Alibaba’s fourth quarter revenue of $35.3bn grew by 11% on an underlying basis. Cloud Intelligence revenue was up 38% boosted by triple digit growth in sales of AI-related products.
The Chinese E-commerce business grew revenue by 6% to $17.7bn, with 57% growth in Quick commerce outpacing sluggish performances across the rest of the division.
Underlying cash profit (EBITDA) fell 61% to $2.4bn (35% below consensus) as investments across the business more than offset profitability improvements elsewhere.
Free cash flow has turned negative, with an outflow of $2.5bn. Net cash was $3.9bn.
The annual dividend was flat at $1.05 per share.
The shares were down 2.2% in pre-market trading.
Our view
HL view to follow.
Alibaba key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.