Alibaba reported revenues of 20,245 million yuan (US$3,265 million), an increase of 28% compared to 15,771 million yuan (US$2,464 million) in the same quarter of 2014 and net income of 30,816 million yuan (US$4,970 million), an increase of 148% compared to 12,438 million yuan in the same quarter of 2014. The increase was mainly driven by the continued rapid growth of Alibaba’s Chinese commerce retail business.
Income from operations for the second quarter of 2015 was 5,161 million yuan (US$832 million), or 25% of revenue, a decrease of 25% compared to 6,844 million yuan (US$1,069 million), or 43% of revenue in the same quarter of 2014. However, despite the revenue increasing by 28% year-over-year, income from operations of Alibaba decreased, due primarily to a significant increase of 3,995 million yuan (US$644 million) in share-based compensation expense incurred in the Q2 2015, compared to 1,073 million yuan (US$168 million) in share-based compensation expense in the same quarter in 2014.
In Q2 2015, Alibaba continued to build the foundations for future growth which focused on building healthy GMV (gross merchandise volume) growth, delivering the best consumer experience, and improving the quality and sustainability of merchants doing business. Alibaba extended their mobile usage leadership with 307 million MAUs and 55% of GMV transacted through mobile devices in Q2 2015. Taobao continued to be the first e-commerce app in China that contributed a lot to the growth of MAU and GMV.
Alibaba’s Second Quarter 2015 Highlights
- Revenue increased 28% year-over-year to US$3,265 million and net income of US$4,970 million, an increase of 148% compared with Q2 2014.
- GMV of Alibaba grew to US$109 billion, a year-on-year increase of US$28 billion. Mobile MAUs (monthly active users) grew to 307 million in Q2 2015.
- Mobile revenue reached US$1,288 million, exceeding 50% of the total Chinese commerce retail revenue for the first time.
- Growth of Alibaba’s cloud computing and Internet infrastructure business accelerated, with revenue increasing 106% year-over-year to US$78 million.
- Non-GAAP free cash flow was US$1,540 million.
- Annual active buyers reached 367 million in Q2 2015.
- Sales and marketing expenses in Q2 2015 were US$361 million, or 11% of revenue, compared to US$189 million, or 8% of revenue in the same quarter of 2014.