Alibaba Cloud sees 62% growth in revenues to $5.6m driven by public and hybrid cloud
Alibaba Group Holding Limited has announced its financial results for the quarter and fiscal year ended March 31, 2020.
Revenue from Alibaba’s cloud computing business in the quarter ended March 31, 2020, was $1.725 million (RMB12.217 million), an increase of 58% compared to the same quarter of 2019.
The company said that the increase was primarily driven by increased revenue contributions from both our public cloud and hybrid cloud businesses.
According to the company, Alibaba Cloud has maintained its position in Asia Pacific’s cloud computing market by developing technology and business solutions that enable the digital transformation of businesses across industries in the public and private sectors.
According to Gartner, Alibaba Cloud is the largest cloud computing service provider in the Asia Pacific region, as measured by market share for IaaS (Infrastructure as a Service) and IUS (Infrastructure Utility Service).
Cloud computing revenue grew 62% year-over-year in the fiscal year 2020 to $5.651 million (RMB40.016 million), primarily driven by increased revenue contribution from both our public cloud and hybrid cloud businesses.
“Alibaba achieved the historic milestone of $1 trillion in GMV across our digital economy this fiscal year,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group.
“Our overall business continued to experience strong growth, with a total annual active consumer base of 960 million globally, despite concluding the fiscal year with a quarter impacted by the economic effects of the COVID-19 pandemic.
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“The pandemic has fundamentally altered consumer behaviour and enterprise operations, making digital adoption and transformation a necessity.
“We are well positioned and prepared to help large and small businesses across a wide spectrum of industries achieve the digital transformation they need to survive this difficult period and eventually prevail in the new normal.
“By focusing on the long term and investing in value creation for our consumers and business customers, we believe we will emerge from this crisis stronger and be ready to capture more growth in the future.”
In the Cloud Computing segment, the company reported that adjusted EBITA in the quarter ended March 31, 2020 was a loss of $25 million (RMB179 million), compared to a loss of RMB164 million in the same quarter of 2019.
“Despite a challenging quarter due to reduced economic activities in light of the COVID-19 pandemic in China, we achieved our annual revenue guidance of over RMB500 billion. Revenue growth of 35% yearover-year was driven by solid performance of our domestic retail businesses as well as robust cloud computing revenue growth,” said Maggie Wu, Chief Financial Officer of Alibaba Group.
“Our adjusted EBITDA grew 29% year-over-year, reflecting our discipline in allocating resources to key strategic growth areas while optimizing costs and improving efficiency.
“Although the pandemic negatively impacted most of our domestic core commerce businesses starting in late January, we have seen a steady recovery since March. Based on our current view of Chinese domestic consumption and enterprise digitisation, we expect to generate over RMB650 billion in revenue in the fiscal year 2021.”
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