Alibaba generated 117,278 million yuan (US$17,057 million) in revenue for the quarter ended December 31, 2018, an increase of 41% year-over-year. Mobile Taobao’s MAUs increased by 33 million to 699 million. Tmall physical goods GMV grew 29% year-over-year.
Net income attributable to ordinary shareholders was 33,052 million yuan (US$4,807 million), a year-over-year increase of 37%. Net income was 30,964 million yuan (US$4,504 million), a year-over-year increase of 33%.
- Revenue from core commerce grew by 40% year-over-year to 102,843 million yuan (US$14,958 million).
- Revenue from cloud computing grew by 84% year-over-year to 6,611 million yuan (US$962 million).
- Revenue from digital media and entertainment grew by 20% year-over-year to 6,491 million yuan (US$944 million).
- Revenue from innovation initiatives and others grew by 73% year-over-year to 1,333 million yuan (US$193 million).
Annual active consumers on the China retail marketplaces reached 636 million, an increase of 35 million from the 12 months ended September 30, 2018. Mobile MAUs on the China retail marketplaces reached 699 million in December 2018, an increase of 33 million over September 2018.
Alibaba Marketplaces Highlights in Q4 2018
Mobile Taobao had 699 million MAUs on the China retail marketplaces in December 2018, a net increase of 33 million over September 2018. Annual active consumers on the China retail marketplaces was 636 million for the 12 months ended December 31, 2018, compared to 601 million for the 12 months ended September 30, 2018.
Over 70% of the increase in annual active consumers was from third-and-lower tier cities. Ongoing enhancements in search and personalized recommendations on the Taobao App help to increase user engagement and purchase conversion.
Tmall physical goods GMV grew 29% year-over-year in this quarter, excluding unpaid orders. This robust growth was driven by FMCG, apparel, and home furnishing categories. Brands including Valentino, Ermenegildo Zegna, Stuart Alibabaitzman, and Sergio Rossi opened Tmall flagship stores and joined the Tmall Luxury Pavilion during this quarter.
The annual 11.11 Global Shopping Festival generated 213.5 billion yuan in GMV, up by 27% year-over-year. Over 40% of Chinese consumers on 11.11 made purchases from international brands. And overseas consumers from 230 countries and regions also made purchases during the festival.
Alibaba has digitized approximately 470 Sun Art stores with its New Retail know-how and technology as of December 31, 2018. It not only enables these stores to manage their retail systems better but make it available for consumers to place orders through the Taobao App and secure delivery through its on-demand delivery platform.
There are 109 self-operated Freshippo stores (formerly Hema), Alibaba’s proprietary grocery retail chain in China, primarily located in tier 1 and tier 2 cities.
Alibaba combined its on-demand food delivery platform Ele.me with the restaurant and local service guide platform Koubei to create a discrete business that Alibaba call “local consumer services” in December 2018. This business is financed with over US$3 billion in equity capital from Alibaba, SoftBank, and other third-party investors.
Cainiao processed an unprecedented over 1 billion delivery orders during 11.11 Global Shopping Festival.
Internationally, Alibaba saw continued growth in Chinese consumers’ demand for high-quality imports from Japan, the United States, South Korea, Australia, and Germany – the top five countries selling into China during the festival. To ensure a smooth and timely delivery experience for consumers during the festival, Cainiao and its partners operated 34 bonded warehouses in major ports throughout China to facilitate same-day or next-day delivery of overseas orders.
At China’s inaugural Global Import Leadership Summit held in Shanghai in November, Alibaba announced a commitment to import US$200bn-worth of goods from all over the world over the next five years.
Alibaba continues to invest resources in integrating Lazada’s business and technology operations into Alibaba with the aim of building a strong foundation to extend Alibaba’s offerings in Southeast Asia.
Cloud computing revenue grew by 84% year-over-year to 6,611 million yuan (US$962 million), primarily driven by increased spending from enterprise customers. Alibaba Cloud launched 678 new products and features, including those related to core cloud offerings, data intelligence, AI applications, security, and enterprise solutions during this quarter.
In November 2018, Alibaba appointed Jeff Zhang as president of Alibaba Cloud, adding to his responsibility on top of his role as Alibaba’s Chief Technology Officer.
Youku’s average daily subscribers increased 64% year-over-year, partly promoted by the synergies between Alibaba’s commerce and entertainment businesses. Alibaba is to increase its stake in Alibaba Pictures to approximately 51%. Alibaba’s digital media and entertainment businesses, including Youku, Damai, and Alibaba Literature, will collaborate more closely with Alibaba Pictures.