Alibaba, a Chinese e-commerce giant and the world’s largest online retailer. has beaten market expectations with regards to profits this quarter. Alibaba said that sales increased by 132 percent which surpassed revenue forecast for the quarter.
“We had an outstanding quarter,” Alibaba chief executive Daniel Zhang said in a statement.
This quarter we delivered excellent results, with overall revenue growth of 61% demonstrating the robust momentum in our core commerce business and across the Alibaba economy.
After the increase in the profit, Alibaba has raised their expectations for year-end revenue growth. Previous growth forecast was 45–49% and now, after this outstanding quarter, Alibaba has revised its growth forecast to 49–53%.
Alibaba is planning to take control of the logistics company Cainiao and it is expecting financial benefits which are expected to increase their annual profits.
In the same period last year, net profit was reported at 17.67 billion yuan ($2.67 billion) – increase of 132% – for the three months ending September 30, 2017, surpassing last year’s 7.62 billion yuan during the same period last year.
Alibaba is investing various innovative solutions and technologies and suggests that major profits came from Taobao online shopping app which suggests and anticipates shopping options to millions of users.
At the end of second quarter for fiscal year 2017-18, Alibaba reported revenues of 55.1 billion yuan, surpassing the estimate of 52 billion set by Bloomberg News.
The US-listed Chinese firm has been on a strong run beating expectations and forecasts. Alibaba shares have more than doubled in value during 2017.
Chief Executive Officer (CEO) Daniel Zhang said
Alibaba had a strong start to fiscal 2018, reflecting the strength and diversity of our businesses and the value we bring to customers on our platforms. Our technology is driving significant growth across our business and strengthening our position beyond core commerce.
Alibaba has reported revenue growth across all of its core commerce, cloud computing, digital media, and other divisions. Sales growth in core commerce grew by 63% to 46.5 billion yuan, which resulted in 72% of overall group revenue.
The Chinese e-commerce firm is also gearing up for the annual blockbusters Singles’ Day event on November 11, a sales bonanza that moves more goods than the Black Friday sales in the US. This event is also known as 11.11 shopping festival in which they are expecting millions of customers to participate. This event will indeed increase the sales for the Alibaba and eventually lead to increase in their quarterly revenue and profit.
Alibaba is investing a lot of resources in cloud computing, artificial intelligence, financial systems, and logistics.
Mobile users of in the Chinese marketplace increased by 20 million in the past three months, and the active number of mobile users grew to 549 million in September.