Alibaba Unveils Q3 Performance Report: Revenue Growth Soars by 5%, Announces $25 Billion Stock Repurchase Plan

Alibaba has reported its financial results for the fourth quarter of December 2023, with a total revenue of 260,348 million yuan, representing a 5% increase compared to the same period last year. However, its net profit based on GAAP accounting stood at 10,717 million yuan, showing a decline of 77% primarily due to the lower valuation of investments in various companies. Excluding these special items, the net profit would have been 47,951 million yuan.

Breaking down the revenue by business segment, the Chinese e-commerce business (Taobao and Tmall) saw a 2% increase in revenue, while the cloud business recorded a 3% growth. Alibaba’s international e-commerce business (Aliexpress, Lazada) showed a significant increase of 44%, although Lazada did mention a decrease in order profitability due to cost improvements. Additionally, Cainiao, the logistics business, experienced a 24% revenue growth driven by its fulfillment operations. The O2O (online-to-offline) business saw a 13% increase in revenue, and the digital media business recorded an 18% growth.

Moreover, Alibaba’s board has approved a share repurchase plan of up to 25,000 million dollars, valid until March 2027. This move aims to enhance investor confidence and reflects management’s belief in the company’s value.

In summary, Alibaba’s financial performance in the fourth quarter of December 2023 showcased steady revenue growth, despite a decline in net profit due to the lower valuation of investments. The diversified business segments, particularly the international e-commerce and logistics operations, played a significant role in driving the company’s overall revenue growth.

TLDR: Alibaba’s Q4 2023 revenue increased by 5% to 260,348 million yuan. However, net profit experienced a significant decline of 77% due to lower investment valuations. The Chinese e-commerce, cloud, and international e-commerce segments showed growth, along with logistics, O2O, and digital media businesses. Additionally, the board approved a share repurchase plan to boost investor confidence.