Get ready to ramp up the IPO fever, as Alibaba sales soar 46 percent ahead of its initial public offering.
Alibaba’s earnings numbers
Although the earnings numbers were described as being as being “quietly released,” financial numbers coming out in front of one of the most anticipated IPOs in history can only be expected to generate big news, and the appeal of that news is enhanced the more nonchalant Alibaba appears.
In the not so quiet numbers, sales during the previous quarter were up 46 percent year over year to $2.54 billion, bringing trailing 12-month revenue to an impressive $296 billion, a news report noted.
The report noted the “booming sales” were likely to contribute to the hype surrounding the Chinese retailer. This is particularly true as Chinese e-commerce is anticipated to grow to $420 billion and $650 billion by 2020, the report noted, citing McKinsey & Company research.
Breaking down the numbers, mobile phone transactions spiked, as China’s newly wealthy were busy looking down at their cell phones in social situations buying merchandise at a record clip. Gross merchandise volume from mobile represented 38 percent of total sales, which towers over the 12 percent of sales mobile represented just one year ago.
Alibaba notes a rise in mobile transactions
Mobile users, a key point of the hype, also saw a dramatic rise.
“A significant portion of our customers have begun transacting on our mobile platform,” Alibaba said, using quiet language in their SEC filing as they pointed to the 38 percent monster headline. “And we are focused on capturing this opportunity.”
Capturing mobile users was also climbing at the same clip as sales growth. Mobile users were up to a whopping 188 million in June, up 38 percent. For perspective, the entire population in Russia is 143.5 million.
The monstrous mobile internet market in China, where 500 million mobile users are estimated to be active, is the most active in the world, the carrier noted in its SEC filing, citing the China Internet Network Information Center.
Interestingly, with China’s physical retail world looking more like the third world, consumers in the formerly anti-capitalistic nation are deciding to “leapfrog the offline retail market in favor of online and mobile commerce,” Alibaba said.