On February 20, Alibaba Group released an impressive financial report for the third quarter of fiscal year 2025, which ended on December 31, 2024. The numbers not only highlighted the group's robust development in a complex and changing market environment but also unveiled significant transformations and breakthroughs driven by business innovation and changeThe report serves as a comprehensive report card, documenting Alibaba's diligent efforts and bountiful harvests over the past quarter, while sketching out a future filled with potential and opportunities for market growth.

The financial data revealed that Alibaba achieved revenue of 280.15 billion yuan in the third quarter, marking an 8% year-on-year growth, surpassing market estimates of 277.37 billion yuanThe adjusted EBITDA for the same quarter was pegged at 62.05 billion yuanThis outstanding achievement reflects the collaborative efforts and vigorous development across the various business segments within the group.

In the e-commerce sector, Taobao Group, Alibaba's core business, distinguished itself with a total revenue of 136.09 billion yuan, showing a solid 5% year-on-year growth

Advertisements

Notably, customer management revenue experienced a 9% year-on-year increase, reaching 100.79 billion yuan, largely attributed to a steady growth in online GMV (Gross Merchandise Volume) and a reasonable rise in commission ratesRemarkably, the 88VIP membership has reached 49 million, achieving double-digit growth year-on-yearThis large pool of highly loyal members not only provides a steady revenue source for Taobao Group but also serves as a formidable advantage in the competitive e-commerce marketThe exclusive benefits that 88VIP members enjoy, such as premium product discounts and dedicated customer service, significantly enhance user shopping experiences and loyalty, thus promoting repeat purchases and consumption upgrades.

Alibaba Cloud Intelligence also presented an exceptional performance in this quarter, achieving revenue of 31.742 billion yuan, which represents a 13% year-on-year increaseThe return of commercial revenue to double-digit growth underscores its strong competitive edge and sustained growth potential in the cloud computing marketEven more impressive is the fact that revenue from AI-related products has registered triple-digit growth for the sixth consecutive quarterThis success can be attributed to Alibaba's ongoing investments and in-depth strategies within the artificial intelligence sectorBacked by strong technological research capabilities, Alibaba Cloud continually rolls out innovative AI products and solutions widely applicable in various sectors such as finance, healthcare, and manufacturing, providing efficient and intelligent services that have garnered significant market recognition and acclaim.

The International Digital Commerce Group experienced robust growth in cross-border business, achieving a total revenue of 37.756 billion yuan with a remarkable year-on-year growth of 32%. This success was bolstered by the establishment of a joint venture between AliExpress and Korea's Shinsegae Group, managing AliExpress Korea and Gmarket collaboratively, which strategically expands Alibaba's business footprint in international markets, enhancing its market share and brand influence in South Korea and surrounding regions

Advertisements

Through deep collaboration with local enterprises, AliExpress can better understand local consumers' preferences and market demand, offering products and services more tailored to the market, enabling it to stand out amidst fierce international competition in e-commerce.

Despite experiencing a 1% year-on-year revenue decrease, with revenues amounting to 28.241 billion yuan, Cainiao Smart Logistics Group is undergoing business restructuring that has resulted in short-term challengesHowever, in the long run, this restructuring is expected to optimize business processes, enhance operational efficiency, and achieve more rational resource allocation, laying a solid foundation for sustainable development in the future.

The Local Life Group reported revenues of 16.988 billion yuan, reflecting a 12% year-on-year growth, primarily fueled by the sustained growth in orders on Gaode and Ele.meGaode Map has successfully attracted a considerable user base thanks to its precise navigation services and extensive array of lifestyle service information, acting as a robust traffic channel for local service providers like Ele.meEle.me has continually optimized its delivery services and expanded its merchant resources to enhance user experience, thus achieving stable growth in order volumes.

Finally, the Digital Media and Entertainment Group earned 5.438 billion yuan, indicating an 8% year-on-year increase, predominantly driven by growing advertising revenue from YoukuYouku has attracted a plethora of users by ramping up content investments and launching a series of high-quality films, TV shows, and variety programs, subsequently boosting user engagement and driving advertisement income.

Alibaba Group's CEO, Wu Yongming, expressed optimism about future developments, stating, "Looking ahead, we anticipate continued growth momentum for the AI-driven Cloud Intelligence Group's revenue

Advertisements

Advertisements

Advertisements