Special topic: Alibaba: revenue of the fourth quarter is 2218Beamngdrivecrash74 million yuan, an increase of 7% over the same period last year.
Sina Technology News on the evening of May 14, Beijing time, Alibaba (NYSE: BABA;HKEX: 9988) announced today that as of March 31st,BeamngdrivecrashFinancial results for the fourth quarter and full year of fiscal year 2024 In the fourth quarter, revenue was 221.874 billion yuan, up 7% from a year earlier. Net profit was 919 million yuan, down 96% from the same period last year, mainly due to the net loss caused by mark-to-market changes in equity investment in listed companies, compared with net income in the same period last year. Without US general accounting standards, net profit was 24.418 billion yuan, down 11% from a year earlier.
For the whole of fiscal year 2024, revenue was 941.168 billion yuan, an increase of 8% over the same period last year. Net profit was 71.332 billion yuan, an increase of 9% over the same period last year; without general accounting standards, net profit was 157.479 billion yuan, an increase of 11% over the same period last year. (note: Alibaba's fiscal year is out of sync with the natural year, from April 1, 2023 to March 31, 2024 is fiscal year 2024).
A summary of the results of the six divisions in the fourth quarter:
[Taotian Group, including Taobao, Tmall, Xianyu, 1688.com and other businesses]
Taotian's fourth-quarter revenue was 93.216 billion yuan ($12.91 billion), up 4% from a year earlier, and revenue for the entire fiscal year 2024 was 434.893 billion yuan ($60.232 billion), up 5% from a year earlier.
[cloud Intelligence Group, including Aliyun, Nail and other businesses]
Cloud Intelligent Group (CIG) had revenue of 25.595 billion yuan ($3.545 billion) in the fourth quarter, up 3% from a year earlier, and revenue for the entire fiscal year 2024 was 106.374 billion yuan ($14.733 billion), up 3% from a year earlier.
[international digital business group, including Lazada, Express, Trendyol, Alibaba.com and other businesses]
Revenue of the International Digital Commerce Group in the fourth quarter was 27.448 billion yuan ($3.802 billion), up 45% from a year earlier, while revenue for the entire fiscal year 2024 was 102.598 billion yuan ($14.21 billion), up 46% from a year earlier.
[rookie Group]
CSNLL's fourth-quarter revenue was 24.557 billion yuan ($3.401 billion), up 30% from a year earlier, and revenue for the entire fiscal year 2024 was 99.02 billion yuan ($13.714 billion), up 28% from a year earlier.
[local Life Group, which mainly includes ele.me and Gaode "to the destination" business.)
Local Life Group (LSG) had revenue of 14.628 billion yuan ($2.026 billion) in the fourth quarter, up 19% from a year earlier, and revenue for the entire fiscal year 2024 was 59.802 billion yuan ($8.282 billion), up 19% from a year earlier.
[big Entertainment Group, including Youku, Barley and Ali Pictures]
DMEG's fourth-quarter revenue was 4.945 billion yuan ($685 million), down 1% from a year earlier, while revenue for the entire fiscal year 2024 was 21.145 billion yuan ($2.929 billion), up 15% from a year earlier.
Stock repurchase
In the fiscal fourth quarter ended March 31, 2024, Alibaba repurchased 524 million common shares (equivalent to 65 million American depositary shares) in the United States and Hong Kong, China for a total of $4.8 billion under the current share buyback program.
In the 2024 fiscal year ended March 31, 2024, Alibaba bought back 1.249 billion common shares (equivalent to 156 million American depositary shares) for a total of $12.5 billion.
Pay dividends
Alibaba's board of directors has approved the payment of two-part dividends to holders of ordinary shares and American depositary shares registered at the close of trading in Hong Kong time and New York time on June 13, 2024:
(I) regular cash dividends for fiscal year 2024 of $0.125 per common share or $1.00 per American depositary share, respectively
(ii) one-time special cash dividends are distributed as proceeds from the disposal of certain financial investments of $0.0825 per common share or $0.66 per American depositary share, both of which are paid in United States dollars.
The total dividend is about $4 billion. The payment date for common stock holders is expected to be on or around July 3, 2024, while that for American depositary stock holders is expected to be on or around July 12, 2024.
Progress of voluntary conversion to dual major listing on the Hong Kong Stock Exchange
Alibaba has been preparing for a major listing in Hong Kong and is now expected to complete the conversion by the end of August 2024. Alibaba will make a separate announcement on the conversion date of the main listing in due course.
Fourth quarter results:
Revenue was 221.874 billion yuan ($30.729 billion), up 7% from 208.2 billion yuan in the same period in fiscal year 2023.
Ant Group contributed 2.57 billion yuan ($356 million) to Alibaba's investment income in the fourth quarter, compared with 3.18 billion yuan in the same period in 2023.
The cost of revenue was 148.098 billion yuan ($20.511 billion), accounting for 67% of revenue. In the same period in fiscal year 2023, the revenue cost was 138.823 billion yuan, accounting for 67% of revenue.
Product development costs 14.085 billion yuan ($1.951 billion), accounting for 6 per cent of revenue. In the same period in fiscal year 2023, the cost of product development was 13.88 billion yuan, accounting for 7% of revenue.
Sales and marketing expenses were 28.826 billion yuan ($3.992 billion), accounting for 13% of revenue. In the same period of fiscal year 2023, sales and marketing expenses were 24.931 billion yuan, accounting for 12% of revenue.
General and administrative expenses are 14.019 billion yuan ($1.942 billion), accounting for 6 per cent of revenue. General and administrative expenses for the same period in fiscal year 2023 were 12.832 billion yuan, accounting for 6% of revenue.
The equity incentive fee was 7.123 billion yuan ($987 million), compared with 7.546 billion yuan in the same period in fiscal year 2023.
Amortization and impairment charges for intangible assets were 2.081 billion yuan ($288 million), down 17 percent from 2.494 billion yuan in fiscal year 2023.
Operating profit was 14.765 billion yuan ($2.045 billion), down 3% from a year earlier, accounting for 7% of revenue, compared with 15.24 billion yuan, or 7% of revenue, in fiscal year 2023.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was 30.807 billion yuan ($4.267 billion), down 4% from 32.123 billion yuan in the same period in fiscal year 2023.
The adjusted EBITA was 23.969 billion yuan ($3.32 billion), down 5% from 25.28 billion yuan in the same period in fiscal year 2023.
Net income on interest and investment was a loss of 5.702 billion yuan ($790 million), compared with a net income of 10.496 billion yuan for the same period in fiscal year 2023.
Other net income was 2.963 billion yuan ($410 million), compared with 1.308 billion yuan in the same period in fiscal year 2023.
Income tax expenses were 5.722 billion yuan ($793 million), compared with 3.758 billion yuan in the same period in fiscal year 2023.
In the fourth quarter, the investment profit and loss calculated by the equity method was 3.208 billion yuan ($444 million), compared with a profit of 446 million yuan in the same period of fiscal 2023. Of this total, Ant Group contributed 2.57 billion yuan ($356 million) in revenue, compared with 3.18 billion yuan in the same period in fiscal year 2023.
Net profit was 919 million yuan ($127 million), down 96% from 21.996 billion yuan in the same period in fiscal year 2023. This is mainly due to the net loss of Alibaba's investment in listed companies in the current quarter, compared with net income due to mark-to-market changes in the same period last year.
Without Non-GAAP, net profit was 24.418 billion yuan ($3.382 billion), down 11% from 27.375 billion yuan in the same period in fiscal 2023.
Net profit attributable to common shareholders was 3.27 billion yuan ($453 million), compared with 23.516 billion yuan in the same period in fiscal 2023. This is mainly due to the net loss of Alibaba's investment in listed companies in the current quarter, compared with net income due to mark-to-market changes in the same period last year.
Diluted earnings per American depositary share (ADS) were 1.30 yuan ($0.18), compared with 9.00 yuan per American depositary share in the same period in fiscal 2023. Without Non-GAAP, diluted earnings per American depositary share were 10.14 yuan ($1.40), down 5 per cent from a year earlier.
Diluted income per common share is 16 yuan (US $0.02 or HK $0.18), compared with 1.12 yuan in the same period in fiscal year 2023. Without Non-GAAP, diluted earnings per common share were 1.27 yuan ($0.18 or HK $1.40) per common share, down 5 per cent from a year earlier.
As of March 31, 2024, the total amount of cash, cash equivalents, short-term investments and other investments held by Alibaba Group was 617.23 billion yuan (US $85.485 billion), compared with 560.314 billion yuan as of March 31, 2023.
In the fourth quarter, Alibaba's net cash flow from operating activities was 23.34 billion yuan ($3.233 billion), down 26% from a year earlier. Without Non-GAAP, free cash flow was 15.361 billion yuan ($2.127 billion), down 52 per cent from a year earlier.
The net cash flow generated by investment activities is 20.267 billion yuan (US $2.807 billion), and the net cash flow used by financing activities is 54.012 billion yuan (US $7.481 billion).
As of March 31, 2024, Alibaba had 204891 employees, compared with 219260 as of December 31, 2023.
Annual results for fiscal year 2024:
Revenue was 941.168 billion yuan ($130.35 billion), up 8% from a year earlier.
The cost of revenue was 586.323 billion yuan ($81.205 billion), accounting for 62% of revenue. In fiscal year 2023, the revenue cost was 549.695 billion yuan, accounting for 63% of revenue.
Product development costs 52.256 billion yuan ($7.237 billion), accounting for 6 per cent of revenue. In fiscal year 2023, the cost of product development was 56.744 billion yuan, accounting for 7% of revenue.
Sales and marketing expenses were 155.141 billion yuan ($15.947 billion), accounting for 12% of revenue. In fiscal year 2023, sales and marketing expenses were 103.496 billion yuan, accounting for 12% of revenue.
General and administrative expenses are 41.985 billion yuan ($5.815 billion), accounting for 5% of revenue. In fiscal year 2023, general and administrative expenses were 41.283 billion yuan, accounting for 5% of revenue.
The equity incentive fee is 18.546 billion yuan ($2.569 billion), compared with 30.831 billion yuan in fiscal year 2023.
The cost of amortization and impairment of intangible assets was 21.592 billion yuan ($2.99 billion), an increase of 60 per cent over the same period last year.
In fiscal year 2024, Alibaba's goodwill was impaired by 10.521 billion yuan (US $1.457 billion), an increase of 288% over the same period last year.
Operating profit was 113.35 billion yuan ($15.699 billion), up 13% from a year earlier, accounting for 12% of revenue, while operating profit in fiscal 2023 was 100.351 billion yuan, accounting for 12% of revenue.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was 191.668 billion yuan ($26.545 billion), up 9% from 175.71 billion yuan in fiscal year 2023.
The adjusted EBITA was 165.028 billion yuan ($22.856 billion), up 12 percent from 147.911 billion yuan in fiscal year 2023.
Net income on interest and investment was a loss of 9.964 billion yuan ($1.38 billion), compared with a loss of 11.071 billion yuan in fiscal 2023.
Other net income was 6.157 billion yuan ($853 million), compared with 5.823 billion yuan in fiscal year 2023.
Income tax expenses were 22.529 billion yuan ($3.12 billion), compared with 15.549 billion yuan in fiscal year 2023.
In fiscal year 2024, the investment profit and loss calculated by the equity method was 7.735 billion yuan ($1.072 billion), compared with a loss of 8.063 billion yuan in fiscal year 2023. Of this total, Ant Group contributed 7.86 billion yuan ($1.088 billion) in revenue, compared with 10.294 billion yuan in fiscal year 2023.
Net profit was 71.332 billion yuan ($9.879 billion), up 9% from 5.759 billion yuan in fiscal year 2023.
Without Non-GAAP, net profit was 157.479 billion yuan ($21.811 billion), up 11% from 141.379 billion yuan in fiscal year 2023.
Net profit attributable to common shareholders was 79.741 billion yuan ($11.044 billion), up 10% from 72.509 billion yuan in fiscal 2023.
Diluted earnings per American depositary share (ADS) were 31.24 yuan ($4.33), compared with 27.46 yuan per American depositary share in fiscal 2023. Without Non-GAAP, diluted earnings per American depositary share were 62.23 yuan ($8.62), up 14% from a year earlier.
Diluted income per common share is 3.91 yuan (US $0.54 or HK $4.31), compared with 3.43 yuan in fiscal year 2023. Without Non-GAAP, diluted earnings per common share were 7.78 yuan (US $1.08 or HK $8.58) per common share, up 14% from a year earlier.
In fiscal year 2024, Alibaba's net cash flow from operating activities was 182.593 billion yuan ($25.289 billion), down 9% from a year earlier. Without Non-GAAP, free cash flow was 156.21 billion yuan ($21.635 billion), down 9 per cent from a year earlier.
The net cash flow generated by investment activities is 21.824 billion yuan (US $3.023 billion), and the net cash flow used by financing activities is 108.244 billion yuan (US $14.992 billion).