Cloud and e-commerce growth pushes Alibaba’s quarterly revenue up 10%

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Alibaba Group has released its latest quarterly results for the period ended December 31, 2021, the first since the company unveiled its major restructuring plans in early December.

As part of the restructuring, the Chinese internet giant split its global and domestic e-commerce businesses into two separate units. When announcing the restructuring, Alibaba said it would focus its investments on “two strategic pillars” to better generate synergies between its consumer and wholesale platforms in China as well as internationally. .

Beginning this quarter, the company updated its segment information to reflect this restructuring, which now includes China Commerce, International Commerce, Local Consumer Services, Cainaio, Cloud, Digital Media and Entertainment, innovation and other initiatives.

Overall, for this quarter, the Chinese giant reported revenue of 242.5 million yuan ($38 million), a 10% year-on-year increase, which the company attributed to the growth of its business in China, cloud, local consumer services. , and segments of international trade.

“We have always innovated and invested for the long term throughout Alibaba’s history. As our new sector disclosure demonstrates, our continued investments in growth initiatives have yielded tangible results,” said outgoing Alibaba Group Chief Financial Officer Maggie Wu.

Alibaba’s cloud revenue was $3 million, up 20% from a year ago. The company said this was supported by growth in the finance and telecommunications sectors, but was offset by “a large cloud customer’s decision to stop using our overseas cloud services for its international business due to non-product requirements and slowing demand from customers in the internet industry, such as online entertainment and education.”

Trade in China, which continues to account for the largest share of total revenue, increased 7% from a year ago to $27 million. The company’s local consumer services segment saw the biggest increase in the quarter of 27% year-over-year to $1.9 million, and international trade reached $2.58 million, after a jump 18% compared to the previous corresponding period.

“Alibaba made steady progress this quarter as we continue to execute our multi-engine growth strategy in a complex and volatile market environment,” said Alibaba Group Chairman and CEO Daniel Zhang.

“We have achieved positive momentum in key strategic businesses through a disciplined focus on building capabilities and creating value to fuel our future growth.”

The company’s global annual active consumers reached 1.28 billion for the 12 months to the end of the year, after an increase of approximately 43 million in the quarter, including 979 million consumers in China and 301 million in consumers abroad.

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