The Chinese e-commerce king has released its 2nd quarter financial report, and their year-on-year earnings have almost doubled. The report, which covers through 30 June 2019, showed a net profit of $2.1 billion.
Total revenues went up 56% to reach $7.4 billion, smashing the estimates with Alibaba reporting 466 million active buyers over the last 12 months.
How Did Alibaba Do It?
Alibaba made this happen mostly with their core commerce business, which won the majority of the billions ($6.4 billion). The 58% annual growth was made by its smaller business units. According to CEO, Daniel Zhang, that is a sign for the future of the company.
He had this to say: "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."
The Other Units
Alibaba's aggressive cloud computing business is one of the most impressive, according to TechCrunch. This division of Alibaba grew 96% to rake in $359 million in revenue whilst losses narrowed to $15 million. The customer base for Alibaba's cloud computing division also went past the 1 million-customer mark for the first time ever.
The Chinese company's digital media and entertainment business, including Youku Tudou (a video service), saw their revenues go up 30% to $602 million.
The company has been spending its time in the last year expanding to other countries. The quarter shows this, and that is the reason for such a drastic, goal-smashing amount in revenues.
Alibaba went on to say that their international e-commerce services are starting to bear fruit with $389 million in revenues. Credited for this is, according again to Alibaba, their Southeast Asia company, Lazada. Alibaba invested another $1 billion in Lazada this year, and AliExpress increased its revenue by 136% last year.
In an Amazon-dominated Western World, AliExpress is making some headway. Just ask some of your friends where they have been shopping recently.