Alibaba Group Holding Ltd. reported better-than-expected revenue for its holiday quarter but delivered earnings that missed analysts' expectations. The company said it generated $12.8 billion in revenue during the December period, up 56% from a year ago and ahead of FactSet consensus estimates calling for $12.6 billion.
The e-commerce giant recorded net income of $3.6 billion, up 36% from a year earlier, and earnings per share of $1.41, up 33%. Adjusted net income grew 20%, to $4.2 billion, while adjusted EPS rose 18%, to $1.63. Analysts had been expected $4.4 billion in adjusted net income, or $1.67 on a per-share basis. The company's cloud business more than doubled year-over-year, reaching $553 million for the December quarter, while the core commerce segment jumped 57%, to $11.3 billion.
Alibaba announced that it had taken a 33% equity stake in Ant Financial, a payments affiliate, though it didn't give financial terms. The e-commerce giant said it had 580 mobile monthly active users on its China marketplaces, adding 31 million from the September period. "Alibaba had another great quarter driven by the continued strength of the Chinese consumer and the wide and innovative range of services we provide for merchants and consumers," said Daniel Zhang, Chief Executive Officer of Alibaba Group.