Alibaba reported a robust performance in the quarter ending June 30, with revenue growing by 14% year-on-year, marking its highest annual sales increase since September 2021. This positive outcome caused the company’s U.S.-traded shares to surge by 4.5% in premarket trading. Alibaba’s core business units, Taobao and Tmall Group, saw revenue climb by 12% to 114.95 billion yuan during the quarter. The Taobao app, a significant contributor to the company’s success, experienced a rise in daily active users, with a 6.5% increase in June compared to the previous year, which then escalated to over 7% in July.
Alibaba’s efforts in international markets yielded impressive results, as revenue from international commerce retail surged by 60% to 17.14 billion yuan in the same quarter. This overseas demand also drove revenue growth of 34% for the Cainiao logistics business, reaching 23.16 billion yuan. Despite a 4% growth in revenue for Alibaba’s cloud business, the company noted that revenues were affected by a decrease in demand from top customers and a reduced need for remote work and education services following the pandemic.
The company expressed strong interest in expanding its artificial intelligence (AI) capabilities, acknowledging the growth potential driven by AI services. Alibaba aims to invest further in AI development and business opportunities, emphasizing the potential for its Taobao app to become a comprehensive AI-enabled portal for various aspects of life and consumption.
This positive performance occurred against the backdrop of Alibaba’s ongoing restructuring, where it was divided into six business groups, some of which can raise external funds and go public. The company plans to publicly list its cloud computing division, with CEO and Chairman Daniel Zhang stepping down in September while remaining in charge of the cloud business. Alibaba’s continuous growth and innovation align with its strategy to capitalize on emerging technologies and market demands.