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Alibaba beats Wall Street predictions with 61% growth in Q4

Alibaba beats Wall Street predictions with 61% growth in Q4

Alibaba beats analyst forecasts with 61% growth in fiscal fourth quarter earnings and predicts more growth for next year.

Alibaba is a major provider of cloud computing services and the largest e-commerce firm in China.

Alibaba reported revenue of 61.9 billion RMB ($9.9 billion) which topped Wall Street’s prediction of 59.6 billion ($9.2 billion). The Chinese e-commerce giant has increased its revenue by 61 percent as compared to last year’s quarter.

For its full scale fiscal year 2018, Alibaba earned 24.51 RMB per share with total revenue of 250.3 billion RMB and 58 percent annual growth.

The company forecasts even better results for the next fiscal year.

Maggie Wu, Alibaba’s CFO expects “overall revenue growth about above 60 percent, reflecting our confidence in our core business as well as positive momentum in new businesses.”

According to the company, its annual active users on Chinese retail marketplace rose by 37 million to reach 552 million. Monthly users also increased by 37 million to climb up to 617 million.

Alibaba’s core commerce business aided 214 billion RMB ($34 billion) to the revenue whereas, the cloud computing business showed a 100 percent growth to record its first $2 billion revenue quarter.

In addition to Alibaba’s business, a number of deals and investments also impacted the quarter earnings. For instance, Alibaba acquired the food delivery service Ele.me, which results in $5 billion of revenue. The firm also invested $2 billion in Lazada and is planning to take one-third stake in its finetech affiliate, Ant Financial.

It seems like these deals are the reasons behind Alibaba’s confidence regarding fiscal year 2019.

“Alibaba Group had an excellent quarter and fiscal year, driven by robust growth in our core commerce business and investments we have made over the past several years and longer-term growth initiatives,” said Alibaba CEO, Daniel Zhang.

Also Read: Glo raises $3 million from Alibaba, IMAX VR partnership

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