Alibaba Reports December 2020 Quarter Earnings

Alibaba Group today announced financial results for the quarter ended Dec. 31, 2020. Highlights of the group’s earnings are in the infographics and summary below. To read Alibaba Group’s press release covering the results in greater detail, click here.

Highlights

Strong revenue growth of 37% YoY
Robust profit growth with adjusted EBITDA up 22% YoY
Cloud computing revenue grew 50% YoY in the quarter ended December 31, 2020 to RMB16.1 billion (US$2.5 billion) and was profitable for the first time

December Quarter Financial Review

Revenue was RMB221.1 billion (US$33.9 billion), an increase of 37% YoY
Adjusted EBITDA increased 22% YoY to RMB68.4 billion (US$10.5 billion)
Net income attributable to ordinary shareholders increased 52% YoY to RMB79.4 billion (US$12.2 billion), mainly due to an increase in the net gain arising from increases in the market prices of our equity investments in publicly-traded companies in the quarter ended December 31, 2020
Non-GAAP net income was up 27% YoY to RMB59.2 billion (US$9.1 billion)
Non-GAAP free cash flow grew 23% YoY to RMB96.2 billion (US$14.7 billion), mainly due to our robust profit growth

Strength in Core Commerce

Robust Quarterly Performance Aiding Business Recovery

Core commerce revenue of RMB195.5 billion (US$30.0 billion), up 38% YoY
Tmall online physical goods GMV, excluding unpaid orders, up 19% YoY, supported primarily by rapid growth of FMCG and home furnishing categories, while growth of the consumer electronics category accelerated YoY
Tmall Global grew rapidly, achieving triple-digit YoY growth in GMV, excluding unpaid orders, during the December quarter
The 2020 11.11 Global Shopping Festival^[1] yielded strong results, attracting a total of over 250,000 brands and 5 million merchants, generating RMB498.2 billion (US$74.1 billion) in GMV, excluding unpaid orders, an increase of 26% compared to the same timeframe in 2019

Engaging User Experience Driving Consumer Growth and Higher Purchase Frequency

Annual active consumers on our China retail marketplaces reached 779 million for the 12-month period ended December 31, 2020, representing a quarterly net increase of 22 million
Mobile MAUs on our China retail marketplaces reached 902 million in December 2020, an increase of 21 million over September 2020
Taobao Deals achieved rapid user growth, with over 100 million annual active consumers for the 12-month period ended December 31, 2020 and over 100 million and MAUs in December 2020
Taobao Live continued to strengthen engagement between merchants and consumers on platforms such as Juhuasuan, Ele.me and Fliggy, generating over RMB400 billion in Taobao Live GMV for the 12 months ended December 31, 2020
The number of brands and merchants on Tmall Global platform as of December 31, 2020 grew over 60% YoY

Extended Growth in New Retail and Local Consumer Services