Amazon is not the only online retailer having a formidable cloud business: Alibaba’s cloud revenue more than doubled, to $5.1 billion. The rest of the business is equally on a roll. Bloomberg:
“I don’t know if anyone’s doing better than Alibaba,” said Gil Luria, an analyst at Wedbush Securities Inc., commenting on Chinese internet companies. “They were able to drive growth by expanding beyond e-commerce in mobile browsing, media, cloud and continued to increase their number of ads and the money they charge for it.”
Revenue rose 55 percent to 34.3 billion yuan ($5.1 billion) in the quarter, surpassing the 33.9 billion-yuan expected by analysts. Alibaba’s quarterly sales have now beaten estimates for five straight quarters and have missed only twice since its record IPO in 2014.
Here is the presentation for the current quarterly results. (PDF)
Alibaba also created a new digital media company, called Alibaba Digital Media and Entertainment Group, consolidating the company’s media assets. The new media group got $1.48 billion to fund new projects. (As a comparison, Netflix is spending around $6 billion per year on exclusive content now and Amazon is estimated to spend around $3 billion per year on music and video content.)
Revenues at the company’s core commerce business jumped 41 percent from the previous year to 28.49 billion yuan, dominated by sales within China.
The company’s media and digital entertainment business, which was united under a new entity on Monday, saw revenues rise 302 percent from the same period a year earlier, due mostly to the consolidation of Youku Tudou.
In September, Ant Financial, Alibaba’s payments arm, acquired U.S. based biometric authentication startup EyeVerify, which has U.S. banks as customers, for reportedly $100 million.