Alibaba posted rare operating loss in its quarter ended March, following a 7.66 billion yuan fine imposed by Chinese regulators under the government’s anti-monopoly law . Alibaba was the subject of an antitrust investigation last January, with regulators examining allegations of monopolistic behavior, including requests for “forced exclusivity” imposed on merchants.
Other than the fine, however, Alibaba’s results are mixed. The company reports a slowdown in the growth of its cloud computing business following the loss of a major customer in the Internet industry. The Chinese e-commerce giant said cloud computing revenue nonetheless rose 37% to $ 2.58 billion.
Alibaba did not disclose the customer’s name, but said it has a significant presence outside of China and has used Alibaba’s cloud computing services overseas in the past. The customer “decided to end the relationship with their international company due to unrelated product requirements,” Alibaba said.
Global revenue of $ 28.6 billion
As for other figures, Alibaba reported revenue of $ 28.6 billion, up 64% from the previous year. Analysts were betting $ 27.8 billion.
Outside of the cloud, the bulk of Alibaba’s revenue comes from its business units, made up of its retail and wholesale and logistics operations. The core retail segment saw revenue growth of 72% in the quarter to reach $ 25 billion. The company also recorded 101% year-over-year growth for its Cainiao logistics business.
Alibaba said it added 23 million mobile active consumers in its retail markets from the previous quarter to reach 925 million, while annual active users reached 811 million, up 32 million from the previous quarter. For the year, the company’s annual active customer base for the entire Alibaba ecosystem exceeded one billion.
“Alibaba reached a historic milestone of one billion annual active consumers worldwide in the fiscal year ended March 2021,” said Daniel Zhang, chairman and CEO of Alibaba Group. “Our overall business saw strong growth on a healthy footing, with the Alibaba ecosystem generating a record US $ 1.2 trillion in GMV in this fiscal year. These results were achieved through clear value propositions. that we offer to consumers and traders. We remain very excited about the growth of China’s consumer economy, which benefits from accelerating digitization in all aspects of life and work. ”