In June 2020, Alibaba’s China retail marketplaces had 874 million mobile MAUs, representing a quarterly net increase of 28 million. Annual active consumers on Alibaba’s China retail marketplaces was 742 million for the 12 months ended June 30, 2020, representing a quarterly net increase of 16 million.
In June 2020, Taobao Deals, Alibaba’s app targeting lower-tier cities, had approximately 40 million MAUs.
Tmall online physical goods GMV, excluding unpaid orders, grew 27% year-over-year during the June 2020 quarter, with all major categories growing at similar or faster rates compared to the December 2019 quarter, before the onset of the COVID-19 pandemic.
Fast-moving consumer goods (“FMCG”), home furnishings and consumer electronics categories were the fastest-growing categories during the quarter.
During the quarter, cross-border import e-commerce platform Tmall Global GMV, excluding unpaid orders, grew over 40% year-over-year, reflecting strong consumer demand for high quality, branded products from overseas, as well as increasing online purchases due to the impact of the COVID-19 pandemic on international travel.
Taobao Live’s ecosystem continues to strengthen with broader adoption by brands, retailers and merchants across all product categories. Taobao Live’s KOLs (key opinion leaders) continue to generate robust GMV growth on the platform.
During the June 2020 quarter, Taobao Live GMV continued to grow over 100% year-over-year. In addition, live streaming sessions hosted by merchants accounted for approximately 60% of Taobao Live GMV (excluding unpaid orders).
Alibaba New Retail
Alibaba’s self-operated grocery retail chain Freshippo (known as “Hema” in Chinese) continues to expand its footprint, achieve robust same-store sales growth, optimize its store operations and improve customer experience.
For the June 2020 quarter, online penetration of Freshippo’s GMV continued to be above 60%. As of June 30, 2020, Alibaba self-operated 214 Freshippo stores in China, primarily located in tier 1 and tier 2 cities.
Tmall Supermarket continues to deepen its collaboration with Sun Art through Alibaba’s omnichannel solutions for retail grocery partners.
Since its launch in September 2019, Alibaba’s half-day delivery service that uses Sun Art’s store-based inventories has seen tremendous growth as consumers enjoy greater product selection and faster delivery.
Alibaba’s half-day delivery service helped Sun Art capture new online consumers living within a 20-kilometer radius from its stores. In the June 2020 quarter, Alibaba enabled approximately 15% of Sun Art’s total revenue.
Local Consumer Services
Ele.me food delivery GMV growth turned positive in April and improved during the quarter as lockdown measures for the pandemic in China were lifted. Unit economics per order for the on-demand delivery business was positive during the quarter, reflecting improved delivery network efficiency as well as enhanced marketing efficiency that leverages Alibaba’s consumer insights technology.
Alibaba is attracting many high-quality restaurant chains and local service merchants throughout China with Alibaba’s digital technology and the value added services of the Alibaba digital economy.
As a result, merchant acquisition continued to accelerate, with the number of registered merchants of Ele.me as of June 30, 2020 growing 30% year-over-year.
Alibaba also continues to acquire new users for Alibaba’s local consumer services business by leveraging the Alibaba digital economy. For the June 2020 quarter, approximately 45% of new customers ordering food delivery came from the Alipay app.
Logistics
In urban areas, Cainiao Post (neighborhood and campus stations and residential self- pick-up stations) continues to see robust adoption by third-party logistics players to optimize their last-mile delivery.
In June 2020, Cainiao Post recorded over 100% year-over-year growth in average daily package volume. The COVID-19 pandemic has caused significant disruptions to the import and export of goods by foreign businesses and organizations with operations in China.
During the quarter, Cainiao Network enabled organizations and businesses to utilize its robust import and export fulfillment solutions that leverage its dedicated worldwide warehouse network and Smart Customs Clearance System.
Southeast Asia E-commerce
Lazada, Alibaba’s Southeast Asian e-commerce platform, continues to deliver strong growth momentum. In Q2 2020, Lazada achieved over 100% quarterly order growth, reflecting strong consumer demand in general merchandise, FMCG and electronics categories.
During the quarter, Lazada also saw solid merchant growth and greater increases in product supplies. Brands and merchants are also leveraging interactive engagement formats such as live-streaming and mini-games on Lazada to connect with online consumers.
Digital Media
Online video platform Youku’s daily average subscriber base increased by over 60% year-over-year during the quarter. The increase was primarily driven by Youku’s more effective targeting of new subscribers and increased contribution from the 88VIP membership program on its China retail marketplaces.
As Alibaba continues to focus on return on investments and cost efficiencies for the Youku business, loss year-over-year further narrowed during the quarter.
Cloud Computing
According to IDC (July 2020), Alibaba Cloud was the largest public cloud service provider in China, as measured by market share for IaaS (Infrastructure as a Service) as well as PaaS (Platform as a Service) for the quarter ended March 31, 2020.
Alibaba continues to expand and upgrade Alibaba’s PaaS offerings, such as data analytics and database management.
According to the Transaction Processing Performance Council, AnalyticDB, Alibaba’s ultra-large-scale database, has been ranked the world’s fastest real-time data warehouse solution for the second straight year.
AnalyticDB allows businesses to perform real-time petabyte-level data analysis and has been widely adopted by businesses in different industries, including e-commerce, finance, logistics, public transportation and entertainment.
In Q2 2020, cloud computing revenue grew 59% year-over-year to RMB12,345 million (US$1,747 million), primarily driven by increased revenue contribution from both Alibaba’s public cloud and hybrid cloud businesses, reflecting higher average revenue per customer.
Check out JD’s performance here.
Financial Results
Revenue was RMB153,751 million (US$21,762 million), an increase of 34% year-over-year.
Income from operations was RMB34,705 million (US$4,912 million), an increase of 42% yearover-year.
Adjusted EBITDA, a non-GAAP measurement, increased 30% year-over-year to RMB51,039 million (US$7,224 million). Adjusted EBITA, a non-GAAP measurement, increased 31% year-over-year to RMB45,372 million (US$6,422 million).
Net income attributable to ordinary shareholders was RMB47,591 million (US$6,736 million), and net income was RMB46,437 million (US$6,573 million). Non-GAAP net income was RMB39,474 million (US$5,587 million), an increase of 28% year-over-year.
Diluted earnings per ADS was RMB17.36 (US$2.46) and non-GAAP diluted earnings per ADS was RMB14.82 (US$2.10), an increase of 18% year-over-year. Diluted earnings per share was RMB2.17 (US$0.31 or HK$2.38) and non-GAAP diluted earnings per share was RMB1.85 (US$0.26 or HK$2.03), an increase of 18% year-over-year.
Net cash provided by operating activities was RMB50,099 million (US$7,091 million) and non-GAAP free cash flow was RMB36,570 million (US$5,176 million).
