Alibaba Group Announces June Quarter 2025 Results
“This quarter, our strategic focus on consumption and AI + Cloud delivered strong growth. Our decisive investment in the quick commerce business achieved key milestones as we won consumer mindshare. We generated substantial synergies from combining resources of our consumer platforms which resulted in new highs in monthly active consumers and daily order volume. Driven by robust AI demand,
“Our core businesses delivered strong revenue growth. Customer management revenue grew 10% and revenue from
BUSINESS HIGHLIGHTS
In the quarter ended
-
Revenue was
RMB247,652 million (US$34,571 million ), an increase of 2% year-over-year. Excluding revenue from the disposed businesses ofSun Art and Intime, revenue on a like-for-like basis would have grown by 10% year-over-year.
-
Income from operations was
RMB34,988 million (US$4,884 million ), a decrease of 3% year-over-year, primarily due to the decrease in adjusted EBITA, partly offset by the decrease in amortization of intangible assets, non-cash share-based compensation expense, and a one-time provision in the same quarter last year. Adjusted EBITA, a non-GAAP measurement, decreased 14% year-over-year toRMB38,844 million (US$5,422 million ), primarily attributable to the investment in “Taobao Instant Commerce”, as well as user experiences, user acquisition and technology, partly offset by double-digit revenue growth inAlibaba China E-commerce Group , and improved operating efficiencies across various businesses.
-
Net income attributable to ordinary shareholders was
RMB43,116 million (US$6,019 million ). Net income wasRMB42,382 million (US$5,916 million ), an increase of 76% year-over-year, primarily due to mark-to-market changes from our equity investments and gain from the disposal of local consumer service business of Trendyol, partly offset by the decrease in income from operations. Non-GAAP net income in the quarter endedJune 30, 2025 wasRMB33,510 million (US$4,678 million ), a decrease of 18% compared toRMB40,691 million in the same quarter of 2024.
-
Diluted earnings per ADS was
RMB17.98 (US$2.51 ). Diluted earnings per share wasRMB2.25 (US$0.31 orHK$2.47 ). Non-GAAP diluted earnings per ADS wasRMB14.75 (US$2.06 ), a decrease of 10% year-over-year. Non-GAAP diluted earnings per share wasRMB1.84 (US$0.26 orHK$2.02 ), a decrease of 10% year-over-year.
-
Net cash provided by operating activities was
RMB20,672 million (US$2,886 million ), a decrease of 39% compared toRMB33,636 million in the same quarter of 2024. Free cash flow, a non-GAAP measurement of liquidity, was an outflow ofRMB18,815 million (US$2,626 million ), compared to an inflow ofRMB17,372 million in the same quarter of 2024. The decrease in free cash flow was mainly attributed to the increase in our cloud infrastructure expenditure and the investment in “Taobao Instant Commerce”. As ofJune 30, 2025 , our cash and other liquid investments(1) wereRMB585,663 million (US$81,755 million ).
Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.
____________________ | ||
(1) |
Cash and other liquid investments represent cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use. |
BUSINESS AND STRATEGIC UPDATES
To advance our “user first” strategy and enhance user experience, during the quarter ended
We launched “Taobao Instant Commerce” service on the Taobao app at the end of April to meet consumer needs for on-demand delivery across a wide range of product categories, including food, groceries, electronics and apparel. This initiative strengthened the Taobao app’s leadership in China’s e-commerce industry. Our significant investment in quick commerce focused on building consumer mindshare and business scale, which contributed to the 25% year-over-year increase in monthly active consumers on the Taobao app in the first three weeks of August. As part of our quick commerce strategy, we expanded our product offerings and front warehouse coverage for non-food categories. While continuing to improve user experience and enhance operating efficiency, we executed our plan to generate synergies between quick commerce and the rest of Alibaba’s ecosystem by leveraging supply chains, users and membership benefits across our businesses.
Customer management revenue grew 10% year-over-year to
We had a successful 6.18 Shopping Festival, which delivered strong consumer growth year-over-year on the Taobao app, as we implemented user-friendly promotion mechanisms and increased support for merchants that provide high-quality products and customer services.
The number of 88VIP members, our highest spending consumer group, continued to increase by double digits year-over-year, surpassing 53 million. We will continue to focus on improving the retention of 88VIP membership through enhanced value proposition to our most valued customers.
For the quarter ended
AIDC’s international commerce retail businesses, AliExpress and Trendyol in particular, continued to diversify and enrich product offerings by engaging local merchants and partners through different business models in different markets. Our international wholesale platform saw broader adoption by merchants of its AI-powered tools for marketing, procurement and product listing, which provided multiple ways for the platform to monetize. We believe that our diverse businesses, comprehensive product offerings and technological strengths across geographies will bring competitive advantages in the long run set against the backdrop of a rapidly evolving global e-commerce landscape.
For the quarter ended
AI-related product revenue maintained triple-digit year-over-year growth for the eighth consecutive quarter. As AI demand continues to grow rapidly, we are also seeing increased demand of compute, storage and other public cloud services to support AI adoption. We will continue to invest in anticipation of customer growth and technology innovation, including AI products and services, to increase cloud adoption for AI and maintain our market leadership.
Share Repurchases
During the quarter ended
JUNE QUARTER SUMMARY FINANCIAL RESULTS
|
Three months ended |
|
||||||||||
|
2024 |
2025 |
|
|||||||||
|
RMB |
RMB |
US$ |
YoY % Change |
||||||||
|
(in millions, except percentages and per share amounts) |
|||||||||||
|
|
|
|
|
||||||||
Revenue |
243,236 |
247,652 |
34,571 |
2% |
||||||||
|
|
|
|
|
||||||||
Income from operations |
35,989 |
34,988 |
4,884 |
(3)%(2) |
||||||||
Operating margin |
15% |
14% |
|
|
||||||||
Adjusted EBITDA(1) |
51,161 |
45,735 |
6,384 |
(11)%(3) |
||||||||
Adjusted EBITDA margin(1) |
21% |
18% |
|
|
||||||||
Adjusted EBITA(1) |
45,035 |
38,844 |
5,422 |
(14)%(3) |
||||||||
Adjusted EBITA margin(1) |
19% |
16% |
|
|
||||||||
|
|
|
|
|
||||||||
Net income |
24,022 |
42,382 |
5,916 |
76%(4) |
||||||||
Net income attributable to ordinary shareholders |
24,269 |
43,116 |
6,019 |
78%(4) |
||||||||
Non-GAAP net income(1) |
40,691 |
33,510 |
4,678 |
(18)%(3) |
||||||||
|
|
|
|
|
||||||||
Diluted earnings per share(5) |
1.24 |
2.25 |
0.31 |
82%(4)(6) |
||||||||
Diluted earnings per ADS(5) |
9.89 |
17.98 |
2.51 |
82%(4)(6) |
||||||||
Non-GAAP diluted earnings per share(1)(5) |
2.05 |
1.84 |
0.26 |
(10)%(3)(6) |
||||||||
Non-GAAP diluted earnings per ADS(1)(5) |
16.44 |
14.75 |
2.06 |
(10)%(3)(6) |
____________________ | ||
(1) |
See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable |
|
(2) |
The year-over-year decrease was primarily due to the decrease in adjusted EBITA, partly offset by the decrease in amortization of intangible assets, non-cash share-based compensation expense, and a one-time provision in the same quarter last year. |
|
(3) |
The year-over-year decreases were primarily attributable to the investment in “Taobao Instant Commerce”, as well as user experiences, user acquisition and technology, partly offset by double-digit revenue growth in |
|
(4) |
The year-over-year increases were primarily due to mark-to-market changes from our equity investments and gain from the disposal of local consumer service business of Trendyol, partly offset by the decrease in income from operations, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss (income) attributable to noncontrolling interests and (accretion) reversal of accretion of mezzanine equity. We excluded non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements. |
|
(5) |
Each ADS represents eight ordinary shares. |
|
(6) |
The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding. |
JUNE QUARTER SEGMENT RESULTS
Revenue for the quarter ended
The following table sets forth a breakdown of our revenue by segment for the periods indicated:
|
Three months ended |
|
|
|
||||||||
|
2024 |
|
2025 |
|
|
|||||||
|
RMB |
|
RMB |
|
US$ |
|
YoY % Change |
|||||
|
(in millions, except percentages) |
|||||||||||
|
|
|
|
|
||||||||
E-commerce |
|
|
|
|
||||||||
- Customer management |
81,088 |
89,252 |
12,459 |
10% |
||||||||
- Direct sales, logistics and others(2) |
27,434 |
29,325 |
4,093 |
7% |
||||||||
|
108,522 |
118,577 |
16,552 |
9% |
||||||||
Quick commerce(3) |
13,196 |
14,784 |
2,064 |
12% |
||||||||
|
5,952 |
6,711 |
937 |
13% |
||||||||
|
127,670 |
140,072 |
19,553 |
10% |
||||||||
|
|
|
|
|
||||||||
|
|
|
|
|
||||||||
International commerce retail |
23,691 |
28,395 |
3,964 |
20% |
||||||||
International commerce wholesale |
5,602 |
6,346 |
886 |
13% |
||||||||
|
29,293 |
34,741 |
4,850 |
19% |
||||||||
|
|
|
|
|
||||||||
|
26,549 |
33,398 |
4,662 |
26% |
||||||||
All others(4) |
81,354 |
58,599 |
8,180 |
(28)% |
||||||||
Unallocated |
419 |
519 |
73 |
|
||||||||
Inter-segment elimination |
(22,049) |
(19,677) |
(2,747) |
|
||||||||
Consolidated revenue |
243,236 |
247,652 |
34,571 |
2% |
____________________ | ||
(1) |
The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker. |
|
(2) |
Direct sales, logistics and others revenue under |
|
(3) |
Quick commerce revenue represents quick commerce business revenue, including revenue generated through “Taobao Instant Commerce” service and the |
|
(4) |
All others include Freshippo, Cainiao, |
The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:
|
Three months ended |
|
|
|
||||||||
|
2024 |
|
2025 |
|
|
|
||||||
|
RMB |
|
RMB |
|
US$ |
|
YoY % Change (3) |
|||||
|
(in millions, except percentages) |
|||||||||||
|
48,753 |
|
|
38,389 |
|
|
5,359 |
|
|
(21)% |
||
|
(3,706) |
|
|
(59) |
|
|
(8) |
|
|
98% |
||
|
2,337 |
|
|
2,954 |
|
|
412 |
|
|
26% |
||
All others |
(1,077) |
|
|
(1,415) |
|
|
(198) |
|
|
(31)% |
||
Unallocated(2) |
(871) |
|
|
(419) |
|
|
(58) |
|
|
|
||
Inter-segment elimination |
(401) |
|
|
(606) |
|
|
(85) |
|
|
|
||
Consolidated adjusted EBITA |
45,035 |
|
|
38,844 |
|
|
5,422 |
|
|
(14)% |
||
Less: Non-cash share-based compensation expense |
(4,109) |
|
|
(3,194) |
|
|
(446) |
|
|
|
||
Less: Amortization and impairment of intangible assets, and others |
(1,792) |
|
|
(662) |
|
|
(92) |
|
|
|
||
Less: Provision for the shareholder class action lawsuits |
(3,145) |
|
|
– |
|
|
– |
|
|
|
||
Income from operations |
35,989 |
|
|
34,988 |
|
|
4,884 |
|
|
(3)% |
____________________ | ||
(1) |
The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker. |
|
(2) |
Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments. |
|
(3) |
For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate. |
(i) Segment revenue
-
E-commerce Business
Revenue from our E-commerce business in the quarter endedJune 30, 2025 wasRMB118,577 million (US$16,552 million ), an increase of 9% compared toRMB108,522 million in the same quarter of 2024.
Customer management revenue increased by 10% year-over-year, primarily driven by the improvement of take rate.
Direct sales, logistics and others revenue under E-commerce business in the quarter endedJune 30, 2025 wasRMB29,325 million (US$4,093 million ), an increase of 7% compared toRMB27,434 million in the same quarter of 2024, primarily driven by the increase in revenue from logistics services, partly offset by the decrease in direct sales revenue as a result of our planned reduction of certain direct sales businesses.
-
Quick Commerce Business
Revenue from our Quick commerce business in the quarter endedJune 30, 2025 wasRMB14,784 million (US$2,064 million ), an increase of 12% compared toRMB13,196 million in the same quarter of 2024, mainly due to order growth as a result of the rollout of “Taobao Instant Commerce” at the end ofApril 2025 .
-
China Commerce Wholesale Business
Revenue from ourChina commerce wholesale business in the quarter endedJune 30, 2025 wasRMB6,711 million (US$937 million ), an increase of 13% compared toRMB5,952 million in the same quarter of 2024, primarily due to an increase in revenue from value-added services provided to paying members.
(ii) Segment adjusted EBITA
(i) Segment revenue
-
International Commerce Retail Business
Revenue from our International commerce retail business in the quarter endedJune 30, 2025 wasRMB28,395 million (US$3,964 million ), an increase of 20% compared toRMB23,691 million in the same quarter of 2024, primarily driven by the increase in revenue contributed by AliExpress and Trendyol. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate fluctuations.
-
International Commerce Wholesale Business
Revenue from our International commerce wholesale business in the quarter endedJune 30, 2025 wasRMB6,346 million (US$886 million ), an increase of 13% compared toRMB5,602 million in the same quarter of 2024, primarily due to an increase in revenue generated by cross-border related value-added services.
(ii) Segment adjusted EBITA
(i) Segment revenue
Revenue from
(ii) Segment adjusted EBITA
All Others
(i) Segment revenue
Revenue from All others segment was
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the quarter ended
JUNE QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:
|
Three months ended |
|
|
|
||||||||||||||
|
2024 |
|
2025 |
|
% of Revenue YoY change |
|||||||||||||
|
RMB |
|
% of Revenue |
|
RMB |
|
US$ |
|
% of Revenue |
|
||||||||
|
(in millions, except percentages) |
|||||||||||||||||
Costs and expenses: |
|
|
|
|
|
|
||||||||||||
Cost of revenue |
146,106 |
|
|
60.1% |
|
|
136,429 |
|
|
19,045 |
|
|
55.1% |
|
|
(5.0)% |
||
Product development expenses |
13,373 |
|
|
5.5% |
|
|
15,001 |
|
|
2,094 |
|
|
6.1% |
|
|
0.6% |
||
Sales and marketing expenses |
32,696 |
|
|
13.4% |
|
|
53,178 |
|
|
7,423 |
|
|
21.5% |
|
|
8.1% |
||
General and administrative expenses |
13,280 |
|
|
5.5% |
|
|
7,398 |
|
|
1,033 |
|
|
3.0% |
|
|
(2.5)% |
||
Amortization and impairment of intangible assets |
1,792 |
|
|
0.7% |
|
|
807 |
|
|
113 |
|
|
0.3% |
|
|
(0.4)% |
||
Total costs and expenses |
207,247 |
|
|
|
|
|
212,813 |
|
|
29,708 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Share-based compensation expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cost of revenue |
586 |
|
|
0.2% |
|
|
463 |
|
|
64 |
|
|
0.2% |
|
|
0.0% |
||
Product development expenses |
1,803 |
|
|
0.7% |
|
|
1,466 |
|
|
205 |
|
|
0.6% |
|
|
(0.1)% |
||
Sales and marketing expenses |
399 |
|
|
0.2% |
|
|
458 |
|
|
64 |
|
|
0.2% |
|
|
0.0% |
||
General and administrative expenses |
1,343 |
|
|
0.6% |
|
|
1,158 |
|
|
162 |
|
|
0.5% |
|
|
(0.1)% |
||
Total share-based compensation expense(1) |
4,131 |
|
|
|
|
|
3,545 |
|
|
495 |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Costs and expenses excluding share-based compensation expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cost of revenue |
145,520 |
|
|
59.8% |
|
|
135,966 |
|
|
18,981 |
|
|
54.9% |
|
|
(4.9)% |
||
Product development expenses |
11,570 |
|
|
4.8% |
|
|
13,535 |
|
|
1,889 |
|
|
5.5% |
|
|
0.7% |
||
Sales and marketing expenses |
32,297 |
|
|
13.3% |
|
|
52,720 |
|
|
7,359 |
|
|
21.3% |
|
|
8.0% |
||
General and administrative expenses |
11,937 |
|
|
4.9% |
|
|
6,240 |
|
|
871 |
|
|
2.5% |
|
|
(2.4)% |
||
Amortization and impairment of intangible assets |
1,792 |
|
|
0.7% |
|
|
807 |
|
|
113 |
|
|
0.3% |
|
|
(0.4)% |
||
Total costs and expenses excluding share-based compensation expense |
203,116 |
|
|
|
|
|
209,268 |
|
|
29,213 |
|
|
|
|
|
|
____________________ | ||
(1) |
This includes both cash and non-cash share-based compensation expenses. |
Cost of revenue – Cost of revenue in the quarter ended
Product development expenses – Product development expenses in the quarter ended
Sales and marketing expenses – Sales and marketing expenses in the quarter ended
General and administrative expenses – General and administrative expenses in the quarter ended
Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the quarter ended
The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:
|
Three months ended |
|
|
|
||||||||
|
2024 |
|
2025 |
|
|
|
||||||
|
RMB |
|
RMB |
|
US$ |
|
YoY % Change |
|||||
|
(in millions, except percentages) |
|||||||||||
By type of awards: |
|
|
|
|
||||||||
|
3,091 |
|
|
2,321 |
|
|
324 |
|
|
(25)% |
||
Others(2) |
1,040 |
|
|
1,224 |
|
|
171 |
|
|
18% |
||
Total share-based compensation expense(3) |
4,131 |
|
|
3,545 |
|
|
495 |
|
|
(14)% |
____________________ | ||
(1) |
This represents |
|
(2) |
This represents share-based awards of our subsidiaries and |
|
(3) |
This includes both cash and non-cash share-based compensation expenses. |
Share-based compensation expense decreased in the quarter ended
We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.
Amortization and impairment of intangible assets – Amortization and impairment of intangible assets in the quarter ended
Income from operations and operating margin
Income from operations in the quarter ended
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA decreased 11% year-over-year to
Adjusted EBITA by segment
Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled “June Quarter Segment Results” above.
Interest and investment income, net
Interest and investment income, net in the quarter ended
The above-mentioned investment gains and losses were excluded from our non-GAAP net income.
Other income, net
Other income, net in the quarter ended
Income tax expenses
Income tax expenses in the quarter ended
Share of results of equity method investees
Share of results of equity method investees in the quarter ended
|
Three months ended |
||||||||
|
2024 |
|
2025 |
||||||
|
RMB |
|
RMB |
|
US$ |
||||
|
(in millions) |
||||||||
Share of profit (loss) of equity method investees |
|
|
|
||||||
- |
3,917 |
|
|
1,547 |
|
|
216 |
||
- Others |
(588) |
|
|
455 |
|
|
63 |
||
Impairment loss |
(2,157) |
|
|
– |
|
|
– |
||
Others(1) |
333 |
|
|
(989) |
|
|
(138) |
||
Total |
1,505 |
|
|
1,013 |
|
|
141 |
____________________ | ||
(1) |
“Others” mainly include basis differences arising from equity method investees, share-based compensation expense related to share-based awards granted to employees of our equity method investees, as well as gain or loss arising from the deemed disposal of the equity method investees. |
We record our share of results of all equity method investees one quarter in arrears. The year-over-year decrease in share of profit of
Net income and Non-GAAP net income
Our net income in the quarter ended
Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in the quarter ended
Net income attributable to ordinary shareholders
Net income attributable to ordinary shareholders in the quarter ended
Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended
Diluted earnings per share in the quarter ended
A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares.
Cash and cash equivalents, short-term investments and other treasury investments
As of
Net cash provided by operating activities and free cash flow
During the quarter ended
Net cash provided by investing activities
During the quarter ended
Net cash used in financing activities
During the quarter ended
Employees
As of
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ABOUT
EXCHANGE RATE INFORMATION
This results announcement contains translations of certain Renminbi (“RMB”) amounts into
SAFE HARBOR STATEMENTS
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
NON-GAAP FINANCIAL MEASURES
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non-GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable
We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results.
We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet.
Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by
Adjusted EBITDA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.
Adjusted EBITA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.
Non-GAAP net income represents net income before non-cash share-based compensation expense, amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments, and others (including provision in relation to matters outside the ordinary course of business), and adjustments for the tax effects.
Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.
Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants.
The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable
|
|||||||||
UNAUDITED CONSOLIDATED INCOME STATEMENTS |
|||||||||
|
Three months ended |
||||||||
|
2024 |
|
2025 |
||||||
|
RMB |
|
RMB |
|
US$ |
||||
|
(in millions, except per share data) |
||||||||
Revenue |
243,236 |
|
247,652 |
|
34,571 |
|
|||
Cost of revenue |
(146,106 |
) |
(136,429 |
) |
(19,045 |
) |
|||
Product development expenses |
(13,373 |
) |
(15,001 |
) |
(2,094 |
) |
|||
Sales and marketing expenses |
(32,696 |
) |
(53,178 |
) |
(7,423 |
) |
|||
General and administrative expenses |
(13,280 |
) |
(7,398 |
) |
(1,033 |
) |
|||
Amortization and impairment of intangible assets |
(1,792 |
) |
(807 |
) |
(113 |
) |
|||
Other gains, net |
– |
|
149 |
|
21 |
|
|||
|
|
|
|
||||||
Income from operations |
35,989 |
|
34,988 |
|
4,884 |
|
|||
Interest and investment income, net |
(1,478 |
) |
17,376 |
|
2,426 |
|
|||
Interest expense |
(2,188 |
) |
(2,478 |
) |
(346 |
) |
|||
Other income, net |
257 |
|
348 |
|
48 |
|
|||
|
|
|
|
||||||
Income before income tax and share of results of equity method investees |
32,580 |
|
50,234 |
|
7,012 |
|
|||
Income tax expenses |
(10,063 |
) |
(8,865 |
) |
(1,237 |
) |
|||
Share of results of equity method investees |
1,505 |
|
1,013 |
|
141 |
|
|||
|
|
|
|
||||||
Net income |
24,022 |
|
42,382 |
|
5,916 |
|
|||
Net loss (income) attributable to noncontrolling interests |
368 |
|
(1,733 |
) |
(242 |
) |
|||
|
|
|
|
||||||
Net income attributable to |
24,390 |
|
40,649 |
|
5,674 |
|
|||
|
|
|
|
||||||
(Accretion) Reversal of accretion of mezzanine equity |
(121 |
) |
2,467 |
|
345 |
|
|||
Net income attributable to ordinary shareholders |
24,269 |
|
43,116 |
|
6,019 |
|
|||
|
|
|
|
||||||
Earnings per share attributable to ordinary shareholders (1) |
|
|
|
||||||
Basic |
1.26 |
|
2.32 |
|
0.32 |
|
|||
Diluted |
1.24 |
|
2.25 |
|
0.31 |
|
|||
|
|
|
|
||||||
Earnings per ADS attributable to ordinary shareholders (1) |
|
|
|
||||||
Basic |
10.04 |
|
18.57 |
|
2.59 |
|
|||
Diluted |
9.89 |
|
17.98 |
|
2.51 |
|
|||
|
|
|
|
||||||
Weighted average number of shares used in calculating earnings per ordinary share (million shares) (1) |
|
|
|
||||||
Basic |
19,329 |
|
18,570 |
|
|
||||
Diluted |
19,595 |
|
19,142 |
|
|
____________________ | ||
(1) |
Each ADS represents eight ordinary shares. |
|
|
|||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
|||||||||
|
|
As of |
|
As of |
|||||
|
|
2025 |
|
2025 |
|||||
|
|
RMB |
|
RMB |
|
US$ |
|||
|
|
(in millions) |
|||||||
Assets |
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|||||
Cash and cash equivalents |
|
145,487 |
|
183,120 |
|
25,563 |
|
||
Short-term investments |
|
228,826 |
|
191,737 |
|
26,766 |
|
||
Restricted cash and escrow receivables |
|
43,781 |
|
41,459 |
|
5,787 |
|
||
Equity securities and other investments |
|
53,780 |
|
41,558 |
|
5,801 |
|
||
Prepayments, receivables and other assets |
|
202,175 |
|
228,197 |
|
31,855 |
|
||
Total current assets |
|
674,049 |
|
686,071 |
|
95,772 |
|
||
|
|
|
|
|
|||||
Equity securities and other investments |
|
356,818 |
|
365,251 |
|
50,987 |
|
||
Prepayments, receivables and other assets |
|
83,431 |
|
93,284 |
|
13,022 |
|
||
Investment in equity method investees |
|
210,169 |
|
205,941 |
|
28,748 |
|
||
Property and equipment, net |
|
203,348 |
|
220,835 |
|
30,828 |
|
||
Intangible assets, net |
|
20,911 |
|
20,125 |
|
2,809 |
|
||
|
|
255,501 |
|
255,578 |
|
35,677 |
|
||
Total assets |
|
1,804,227 |
|
1,847,085 |
|
257,843 |
|
||
|
|
|
|
|
|||||
Liabilities, Mezzanine Equity and Shareholders’ Equity |
|
|
|
|
|||||
Current liabilities: |
|
|
|
|
|||||
Current bank borrowings |
|
22,562 |
|
24,584 |
|
3,432 |
|
||
Income tax payable |
|
11,638 |
|
8,939 |
|
1,248 |
|
||
Accrued expenses, accounts payable and other liabilities |
|
332,537 |
|
371,624 |
|
51,877 |
|
||
Merchant deposits |
|
274 |
|
255 |
|
35 |
|
||
Deferred revenue and customer advances |
|
68,335 |
|
68,225 |
|
9,524 |
|
||
Total current liabilities |
|
435,346 |
|
473,627 |
|
66,116 |
|
||
|
|||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED) |
|||||||||
|
|
As of |
|
As of |
|||||
|
|
2025 |
|
2025 |
|||||
|
|
RMB |
|
RMB |
|
US$ |
|||
|
|
(in millions) |
|||||||
Deferred revenue |
|
4,536 |
|
4,456 |
|
622 |
|
||
Deferred tax liabilities |
|
48,454 |
|
47,001 |
|
6,561 |
|
||
Non-current bank borrowings |
|
49,909 |
|
50,919 |
|
7,108 |
|
||
Non-current unsecured senior notes |
|
122,398 |
|
121,164 |
|
16,914 |
|
||
Non-current convertible unsecured senior notes |
|
35,834 |
|
35,431 |
|
4,946 |
|
||
Other liabilities |
|
17,644 |
|
21,168 |
|
2,955 |
|
||
Total liabilities |
|
714,121 |
|
753,766 |
|
105,222 |
|
||
|
|
|
|
|
|||||
Commitments and contingencies |
|
|
|
|
|||||
|
|
|
|
|
|||||
Mezzanine equity |
|
11,713 |
|
9,921 |
|
1,384 |
|
||
|
|
|
|
|
|||||
Shareholders’ equity: |
|
|
|
|
|||||
Ordinary shares |
|
1 |
|
1 |
|
– |
|
||
Additional paid-in capital |
|
381,379 |
|
386,585 |
|
53,965 |
|
||
|
|
(36,329 |
) |
(36,306 |
) |
(5,068 |
) |
||
Statutory reserves |
|
15,936 |
|
15,961 |
|
2,228 |
|
||
Accumulated other comprehensive income (loss) |
|
3,393 |
|
(107 |
) |
(15 |
) |
||
Retained earnings |
|
645,478 |
|
647,538 |
|
90,393 |
|
||
|
|
|
|
|
|||||
Total shareholders’ equity |
|
1,009,858 |
|
1,013,672 |
|
141,503 |
|
||
Noncontrolling interests |
|
68,535 |
|
69,726 |
|
9,734 |
|
||
|
|
|
|
|
|||||
Total equity |
|
1,078,393 |
|
1,083,398 |
|
151,237 |
|
||
|
|
|
|
|
|||||
Total liabilities, mezzanine equity and equity |
|
1,804,227 |
|
1,847,085 |
|
257,843 |
|
||
|
|||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
|
|
Three months ended |
|||||||
|
|
2024 |
|
2025 |
|||||
|
|
RMB |
|
RMB |
|
US$ |
|||
|
|
(in millions) |
|||||||
Net cash provided by operating activities |
|
33,636 |
|
20,672 |
|
2,886 |
|
||
Net cash (used in) provided by investing activities |
|
(35,829 |
) |
18,328 |
|
2,558 |
|
||
Net cash used in financing activities |
|
(19,582 |
) |
(2,731 |
) |
(381 |
) |
||
Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables |
|
659 |
|
(958 |
) |
(134 |
) |
||
|
|
|
|
|
|||||
(Decrease) Increase in cash and cash equivalents, restricted cash and escrow receivables |
|
(21,116 |
) |
35,311 |
|
4,929 |
|
||
Cash and cash equivalents, restricted cash and escrow receivables at beginning of period |
|
286,424 |
|
189,268 |
|
26,421 |
|
||
|
|
|
|
|
|||||
Cash and cash equivalents, restricted cash and escrow receivables at end of period |
|
265,308 |
|
224,579 |
|
31,350 |
|
||
|
|||||||||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE |
|||||||||
The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated: |
|||||||||
|
|
Three months ended |
|||||||
|
|
2024 |
|
2025 |
|||||
|
|
RMB |
|
RMB |
|
US$ |
|||
|
|
(in millions) |
|||||||
Net income |
|
24,022 |
|
42,382 |
|
5,916 |
|
||
Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA: |
|
|
|
|
|||||
Interest and investment income, net |
|
1,478 |
|
(17,376 |
) |
(2,426 |
) |
||
Interest expense |
|
2,188 |
|
2,478 |
|
346 |
|
||
Other income, net |
|
(257 |
) |
(348 |
) |
(48 |
) |
||
Income tax expenses |
|
10,063 |
|
8,865 |
|
1,237 |
|
||
Share of results of equity method investees |
|
(1,505 |
) |
(1,013 |
) |
(141 |
) |
||
Income from operations |
|
35,989 |
|
34,988 |
|
4,884 |
|
||
Non-cash share-based compensation expense |
|
4,109 |
|
3,194 |
|
446 |
|
||
Amortization and impairment of intangible assets, and others |
|
1,792 |
|
662 |
|
92 |
|
||
Provision for the shareholder class action lawsuits |
|
3,145 |
|
– |
|
– |
|
||
Adjusted EBITA |
|
45,035 |
|
38,844 |
|
5,422 |
|
||
Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights |
|
6,126 |
|
6,891 |
|
962 |
|
||
Adjusted EBITDA |
|
51,161 |
|
45,735 |
|
6,384 |
|
||
|
|||||||||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE |
|||||||||
The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated: |
|||||||||
|
Three months ended |
||||||||
|
2024 |
|
2025 |
||||||
|
RMB |
|
RMB |
|
US$ |
||||
|
(in millions) |
||||||||
|
|
|
|
||||||
Net income |
24,022 |
|
42,382 |
|
5,916 |
|
|||
Adjustments to reconcile net income to non-GAAP net income: |
|
|
|
||||||
Non-cash share-based compensation expense |
4,109 |
|
3,194 |
|
446 |
|
|||
Amortization and impairment of intangible assets |
1,792 |
|
807 |
|
113 |
|
|||
Provision for the shareholder class action lawsuits |
3,145 |
|
– |
|
– |
|
|||
Loss (Gain) on deemed disposals/disposals/revaluation of investments |
4,581 |
|
(13,128 |
) |
(1,832 |
) |
|||
Impairment of investments, and others |
4,311 |
|
1,013 |
|
141 |
|
|||
Tax effects(1) |
(1,269 |
) |
(758 |
) |
(106 |
) |
|||
|
|
|
|
||||||
Non-GAAP net income |
40,691 |
|
33,510 |
|
4,678 |
|
____________________ | ||
(1) |
Tax effects primarily comprise tax effects relating to non-cash share-based compensation expense, amortization and impairment of intangible assets and certain gains and losses from investments, and others. |
|
|
|||||||||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE |
|||||||||
The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated: |
|||||||||
|
|
Three months ended |
|||||||
|
|
2024 |
|
2025 |
|||||
|
|
RMB |
|
RMB |
|
US$ |
|||
|
|
(in millions, except per share data) |
|||||||
Net income attributable to ordinary shareholders – basic |
|
24,269 |
|
43,116 |
|
6,019 |
|
||
Dilution effect on earnings arising from non-cash share-based awards operated by equity method investees and subsidiaries |
|
(75 |
) |
(162 |
) |
(23 |
) |
||
Adjustments for interest expense attributable to convertible unsecured senior notes |
26 |
|
71 |
|
10 |
|
|||
Net income attributable to ordinary shareholders – diluted |
|
24,220 |
|
43,025 |
|
6,006 |
|
||
Non-GAAP adjustments to net income attributable to ordinary shareholders(1) |
|
16,045 |
|
(7,734 |
) |
(1,080 |
) |
||
|
|
|
|
|
|||||
Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS |
|
40,265 |
|
35,291 |
|
4,926 |
|
||
|
|
|
|
|
|||||
Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares) (2) |
|
19,595 |
|
19,142 |
|
|
|||
|
|
|
|
|
|||||
Diluted earnings per share (2)(3) |
|
1.24 |
|
2.25 |
|
0.31 |
|
||
|
|
|
|
|
|||||
Non-GAAP diluted earnings per share (2)(4) |
|
2.05 |
|
1.84 |
|
0.26 |
|
||
|
|
|
|
|
|||||
Diluted earnings per ADS (2)(3) |
|
9.89 |
|
17.98 |
|
2.51 |
|
||
|
|
|
|
|
|||||
Non-GAAP diluted earnings per ADS (2)(4) |
|
16.44 |
|
14.75 |
|
2.06 |
|
____________________ | ||
(1) |
Non-GAAP adjustments excluding the attributions to the noncontrolling interests. See the table above for items regarding the reconciliation of net income to non-GAAP net income (before excluding the attributions to the noncontrolling interests). |
|
(2) |
Each ADS represents eight ordinary shares. |
|
(3) |
Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. |
|
(4) |
Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share, on a diluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio. |
|
|
|||||||||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE |
|||||||||
The table below sets forth a reconciliation of net cash provided by operating activities to free cash flow for the periods indicated: |
|||||||||
|
|
Three months ended |
|||||||
|
|
2024 |
|
2025 |
|||||
|
|
RMB |
|
RMB |
|
US$ |
|||
|
|
(in millions) |
|||||||
Net cash provided by operating activities |
|
33,636 |
|
20,672 |
|
2,886 |
|
||
Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses) |
|
(11,939 |
) |
(38,629 |
) |
(5,392 |
) |
||
Less: Changes in the buyer protection fund deposits |
|
(4,325 |
) |
(858 |
) |
(120 |
) |
||
|
|
|
|
|
|||||
Free cash flow |
|
17,372 |
|
(18,815 |
) |
(2,626 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250828875486/en/
Investor Relations Contact
Head of Investor Relations
investor@alibaba-inc.com
Media Contacts
cathy.yan@alibaba-inc.com
ivy.ke@alibaba-inc.com
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