Alibaba Group Holding Limited announced on Thursday that its net income for the three months ending March 31 surged by 1,203% to 12 billion Chinese yuan ($1.7 billion). The significant increase was primarily driven by changes in its equity investments, a rise in operational income, and a decrease in the impairment of equity method investments.
During the same three-month period, revenue increased by 7%, reaching 236 billion yuan (approximately $32 billion). Meanwhile, diluted earnings per share soared by 296% to 0.65 yuan, or $0.09. On a yearly basis, the company reported a 6% rise in revenue, totaling 996 billion yuan (about $137 billion). The net income for the year was 126 billion yuan (around $17 billion), equating to 6.70 yuan (approximately $0.92) per diluted share.
"Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our ‘user first, AI-driven’ strategy, with core business growth continuing to accelerate. Driven by strong demand for AI, Cloud Intelligence Group quarterly revenue growth accelerated to 18%, with AI-related product revenue achieving triple-digit growth for the seventh consecutive quarter," said Eddie Wu, Chief Executive Officer of Alibaba Group.
Alibaba's shares dropped by 5% in premarket trading in New York, as the company failed to meet revenue and net income expectations.
