Alibaba sees 3% growth in 2022 Q3 revenue
Published: Nov 18, 2022 01:17 AM
Alibaba’s headquarters in Hangzhou, East China’s Zhejiang Province Photo: cnsphoto

Alibaba’s headquarters in Hangzhou, East China’s Zhejiang Province File Photo: cnsphoto

Alibaba saw a 3 percent annual rise in revenues in the third quarter of 2022, according to its financial results released on Thursday.

In the quarter ended September, Alibaba's revenue stood at 207.176 billion yuan ($29.124 billion), an increase of 3 percent year-on-year.

Meanwhile, its income from operations was 25.137 billion yuan, an increase of 68 percent year-on-year. According to Alibaba, the year-on-year increase was primarily attributable to an increase in adjusted earnings before interest, taxes, and amortization (EBITA), as well as a decrease in share-based compensation expenses.

For the 12 months ended September 30, the number of consumers who each spent over 10,000 yuan on Alibaba's Taobao and Tmall e-commerce platforms remained around 124 million, which means the retention rate was 98 percent.

In November 2022, Alibaba concluded its 14th annual Double 11 global shopping festival and delivered results in line with the gross merchandise volume (GMV) performance in 2021 despite macro challenges and COVID 19-related impact. This year's festival featured over 290,000 brands from more than 90 countries and regions across 7,000 product categories.

In the third quarter, the GMV of Alibaba's online physical goods generated on Taobao and Tmall, excluding unpaid orders, declined in low-single digits year-over-year, mainly due to soft consumption demand, COVID-19 resurgence and restrictions as well as ongoing competition, read the financial results.

However, the decline narrowed compared to the prior June quarter as key categories such as apparel and accessories and consumer electronics saw less year-over-year decline. Healthcare products and interests-based consumption categories such as outdoor and active gear, and pet care continued to see resilient demand.

Therefore, Alibaba said that upgrading the consumer shopping experience is one of the top priorities for Taobao and Tmall in the 2023 fiscal year. The group is investing in content that generates more engagement and purchasing interest from targeted consumers as well as providing consumers with better logistics and customer service experience.

"We delivered solid results this past quarter despite ongoing macro environment challenges, which is a testament to our resilient business model and unmatched customer value proposition," said Daniel Zhang, chairman and chief executive officer of Alibaba Group, in the financial results the group sent to the Global Times on Thursday.

"The uncertainties of the global landscape have only reinforced our resolve to focus on building capacity that will yield sustainable, high-quality growth for our customers and our own business over the long term. The trust of our shareholders has enabled Alibaba's development over the past 23 years, and we are committed to improving shareholder return as we continue to strengthen the foundations for Alibaba's future."

Global Times