Core commerce business and cloud computing units drive revenues
According to a Reuters report Alibaba’s March-quarter revenue grew 61 per cent to $9.73 billion from a year earlier.
This beats analyst estimates of a 53 per cent increase. This was achieved despite the company’s new investments in technology and overseas expansions.
With these results the company has completed 8 continuous quarters of above-50-per cent growth. Operating margins however were down to 15% from 25% for the same period last year.
During a conference call Chief Executive Daniel Zhang asserted that his company will continue to invest heavily to achieve its goal of achieving a gross merchandise volumes of $1 trillion by 2020.
Alibaba is likely to see some increased future competition from rival JD.com who has tied up with Tencent Holdings to enhance offline retail, marketing and payment operations.