Alibaba headquarters in Hangzhou, China, on Wednesday, November 10, 2021.
Qilai Shen | Bloomberg | beautiful pictures
Alibaba on Thursday reported its slowest quarterly revenue growth since going public and fell short of expectations, but the Chinese e-commerce giant took a beating on earnings.
Here’s how Alibaba did in its fiscal third quarter, compared to Refinitiv consensus estimates:
- Revenue: 242.58 billion ($38.06 billion) compared with the estimated 246.37 billion yuan, up 10% year-on-year.
- EPS: 16.87 ($2.65) yuan per share versus 16.18 yuan per share estimated, a 23% autumn every year.
The 10% revenue growth was the company’s slowest annual quarterly growth since listing in the US in 2014.
Alibaba has faced macroeconomic headwinds in China that have weighed on the e-commerce giant’s business. Chinese people Retail sales remained sluggish in the fourth quarter of the yearFor example.
Meanwhile, the company’s shares have fallen more than 50% last year as China tightens regulations on its tech sector in areas from Antitrust arrive data protection. Last year, Alibaba reached 18.23 billion yuan ($2.8 billion). good by governing bodies like part of an antitrust investigation.
The scrutiny of China’s tech giants continues to be another factor weighing on the company.
Investors are tracking several key metrics including customer management revenue (CMR), cloud revenue, and the company’s forward guidance.
Analysts expect Alibaba’s core commerce revenue, which includes CMR, to reach 222 billion yuan, according to Refinitiv estimates.
CMR, the largest portion of revenue, is the revenue Alibaba derives from services such as marketing that it sells to sellers on the Taobao and Tmall e-commerce platforms.
During the December quarter, China held its annual Singles Day shopping festival, a splendid multi-day festival in which retailers offer huge discounts. Alibaba shows gross merchandise volume (GMV) for an 11-day period reached a record 540.3 billion yuan.
But GMV, i.e. the amount transacted on a platform, does not translate into direct revenue for Alibaba.
Cloud computing revenue is expected to reach 20.62 billion yuan.
