Chinese e-commerce giant Alibaba Group Holdings Limited reported Thursday sharply lower net income in its second quarter, despite strong growth in revenues. Further, the company revised fiscal year 2022 revenue guidance, and now expects revenue to grow 20 percent to 23 percent year-over-year.
In pre-market activity on the NYSE, Alibaba shares were losing around 6.5 percent to trade at $151.12.
Daniel Zhang, Chairman and Chief Executive Officer of Alibaba, said, “Our global annual active consumers across the Alibaba Ecosystem reached approximately 1.24 billion, with a quarterly net increase of 62 million consumers, and we are on track to achieve our longer-term target of serving two billion consumers globally.”
Alibaba’s second-quarter net income attributable to shareholders fell 81 percent to 5.37 billion Chinese yuan or $833 million from last year’s 28.77 billion yuan. Earnings per ADS were 1.97 yuan or $0.31, compared with 10.48 yuan a year ago.
Adjusted net income was 28.52 billion yuan or $4.43 billion, compared to prior year’s 47.09 billion yuan. Adjusted earnings per share were 11.20 yuan or $1.74, compared to 17.97 yuan last year.
Income from operations was 15.01 billion yuan or $2.33 billion, an increase of 10 percent year-over-year. Adjusted EBITDA fell 27 percent to 34.84 billion yuan or $5.41 billion.
The company’s revenue for the quarter rose 29.4 percent to 200.69 billion yuan or $31.15 billion from 155.06 billion yuan last year, driven by performance of its diversified businesses.
Excluding the consolidation of Sun Art, revenue would have grown 16 percent year-over-year.
Aggregate revenue of international commerce retail and international commerce wholesale was $2.34 billion, an increase of 34 percent from last year. Cloud computing revenue was $3.11 billion, an increase of 33 percent.
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