First-quarter revenue rose 9% to $39.6bn (as expected). This was driven by e-commerce growth of 4% and high double-digit growth in AI Cloud and Compute Services.
Adjusted cash profit (EBITA) fell by 30% to $4.0bn, largely due to technology investments across the business.
Free cash outflows more than doubled to $6.6bn, driven by a sharp increase in capital expenditure on AI infrastructure to meet growing demand. The net cash position stands at $4.6bn.
$162mn of share buybacks were completed in the period.
The shares fell 3.4% 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.
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