Alibaba has reported its financial results for the December 2023 quarter, with total revenue reaching 260,348 million yuan, an increase of 5% compared to the same period last year. However, the company’s net profit, according to GAAP accounting standards, declined by 77% to 10,717 million yuan. This decrease is 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 segments, the e-commerce business in China (Taobao and Tmall) saw a 2% increase in revenue. The cloud business experienced a 3% increase, while the international e-commerce business (Aliexpress, Lazada) saw an impressive 44% growth. Lazada, in particular, mentioned that the decrease in losses per order was a result of cost optimizations. The Cainiao logistics business achieved a 24% revenue increase, driven by the fulfillment segment. The O2O (online-to-offline) business also recorded a revenue increase of 13%, and the digital media segment saw an 18% growth.
In addition, Alibaba’s board has approved a share buyback plan of up to 25,000 million dollars, extending until March 2027. This move aims to enhance confidence among shareholders and reflect management’s belief in the business’s value.
TLDR: Alibaba’s Q4 2023 revenue increased by 5%, reaching 260,348 million yuan. However, the net profit under GAAP accounting standards declined by 77% due to lower investment valuations. The company’s various business segments, including e-commerce, cloud, international trade, logistics, O2O, and digital media, all showed positive revenue growth. Additionally, Alibaba’s board approved a share buyback plan to build trust and demonstrate confidence in the business’s value.
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