Alibaba GMV Crosses Half-A-Trillion Dollars

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Alibaba Group announced their June 2016 quarter results on August 11, 2016. The company delivered an outstanding performance during this quarter. Here are the key highlights of the June 2016 quarter results.

Alibaba GMV for trailing twelve months (TTM) exceeds Half-a-Trillion dollars

Alibaba’s GMV (Gross Merchandise Volume) grew to $126 billion during the June 2016 quarter. Mobile GMV reached $94 billion during the June 2016 quarter and accounted for 75% of the total GMV transacted on China retail marketplaces during the quarter. The total GMV on a TTM (trailing twelve months) basis reached $502 billion. The mobile GMV on a TTM-basis reached $348 billion.

Alibaba GMV June 2016 quarter

Alibaba June 2016 quarter revenue growth was the highest since its IPO

Alibaba total revenue reached $4.83 billion during the June 2016 quarter. Alibaba overall revenues grew 59% year-over-year. This is the highest revenue growth since their IPO. This strong revenue growth was driven by increasing monetization in core  commerce segments and triple-digit revenue growth in cloud computing and digital media and entertainment segments.

Of their total revenues during the June 2016 quarter, $3.51 billion revenue (72.7% of the total) were generated from China commerce retail marketplaces. Alibaba mobile revenue from China commerce retail marketplaces reached $2.63 billion. This represented 74.9% of the China commerce retail total revenue during June 2016 quarter.

Alibaba Revenues June 2016 Quarter

Alibaba disclosed the revenues for its digital media and entertainment segment separately for the first time

Starting with the June 2016 quarter, Alibaba has started reporting results for its four operating segments:

  • Core commerce
  • Cloud computing
  • Digital media and entertainment
  • Innovation initiatives and others

We have explained these segments in detail in our article on ‘How Alibaba Makes Money?’. A brief description for all the segments is provided below.

  • Core commerce. The core commerce segment is comprised of marketplaces operating in retail and wholesale commerce in China and international commerce.
    • China commerce retail primarily includes Taobao Marketplace, Tmall (including Tmall Global), Juhuasuan, Rural Taobao and merchant services. China commerce wholesale includes 1688.com.
    • International commerce retail includes AliExpress and Lazada. International commerce wholesale includes Alibaba.com.
  • Cloud computing. The cloud computing segment is comprised of Alibaba Cloud, which offers a complete suite of cloud services, including elastic computing, database, storage and content delivery network, large scale computing, security management and other service offerings.
  • Digital media and entertainment. The digital media and entertainment segment operates businesses through Alibaba media properties, including UCWeb, Youku Tudou, OTT TV service, Alibaba Music and Alibaba Sports.
  • Innovation initiatives and others. The innovation initiatives and others segment includes businesses such as the YunOS operating system, AutoNavi, DingTalk enterprise messaging and others.

Alibaba group continues to generate majority of the revenues from the China commerce segment. During the June 2016 quarter, the share of China commerce segment in the total revenues was 85%. It grew by 47% yoy. The cloud computing segment continues to grow in triple digits and it grew by 156% yoy in the June 2016 quarter. Digital media and entertainment was the fastest growing segment in the June 2016 quarter and it grew by 286% yoy in the June 2016 quarter. The strong growth in digital media and  entertainment was due to strong monetization of UCWeb users and and acquisition of YouKu.

Alibaba RNP Revenue Matrix June 2016

Alibaba annual active buyers and mobile monthly active users continue to grow

Alibaba’s China retail marketplaces had 434 million annual active buyers in the twelve months ended June 30, 2016. The number of annual active buyers have more the tripled during the last four years. Mobile monthly active users (MAUs) grew to 427 million in the month ended June 30, 2016. The number of mobile MAUs have more than double during the last two years.

Alibaba Buyers and Users June 2016 Quarter

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