Chinese e-commerce giants Alibaba has enjoyed another incredible financial quarter as it overseen its profits double - as its phenomenal success shows no sign of abating. Alibaba disclosed its latest financial results last week and it revealed that it made a profit of $2.1 billion for its recent quarter, which represents a 96% increase year-on-year.
Total revenue has increased by 56% which subsequently reaches $7.4 billion – and that easily surpassed its projections for that period. Alibaba’s core commerce business was the primary and contributory factor in accumulating the majority of its revenue, which was $6.4 billion, but it emerged that its 58% annual growth was topped by its smaller business divisions, which according to buoyant CEO, Daniel Zhang as an ‘indicator for the future.’
The CEO also claimed that Alibaba’s success represented the diversity of its businesses and the services it offers across multiple platforms. Zhang said: “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.”
Its aggressive approach to the cloud computing sector has also reaped financial success for the Chinese e-commerce colossus as its cloud unit grew by 96% amassing $359M in revenue, whilst its losses declined to $15M. In addition to this, Alibaba also disclosed that its company’s customer base passed 1M for the first time.
Other departments within the organization which posted success, was its digital and entertainment business which recorded revenue increases of 30% to $602M. Alibaba has also centered a lot of its strategic focus on expanded operations in other markets overseas, and analysts have claimed that those investments are now starting to bear fruit.
A spokesman for Alibaba confirmed its international e-commerce services reached $389M in revenue, and it attributed the success of this to Lazada, which is its business in Southeast Asia.