Alibaba Group Holding Ltd, the world’s largest e-commerce company, reported record quarterly earnings despite the challenges posed by the global pandemic. The company’s revenue for the quarter ended June 30th, 2020, was up 33% year-on-year to reach a total of RMB 817.2 billion (US$117.3 billion). This comes as the company continues to expand its online presence and capitalize on the growing demand for digital services.
The strong results were driven by the company’s core commerce business, which grew by 34% year-on-year to reach RMB 659.5 billion (US$93.8 billion). This was largely due to the increasing number of consumers using the company’s online marketplaces, as well as the growth of its digital entertainment and cloud computing businesses.
Alibaba’s core commerce business saw strong growth across its various platforms, including Taobao and Tmall. The company’s mobile monthly active users (MAUs) increased to 846 million, up from 776 million in the previous quarter. This was driven by the company’s focus on personalization, which has helped to increase user engagement.
Alibaba’s digital entertainment business also saw strong growth, with revenue increasing by 33% year-on-year to reach RMB 54.3 billion (US$7.7 billion). This was largely driven by the continued success of the company’s streaming platform, Youku. The platform saw a 37% year-on-year increase in paying subscribers, while its total MAUs rose by 16% to reach 628 million.
The company’s cloud computing business also saw strong growth, with revenue increasing by 50% year-on-year to reach RMB 27.6 billion (US$3.9 billion). This was driven by the increasing demand for cloud services, as well as the company’s focus on developing new products and services that cater to the needs of its customers.
Alibaba’s strong results come despite the challenges posed by the global pandemic. The company has responded to the situation by introducing a range of measures to support its customers and employees. This includes providing financial assistance to small and medium-sized businesses, as well as providing educational and training opportunities to help employees develop new skills.
Alibaba’s strong results demonstrate the company’s ability to adapt to the changing environment and capitalize on the growing demand for digital services. The company is well-positioned to continue to benefit from the increasing shift to online commerce, as well as the increasing demand for cloud services. This should help to ensure that the company continues to post strong results in the future.