The Amazon of China crushed numbers and the stock is rising in kind.
It’s actually unfair to compare them to Amazon, frankly. They’re a cash cow with a real PE of 19, compared to AMZN’s 310. Also, they trade 13x sales, like a high growth tech stock, widely different from AMZN’s 3x sales valuation.
Who knows if these numbers are even legit. There are many skeptics who believe Alibaba is a house of cards, an accounting scandal waiting to happen.
If you enjoy the content at iBankCoin, please follow us on TwitterReports Q1 (Jun) earnings of $0.74 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $0.63; rev +59% to $4.84 bln vs. $5.57 bln consensus.
China retail marketplaces revenue was RMB23,383 million (US$3,518 million), an increase of 49% year-over-year; and mobile revenue of China retail marketplaces was RMB17,514 million (US$2,635 million), an increase of 119% year-over-year, representing 75% of our total China retail marketplaces revenue.
Mobile MAUs in June reached 427 million, an increase of 17 million over March 2016, while annual active buyers on our China retail marketplaces increased to 434 million, a net addition of 11 million annual active buyers from the prior quarter.
GMV transacted on our China retail marketplaces was RMB837 billion (US$126 billion), an increase of RMB164 billion (US$25 billion), or 24% year-over-year, with mobile GMV accounting for 75% of total GMV.
Our cloud computing business continued its rapid expansion, with revenue in this quarter increasing 156% year-over-year to RMB1,243 million (US$187 million).
In the June quarter, we repurchased and canceled ~27 million of our shares for US$2.0 billion, and the partners of Alibaba Partnership, acting collectively, purchased US$400 million of our shares, in a transaction with Softbank.
“The acceleration of our revenue growth reflects the deep value propositions that we bring to our customers. We are changing the way our 434 million active buyers engage with our platform, as we introduce social, community and personalization driven by smart data into our e-commerce marketplaces, realizing our vision of ‘Live@Alibaba.’ We are poised for strong profitable growth into the future.” “We delivered excellent results this quarter. The 59% revenue growth for the company overall and the 49% revenue growth of our China retail marketplaces represent the highest growth rates we’ve achieved since our IPO,” said Maggie Wu, Chief Financial Officer of Alibaba Group. “We passed an important milestone this quarter in achieving higher monetization of mobile users than non-mobile users for the first time, reflecting the success of our strategy to stay ahead of the curve by embracing mobile.
