Net profit attributable to ordinary shareholders was RMB 21.252 billion (approximately US$ 3.094 billion), representing a year-on-year increase of 145%. Not based on US GAAP, net profit was RMB 30.949 billion (US$4.508 billion), a year-on-year increase of 54%.
Alibaba's adjusted earnings per share for the first quarter was 12.55 yuan, and the market estimate was 10.28 yuan.
On average, 26 Wall Street analysts predict that Alibaba's diluted earnings per share for the quarter will be $1.46, according to Non-GAAP. The earnings report shows that Alibaba's diluted earnings per share for the first quarter was RMB 12.55. (about $1.83), higher than analysts expected.
On average, 27 analysts on Wall Street expected Alibaba's revenue to be $15.82 billion in the quarter. The financial report showed that Ali's total net revenue for the first quarter was $16.741 billion, higher than analysts' expectations.
“Alibaba has achieved an excellent quarter, and the user base continues to expand. The annual active consumer reaches 674 million, which fully demonstrates our excellent user experience,” said Zhang Yong, CEO of Alibaba Group. “We will continue to expand the consumer base, improve operational efficiency, and achieve rapid growth. Based on the strong cash flow of core businesses, we will continue to invest in technology to enable digital transformation of millions of companies around the world.”
“We kicked off this fiscal year with a strong quarter. Revenue increased by 42% year-on-year and adjusted EBITDA by 34% year-on-year.” Wu Wei, chief financial officer of Alibaba Group, said: “I am very pleased to see users on our platform. Both interaction and consumer spending continue to grow. We will continue to invest in long-term growth while increasing the cost-effectiveness of our investment."
Summary of first quarter financial results:
Revenue was RMB 114.924 billion (approximately US$16.741 billion), an increase of 42% compared with RMB 80.92 billion in the same period last year.
The number of active users in the Chinese retail market is 674 million, an increase of 20 million compared to the number of active users per year as of March 31, 2019.
China's retail market mobile MAU (monthly active users) reached 755 million in June 2019, an increase of 34 million from March 2019.
Operating profit was RMB 24.375 billion (US$3.551 billion), an increase of 204% year-on-year. Adjusted profit before interest, taxes, depreciation and amortization (EBITDA) was 39.238 billion yuan ($5.716 billion), a year-on-year increase of 34%.
The core e-commerce business adjusted after tax and amortization profit (EBITA) was 41.025 billion yuan (about 5.976 billion US dollars), an increase of 25%. Not subject to US GAAP, the adjusted e-commerce business's adjusted interest before tax and amortization (EBITA) was 46.80 billion yuan (approximately US$6.817 billion).
Net profit attributable to ordinary shareholders was RMB 21.252 billion (approximately US$ 3.096 billion) and net profit was RMB 19.122 billion (US$ 2.785 billion). Not based on US GAAP, the net profit was RMB 30.949 billion (US$4.508 billion), a year-on-year increase of 54%.
Diluted earnings per ADS were RMB 8.06 (approximately US$ 1.17); diluted earnings per share were RMB 12.55 (approximately US$ 1.83), representing a year-on-year increase of 56%.
The net cash generated from operating activities was RMB 34.612 billion (approximately US$ 5.042 billion); the free cash flow was not RMB 26.661 billion (US$ 3.840 billion) in accordance with US GAAP.
Summary of first quarter operating results:
The mobile monthly active users of China's retail platform reached 755 million, with a net increase of 34 million in a single season. The annual active consumer reached 674 million.
Tmall 618 has deepened the penetration of the sinking market this quarter, with more than 70% of the annual active consumer growth coming from the sinking market. During the quarter, Tmall's in-kind payment GMV increased by 34% year-on-year.
China Mobile Platform, including Taobao and Tmall, has 7.5 billion mobile monthly active users. According to statistics, there are about 430 million households in China.