared to RMB14,733 million in fiscal year 2017. The increase was
primarily due to an increase in revenue from mobile value-added services
provided by UCWeb, such as news feeds and mobile search, and also to an
increase in subscription revenue from Youku Tudou.
Innovation initiatives and others
Revenue from innovation initiatives and others in fiscal year 2018 was
RMB3,292 million (US$524 million), an increase of 10% compared to
RMB2,997 million in fiscal year 2017. Starting from fiscal year 2018, we
reclassified revenue from our fresh food stores Hema, previously
reported under this segment, as revenue from China commerce retail
because Hema has moved beyond the incubation stage.
Costs and Expenses
The following tables set forth a breakdown of our costs and expenses,
share-based compensation expense and costs and expenses excluding
share-based compensation expense by function for the periods indicated.
|
|
|
Year ended March 31,
|
|
|
% of Revenue YoY change
|
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
RMB
|
|
|
% of Revenue
|
|
|
RMB
|
|
|
US$
|
|
|
% of Revenue
|
|
|
|
|
|
(in millions, except percentages)
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
59,483
|
|
|
38%
|
|
|
107,044
|
|
|
17,065
|
|
|
43%
|
|
|
5%
|
Product development expenses
|
|
|
17,060
|
|
|
11%
|
|
|
22,754
|
|
|
3,628
|
|
|
9%
|
|
|
(2)%
|
Sales and marketing expenses
|
|
|
16,314
|
|
|
10%
|
|
|
27,299
|
|
|
4,352
|
|
|
11%
|
|
|
1%
|
General and administrative expenses
|
|
|
12,239
|
|
|
8%
|
|
|
16,241
|
|
|
2,589
|
|
|
6%
|
|
|
(2)%
|
Amortization of intangible assets
|
|
|
5,122
|
|
|
3%
|
|
|
7,120
|
|
|
1,135
|
|
|
3%
|
|
|
0%
|
Impairment of goodwill
|
|
|
-
|
|
|
-
|
|
|
494
|
|
|
79
|
|
|
0%
|
|
|
0%
|
Total costs and expenses
|
|
|
110,218
|
|
|
70%
|
|
|
180,952
|
|
|
28,848
|
|
|
72%
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense by function:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
3,893
|
|
|
2%
|
|
|
5,505
|
|
|
878
|
|
|
2%
|
|
|
0%
|
Product development expenses
|
|
|
5,712
|
|
|
4%
|
|
|
7,374
|
|
|
1,176
|
|
|
3%
|
|
|
(1)%
|
Sales and marketing expenses
|
|
|
1,772
|
|
|
1%
|
|
|
2,037
|
|
|
325
|
|
|
1%
|
|
|
0%
|
General and administrative expenses
|
|
|
4,618
|
|
|
3%
|
|
|
5,159
|
|
|
822
|
|
|
2%
|
|
|
(1)%
|
Total share-based compensation expense
|
|
|
15,995
|
|
|
10%
|
|
|
20,075
|
|
|
3,201
|
|
|
8%
|
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses excluding share-based compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
55,590
|
|
|
36%
|
|
|
101,539
|
|
|
16,187
|
|
|
41%
|
|
|
5%
|
Product development expenses
|
|
|
11,348
|
|
|
7%
|
|
|
15,380
|
|
|
2,452
|
|
|
6%
|
|
|
(1)%
|
Sales and marketing expenses
|
|
|
14,542
|
|
|
9%
|
|
|
25,262
|
|
|
4,027
|
|
|
10%
|
|
|
1%
|
General and administrative expenses
|
|
|
7,621
|
|
|
5%
|
|
|
11,082
|
|
|
1,767
|
|
|
4%
|
|
|
(1)%
|
Amortization of intangible assets
|
|
|
5,122
|
|
|
3%
|
|
|
7,120
|
|
|
1,135
|
|
|
3%
|
|
|
0%
|
Impairment of goodwill
|
|
|
-
|
|
|
-
|
|
|
494
|
|
|
79
|
|
|
0%
|
|
|
0%
|
Total costs and expenses excluding share-based compensation expenses
|
|
|
94,223
|
|
|
60%
|
|
|
160,877
|
|
|
25,647
|
|
|
64%
|
|
|
4%
|
|
Cost of revenue - Cost of revenue in fiscal year 2018 was
RMB107,044 million (US$17,065 million), or 43% of revenue, compared to
RMB59,483 million, or 38% of revenue, in fiscal year 2017. Without the
effect of share-based compensation expense, cost of revenue as a
percentage of revenue would have increased from 36% in fiscal year 2017
to 41% in fiscal year 2018. This increase was primarily due to cost of
inventory in our New Retail businesses and Lazada, as well as
investments in Cainiao Network and our spending in growing user base and
improving user experience.
Product development expenses - Product development expenses in
fiscal year 2018 were RMB22,754 million (US$3,628 million), or 9% of
revenue, compared to RMB17,060 million, or 11% of revenue, in fiscal
year 2017. Without the effect of share-based compensation expense,
product development expenses as a percentage of revenue would have
decreased from 7% in fiscal year 2017 to 6% in fiscal year 2018 due to
operating leverage.
Sales and marketing expenses - Sales and marketing expenses in
fiscal year 2018 were RMB27,299 million (US$4,352 million), or 11% of
revenue, compared to RMB16,314 million, or 10% of revenue, in fiscal
year 2017. Without the effect of share-based compensation expense, sales
and marketing expenses as a percentage of revenue would have increased
from 9% in fiscal year 2017 to 10% in fiscal year 2018, primarily due to
our discretionary advertising and promotional spending for user
acquisition that led to significant increase in annual active consumers
and MAUs in fiscal year 2018.
General and administrative expenses - General and administrative
expenses in fiscal year 2018 were RMB16,241 million (US$2,589 million),
or 6% of revenue, compared to RMB12,239 million, or 8% of revenue, in
fiscal year 2017. Without the effect of share-based compensation
expense, general and administrative expenses as a percentage of revenue
in fiscal year 2018 would have decreased from 5% in fiscal year 2017 to
4% in fiscal year 2018.
Share-based compensation expense -Share-based compensation
expense included in the cost and expense items above in fiscal year 2018
was RMB20,075 million (US$3,201 million), compared to RMB15,995 million
in fiscal year 2017. Share-based compensation expense as a percentage of
revenue decreased to 8% in fiscal year 2018 from 10% in fiscal year
2017. The following table sets forth our analysis of share-based
compensation expense for the periods indicated by type of share-based
awards:
|
|
|
Year ended March 31,
|
|
|
|
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
% of
|
|
|
YoY %
|
|
|
|
RMB
|
|
|
Revenue
|
|
|
RMB
|
|
|
US$
|
|
|
Revenue
|
|
|
Change
|
|
|
|
(in millions, except percentages)
|
By type of awards:
|
|
|
|
Alibaba Group share-based awards granted to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Our employees
|
|
|
11,810
|
|
|
8%
|
|
|
15,267
|
|
|
2,434
|
|
|
6%
|
|
|
29%
|
- Ant Financial employees and other consultants(1)
|
|
|
1,277
|
|
|
1%
|
|
|
1,603
|
|
|
256
|
|
|
1%
|
|
|
26%
|
Ant Financial share-based awards granted to our employees(1)
|
|
|
2,188
|
|
|
1%
|
|
|
2,278
|
|
|
363
|
|
|
1%
|
|
|
4%
|
Others
|
|
|
720
|
|
|
0%
|
|
|
927
|
|
|
148
|
|
|
0%
|
|
|
29%
|
Total share-based compensation expense
|
|
|
15,995
|
|
|
10%
|
|
|
20,075
|
|
|
3,201
|
|
|
8%
|
|
|
26%
|
__________________
|
(1)
|
|
|
Awards subject to mark-to-market accounting treatment.
|
Share-based compensation expense related to Alibaba Group share-based
awards granted to our employees increased in fiscal year 2018 as
compared to fiscal year 2017. This increase was primarily due to the
general increase in the average fair market value of the awards granted.
Amortization of intangible assets - Amortization of intangible
assets in fiscal year 2018 was RMB7,120 million (US$1,135 million), an
increase of 39% from RMB5,122 million in fiscal year 2017. This increase
was due to an increase in intangible assets recognized arising from our
strategic acquisitions and investments.
Income from operations
Income from operations in fiscal year 2018 was RMB69,314 million
(US$11,050 million), or 28% of revenue, an increase of 44% compared to
RMB48,055 million, or 30% of revenue, in fiscal year 2017.
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA achieved growth of 42% to RMB105,792 million (US$16,866
million) in fiscal year 2018, compared to RMB74,456 million in fiscal
year 2017, despite adjusted EBITDA margin decreasing from 47% in fiscal
year 2017 to 42% in fiscal year 2018. Adjusted EBITA achieved growth of
40% to RMB97,003 million (US$15,465 million) in fiscal year 2018,
compared to RMB69,172 million in fiscal year 2017, despite adjusted
EBITA margin decreasing from 44% in fiscal year 2017 to 39% in fiscal
year 2018. Adjusted EBITA margin is lower mainly because of New Retail,
the consolidation of Cainiao Network, investments in Lazada and spending
in growing user base and improving user experience. Revenue of New
Retail, which is included in the core commerce segment, is primarily
recorded on a gross basis, which implies lower gross margins.
Reconciliations of net income to adjusted EBITDA and adjusted EBITA are
included at the end of this results announcement.
As we will continue to invest a portion of our free cash flow in new
businesses and acquired businesses, and these newly developed and
acquired businesses have different cost structures, we expect our margin
will continue to be negatively impacted by these businesses and the
accounting treatment of revenue recorded on a gross basis.
Adjusted EBITA and Adjusted EBITA year-on-year growth are illustrated in
this chart.
Adjusted EBITA and adjusted EBITA margin by
segments
Adjusted EBITA and adjusted EBITA margin by segments are set forth in
the table below. A reconciliation of income from operations to adjusted
EBITA for each segment is included at the end of this results
announcement.
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
RMB
|
|
|
Revenue
|
|
|
RMB
|
|
|
US$
|
|
|
Revenue
|
|
|
|
(in millions, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core commerce
|
|
|
82,432
|
|
|
62%
|
|
|
114,100
|
|
|
18,190
|
|
|
53%
|
Cloud computing
|
|
|
(476)
|
|
|
(7)%
|
|
|
(799)
|
|
|
(127)
|
|
|
(6)%
|
Digital media and entertainment
|
|
|
(6,542)
|
|
|
(44)%
|
|
|
(8,305)
|
|
|
(1,324)
|
|
|
(42)%
|
Innovation initiatives and others
|
|
|
(3,125)
|
|
|
(104)%
|
|
|
(2,996)
|
|
|
(478)
|
|
|
(91)%
|
|
Core commerce segment - Adjusted EBITA achieved growth of
38% to RMB114,100 million (US$18,190 million) in fiscal year 2018,
compared to RMB82,432 million in fiscal year 2017, despite adjusted
EBITA margin decreasing from 62% in fiscal year 2017 to 53% in fiscal
year 2018. Core commerce adjusted EBITA margin is lower mainly because
of New Retail, Cainiao Network, Lazada and spending to increase user
base and improve user experience. Excluding New Retail, the
consolidation of Cainiao Network and investments in Lazada, adjusted
core commerce EBITA margin would have been 63% for fiscal year 2018. Our
New Retail businesses primarily include Intime, Hema and Tmall Import.
Core commerce adjusted EBITA and core commerce adjusted EBITA
year-on-year growth are illustrated in this chart.
Cloud computing segment - Adjusted EBITA in fiscal year 2018 was
a loss of RMB799 million (US$127 million), compared to a loss of RMB476
million in fiscal year 2017. Adjusted EBITA margin improved to negative
6% in fiscal year 2018 from negative 7% in fiscal year 2017.
Digital media and entertainment segment - Adjusted EBITA in
fiscal year 2018 was a loss of RMB8,305 million (US$1,324 million),
compared to a loss of RMB6,542 million in fiscal year 2017. Adjusted
EBITA margin improved to negative 42% in fiscal year 2018 from negative
44% in fiscal year 2017, primarily due to improved results from UCWeb
and other media and entertainment businesses, partially offset by an
increase in investment in content costs of Youku Tudou.
Innovation initiatives and others segment - Adjusted EBITA in
fiscal year 2018 was a loss of RMB2,996 million (US$478 million),
compared to a loss of RMB3,125 million in fiscal year 2017. Adjusted
EBITA margin was negative 91% in fiscal year 2018, compared to negative
104% in fiscal year 2017.
Interest and investment income, net
Interest and investment income, net in fiscal year 2018 was RMB30,495
million (US$4,862 million), a significant increase from RMB8,559 million
in fiscal year 2017, primarily due to a non-cash gain of RMB22,442
million (US$3,578 million) arising from the revaluation of our
previously held equity interest in Cainiao Network when we acquired
control over Cainiao Network in mid-October 2017.
Interest expense
Interest expense in fiscal year 2018 was RMB3,566 million (US$568
million), an increase of 34% compared to RMB2,671 million in fiscal year
2017, primarily due to an increase in average debt outstanding
reflecting primarily an additional US$7.0 billion unsecured senior notes
issued in fiscal year 2018.
Other income, net
Other income, net in fiscal year 2018 was RMB4,160 million (US$663
million), a decrease of 32% compared to RMB6,086 million in fiscal year
2017. The decrease was primarily due to an increase in exchange losses,
partly offset by an increase in income recognized in respect of royalty
fees and software technology services fees from Ant Financial, which was
RMB3,444 million (US$549 million) in fiscal year 2018, compared to
RMB2,086 million in fiscal year 2017.
Income tax expenses
Income tax expenses in fiscal year 2018 were RMB18,199 million (US$2,901
million), an increase of 32% compared to RMB13,776 million in fiscal
year 2017. Our effective tax rate decreased to 18% in fiscal year 2018
from 23% in fiscal year 2017. Income before income tax and share of
results of equity investees in fiscal year 2018 included a gain of
RMB22,442 million (US$3,578 million) from revaluation of our previously
held equity interest in Cainiao Network when we acquired control over
Cainiao Network in mid-October 2017, which were non-taxable, leading to
a lower effective tax rate in fiscal year 2018. Excluding share-based
compensation expense, impairment of goodwill and investments, as well as
other unrealized investment gain/loss, our effective tax rate would have
been remained stable at 18% in fiscal year 2018, compared to fiscal year
2017.
Share of results of equity investees
Share of results of equity investees in fiscal year 2018 consisted of
the following:
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
Share of (loss) profit of equity investees:
|
|
|
|
|
|
|
|
|
|
- Koubei
|
|
|
(990)
|
|
|
(1,340)
|
|
|
(214)
|
- Cainiao Network(1)
|
|
|
(1,056)
|
|
|
(518)
|
|
|
(83)
|
- Others
|
|
|
(838)
|
|
|
1,040
|
|
|
166
|
Impairment losses
|
|
|
(245)
|
|
|
(18,153)
|
|
|
(2,894)
|
Dilution losses
|
|
|
(336)
|
|
|
(128)
|
|
|
(20)
|
Others(2)
|
|
|
(1,562)
|
|
|
(1,693)
|
|
|
(270)
|
|
|
|
(5,027)
|
|
|
(20,792)
|
|
|
(3,315)
|
__________________
|
(1)
|
|
|
We started to consolidate Cainiao Network in mid-October 2017 after
obtaining control over Cainiao Network.
|
(2)
|
|
|
Others mainly include amortization of intangible assets of equity
investees and share-based compensation expenses.
|
During fiscal year 2018, we took an impairment loss of RMB18,116 million
(US$2,888 million) with respect to Alibaba Pictures, one of our
affiliated movie production businesses. The impairment represented the
difference between the market value and our carrying value of this
investment as of December 31, 2017. In June 2015, following a financing
transaction that diluted our shareholding from a controlling position to
minority investment, we were required to write up the carrying value to
the substantially increased market value of Alibaba Pictures at the
time. As a result, we booked a non-cash accounting gain of RMB24,734
million, which increased the carrying value of our investment in Alibaba
Pictures from RMB4,818 million to RMB29,552 million. Since June 2015,
the market value of Alibaba Pictures has declined and remained below our
increased carrying value. The continued low market price combined with
Alibaba Pictures' strategic decision to increase investments and
expenses for market share growth of its online movie ticketing business
caused us to conclude that the decline in market value against our
carrying value may be "other-than-temporary," which led us to take the
impairment in fiscal year 2018.
Net income and Non-GAAP net income
As a result of the foregoing, our net income in fiscal year 2018 was
RMB61,412 million (US$9,791 million), an increase of 49% compared to
RMB41,226 million in fiscal year 2017. Non-GAAP net income in fiscal
year 2018 was RMB83,214 million (US$13,266 million), an increase of 44%
compared to RMB57,871 million in fiscal year 2017. A reconciliation of
net income to non-GAAP net income is included at the end of this results
announcement.
Net income attributable to ordinary shareholders
Net income attributable to ordinary shareholders in fiscal year 2018 was
RMB63,985 million (US$10,201 million), an increase of 47% compared to
RMB43,675 million in fiscal year 2017.
Diluted EPS and non-GAAP diluted EPS
Diluted EPS in fiscal year 2018 was RMB24.51 (US$3.91) on a weighted
average of 2,610 million diluted shares outstanding during the year, an
increase of 44% compared to RMB16.97 on a weighted average of 2,573
million diluted shares outstanding in fiscal year 2017. Non-GAAP diluted
EPS in fiscal year 2018 was RMB32.86 (US$5.24), an increase of 40%
compared to RMB23.44 in fiscal year 2017. A reconciliation of diluted
EPS to non-GAAP diluted EPS is included at the end of this results
announcement.
Cash, cash equivalents and short-term
investments
As of March 31, 2018, cash, cash equivalents and short-term investments
were RMB205,395 million (US$32,745 million), compared to RMB146,747
million as of March 31, 2017. The increase in cash, cash equivalent and
short-term investments in fiscal year 2018 was primarily due to free
cash flow generated from operations and proceeds from our issuance of
US$7.0 billion unsecured senior notes, offset by net cash used for
investment and acquisition, and cash used to acquire additional shares
of Lazada and Intime.
Cash flow from operating activities and free
cash flow
Net cash provided by operating activities in fiscal year 2018 was
RMB125,171 million (US$19,955 million), an increase of 56% compared to
RMB80,326 million in fiscal year 2017. Free cash flow, a non-GAAP
measurement of liquidity, in fiscal year 2018 was RMB99,362 million
(US$15,841 million), compared to RMB68,790 million in fiscal year 2017.
A reconciliation of net cash provided by operating activities to free
cash flow is included at the end of this results announcement.
Net cash used in investing activities
During fiscal year 2018, net cash used in investing activities of
RMB83,890 million (US$13,374 million) mainly included investment and
acquisition activities of RMB66,134 million (US$10,543 million),
including investments in Sun Art Retail Group Limited, Ele.me, Wanda
Cinema, Easyhome, Tokopedia and Lianhua Supermarket, and privatization
of Intime, as well as capital expenditures and acquisition of intangible
assets of RMB29,836 million (US$4,756 million), which included cash
outflow for acquisition of land use rights and construction in progress
of RMB4,027 million (US$642 million), partially offset by cash inflow of
RMB13,408 million (US$2,138 million) from disposals of various
investments.
Revenue guidance for fiscal year 2019
We expect revenue growth for fiscal year 2019 to be over 60% year over
year. Excluding the consolidation of Ele.me and Cainiao Network, we
expect revenue growth for fiscal year 2019 to be over 50%. We will
continue to invest our operating free cash flow to generate long-term
sustainable profit growth.
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group's management will hold a conference call to discuss the
financial results at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Hong Kong
Time) on May 4, 2018.
Details of the conference call are as follows:
International: +65 6713 5090 U.S.: +1 845 675 0437 U.K.: +44
203 621 4779 Hong Kong: +852 3018 6771 Conference ID: 6887267
A live webcast of the earnings conference call can be accessed at http://www.alibabagroup.com/en/ir/earnings.
An archived webcast will be available through the same link following
the call. A replay of the conference call will be available for one week
(dial-in number: +61 2 8199 0299; conference ID: 6887267).
Our results announcement and accompanying slides are available at
Alibaba Group's Investor Relations website at http://www.alibabagroup.com/en/ir/home
on May 4, 2018.
ABOUT ALIBABA GROUP
Alibaba Group's mission is to make it easy to do business anywhere. The
company aims to build the future infrastructure of commerce. It
envisions that its customers will meet, work and live at Alibaba, and
that it will be a company that lasts at least 102 years.
SAFE HARBOR STATEMENTS
This announcement contains forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes," "estimates,"
"potential," "continue," "ongoing," "targets," "guidance" and similar
statements. Among other things, statements that are not historical
facts, including statements about Alibaba's strategies and business
plans, Alibaba's beliefs and expectations regarding the growth of its
business and its revenue, the business outlook and quotations from
management in this announcement, as well as Alibaba's strategic and
operational plans, are or contain forward-looking statements. Alibaba
may also make forward-looking statements in its periodic reports to the
U.S. Securities and Exchange Commission (the "SEC"), in press releases
and other written materials and in oral statements made by its officers,
directors or employees to third parties. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following:
Alibaba's expected revenue growth; Alibaba's goals and strategies;
Alibaba's future business development; Alibaba's ability to maintain the
trusted status of its ecosystem, reputation and brand; risks associated
with increased investments in Alibaba's business and new business
initiatives; risks associated with strategic acquisitions and
investments; Alibaba's ability to retain or increase engagement of
consumers, merchants and other participants in its ecosystem and enable
new offerings; Alibaba's ability to maintain or grow its revenue or
business; risks associated with limitation or restriction of services
provided by Alipay; changes in laws, regulations and regulatory
environment that affect Alibaba's business operations; privacy and
regulatory concerns; competition; security breaches; the continued
growth of the e-commerce market in China and globally; risks associated
with the performance of our business partners, including but not limited
to Ant Financial; and fluctuations in general economic and business
conditions in China and globally and assumptions underlying or related
to any of the foregoing. Further information regarding these and other
risks is included in Alibaba's filings with the SEC. All information
provided in this results announcement is as of the date of this results
announcement and are based on assumptions that we believe to be
reasonable as of this date, and Alibaba does not undertake any
obligation to update any forward-looking statement, except as required
under applicable law.
NON-GAAP FINANCIAL MEASURES
To supplement our consolidated financial statements, which are prepared
and presented in accordance with GAAP, we use the following non-GAAP
financial measures: for our consolidated results, adjusted EBITDA
(including adjusted EBITDA margin), adjusted EBITA (including adjusted
EBITA margin), non-GAAP net income, non-GAAP diluted EPS and free cash
flow. For more information on these non-GAAP financial measures, please
refer to the section entitled "Information about Segments" and the table
captioned "Reconciliations of Non-GAAP Measures to the Nearest
Comparable GAAP Measures" in this results announcement.
We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and
non-GAAP diluted EPS help identify underlying trends in our business
that could otherwise be distorted by the effect of certain income or
expenses that we include in income from operations, net income and
diluted EPS. We believe that adjusted EBITDA, adjusted EBITA, non-GAAP
net income and non-GAAP diluted EPS provide useful information about our
core operating results, enhance the overall understanding of our past
performance and future prospects and allow for greater visibility with
respect to key metrics used by our management in our financial and
operational decision-making. We consider free cash flow to be a
liquidity measure that provides useful information to management and
investors about the amount of cash generated by our business that can be
used for strategic corporate transactions, including investing in our
new business initiatives, making strategic investments and acquisitions
and strengthening our balance sheet. Adjusted EBITDA, adjusted EBITA,
non-GAAP net income, non-GAAP diluted EPS and free cash flow should not
be considered in isolation or construed as an alternative to income from
operations, net income, diluted EPS, cash flows or any other measure of
performance or as an indicator of our operating performance. These
non-GAAP financial measures presented here may not be comparable to
similarly titled measures presented by other companies. Other companies
may calculate similarly titled measures differently, limiting their
usefulness as comparative measures to our data.
Adjusted EBITDA represents net income before (i) interest and
investment income, net, other income, net, interest expense, income tax
expenses and share of results of equity investees, and (ii) certain
non-cash expenses, consisting of share-based compensation expense,
amortization, depreciation and impairment of goodwill, which we do not
believe are reflective of our core operating performance during the
periods presented.
Adjusted EBITA represents net income before (i) interest and
investment income, net, other income, net, interest expense, income tax
expenses and share of results of equity investees, and (ii) certain
non-cash expenses, consisting of share-based compensation expense,
amortization and impairment of goodwill, which we do not believe are
reflective of our core operating performance during the periods
presented.
Non-GAAP net income represents net income before share-based
compensation expense, amortization, impairment of goodwill and
investments, gain on deemed disposals/disposals/revaluation of
investments, amortization of excess value receivable arising from the
restructuring of commercial arrangements with Ant Financial, immediate
recognition of unamortized professional fees and upfront fees upon
termination of bank borrowings and others, as adjusted for the tax
effects on non-GAAP adjustments.
Non-GAAP diluted EPS represents non-GAAP net income attributable
to ordinary shareholders divided by the weighted average number of
shares outstanding during the periods on a diluted basis, including
accounting for the effects of the assumed conversion of convertible
preference shares.
Free cash flow represents net cash provided by operating
activities as presented in our consolidated cash flow statement less
purchases of property and equipment and intangible assets (excluding
acquisition of land use rights and construction in progress) and others.
The section entitled "Information about Segments" and the table
captioned "Reconciliations of Non-GAAP Measures to the Nearest
Comparable GAAP Measures" in this results announcement have more details
on the non-GAAP financial measures that are most directly comparable to
GAAP financial measures and the related reconciliations between these
financial measures.
ALIBABA GROUP HOLDING LIMITED
|
UNAUDITED CONSOLIDATED INCOME STATEMENTS
|
|
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions, except per share data)
|
|
|
(in millions, except per share data)
|
Revenue
|
|
|
38,579
|
|
|
61,932
|
|
|
9,873
|
|
|
158,273
|
|
|
250,266
|
|
|
39,898
|
Cost of revenue
|
|
|
(15,490)
|
|
|
(32,504)
|
|
|
(5,182)
|
|
|
(59,483)
|
|
|
(107,044)
|
|
|
(17,065)
|
Product development expenses
|
|
|
(4,518)
|
|
|
(6,686)
|
|
|
(1,066)
|
|
|
(17,060)
|
|
|
(22,754)
|
|
|
(3,628)
|
Sales and marketing expenses
|
|
|
(4,332)
|
|
|
(7,641)
|
|
|
(1,218)
|
|
|
(16,314)
|
|
|
(27,299)
|
|
|
(4,352)
|
General and administrative expenses
|
|
|
(3,394)
|
|
|
(4,551)
|
|
|
(725)
|
|
|
(12,239)
|
|
|
(16,241)
|
|
|
(2,589)
|
Amortization of intangible assets
|
|
|
(1,313)
|
|
|
(1,329)
|
|
|
(212)
|
|
|
(5,122)
|
|
|
(7,120)
|
|
|
(1,135)
|
Impairment of goodwill
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(494)
|
|
|
(79)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
9,532
|
|
|
9,221
|
|
|
1,470
|
|
|
48,055
|
|
|
69,314
|
|
|
11,050
|
Interest and investment income, net
|
|
|
6,553
|
|
|
1,945
|
|
|
310
|
|
|
8,559
|
|
|
30,495
|
|
|
4,862
|
Interest expense
|
|
|
(676)
|
|
|
(1,175)
|
|
|
(187)
|
|
|
(2,671)
|
|
|
(3,566)
|
|
|
(568)
|
Other income, net
|
|
|
440
|
|
|
884
|
|
|
141
|
|
|
6,086
|
|
|
4,160
|
|
|
663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax and share of results of equity investees
|
|
|
15,849
|
|
|
10,875
|
|
|
1,734
|
|
|
60,029
|
|
|
100,403
|
|
|
16,007
|
Income tax expenses
|
|
|
(4,553)
|
|
|
(4,164)
|
|
|
(664)
|
|
|
(13,776)
|
|
|
(18,199)
|
|
|
(2,901)
|
Share of results of equity investees
|
|
|
(1,444)
|
|
|
(70)
|
|
|
(11)
|
|
|
(5,027)
|
|
|
(20,792)
|
|
|
(3,315)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
9,852
|
|
|
6,641
|
|
|
1,059
|
|
|
41,226
|
|
|
61,412
|
|
|
9,791
|
Net loss attributable to noncontrolling interests
|
|
|
795
|
|
|
1,028
|
|
|
164
|
|
|
2,449
|
|
|
2,681
|
|
|
427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Alibaba Group Holding Limited
|
|
|
10,647
|
|
|
7,669
|
|
|
1,223
|
|
|
43,675
|
|
|
64,093
|
|
|
10,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of mezzanine equity
|
|
|
-
|
|
|
(108)
|
|
|
(17)
|
|
|
-
|
|
|
(108)
|
|
|
(17)
|
Net income attributable to ordinary shareholders
|
|
|
10,647
|
|
|
7,561
|
|
|
1,206
|
|
|
43,675
|
|
|
63,985
|
|
|
10,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
4.24
|
|
|
2.95
|
|
|
0.47
|
|
|
17.52
|
|
|
25.06
|
|
|
4.00
|
Diluted
|
|
|
4.12
|
|
|
2.88
|
|
|
0.46
|
|
|
16.97
|
|
|
24.51
|
|
|
3.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share used in calculating net income
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,513
|
|
|
2,560
|
|
|
|
|
|
2,493
|
|
|
2,553
|
|
|
|
Diluted
|
|
|
2,581
|
|
|
2,619
|
|
|
|
|
|
2,573
|
|
|
2,610
|
|
|
|
ALIBABA GROUP HOLDING LIMITED REVENUE
The following table sets forth our revenue by segments for the periods
indicated:
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
|
|
(in millions)
|
Core commerce(1)
|
|
|
31,570
|
|
|
51,287
|
|
|
8,176
|
|
|
133,880
|
|
|
214,020
|
|
|
34,120
|
Cloud computing(2)
|
|
|
2,163
|
|
|
4,385
|
|
|
699
|
|
|
6,663
|
|
|
13,390
|
|
|
2,135
|
Digital media and entertainment(3)
|
|
|
3,927
|
|
|
5,272
|
|
|
840
|
|
|
14,733
|
|
|
19,564
|
|
|
3,119
|
Innovation initiatives and others(4)
|
|
|
919
|
|
|
988
|
|
|
158
|
|
|
2,997
|
|
|
3,292
|
|
|
524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
38,579
|
|
|
61,932
|
|
|
9,873
|
|
|
158,273
|
|
|
250,266
|
|
|
39,898
|
__________________
|
(1)
|
|
|
Revenue from core commerce is primarily generated from our China
retail marketplaces, 1688.com, AliExpress, Alibaba.com, Lazada.com
and Cainiao logistics services.
|
(2)
|
|
|
Revenue from cloud computing is primarily generated from the
provision of services, such as data storage, elastic computing,
database and large scale computing services, as well as web hosting
and domain name registration.
|
(3)
|
|
|
Revenue from digital media and entertainment mainly represents
advertising and subscription revenue generated from our digital
entertainment business provided by Youku Tudou and mobile Internet
services revenue from UCWeb businesses.
|
(4)
|
|
|
Revenue from innovation initiatives and others mainly represents
revenue generated by AutoNavi and YunOS, as well as fees from Ant
Financial related to the SME loan business.
|
ALIBABA GROUP HOLDING LIMITED INFORMATION ABOUT SEGMENTS
The following table sets forth our income (loss) from operations by
segments for the periods indicated:
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
|
|
(in millions)
|
|
|
|
Core commerce
|
|
|
16,500
|
|
|
18,660
|
|
|
2,975
|
|
|
74,180
|
|
|
102,743
|
|
|
16,379
|
Cloud computing
|
|
|
(505)
|
|
|
(1,063)
|
|
|
(169)
|
|
|
(1,681)
|
|
|
(3,085)
|
|
|
(492)
|
Digital media and entertainment
|
|
|
(2,586)
|
|
|
(3,541)
|
|
|
(565)
|
|
|
(9,882)
|
|
|
(14,140)
|
|
|
(2,254)
|
Innovation initiatives and others
|
|
|
(1,888)
|
|
|
(2,019)
|
|
|
(322)
|
|
|
(6,798)
|
|
|
(6,901)
|
|
|
(1,100)
|
Unallocated
|
|
|
(1,989)
|
|
|
(2,816)
|
|
|
(449)
|
|
|
(7,764)
|
|
|
(9,303)
|
|
|
(1,483)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
9,532
|
|
|
9,221
|
|
|
1,470
|
|
|
48,055
|
|
|
69,314
|
|
|
11,050
|
The following table sets forth our adjusted EBITA by segments for the
periods indicated:
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
|
|
(in millions)
|
Core commerce
|
|
|
18,579
|
|
|
22,186
|
|
|
3,537
|
|
|
82,432
|
|
|
114,100
|
|
|
18,190
|
Cloud computing
|
|
|
(169)
|
|
|
(353)
|
|
|
(56)
|
|
|
(476)
|
|
|
(799)
|
|
|
(127)
|
Digital media and entertainment
|
|
|
(1,711)
|
|
|
(2,595)
|
|
|
(414)
|
|
|
(6,542)
|
|
|
(8,305)
|
|
|
(1,324)
|
Innovation initiatives and others
|
|
|
(682)
|
|
|
(860)
|
|
|
(137)
|
|
|
(3,125)
|
|
|
(2,996)
|
|
|
(478)
|
Unallocated
|
|
|
(866)
|
|
|
(1,573)
|
|
|
(251)
|
|
|
(3,117)
|
|
|
(4,997)
|
|
|
(796)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
15,151
|
|
|
16,805
|
|
|
2,679
|
|
|
69,172
|
|
|
97,003
|
|
|
15,465
|
|
ALIBABA GROUP HOLDING LIMITED
|
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
As of March 31,
|
|
|
As of March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
143,736
|
|
|
199,309
|
|
|
31,775
|
Short-term investments
|
|
|
3,011
|
|
|
6,086
|
|
|
970
|
Restricted cash and escrow receivables
|
|
|
2,655
|
|
|
3,417
|
|
|
545
|
Investment securities
|
|
|
4,054
|
|
|
4,815
|
|
|
768
|
Prepayments, receivables and other assets(1)
|
|
|
28,408
|
|
|
43,228
|
|
|
6,891
|
Total current assets
|
|
|
181,864
|
|
|
256,855
|
|
|
40,949
|
|
Investment securities
|
|
|
31,452
|
|
|
38,192
|
|
|
6,089
|
Prepayments, receivables and other assets(1)
|
|
|
8,703
|
|
|
16,897
|
|
|
2,694
|
Investment in equity investees
|
|
|
120,368
|
|
|
139,700
|
|
|
22,271
|
Property and equipment, net
|
|
|
20,206
|
|
|
66,489
|
|
|
10,600
|
Land use rights, net
|
|
|
4,691
|
|
|
9,377
|
|
|
1,495
|
Intangible assets, net
|
|
|
14,108
|
|
|
27,465
|
|
|
4,378
|
Goodwill
|
|
|
125,420
|
|
|
162,149
|
|
|
25,850
|
Total assets
|
|
|
506,812
|
|
|
717,124
|
|
|
114,326
|
|
|
|
|
|
|
|
|
|
|
Liabilities, Mezzanine Equity and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Current bank borrowings
|
|
|
5,948
|
|
|
6,028
|
|
|
961
|
Current portion of unsecured notes
|
|
|
8,949
|
|
|
-
|
|
|
-
|
Income tax payable
|
|
|
6,125
|
|
|
13,689
|
|
|
2,181
|
Escrow money payable
|
|
|
2,322
|
|
|
3,053
|
|
|
487
|
Accrued expenses, accounts payable and other liabilities(1)
|
|
|
46,979
|
|
|
81,165
|
|
|
12,940
|
Merchant deposits
|
|
|
8,189
|
|
|
9,578
|
|
|
1,527
|
Deferred revenue and customer advances
|
|
|
15,052
|
|
|
22,297
|
|
|
3,555
|
Total current liabilities
|
|
|
93,564
|
|
|
135,810
|
|
|
21,651
|
__________________
|
(1)
|
|
|
Certain reclassifications in prepayments, receivables and other
assets, accrued expenses, accounts payable and other liabilities and
deferred tax liabilities as of March 31, 2017 were retrospectively
adjusted as a result of the adoption of a new accounting standard
effective in the first quarter of fiscal 2018.
|
ALIBABA GROUP HOLDING LIMITED
|
UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
|
|
|
|
As of March 31,
|
|
|
As of March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
641
|
|
|
993
|
|
|
158
|
Deferred tax liabilities(1)
|
|
|
10,361
|
|
|
19,312
|
|
|
3,079
|
Non-current bank borrowings
|
|
|
30,959
|
|
|
34,153
|
|
|
5,445
|
Unsecured senior notes
|
|
|
45,876
|
|
|
85,372
|
|
|
13,610
|
Other liabilities
|
|
|
1,290
|
|
|
2,045
|
|
|
327
|
Total liabilities
|
|
|
182,691
|
|
|
277,685
|
|
|
44,270
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
-
|
|
|
-
|
|
|
-
|
Mezzanine equity
|
|
|
2,992
|
|
|
3,001
|
|
|
478
|
Alibaba Group Holding Limited shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Ordinary shares
|
|
|
1
|
|
|
1
|
|
|
-
|
Additional paid-in capital
|
|
|
164,585
|
|
|
186,764
|
|
|
29,775
|
Treasury shares at cost
|
|
|
(2,823)
|
|
|
(2,233)
|
|
|
(356)
|
Restructuring reserve
|
|
|
(624)
|
|
|
(361)
|
|
|
(58)
|
Subscription receivables
|
|
|
(63)
|
|
|
(163)
|
|
|
(26)
|
Statutory reserves
|
|
|
4,080
|
|
|
4,378
|
|
|
698
|
Accumulated other comprehensive income
|
|
|
5,085
|
|
|
5,083
|
|
|
810
|
Retained earnings
|
|
|
108,558
|
|
|
172,353
|
|
|
27,477
|
|
|
|
|
|
|
|
|
|
|
Total Alibaba Group Holding Limited shareholders' equity
|
|
|
278,799
|
|
|
365,822
|
|
|
58,320
|
Noncontrolling interests
|
|
|
42,330
|
|
|
70,616
|
|
|
11,258
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
321,129
|
|
|
436,438
|
|
|
69,578
|
|
|
|
|
|
|
|
|
|
|
Total liabilities, mezzanine equity and equity
|
|
|
506,812
|
|
|
717,124
|
|
|
114,326
|
__________________
|
(1)
|
|
|
Certain reclassifications in prepayments, receivables and other
assets, accrued expenses, accounts payable and other liabilities and
deferred tax liabilities as of March 31, 2017 were retrospectively
adjusted as a result of the adoption of a new accounting standard
effective in the first quarter of fiscal 2018.
|
ALIBABA GROUP HOLDING LIMITED
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
10,746
|
|
|
14,180
|
|
|
2,261
|
|
|
80,326
|
|
|
125,171
|
|
|
19,955
|
Net cash used in investing activities
|
|
|
(3,035)
|
|
|
(19,816)
|
|
|
(3,159)
|
|
|
(78,364)
|
|
|
(83,890)
|
|
|
(13,374)
|
Net cash provided by (used in) financing activities
|
|
|
2,482
|
|
|
(4,605)
|
|
|
(734)
|
|
|
32,914
|
|
|
20,359
|
|
|
3,246
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(446)
|
|
|
(2,646)
|
|
|
(422)
|
|
|
2,042
|
|
|
(6,067)
|
|
|
(967)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
9,747
|
|
|
(12,887)
|
|
|
(2,054)
|
|
|
36,918
|
|
|
55,573
|
|
|
8,860
|
Cash and cash equivalents at beginning of period
|
|
|
133,989
|
|
|
212,196
|
|
|
33,829
|
|
|
106,818
|
|
|
143,736
|
|
|
22,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
143,736
|
|
|
199,309
|
|
|
31,775
|
|
|
143,736
|
|
|
199,309
|
|
|
31,775
|
|
ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES
The table below sets forth a reconciliation of our net income to
adjusted EBITA and adjusted EBITDA for the periods indicated:
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
|
|
(in millions)
|
Net income
|
|
|
9,852
|
|
|
6,641
|
|
|
1,059
|
|
|
41,226
|
|
|
61,412
|
|
|
9,791
|
Less: Interest and investment income, net
|
|
|
(6,553)
|
|
|
(1,945)
|
|
|
(310)
|
|
|
(8,559)
|
|
|
(30,495)
|
|
|
(4,862)
|
Add: Interest expense
|
|
|
676
|
|
|
1,175
|
|
|
187
|
|
|
2,671
|
|
|
3,566
|
|
|
568
|
Less: Other income, net
|
|
|
(440)
|
|
|
(884)
|
|
|
(141)
|
|
|
(6,086)
|
|
|
(4,160)
|
|
|
(663)
|
Add: Income tax expenses
|
|
|
4,553
|
|
|
4,164
|
|
|
664
|
|
|
13,776
|
|
|
18,199
|
|
|
2,901
|
Add: Share of results of equity investees
|
|
|
1,444
|
|
|
70
|
|
|
11
|
|
|
5,027
|
|
|
20,792
|
|
|
3,315
|
Income from operations
|
|
|
9,532
|
|
|
9,221
|
|
|
1,470
|
|
|
48,055
|
|
|
69,314
|
|
|
11,050
|
Add: Share-based compensation expense
|
|
|
4,306
|
|
|
6,255
|
|
|
997
|
|
|
15,995
|
|
|
20,075
|
|
|
3,201
|
Add: Amortization of intangible assets
|
|
|
1,313
|
|
|
1,329
|
|
|
212
|
|
|
5,122
|
|
|
7,120
|
|
|
1,135
|
Add: Impairment of goodwill
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
494
|
|
|
79
|
Adjusted EBITA
|
|
|
15,151
|
|
|
16,805
|
|
|
2,679
|
|
|
69,172
|
|
|
97,003
|
|
|
15,465
|
Add: Depreciation and amortization of property and equipment and
land use rights
|
|
|
1,446
|
|
|
2,649
|
|
|
422
|
|
|
5,284
|
|
|
8,789
|
|
|
1,401
|
Adjusted EBITDA
|
|
|
16,597
|
|
|
19,454
|
|
|
3,101
|
|
|
74,456
|
|
|
105,792
|
|
|
16,866
|
|
ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of our net income to
non-GAAP net income for the periods indicated:
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
9,852
|
|
|
6,641
|
|
|
1,059
|
|
|
41,226
|
|
|
61,412
|
|
|
9,791
|
Add: Share-based compensation expense
|
|
|
4,306
|
|
|
6,255
|
|
|
997
|
|
|
15,995
|
|
|
20,075
|
|
|
3,201
|
Add: Amortization of intangible assets
|
|
|
1,313
|
|
|
1,329
|
|
|
212
|
|
|
5,122
|
|
|
7,120
|
|
|
1,135
|
Add: Impairment of goodwill and investments
|
|
|
133
|
|
|
89
|
|
|
14
|
|
|
2,542
|
|
|
20,463
|
|
|
3,262
|
Less: Gain on deemed disposals/disposals/revaluation of investments
and others
|
|
|
(5,603)
|
|
|
(153)
|
|
|
(24)
|
|
|
(7,346)
|
|
|
(25,945)
|
|
|
(4,137)
|
Add: Amortization of excess value receivable arising from the
restructuring of commercial arrangements with Ant Financial
|
|
|
65
|
|
|
65
|
|
|
10
|
|
|
264
|
|
|
264
|
|
|
42
|
Add: Immediate recognition of unamortized professional fees and
upfront fees upon termination of bank borrowings
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
92
|
|
|
15
|
Adjusted for tax effects on non-GAAP adjustments(1)
|
|
|
374
|
|
|
(127)
|
|
|
(20)
|
|
|
68
|
|
|
(267)
|
|
|
(43)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
10,440
|
|
|
14,099
|
|
|
2,248
|
|
|
57,871
|
|
|
83,214
|
|
|
13,266
|
__________________
|
(1)
|
|
|
Tax effects on non-GAAP adjustments comprise of tax provisions on
the amortization of intangible assets and certain gains on disposal
of investments, as well as tax benefits from share-based awards.
|
ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of our diluted EPS to
non-GAAP diluted EPS for the periods indicated:
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions, except per share data)
|
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ordinary shareholders - basic
|
|
|
10,647
|
|
|
7,561
|
|
|
1,206
|
|
|
43,675
|
|
|
63,985
|
|
|
10,201
|
Dilution effect on earnings arising from option plans operated by a
subsidiary and equity investees
|
|
|
(5)
|
|
|
(11)
|
|
|
(2)
|
|
|
(11)
|
|
|
(21)
|
|
|
(3)
|
Net income attributable to ordinary shareholders - diluted
|
|
|
10,642
|
|
|
7,550
|
|
|
1,204
|
|
|
43,664
|
|
|
63,964
|
|
|
10,198
|
Add: Non-GAAP adjustments to net income(1)
|
|
|
588
|
|
|
7,458
|
|
|
1,189
|
|
|
16,645
|
|
|
21,802
|
|
|
3,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to ordinary shareholders
for computing non-GAAP diluted EPS
|
|
|
11,230
|
|
|
15,008
|
|
|
2,393
|
|
|
60,309
|
|
|
85,766
|
|
|
13,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares on a diluted basis
|
|
|
2,581
|
|
|
2,619
|
|
|
|
|
|
2,573
|
|
|
2,610
|
|
|
|
Diluted EPS(2)
|
|
|
4.12
|
|
|
2.88
|
|
|
0.46
|
|
|
16.97
|
|
|
24.51
|
|
|
3.91
|
Add: Non-GAAP adjustments to net income per share(3)
|
|
|
0.23
|
|
|
2.85
|
|
|
0.45
|
|
|
6.47
|
|
|
8.35
|
|
|
1.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS(4)
|
|
|
4.35
|
|
|
5.73
|
|
|
0.91
|
|
|
23.44
|
|
|
32.86
|
|
|
5.24
|
__________________
|
(1)
|
|
|
See the table above for the reconciliation of net income to non-GAAP
net income for more information of these non-GAAP adjustments.
|
(2)
|
|
|
Diluted EPS is derived from net income attributable to ordinary
shareholders for computing diluted EPS divided by weighted average
number of shares on a diluted basis.
|
(3)
|
|
|
Non-GAAP adjustments to net income per share is derived from
non-GAAP adjustments to net income divided by weighted average
number of shares on a diluted basis.
|
(4)
|
|
|
Non-GAAP diluted EPS is derived from non-GAAP net income
attributable to ordinary shareholders for computing non-GAAP diluted
EPS divided by weighted average number of shares on a diluted basis.
|
ALIBABA GROUP HOLDING LIMITED RECONCILIATIONS OF NON-GAAP
MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of net cash provided by
operating activities to free cash flow for the periods indicated:
|
|
|
Three months ended March 31,
|
|
|
Year ended March 31,
|
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
(in millions)
|
|
|
(in millions)
|
Net cash provided by operating activities
|
|
|
10,746
|
|
|
14,180
|
|
|
2,261
|
|
|
80,326
|
|
|
125,171
|
|
|
19,955
|
Less: Purchase of property and equipment and intangible assets
(excluding land use rights and construction in progress)
|
|
|
(2,832)
|
|
|
(5,616)
|
|
|
(896)
|
|
|
(12,220)
|
|
|
(25,809)
|
|
|
(4,114)
|
Add: Others
|
|
|
66
|
|
|
-
|
|
|
-
|
|
|
684
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
7,980
|
|
|
8,564
|
|
|
1,365
|
|
|
68,790
|
|
|
99,362
|
|
|
15,841
|
|
ALIBABA GROUP HOLDING LIMITED SELECTED OPERATING DATA
Annual active consumers
The table below sets forth the number of active consumers on our China
retail marketplaces for the periods indicated:
|
|
|
Twelve months ended
|
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2018
|
|
|
|
(in millions)
|
Annual active consumers
|
|
|
434
|
|
|
439
|
|
|
443
|
|
|
454
|
|
|
466
|
|
|
488
|
|
|
515
|
|
|
552
|
|
Mobile
The table below sets forth the mobile MAUs on our China retail
marketplaces for the periods indicated:
|
|
|
The month ended
|
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2018
|
|
|
|
(in millions)
|
Mobile MAUs
|
|
|
427
|
|
|
450
|
|
|
493
|
|
|
507
|
|
|
529
|
|
|
549
|
|
|
580
|
|
|
617
|
|
Revenue per active consumer / mobile revenue per mobile MAU
The table below sets forth information with respect to annual China
commerce retail revenue per annual active consumer and annualized mobile
revenue per mobile MAU from China commerce retail for the periods
presented:
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2018
|
|
|
|
(in RMB)
|
Annual China commerce retail revenue per annual active consumer(1)
|
|
|
202
|
|
|
215
|
|
|
241
|
|
|
251
|
|
|
273
|
|
|
293
|
|
|
315
|
|
|
320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile revenue per mobile MAU from China commerce retail - Annualized(2)
|
|
|
140
|
|
|
151
|
|
|
166
|
|
|
179
|
|
|
196
|
|
|
213
|
|
|
229
|
|
|
230
|
__________________
|
(1)
|
|
|
China commerce retail revenue per active consumer for each of the
above periods is calculated by dividing the China commerce retail
revenue for the previous 12-month period by the annual active
consumers for the same 12-month period.
|
(2)
|
|
|
Mobile revenue per mobile MAU from China commerce retail,
annualized is calculated by dividing mobile revenue from China
commerce retail for the previous 12-month period by the mobile
MAUs for the last month of the same period.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180504005297/en/
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|