Stock Monitor: Barnes & Noble Education Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 13, 2017 / Active-Investors free earnings report on Alibaba Group Holding Ltd (NYSE: BABA) ("Alibaba") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=BABA. The Company reported its second quarter fiscal 2018 operating results on November 02, 2017. The ecommerce giant outperformed top- and bottom-line expectations, and also raised its revenue guidance for the fiscal year. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for Barnes & Noble Education, Inc. (NYSE: BNED), which also belongs to the Services sector as the Company Alibaba Group. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Alibaba Group Holding most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
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Earnings Highlights and Summary
Alibaba's revenue for the quarter ended September 30, 2017, soared 61% to RMB55.12 billion ($8.29 billion) compared to RMB34.29 billion in Q2 FY17, and was driven by the robust revenue growth in the Company's China Commerce Retail business, International Commerce Retail business, and Alibaba Cloud. Alibaba's revenue numbers topped analysts' estimates of $7.78 billion.
During Q2 FY18, Alibaba's cost of revenue was RMB22.00 billion ($3.31 billion), or 40% of revenue, compared to RMB13.12 billion, or 38% of revenue, in Q2 FY17. The increase was primarily due to the Company's investments in new retail, globalization, and improving user experience. Alibaba's product development expenses were RMB5.08 billion ($764 million), or 9% of revenue, in the reported quarter compared to RMB4.13 billion, or 12% of revenue, in the year ago same period.
For Q2 FY18, Alibaba's income from operations increased 83% to RMB16.58 billion ($2.49 billion), or 30% of revenue, compared to RMB9.05 billion, or 27% of revenue, in Q2 FY17. The Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) surged 58% to RMB25.03 billion ($3.76 billion) in the reported quarter versus RMB15.88 billion in the prior year's comparable quarter.
Alibaba's GAAP net income was RMB17.41 billion ($2.62 billion) in Q2 FY18, reflecting an increase of 146% compared to RMB7.08 billion in Q2 FY17. Excluding share-based compensation expenses, non-cash revaluation gains, and certain other items, the Company's non-GAAP net income advanced 71% to RMB22.09 billion ($3.32 billion) in the reported quarter compared to RMB12.95 billion in the year ago corresponding period.
Alibaba's diluted earnings per share (EPS) soared 128% to RMB6.78 ($1.02) in Q2 FY18 compared to RMB2.97 in Q2 FY17. Excluding share-based compensation expenses, non-cash revaluation gains, and certain other items, the Company's non-GAAP diluted EPS grew 635% to RMB8.57 ($1.29) in the reported quarter compared to RMB5.26 in the prior year's same quarter. The Company's earnings beat Wall Street's expectations of $1.04 per share.
Segment Results
Core Commerce - During Q2 FY18, Alibaba's China Commerce Retail business' revenue surged 64% to RMB39.56 billion ($5.95 billion) compared to RMB24.11 billion in Q2 FY17, due to a robust growth of customer management revenue and commission revenue, as well as the consolidation of Intime starting in mid-May 2017.
The China Commerce Retail segment's revenue per annual active consumer increased to RMB293 ($44) for Q2 FY18 from RMB215 in Q2 FY17, while mobile revenue per mobile monthly active users (MAUs) grew to RMB213 ($32) for the reported quarter from RMB151 in Q2 FY17.
Alibaba's China Retail marketplaces had 488 million annual active consumers in the 12 months ended September 30, 2017, compared to 466 million in the 12 months ended June 30, 2017; representing a net addition of 22 million from the prior quarter, and an 11% increase from 439 million in the 12 months ended September 30, 2016.
Alibaba's mobile MAUs on its China Retail marketplaces grew to 549 million in September 2017 compared to 529 million in June 2017; representing a net addition of 20 million MAUs in the reported quarter, and a 22% increase from 450 million in September 2016.
China Commerce Wholesale Business - During Q2 FY18, Alibaba's revenue from the China Commerce Wholesale business grew 19% to RMB1.71 billion ($258 million) compared to RMB1.44 billion in Q2 FY17, primarily due to an increase in the average revenue from paying members on the Company's 1688.com platform.
International Business - For Q2 FY18, Alibaba's revenue from International Commerce Retail business soared 115% to RMB2.88 billion ($433 million) compared to RMB1.34 billion in Q2 FY17, primarily due to a growth in revenue generated from Lazada and AliExpress, driven by robust gross merchandise volume (GMV) growth on these two marketplaces.
The Company's revenue from its International Commerce Wholesale business increased 10% to RMB1.65 billion ($248 million) in Q2 FY18 compared to RMB1.51 billion in Q2 FY17, primarily due to an increase in online marketing revenue.
Cloud Computing - Alibaba's Cloud Computing business' revenue soared 99% to RMB2.98 billion ($447 million) compared to RMB1.49 billion in Q2 FY17, primarily driven by an increase in the number of paying customers and also by an increase in their usage of the Company's cloud computing services, including more complex offerings.
Cash, Cash Equivalents, and Short-Term Investments
As of September 30, 2017, Alibaba's cash, cash equivalents, and short-term investments increased to RMB159.856 billion ($24.03 billion) compared to RMB148.15 billion as of June 30, 2017, primarily due to free cash flow generated from operations of RMB22.51 billion ($3.38 billion), partly offset by cash used in investing activities.
Alibaba's net cash provided by operating activities was RMB30.51 billion ($4.59 billion) in Q2 FY18, an increase of 77% compared to RMB17.21 billion in Q2 FY17.
Revenue Guidance
For the fiscal year 2018, Alibaba raised its revenue guidance to 49% - 53% from the previous forecasts of 45% - 49%.
Stock Performance Snapshot
December 12, 2017 - At Tuesday's closing bell, Alibaba Group Holding's stock fell 2.59%, ending the trading session at $174.64.
Volume traded for the day: 22.61 million shares, which was above the 3-month average volume of 18.80 million shares.
Stock performance in the previous six-month period – up 27.78%; past twelve-month period – up 88.86%; and year-to-date – up 98.88%
After yesterday's close, Alibaba Group Holding's market cap was at $442.56 billion.
Price to Earnings (P/E) ratio was at 49.15.
The stock is part of the Services sector, categorized under the Specialty Retail, Other industry.
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