The Alibaba Group Holding Ltd (NYSE:BABA) 3Q17 earnings results were released before opening bell this morning, and the company posted adjusted earnings of RMB8.57 per share on RMB55.12 billion ($8.3 billion) in revenue. Analysts had been looking for earnings of RMB6.86 per share on RMB55.05 billion in revenue.
Alibaba 3Q17 earnings
On a GAAP basis, Alibaba 3Q17 earnings came in at RMB1.02 per share. The adjusted EBITDA margin was 45%, while the adjusted EBITDA margin for the core commerce segment was 57%.
Core commerce revenue surged 63% year over year to RMB45.46 billion, while cloud computing revenue grew 99% to RMB3 billion. Digital media and entertainment revenue grew 33% to RMB7.8 billion, while innovation initiatives and other revenue jumped 27% to RMB887 million. Management said their program innovations are driving engagement and loyalty to its Taobao and Tmall shopping platforms.
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“Our consumer insights and technology innovation were the key drivers behind our customer value proposition across the Alibaba economy,” CEO Daniel Zhang said in a statement with the Alibaba 3Q17 earnings release. “We are seeing the early results from our efforts to integrate online and offline with our New Retail strategy, and consumers have benefited from access to high quality products, improved customer experience and the tremendous convenience of shopping anytime, anywhere.”
Alibaba added 22 million annual active customers on its China retail business, bringing the total to 488 million. The company added 20 million mobile monthly active users to reach 20 million.
Alibaba issues guidance
The company also adjusted its revenue outlook to account for the consolidation of Cainiao Network, which will start in the December quarter. Its new full-year revenue outlook for fiscal 2018 is for growth of 49% to 53%. Previously, the company had guided for a growth rate of 45% to 49% year over year. Alibaba also noted that it is planning its ninth annual global shopping festival on Nov. 11.
Following the release of the Alibaba 3Q17 earnings results, the company’s stock surged in premarket trading, climbing by as much as 1.95% to $189.70 per share.