Top News Alibaba’s revenue soars on back of e-commerce, cloud computing demand By TTG Asia / Posted on 21 August, 2020 16:55 China’s Alibaba Group posted strong revenue growth in the quarter ending June, largely driven by its core commerce and cloud computing businesses, with revenue swelling 34 per cent year-over-year to US$21.8 billion. The company’s domestic commerce business has also fully recovered to pre-Covid-19 levels across the board, while cloud computing revenue grew 59 per cent year-over-year, said Maggie Wu, CFO of Alibaba Group. Alibaba reports strong revenue gains as the pandemic fuels China’s e-commerce boom; Alibaba Group headquarters in Hangzhou, Zhejiang province, China pictured Net income attributable to ordinary shareholders was US$6.7 billion, up 124 per cent year-over-year, mainly due to a net gain arising from the increase in the market prices of its equity investments in publicly-traded companies. “Alibaba delivered excellent results this past quarter. We were well positioned to capture growth from the ongoing digital transformation, which has been accelerated by the pandemic, in both consumption and enterprise operations,” said Daniel Zhang, chairman and CEO of Alibaba Group. “We mobilised our entire digital infrastructure to support the economic recovery of businesses across a wide range of sectors, while broadening and diversifying our consumer base by addressing their changing preferences in a post-Covid-19 environment.” The company reported core commerce revenue of US$18.9 billion, up 34 per cent year-over-year, with continued rapid growth and increased penetration in less-developed areas. Revenue from the China commerce retail business was US$14.3 billion), up 34 per cent year-over-year, marking a strong recovery compared to the March 2020 quarter. The number of annual active consumers on Alibaba’s China retail marketplaces reached 742 million, an increase of 16 million from the 12-month period ended March 31, 2020. Meanwhile, mobile monthly active users on its China retail marketplaces hit 874 million in June 2020, an increase of 28 million as compared to the previous quarter. Lazada, Alibaba’s South-east Asia e-commerce business, achieved over 100 per cent quarterly order growth, reflecting strong consumer demand in the general merchandise, FMCG and electronics categories. Revenue from the cloud computing business was US$1.7 billion, up 59 per cent year-over-year due to increased revenue contributions from the public and hybrid cloud businesses. According to an IDC report in July 2020, Alibaba Cloud was the largest public cloud service provider in China, as measured by market share for IaaS (Infrastructure as a Service) as well as PaaS (Platform as a Service) for the quarter ended March 31, 2020.