The earnings call reflects strong growth in Alibaba's core businesses, including a significant upswing in cloud and AI product revenue. Strategic divestments have streamlined operations and strengthened the financial position. However, challenges such as decreased free cash flow and losses in certain segments like Cainiao and AIDC remain. Overall, the highlights significantly outweigh the lowlights, indicating a positive outlook.

Company Guidance

During Alibaba Group's December Quarter 2024 earnings call, the company provided detailed guidance on its strategic focus and anticipated financial growth. Alibaba emphasized its commitment to its AI-driven strategy, noting a 13% revenue growth in its Cloud Intelligence Group, with AI-related product revenue maintaining triple-digit year-over-year growth for the sixth consecutive quarter. The company highlighted the launch of Qwen 2.5 Max, a flagship AI foundation model, which has seen widespread adoption with over 90,000 Qwen-based derivative models developed globally. Additionally, Alibaba's e-commerce platforms, Taobao and Tmall, experienced a 9% year-over-year growth in customer management revenue (CMR), supported by a growing base of 49 million 88 VIP members. The company also announced plans to substantially increase its investment in AI and cloud infrastructure over the next three years, surpassing the cumulative investment made over the past decade. Financially, Alibaba reported a consolidated revenue of RMB 280.2 billion, an 8% increase, and a 4% rise in consolidated adjusted EBITDA to RMB 54.9 billion, despite a 31% decrease in free cash flow due to increased cloud infrastructure investment. Looking ahead, Alibaba expressed confidence in its focused strategy on e-commerce and AI plus cloud, aiming for sustained growth and increased shareholder returns through strategic initiatives and asset divestments.

Strong Revenue and Growth Metrics

Overall revenue, excluding Alibaba consolidated subsidiaries, grew 11% year-over-year. AI-related product revenue maintained triple-digit year-over-year growth for the sixth consecutive quarter.

Cloud Business Growth

Cloud business revenue growth accelerated to 13%. AI momentum remains robust with AI-related product revenue sustaining triple-digit growth.

E-commerce Success

Taobao and Tmall businesses saw a significant upswing in CMR growth to 9% year-over-year. 88 VIP members maintained double-digit growth, reaching 49 million by the end of the quarter.

International E-commerce Business Growth

The international e-commerce business maintained strong growth, with AIDC expecting its first quarter of profitability in the next fiscal year.

Successful Asset Divestment

Agreements to dispose of interests in Senna for up to $1.6 billion and in-time for $1 billion were completed, reflecting strategic shifts.

Strong Financial Position

Operating cash flow increased 10% to RMB 70.9 billion. Alibaba maintains a strong net cash position of RMB 378.5 billion.

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Alibaba (BABA) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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BABA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 14, 2025	2025 (Q4)	1.64 / -	10.14	―	―	―
Feb 20, 2025	2025 (Q3)	2.68 / 2.95	2.614	12.76% (+0.33)
Nov 15, 2024	2025 (Q2)	2.04 / 2.08	2.154	-3.65% (-0.08)
Aug 15, 2024	2025 (Q1)	2.06 / 2.27	2.394	-5.35% (-0.13)
May 14, 2024	2024 (Q4)	1.41 / 1.40	1.476	-5.32% (-0.08)
Feb 07, 2024	2024 (Q3)	2.63 / 2.61	2.654	-1.51% (-0.04)
Nov 16, 2023	2024 (Q2)	2.10 / 2.15	1.781	20.98% (+0.37)
Aug 10, 2023	2024 (Q1)	2.01 / 2.39	1.617	48.08% (+0.78)
May 18, 2023	2023 (Q4)	1.30 / 1.48	1.096	34.72% (+0.38)
Feb 23, 2023	2023 (Q3)	2.31 / 2.65	2.325	14.17% (+0.33)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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BABA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 20, 2025	$125.79	$135.97	+8.09%
Nov 15, 2024	$90.58	$88.59	-2.20%
Aug 15, 2024	$79.47	$79.54	+0.09%
May 14, 2024	$82.82	$77.84	-6.01%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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