Alibaba Group Holding Limited (BABA) experienced a slight dip in its stock price on Thursday following the release of its fiscal first-quarter 2024 earnings report. While the company managed to exceed earnings expectations, its revenue fell short of analyst estimates.
For the first quarter, Alibaba reported a 4% year-over-year increase in revenue, reaching $33.47 billion. This figure, however, fell short of analysts’ expectations, who had anticipated revenue of $34.81 billion. Despite the revenue miss, Alibaba managed to beat earnings expectations, with adjusted earnings per American Depositary Share (ADS) coming in at $2.26, surpassing the consensus estimate of $2.13. Additionally, adjusted net income decreased by 9% to $5.6 billion.
Alibaba’s various business segments delivered mixed results in the quarter. The company’s core domestic e-commerce platforms, Taobao and Tmall Group, saw a 1% decline in revenue, bringing in $15.60 billion. In contrast, Alibaba’s international commerce business experienced a significant 32% year-over-year increase in revenue, reaching $4.03 billion. This growth was driven by the expansion of platforms like AliExpress in global markets.
The cloud segment, Cloud Intelligence Group, posted a 6% revenue growth to $3.65 billion, fueled by the increasing adoption of public cloud services and AI-related products. Alibaba’s cloud business continues to be a key focus area as the company aims to leverage its technological capabilities to drive future growth.
Revenue from local services, including Ele.me and Amap, grew by 12% year-over-year to $2.23 billion. The logistics arm, Cainiao Smart Logistics Network, recorded a 16% revenue increase to $3.69 billion, primarily due to cross-border fulfillment services.
Alibaba’s leadership, including CEO Eddie Wu, emphasized their focus on enhancing user experience and maintaining market leadership, particularly in the cloud business. According to Benzinga Pro, Alibaba shares were up by 0.38% at $79.17.
