Alibaba posts $6.3bn profit, plans bigger AI investments
Alibaba Group, the parent company of AliExpress, plans to accelerate investments in artificial intelligence and cloud computing after reporting a 333 per cent surge in net income to $6.36 bn for the quarter ended December 31, 2024.
The Chinese e-commerce giant posted an eight per cent increase in total revenue to $38.4bn, citing steady e-commerce growth and operational efficiencies. Operating income surged 83 per cent to $5.65bn, aided by lower impairment charges on intangible assets and improved profitability.
The Chief Executive Officer of Alibaba Group, Eddie Wu, stated, “This quarter’s results demonstrated substantial progress in our ‘user first, AI-driven’ strategies and the re-accelerated growth of our core businesses. During this quarter, customer management revenue at Taobao and Tmall Group grew nine per cent as a result of initiatives to enhance user experience and effective monetisation.
“Our cloud revenue growth reignited to double digits at 13 per cent, with AI-related product revenue achieving triple-digit growth for the sixth consecutive quarter. Looking ahead, revenue growth at Cloud Intelligence Group driven by AI will continue to accelerate. We will continue to execute against our strategic priorities in e-commerce and cloud computing, including further investment to drive long-term growth.”
The Chief Financial Officer of the company, Toby Xu, said, “While we made substantial investments to spark growth re-acceleration in our core businesses, we maintained financial discipline with enhanced operational efficiency, achieving positive EBITA growth in Taobao and Tmall Group.
“During the quarter, we continued to actively manage our balance sheet with significant non-core asset sales, share buybacks, and extending our debt maturities at attractive rates.”
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