Alibaba misses FQ1 sales estimates, launches record share buyback
Aug. 03, 2021 7:23 AM ET Alibaba Group Holding Limited (BABA) Alibaba Group Holding Limited (BABA) By: Brandy Betz, SA News Editor 24 Comments
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Alibaba (NYSE: BABA) reports fiscal first-quarter results that beat analyst profit estimates but missed on revenue as the company continues to invest in growth opportunities.
Revenue was up 34% year-over-year to RMB205.74B, missing consensus estimates by RMB2.93B. Adjusted earnings of RMB16.60 per share beat consensus by RMB2.31.
Commerce sales were up 35% to RMB180.2B with international retail up 54% to RMB10.8B. Cloud sales increased 29% to RMB16.1B.
Annual active consumers of the Alibaba Ecosystem reached 1.18 billion for the 12-month period ending June 30, up 45 million from the prior year's period.
Adjusted EBITDA decreased 5% on the same quarter last year to RMB48.6B primarily due to spending on growth opportunities.
“We delivered strong revenue growth of 34% year-over-year. As we said in last quarter's results announcement, we are investing our excess profits and additional capital to support our merchants and invest in strategic areas to better serve customers and penetrate into new addressable markets,” says Alibaba CFO Maggie Wu. “We are increasing our share repurchase program from US$10 billion to US$15 billion, the largest share repurchase program in the Company’s history, because we are confident of our long-term growth prospects. Our net cash position remains strong and we have repurchased approximately US$3.7 billion of our ADSs since April 1, 2021.”