Alibaba Group Holding Limited (NYSE:BABA) today announced its financial
results for the quarter ended December 31, 2014.
“We delivered a strong quarter with significant growth across our key
operating metrics,” said Jonathan Lu, chief executive officer of Alibaba
Group. “Gross merchandise volume across our China retail marketplaces
grew 49% year on year, and our annual active buyers increased to 334
million in 2014, an increase of 45% year on year. Our unrivaled
leadership and momentum in mobile continued — we added 48 million active
users sequentially and delivered over US$1 billion in mobile revenue
during the quarter. Our business continues to perform well, and our
results reflect the strength of our ecosystem and the strong foundation
we have for sustainable growth.”
“Alibaba performed very well this quarter, with revenue growing 40% year
on year,” said Maggie Wu, chief financial officer of Alibaba Group. “We
continue to execute our focused growth strategy, and the fundamental
strength of our business gives us the confidence to invest in new
initiatives to add new users, improve engagement and customer
experience, expand our products and services and drive long-term
shareholder value.”
December Quarter Operational and Financial
Highlights*
Operational highlights:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
% Change
|
|
|
|
|
2013
|
|
2014
|
|
2014
|
|
YoY
|
|
QoQ
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly GMV (1) (in RMB billions)
|
|
529
|
|
|
556
|
|
|
787
|
|
|
49
|
%
|
|
42
|
%
|
|
Quarterly Mobile GMV (1) (in RMB
billions)
|
|
104
|
|
|
199
|
|
|
327
|
|
|
213
|
%
|
|
64
|
%
|
|
Mobile GMV as a percentage of total GMV(1)
|
|
20
|
%
|
|
36
|
%
|
|
42
|
%
|
|
|
|
|
|
Annual Active Buyers(2) (in millions)
|
|
231
|
|
|
307
|
|
|
334
|
|
|
45
|
%
|
|
9
|
%
|
|
Mobile Monthly Active Users (MAUs)(3)
(in millions)
|
|
136
|
|
|
217
|
|
|
265
|
|
|
95
|
%
|
|
22
|
%
|
______________
|
*
|
|
For definitions of terms used but not defined in this press release,
please refer to the prospectus of our initial public offering.
|
|
|
|
|
|
(1)
|
|
For the three months ended on the respective dates.
|
|
(2)
|
|
For the twelve months ended on the respective dates.
|
|
(3)
|
|
For the month ended on the respective dates.
|
|
|
|
|
Financial highlights:
|
|
|
Three months ended December 31,
|
|
|
|
|
|
|
2013
|
|
2014
|
|
|
|
|
|
|
RMB
|
|
RMB
|
|
US$*
|
|
YoY % Change
|
|
|
|
(in millions, except percentages and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
18,745
|
|
|
26,179
|
|
|
4,219
|
|
|
40
|
%
|
|
Mobile Revenue
|
|
1,171
|
|
|
6,420
|
|
|
1,035
|
|
|
448
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Operations
|
|
8,801
|
|
|
9,347
|
|
|
1,506
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA**
|
|
11,246
|
|
|
15,103
|
|
|
2,434
|
|
|
34
|
%
|
|
Non-GAAP EBITDA Margin**
|
|
60
|
%
|
|
58
|
%
|
|
58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
8,357
|
|
|
5,983
|
|
|
964
|
|
|
(28
|
%)***
|
|
Non-GAAP Net Income**
|
|
10,463
|
|
|
13,115
|
|
|
2,114
|
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share/ADS (EPS)
|
|
3.55
|
|
|
2.29
|
|
|
0.37
|
|
|
(35
|
%)***
|
|
Non-GAAP Diluted EPS**
|
|
4.45
|
|
|
5.05
|
|
|
0.81
|
|
|
13
|
%
|
_______________
|
*
|
|
This release contains translation of certain Renminbi (“RMB”)
amounts into U.S. dollars (“US$”) for the convenience of the
reader, unless otherwise stated, all translations of RMB into US$
were made at RMB6.2046 to US$1.00, the exchange rate set forth in
the H.10 statistical release of the Federal Reserve Board on
December 31, 2014. The percentages stated in this release are
calculated based on the RMB amounts.
|
|
**
|
|
See the sections entitled “Non-GAAP Financial Measures” and
“Reconciliation of Non-GAAP Measures to the Nearest Comparable
GAAP Measures” for more information about the non-GAAP measures
referred to within this release.
|
|
***
|
|
Decrease primarily due to an increase in share-based compensation
expense, a one-time charge for financing-related fees and an
increase in income tax expenses in the quarter ended December 31,
2014, as discussed in detail below.
|
|
|
|
|
GMV – GMV transacted on our China retail marketplaces in the
quarter ended December 31, 2014 was RMB787 billion (US$127 billion), an
increase of 49% compared to the same quarter of 2013, and compared to
RMB556 billion in the quarter ended September 30, 2014, representing a
net addition of RMB231 billion GMV in three months. GMV transacted on
Taobao Marketplace in the quarter ended December 31, 2014 was RMB494
billion (US$80 billion), an increase of 43% compared to the same quarter
of 2013. GMV transacted on Tmall in the quarter ended December 31, 2014
was RMB293 billion (US$47 billion), an increase of 60% compared to the
same quarter of 2013. The GMV growth was primarily driven by an increase
in the number of active buyers and also partially attributable to
category expansion, for example, auction transactions. On November 11,
2014, our Singles Day promotion generated GMV settled through Alipay of
RMB57 billion (US$9.2 billion) on our China and international retail
marketplaces within a 24-hour period, an increase of 58% compared to the
Singles Day in 2013.
Mobile GMV – Mobile GMV in the quarter ended December 31, 2014
was RMB327 billion (US$53 billion), an increase of 213% compared to the
same quarter of 2013. Mobile GMV accounted for 42% of total GMV
transacted on our China retail marketplaces in this quarter, compared to
36% in the quarter ended September 30, 2014 and 20% in the same quarter
of 2013. The growth was primarily driven by an increase in the monthly
active users accessing our platforms through mobile devices and an
increase in the level of their spending.
Annual active buyers – Our China retail marketplaces had
334 million annual active buyers in the twelve months ended December 31,
2014, compared to 307 million in the twelve months ended September 30,
2014 and 231 million in the twelve months ended December 31, 2013,
representing an increase of 45% compared to the same period in 2013. The
growth in annual active buyers was driven by an increase in active
buyers throughout China, with substantially faster growth from lower
tier cities.
Mobile MAUs – Mobile MAUs grew to 265 million in the month
ended December 31, 2014, compared to 217 million in the month ended
September 30, 2014, representing a record high net addition of 48
million MAUs in three months, and a 95% increase from 136 million in the
month ended December 31, 2013. According to iResearch, our Mobile Taobao
App continues to be the No. 1 e-commerce app in China, demonstrating our
ability to attract mobile users with strong purchasing intent on a large
scale.
Revenue – Revenue increased by 40% to RMB26,179 million
(US$4,219 million) in the quarter ended December 31, 2014, compared to
RMB18,745 million in the same quarter of 2013. Revenue from the China
commerce retail business increased by 32% to RMB21,275 million (US$3,429
million), compared to RMB16,149 million in the same quarter of 2013,
mainly driven by the growth in commission revenue and online marketing
services revenue. Mobile revenue from the China commerce retail business
increased by 448% to RMB6,420 million (US$1,035 million) in the quarter
ended December 31, 2014, compared to RMB1,171 million in the same
quarter of 2013, primarily due to a greater proportion of GMV generated
on mobile devices and an increase in the mobile monetization rate.
Income from operations – Income from operations in the quarter
ended December 31, 2014 was RMB9,347 million (US$1,506 million), an
increase of 6% compared to RMB8,801 million in the same quarter of 2013.
Operating income growth was lower than revenue growth primarily due to
an increase in share-based compensation expense (as discussed in
“Share-based compensation expense” below).
Non-GAAP EBITDA – Non-GAAP EBITDA increased by 34% to
RMB15,103 million (US$2,434 million) in the quarter ended December 31,
2014, compared to RMB11,246 million in the same quarter of 2013.
Non-GAAP EBITDA margin was 58% in the quarter ended December 31, 2014,
compared to 60% in the December quarter of 2013. The year-on-year
decrease in non-GAAP EBITDA margin was primarily due to the
consolidation of newly acquired businesses, mainly UCWeb Inc., or UCWeb,
and AutoNavi Holding Limited, or AutoNavi, and investments in new
business initiatives, such as our mobile operating system, local
services and digital entertainment. The quarter-on-quarter increase in
non-GAAP EBITDA margin from 51% in the quarter ended September 30, 2014
was primarily due to operating leverage in this seasonally strong
quarter.
Net income – Our net income in the quarter ended December 31,
2014 was RMB5,983 million (US$964 million), a decrease of 28% compared
to RMB8,357 million in the same quarter of 2013. The decrease was
primarily due to (i) an increase in share-based compensation expense
(including the effect of “mark-to-market” accounting of share-based
awards in an amount of RMB1,494 million (US$241 million)) (as discussed
in “Share-based compensation expense” below), (ii) an RMB830 million
(US$134 million) one-time charge for financing-related fees as a result
of the early repayment of our US$8 billion bank borrowings (as discussed
in “Interest expense” below), and (iii) an increase in income tax
expenses, primarily due to the expiration of an enterprise income tax
(“EIT”) exemption period for one of our major subsidiaries (as discussed
in “Income tax expenses” below).
Non-GAAP net income – Non-GAAP net income increased by 25%
to RMB13,115 million (US$2,114 million) in the quarter ended December
31, 2014, compared to RMB10,463 million in the same quarter of 2013.
Diluted EPS and non-GAAP diluted EPS – Diluted EPS in the quarter
ended December 31, 2014 was RMB2.29 (US$0.37) on 2,588 million diluted
shares outstanding, a decrease of 35% compared to RMB3.55 on 2,343
million diluted shares outstanding in the same quarter of 2013. Non-GAAP
diluted EPS in the quarter ended December 31, 2014 was RMB5.05 (US$0.81)
on 2,588 million diluted shares outstanding, an increase of 13% compared
to RMB4.45 on 2,343 million diluted shares outstanding in the same
quarter of 2013. The lower non-GAAP diluted EPS growth rate relative to
non-GAAP net income growth rate was due to an increase in number of
diluted shares outstanding in the quarter ended December 31, 2014
following the completion of our initial public offering in September
2014.
December Quarter Financial Results
Revenue – Revenue for the quarter ended December 31, 2014 was
RMB26,179 million (US$4,219 million), an increase of 40% compared to
RMB18,745 million in the same quarter of 2013. The increase was mainly
driven by the continuing rapid growth of our China commerce retail
business. The following table sets forth a breakdown of our revenue for
the periods indicated.
|
|
|
Three months ended December 31,
|
|
|
|
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
|
RMB
|
|
Revenue
|
|
RMB
|
|
US$
|
|
Revenue
|
|
YoY Change
|
|
|
|
(in millions, except percentages)
|
|
China commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
16,149
|
|
86%
|
|
21,275
|
|
3,429
|
|
82%
|
|
32%
|
|
Wholesale
|
|
612
|
|
3%
|
|
860
|
|
139
|
|
3%
|
|
41%
|
|
Total China commerce
|
|
16,761
|
|
89%
|
|
22,135
|
|
3,568
|
|
85%
|
|
32%
|
|
International commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
264
|
|
2%
|
|
554
|
|
89
|
|
2%
|
|
110%
|
|
Wholesale
|
|
1,000
|
|
5%
|
|
1,209
|
|
195
|
|
5%
|
|
21%
|
|
Total international commerce
|
|
1,264
|
|
7%
|
|
1,763
|
|
284
|
|
7%
|
|
39%
|
|
Cloud computing and Internet infrastructure
|
|
196
|
|
1%
|
|
362
|
|
58
|
|
1%
|
|
85%
|
|
Others
|
|
524
|
|
3%
|
|
1,919
|
|
309
|
|
7%
|
|
266%
|
|
Total
|
|
18,745
|
|
100%
|
|
26,179
|
|
4,219
|
|
100%
|
|
40%
|
-
China commerce retail business – Revenue from our China
commerce retail business in the quarter ended December 31, 2014 was
RMB21,275 million (US$3,429 million), or 82% of total revenue, an
increase of 32% compared to RMB16,149 million in the same quarter of
2013. The increase was mainly driven by the growth in commission
revenue and online marketing services revenue. Commission revenue
accounted for 37% of China commerce retail revenue in the quarter
ended December 31, 2014, compared to 30% in the same quarter of 2013.
Revenue growth during this period occurred in the context of and
reflected an increase of 49% in GMV transacted on our China retail
marketplaces, which was primarily driven by a 45% increase in the
number of active buyers.
The lower revenue growth relative
to GMV growth was mainly a result of (i) the higher percentage of
total GMV contributed by mobile GMV, which has a lower monetization
rate compared to the non-mobile monetization rate, and (ii) lower
pay-for-performance ("P4P") monetization on the personal computer
(“PC”) interface compared to the same quarter of 2013. The lower P4P
monetization on PC was primarily caused by our continued efforts to
improve user experience, which adversely affected cost per click. Our
strong momentum in mobile and commitment to improving user experience
may slow the growth rate of our online marketing services revenue in
the near term, but we believe they will create significant value for
both our users and our business in the longer term.
Mobile
revenue from the China commerce retail business in the quarter ended
December 31, 2014 was RMB6,420 million (US$1,035 million), an increase
of 448% compared to RMB1,171 million in the same quarter of 2013,
representing 30% of our China commerce retail business revenue,
compared to 29% in the quarter ended September 30, 2014 and 7% in the
same quarter of 2013. The increase in mobile revenue from the China
commerce retail business was primarily due to a greater proportion of
GMV generated on mobile devices and an increase in the mobile
monetization rate.
-
China commerce wholesale business – Revenue from our China
commerce wholesale business in the quarter ended December 31, 2014 was
RMB860 million (US$139 million), an increase of 41% compared to RMB612
million in the same quarter of 2013. The increase was due to an
increase in average revenue from paying members and an increase in
paying members.
-
International commerce retail business – Revenue from our
international commerce retail business in the quarter ended December
31, 2014 was RMB554 million (US$89 million), an increase of 110%
compared to RMB264 million in the same quarter of 2013. The increase
was primarily due to an increase in GMV transacted on AliExpress,
partially attributable to AliExpress’ participation in our Singles Day
promotion campaign on November 11, 2014 for the first time.
-
International commerce wholesale business – Revenue from our
international commerce wholesale business in the quarter ended
December 31, 2014 was RMB1,209 million (US$195 million), an increase
of 21% compared to RMB1,000 million in the same quarter of 2013. The
main reason for this increase was an increase in the number of paying
members and an increase in average revenue from paying members.
-
Others – Other revenue in the quarter ended December 31, 2014
was RMB1,919 million (US$309 million), an increase of 266% compared to
RMB524 million in the same quarter of 2013. This increase was
primarily due to the consolidation of revenue from acquired business
(mainly UCWeb and AutoNavi) and an increase in interest income
generated by our SME loan business. When the restructuring of our
relationship with Ant Financial closes, which we expect in the March
2015 quarter, we will no longer consolidate revenue generated by the
SME loan business in our financial results.
Cost of revenue – Cost of revenue in the quarter ended December
31, 2014 was RMB7,520 million (US$1,212 million), or 29% of revenue,
compared to RMB4,171 million, or 22% of revenue, in the same quarter of
2013. The increase was primarily due to an increase in share-based
compensation expense (as discussed in “Share-based compensation expense”
below), an increase in costs associated with our new businesses
initiatives, and an increase in payment processing fees resulting from
an increase in GMV transacted on our retail marketplaces.
Product development expenses – Product development expenses in
the quarter ended December 31, 2014 were RMB3,083 million (US$497
million), or 12% of revenue, compared to RMB1,707 million, or 9% of
revenue in the same quarter of 2013. The increase was primarily due to
an increase in share-based compensation expense (as discussed in
“Share-based compensation expense” below). The increase was partially
offset by the decrease in royalty fees paid to Yahoo which terminated
upon completion of our initial public offering in September 2014.
Sales and marketing expenses – Sales and marketing expenses in
the quarter ended December 31, 2014 were RMB3,021 million (US$487
million), or 12% of revenue, compared to RMB1,897 million, or 10% of
revenue in the same quarter of 2013. The increase was primarily due to
an increase in share-based compensation expense (as discussed in
“Share-based compensation expense” below). The increase was also due to
the consolidation of marketing expenses of acquired business (mainly
UCWeb and AutoNavi), an increase in advertising and promotional spending
mainly to strengthen marketing of our Taobao and Tmall brands,
especially in lower tier cities, as well as to promote our new
businesses initiatives (e.g., local services) during this quarter.
General and administrative expenses – General and administrative
expenses in the quarter ended December 31, 2014 were RMB2,419 million
(US$390 million), or 9% of revenue, compared to RMB2,046 million, or 11%
of revenue in the same quarter of 2013. The decrease in general and
administrative expenses as a percentage of revenue was primarily due to
a one-time equity-settled donation expense of RMB1,269 million made in
the quarter ended December 31, 2013 relating to the grant of options to
purchase 50,000,000 of our ordinary shares to a non-profit organization,
which was partially offset by an increase in share-based compensation
expense in the quarter ended December 31, 2014 (as discussed in
“Share-based compensation expense” below).
Share-based compensation expense – Share-based compensation
expense included in respective cost or expense items above in the
quarter ended December 31, 2014 was RMB4,313 million (US$695 million),
or 16% of revenue, an increase of 554% compared to RMB659 million, or 4%
of revenue, in the same quarter of 2013. The increase was primarily
caused by (1) performance-based and retention grants of share-based
awards granted prior to our initial public offering in 2014, with
vesting periods of four years for our employees and six years for senior
management, (2) the “mark-to-market” accounting of (i) share-based
awards we granted to the employees of Zhejiang Ant Small and Micro
Financial Services Company Ltd., or Ant Financial, and (ii) Ant
Financial’s share-based awards granted by a major shareholding entity of
Ant Financial controlled by Jack Ma, our executive chairman, to our
employees. The expense arising from such Ant Financial share-based
awards granted to our employees represents a non-cash accounting charge
to us that will not result in any equity dilution to our shareholders.
Without the effect of such “mark-to-market” accounting, our share-based
compensation expense would have been RMB2,819 million (US$454 million)
in the quarter ended December 31, 2014, compared to RMB2,233 million in
the quarter ended September 30, 2014. Pursuant to generally accepted
accounting principles in the United States, we are required to perform
such re-measurement at each period end. Accordingly, we expect that our
share-based compensation expense will continue to be affected by changes
in the fair value of our share-based awards as well as the fair value of
Ant Financial's share-based awards granted to our employees.
Amortization of intangible assets – Amortization of intangible
assets in the quarter ended December 31, 2014 was RMB614 million (US$99
million), a significant increase from RMB123 million in the same quarter
of 2013. This increase was due to an increase in intangibles assets
primarily as a result of our strategic acquisitions, mainly UCWeb and
AutoNavi.
Income from operations – Income from operations in the quarter
ended December 31, 2014 was RMB9,347 million (US$1,506 million), an
increase of 6% compared to RMB8,801 million in the same quarter of 2013.
The lower growth of operating income relative to revenue growth in this
quarter and the decrease in operating margin to 36% in the quarter ended
December 31, 2014 from 47% in the same quarter of 2013 were primarily
due to an increase in share-based compensation expense (as discussed in
“Share-based compensation expense” above).
Non-GAAP EBITDA – Non-GAAP EBITDA increased by 34% to RMB15,103
million (US$2,434 million) in the quarter ended December 31, 2014,
compared to RMB11,246 million in the same quarter of 2013. Non-GAAP
EBITDA margin was 58% in the quarter ended December 31, 2014, compared
to 60% in the December quarter of 2013. The year-on-year decrease in
non-GAAP EBITDA margin was primarily due to the consolidation of newly
acquired businesses, mainly UCWeb and AutoNavi, and investments in new
business initiatives, such as our mobile operating system, local
services and digital entertainment. The quarter-on-quarter increase in
non-GAAP EBITDA margin from 51% in the quarter ended September 30, 2014
was primarily due to operating leverage in this seasonally strong
quarter. A reconciliation of operating income to non-GAAP EBITDA is
included at the end of this release.
Interest and investment income, net – Interest and investment
income, net in the quarter ended December 31, 2014 was RMB313 million
(US$51 million), an increase of 6% compared to RMB296 million in the
same quarter of 2013. The increase was primarily due to an increase in
interest income as a result of higher cash balance during the period,
which in turn was primarily due to the proceeds from our initial public
offering in September 2014 and an increase in operating cash flow. This
increase was partially offset by an increase in impairment charge of
cost-method investments and losses recognized with respect to the
periodic revaluation of convertible bonds we held in connection with our
strategic investments in publicly traded entities.
Interest expense – Interest expense in the quarter ended December
31, 2014 was RMB1,344 million (US$216 million), an increase of 247%
compared to RMB387 million in the same quarter of 2013. The increase was
primarily due to an RMB830 million (US$134 million) one-time charge for
financing-related fees as a result of the early repayment of our US$8
billion bank borrowings with proceeds from our issuance of US$8 billion
senior unsecured notes in this quarter.
Other income, net – Other income, net in the quarter ended
December 31, 2014 was RMB901 million (US$145 million), an increase of
64% compared to RMB548 million in the same quarter of 2013. The increase
was primarily due to an increase of RMB101 million (US$16 million) in
royalty fees and software technology service fees received from Ant
Financial to RMB344 million (US$55 million) in the quarter ended
December 31, 2014 from RMB243 million in the same quarter of 2013 as a
result of an increase in pre-tax income of Ant Financial, as well as an
increase in government grants received from central and local
governments in connection with our contribution to technology
development and investments in local business districts.
Income tax expenses – Income tax expenses in the quarter ended
December 31, 2014 were RMB2,429 million (US$392 million), an increase of
228% compared to RMB741 million in the same quarter of 2013. The
increase was primarily due to the increase in taxable income from our
operations in China. Our effective tax rate increased to 26% in the
quarter ended December 31, 2014 from 8% in the same quarter of 2013.
Excluding share-based compensation expense, impairment of goodwill,
intangible assets and investments, and unrealized gain/loss on
investments which are not deductible or assessable for income tax
purposes, our effective tax rate would have been 17% in the quarter
ended December 31, 2014, compared to 7% in the same quarter of 2013. The
increase was primarily due to the expiration of an EIT exemption period
for one of our major subsidiaries, upon which the subsidiary became
subject to an EIT rate of 12.5% (or 50% of the statutory EIT rate) in
calendar year 2014.
Net income and non-GAAP net income – As a result of the
foregoing, our net income in the quarter ended December 31, 2014 was
RMB5,983 million (US$964 million), a decrease of 28% compared to
RMB8,357 million in the same quarter of 2013. Excluding the effects of
share-based compensation expense, impairment of goodwill and investment
in equity investees, the one-time charge for financing-related fees,
amortization of intangible assets and certain other items, non-GAAP net
income in the quarter ended December 31, 2014 was RMB13,115 million
(US$2,114 million), an increase of 25% compared to RMB10,463 million in
the same quarter of 2013. A reconciliation of net income to non-GAAP net
income is included at the end of this release.
Net income attributable to ordinary shareholders – Net income
attributable to ordinary shareholders in the quarter ended December 31,
2014 was RMB5,936 million (US$957million), a decrease of 28% compared to
RMB8,266 million in the same quarter of 2013.
Diluted EPS and non-GAAP diluted EPS – Diluted EPS in the quarter
ended December 31, 2014 was RMB2.29 (US$0.37) on 2,588 million diluted
shares outstanding, a decrease of 35% compared to RMB3.55 on 2,343
million diluted shares outstanding in the same quarter of 2013.
Excluding the effects of share-based compensation expense, impairment of
goodwill and investment in equity investees, the one-time charge for
financing-related fees, amortization of intangible assets and certain
other items, non-GAAP diluted EPS in the quarter ended December 31, 2014
was RMB5.05 (US$0.81), an increase of 13% compared to RMB4.45 in the
same quarter of 2013. The lower non-GAAP diluted EPS relative to
non-GAAP net income growth rate was due to an increase in the number of
diluted shares outstanding in the quarter ended December 31, 2014
following the completion of our initial public offering. A
reconciliation of diluted EPS to the non-GAAP diluted EPS is included at
the end of this release.
Cash – As of December 31, 2014, cash, cash equivalents and
short-term investments were RMB130,741 million (US$21,071 million),
compared to RMB43,632 million as of March 31, 2014.
Cash flow from operating activities and free cash flow – Net cash
provided by operating activities in the quarter ended December 31, 2014
was RMB19,408 million (US$3,128 million), an increase of 30% compared to
RMB14,922 million in the same quarter of 2013. Capital expenditures in
the quarter ended December 31, 2014 were RMB1,513 million (US$244
million), compared to RMB1,601 million in the same quarter of 2013.
Capital expenditures in the quarter ended December 31, 2014 included
cash outflow for acquisition of land use rights and construction in
progress of RMB291 million (US$47 million). Free cash flow, a non-GAAP
measurement of liquidity, in the quarter ended December 31, 2014 was
RMB22,924 million (US$3,695 million), an increase of 34% compared to
RMB17,163 million in the same quarter of 2013. A reconciliation of net
cash provided by operating activities to free cash flow, a non-GAAP
measure of liquidity, is included at the end of this release.
Net cash used in investing activities – During the quarter ended
December 31, 2014, net cash used in investing activities of RMB4,817
million (US$776 million) mainly included disbursements for short-term
investments of RMB1,944 million (US$313 million), capital expenditure of
RMB1,513 million (US$244 million) as well as investment and acquisition
activities of RMB2,657 million (US$428 million) primarily in mobile and
logistics related businesses.
Employee number – As of December 31, 2014, we had a total of
34,081 employees, compared to 33,239 as of September 30, 2014 and 20,884
as of December 31, 2013.
Webcast and Conference Call Information
A live webcast of the earnings conference call, which will be held
shortly following the release of this announcement, can be accessed at http://www.alibabagroup.com/en/ir/earnings.
An archived webcast will be available through the same link following
the call. A replay of the conference call will be available for one week
(dial-in number: +1 646-254-3697; conference ID: 65377381).
Please visit Alibaba Group’s Investor Relations website at http://www.alibabagroup.com/en/ir/home
on January 29, 2015 to view the earnings release and accompanying slides
prior to the conference call.
About Alibaba Group
Alibaba Group’s mission is to make it easy to do business anywhere. The
company is the largest online and mobile commerce company in the world
in terms of gross merchandise volume. Founded in 1999, the company
provides the fundamental technology infrastructure and marketing reach
to help businesses leverage the power of the Internet to establish an
online presence and conduct commerce with hundreds of millions of
consumers and other businesses.
Alibaba Group’s major businesses include:
-
Taobao Marketplace (www.taobao.com),
China’s largest online shopping destination
-
Tmall.com (www.tmall.com),
China’s largest third-party platform for brands and retailers
-
Juhuasuan (www.juhuasuan.com),
China’s most popular online group buying marketplace
-
Alitrip (www.alitrip.com),
a leading online travel booking platform
-
AliExpress (www.aliexpress.com),
a global online marketplace for consumers to buy directly from China
-
Alibaba.com (www.alibaba.com),
China’s largest global online wholesale platform for small businesses
-
1688.com (www.1688.com),
a leading online wholesale marketplace in China
-
Alibaba Cloud Computing (www.aliyun.com),
a provider of cloud computing services to businesses and entrepreneurs
Alibaba Group also provides payment and/or escrow services on its
marketplaces through its contractual arrangements with Ant Financial
Services Group, a related company of Alibaba Group that operates Alipay (www.alipay.com).
Through China Smart Logistics (or Zhejiang Cainiao Supply Chain
Management Co., Ltd.), a 48%-owned affiliate, Alibaba Group operates a
central logistics information system that connects a network of express
delivery companies in China.
Safe Harbor Statements
This announcement contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,”
“potential,” “continue,” “ongoing,” “targets” and similar statements.
Among other things, statements that are not historical facts, including
statements about Alibaba’s beliefs and expectations, the business
outlook and quotations from management in this announcement, as well as
Alibaba’s strategic and operational plans, are or contain
forward-looking statements. Alibaba may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”), in press releases and
other written materials and in oral statements made by its officers,
directors or employees to third parties. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the following:
Alibaba’s goals and strategies; Alibaba’s future business development;
Alibaba’s ability to maintain the trusted status of its ecosystem,
reputation and brand; Alibaba’s ability to retain or increase engagement
of buyers, sellers and other participants in its ecosystem and enable
new offerings; Alibaba’s ability to successfully monetize traffic on its
mobile platform; risks associated with limitation or restriction of
services provided by Alipay; risks associated with increased investments
in Alibaba’s business; risks associated with acquisitions; privacy and
regulatory concerns; competition; security breaches; the continued
growth of the e-commerce market in China and globally; and fluctuations
in general economic and business conditions in China and globally and
assumptions underlying or related to any of the foregoing. Further
information regarding these and other risks is included in Alibaba’s
filings with the SEC. All information provided in this press release and
in the attachments is as of the date of this press release and are based
on assumptions that we believe to be reasonable as of this date, and
Alibaba does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared
and presented in accordance with GAAP, Alibaba Group uses the following
non-GAAP financial measures: non-GAAP EBITDA (including non-GAAP EBITDA
margin), non-GAAP net income, non-GAAP diluted EPS and free cash flow.
For more information on these non-GAAP financial measures, please refer
to the table captioned “Reconciliations of Non-GAAP Measures to the
Nearest Comparable GAAP Measures” in this press release.
Alibaba Group believes that non-GAAP EBITDA, non-GAAP net income and
non-GAAP diluted EPS help identify underlying trends in its business
that could otherwise be distorted by the effect of the expenses that
Alibaba Group includes in income from operations, net income and diluted
EPS. Alibaba Group believes that non-GAAP EBITDA, non-GAAP net income
and non-GAAP diluted EPS provide useful information about its operating
results, enhance the overall understanding of its past performance and
future prospects and allow for greater visibility with respect to key
metrics used by our management in its financial and operational
decision-making. Alibaba Group considers free cash flow to be a
liquidity measure that provides useful information to management and
investors about the amount of cash generated by its business that can be
used for strategic corporate transactions, including investing in its
new business initiatives, making strategic investments and acquisitions
and strengthening its balance sheet. Non-GAAP EBITDA, non-GAAP net
income, non-GAAP diluted EPS and free cash flow should not be considered
in isolation or construed as an alternative to net income, diluted EPS,
cash flows or any other measure of performance or as an indicator of
Alibaba Group’s operating performance. These non-GAAP financial measures
presented here may not be comparable to similarly titled measures
presented by other companies. Other companies may calculate similarly
titled measures differently, limiting their usefulness as comparative
measures to our data.
Non-GAAP EBITDA represents income from operations (which excludes
interest and investment income, net, interest expense, other income,
net, income tax expenses and share of results of equity investees)
before certain non-cash expenses, consisting of share-based compensation
expense, amortization, depreciation and impairment of goodwill and
intangible assets, and an equity-settled donation expense that Alibaba
Group does not believe are reflective of its core operating performance
during the periods presented.
Non-GAAP net income represents net income before share-based
compensation expense, amortization, impairment of goodwill, intangible
assets and investments, gain (loss) on deemed
disposals/disposals/revaluation of investments, amortization of excess
value receivable arising from the restructuring of commercial
arrangements with Ant Financial, and one-time expense items consisting
of the expenses relating to the sale of shares by existing shareholders
in our initial public offering, equity-settled donation expense and
charge for financing-related fees as a result of early repayment of bank
borrowings.
Non-GAAP diluted EPS represents non-GAAP net income attributable
to ordinary shareholders divided by the weighted average number of
shares outstanding during the periods on a diluted basis, including
accounting for the effects of the assumed conversion of convertible
preference shares.
Free cash flow represents net cash provided by operating
activities as presented in Alibaba Group’s consolidated cash flow
statement less purchases of property and equipment and intangible assets
(excluding acquisition of land use rights and construction in progress)
and adjusted for changes in loan receivables relating to micro loans of
its SME loan business. Alibaba Group presents the adjustment for changes
in loan receivables because such receivables are reflected under cash
flow from operating activities, whereas the secured borrowings and other
bank borrowings used to finance them are reflected under cash flows from
financing activities, and accordingly, the adjustment is made to show
cash flows from operating activities net of the effect of changes in
loan receivables.
The tables captioned “Reconciliations of Non-GAAP Measures to the
Nearest Comparable GAAP Measures” in this press release has more details
on the non-GAAP financial measures that are most directly comparable to
GAAP financial measures and the related reconciliations between these
financial measures.
|
|
|
ALIBABA GROUP HOLDING LIMITED
|
|
UNAUDITED INTERIM CONSOLIDATED INCOME STATEMENTS
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions, except per share data)
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
18,745
|
|
26,179
|
|
4,219
|
|
40,473
|
|
58,779
|
|
9,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
(4,171)
|
|
(7,520)
|
|
(1,212)
|
|
(9,899)
|
|
(17,701)
|
|
(2,853)
|
|
Product development expenses
|
|
(1,707)
|
|
(3,083)
|
|
(497)
|
|
(3,893)
|
|
(7,616)
|
|
(1,227)
|
|
Sales and marketing expenses
|
|
(1,897)
|
|
(3,021)
|
|
(487)
|
|
(3,267)
|
|
(5,982)
|
|
(964)
|
|
General and administrative expenses
|
|
(2,046)
|
|
(2,419)
|
|
(390)
|
|
(3,704)
|
|
(5,323)
|
|
(858)
|
|
Amortization of intangible assets
|
|
(123)
|
|
(614)
|
|
(99)
|
|
(197)
|
|
(1,446)
|
|
(233)
|
|
Impairment of goodwill and intangible assets
|
|
—
|
|
(175)
|
|
(28)
|
|
(44)
|
|
(175)
|
|
(28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
8,801
|
|
9,347
|
|
1,506
|
|
19,469
|
|
20,536
|
|
3,310
|
|
Interest and investment income, net
|
|
296
|
|
313
|
|
51
|
|
1,080
|
|
7,609
|
|
1,226
|
|
Interest expense
|
|
(387)
|
|
(1,344)
|
|
(216)
|
|
(1,842)
|
|
(2,275)
|
|
(367)
|
|
Other income, net
|
|
548
|
|
901
|
|
145
|
|
1,178
|
|
1,990
|
|
321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax and share of results of equity investees
|
|
9,258
|
|
9,217
|
|
1,486
|
|
19,885
|
|
27,860
|
|
4,490
|
|
Income tax expenses
|
|
(741)
|
|
(2,429)
|
|
(392)
|
|
(1,969)
|
|
(5,213)
|
|
(840)
|
|
Share of results of equity investees
|
|
(160)
|
|
(805)
|
|
(130)
|
|
(174)
|
|
(1,196)
|
|
(193)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
8,357
|
|
5,983
|
|
964
|
|
17,742
|
|
21,451
|
|
3,457
|
|
Net income attributable to noncontrolling interests
|
|
(31)
|
|
(47)
|
|
(7)
|
|
(29)
|
|
(83)
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Alibaba Group Holding Limited
|
|
8,326
|
|
5,936
|
|
957
|
|
17,713
|
|
21,368
|
|
3,444
|
|
Accretion of Convertible Preference Shares
|
|
(8)
|
|
—
|
|
—
|
|
(24)
|
|
(15)
|
|
(2)
|
|
Dividends accrued on Convertible Preference Shares
|
|
(52)
|
|
—
|
|
—
|
|
(156)
|
|
(97)
|
|
(16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ordinary shareholders
|
|
8,266
|
|
5,936
|
|
957
|
|
17,533
|
|
21,256
|
|
3,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to ordinary shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3.79
|
|
2.42
|
|
0.39
|
|
8.08
|
|
9.26
|
|
1.49
|
|
Diluted
|
|
3.55
|
|
2.29
|
|
0.37
|
|
7.63
|
|
8.66
|
|
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share used in calculating net income
per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
2,180
|
|
2,450
|
|
|
|
2,170
|
|
2,295
|
|
|
|
Diluted
|
|
2,343
|
|
2,588
|
|
|
|
2,320
|
|
2,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense by function:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
226
|
|
1,413
|
|
228
|
|
624
|
|
3,161
|
|
509
|
|
Product development expenses
|
|
248
|
|
1,266
|
|
204
|
|
588
|
|
2,211
|
|
356
|
|
Sales and marketing expenses
|
|
55
|
|
402
|
|
65
|
|
146
|
|
637
|
|
103
|
|
General and administrative expenses
|
|
130
|
|
1,232
|
|
198
|
|
561
|
|
2,387
|
|
385
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
659
|
|
4,313
|
|
695
|
|
1,919
|
|
8,396
|
|
1,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
|
|
REVENUE
|
|
|
|
The following table sets forth the principal components of our
revenue for the periods indicated:
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions)
|
|
(in millions)
|
|
China commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail (i)
|
|
16,149
|
|
21,275
|
|
3,429
|
|
33,461
|
|
46,683
|
|
7,524
|
|
Wholesale (ii)
|
|
612
|
|
860
|
|
139
|
|
1,706
|
|
2,359
|
|
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total China commerce
|
|
16,761
|
|
22,135
|
|
3,568
|
|
35,167
|
|
49,042
|
|
7,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail (iii)
|
|
264
|
|
554
|
|
89
|
|
653
|
|
1,331
|
|
215
|
|
Wholesale (iv)
|
|
1,000
|
|
1,209
|
|
195
|
|
2,904
|
|
3,518
|
|
567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total international commerce
|
|
1,264
|
|
1,763
|
|
284
|
|
3,557
|
|
4,849
|
|
782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cloud computing and Internet infrastructure (v)
|
|
196
|
|
362
|
|
58
|
|
560
|
|
883
|
|
142
|
|
Others (vi)
|
|
524
|
|
1,919
|
|
309
|
|
1,189
|
|
4,005
|
|
645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
18,745
|
|
26,179
|
|
4,219
|
|
40,473
|
|
58,779
|
|
9,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________
|
|
(i)
|
|
Revenue from China commerce retail is primarily generated from our
China retail marketplaces.
|
|
(ii)
|
|
Revenue from China commerce wholesale is primarily generated from
1688.com.
|
|
(iii)
|
|
Revenue from International commerce retail is primarily generated
from AliExpress.
|
|
(iv)
|
|
Revenue from International commerce wholesale is primarily
generated from Alibaba.com.
|
|
(v)
|
|
Revenue from cloud computing and Internet infrastructure is
primarily generated from the provision of services, such as data
storage, elastic computing, database and large scale computing
services, as well as web hosting and domain name registration.
|
|
(vi)
|
|
Other revenue mainly represents interest income generated from
micro loans and revenue generated by UCWeb and AutoNavi.
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
|
|
UNAUDITED INTERIM CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
March 31,
|
|
As of December 31,
|
|
|
|
2014
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions)
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
33,045
|
|
107,050
|
|
17,253
|
|
Short-term investments
|
|
10,587
|
|
23,691
|
|
3,818
|
|
Restricted cash and escrow receivables
|
|
4,921
|
|
2,220
|
|
358
|
|
Loan receivables
|
|
13,159
|
|
23,679
|
|
3,817
|
|
Investment securities
|
|
1,442
|
|
2,570
|
|
414
|
|
Prepayments, receivables and other assets
|
|
4,679
|
|
10,986
|
|
1,771
|
|
Total current assets
|
|
67,833
|
|
170,196
|
|
27,431
|
|
|
|
|
|
|
|
|
|
Investment in equity investees
|
|
17,666
|
|
25,864
|
|
4,169
|
|
Investment securities
|
|
3,023
|
|
11,285
|
|
1,819
|
|
Prepayments, receivables and other assets
|
|
2,087
|
|
3,177
|
|
512
|
|
Property and equipment, net
|
|
5,581
|
|
9,028
|
|
1,455
|
|
Land use rights
|
|
1,660
|
|
2,963
|
|
477
|
|
Intangible assets
|
|
1,906
|
|
6,803
|
|
1,096
|
|
Goodwill
|
|
11,793
|
|
40,677
|
|
6,556
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
111,549
|
|
269,993
|
|
43,515
|
|
|
|
|
|
|
|
|
|
Liabilities, Mezzanine Equity and Shareholders’ Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Current bank borrowings
|
|
1,100
|
|
4,835
|
|
779
|
|
Secured borrowings
|
|
9,264
|
|
14,303
|
|
2,305
|
|
Income tax payable
|
|
1,267
|
|
2,281
|
|
368
|
|
Escrow money payable
|
|
2,659
|
|
—
|
|
—
|
|
Accrued expenses, accounts payable and other liabilities
|
|
11,887
|
|
21,240
|
|
3,423
|
|
Merchant deposits
|
|
4,711
|
|
12,712
|
|
2,049
|
|
Deferred revenue and customer advances
|
|
6,496
|
|
7,729
|
|
1,246
|
|
Total current liabilities
|
|
37,384
|
|
63,100
|
|
10,170
|
|
|
|
|
|
|
|
|
|
Deferred revenue
|
|
428
|
|
555
|
|
89
|
|
Deferred tax liabilities
|
|
2,136
|
|
4,337
|
|
699
|
|
Non-current bank borrowings
|
|
30,711
|
|
1,285
|
|
207
|
|
Unsecured senior notes
|
|
—
|
|
48,803
|
|
7,866
|
|
Other liabilities
|
|
72
|
|
2,101
|
|
339
|
|
Total liabilities
|
|
70,731
|
|
120,181
|
|
19,370
|
|
|
|
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
|
|
UNAUDITED INTERIM CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
March 31,
|
|
As of December 31,
|
|
|
|
2014
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Mezzanine equity:
|
|
|
|
|
|
|
|
Convertible Preference Shares
|
|
10,284
|
|
—
|
|
—
|
|
Others
|
|
117
|
|
358
|
|
57
|
|
|
|
|
|
|
|
|
|
Total mezzanine equity
|
|
10,401
|
|
358
|
|
57
|
|
|
|
|
|
|
|
|
|
Alibaba Group Holding Limited shareholders’ equity:
|
|
|
|
|
|
|
|
Ordinary shares, US$0.000025 par value; 2,797,400,000 and
4,000,000,000 shares authorized; 2,226,810,660 and 2,487,314,208
shares issued and outstanding as of March 31, 2014 and December 31,
2014, respectively
|
|
1
|
|
1
|
|
—
|
|
Additional paid-in capital
|
|
27,043
|
|
112,436
|
|
18,121
|
|
Treasury shares at cost
|
|
—
|
|
—
|
|
—
|
|
Restructuring reserve
|
|
—
|
|
(1,217)
|
|
(196)
|
|
Subscription receivables
|
|
(540)
|
|
(351)
|
|
(55)
|
|
Statutory reserves
|
|
2,474
|
|
2,522
|
|
406
|
|
Accumulated other comprehensive income
|
|
(823)
|
|
1,569
|
|
253
|
|
Retained earnings
|
|
1,183
|
|
22,141
|
|
3,568
|
|
|
|
|
|
|
|
|
|
Total Alibaba Group Holding Limited shareholders’ equity
|
|
29,338
|
|
137,101
|
|
22,097
|
|
Noncontrolling interests
|
|
1,079
|
|
12,353
|
|
1,991
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
30,417
|
|
149,454
|
|
24,088
|
|
|
|
|
|
|
|
|
|
Total liabilities, mezzanine equity and equity
|
|
111,549
|
|
269,993
|
|
43,515
|
|
|
|
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
|
|
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
14,922
|
|
19,408
|
|
3,128
|
|
24,579
|
|
35,450
|
|
5,714
|
|
Net cash used in investing activities
|
|
(5,540)
|
|
(4,817)
|
|
(776)
|
|
(22,192)
|
|
(47,782)
|
|
(7,701)
|
|
Net cash provided by financing activities
|
|
4,227
|
|
4,508
|
|
727
|
|
9,046
|
|
86,462
|
|
13,935
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
(14)
|
|
(138)
|
|
(23)
|
|
(115)
|
|
(125)
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
13,595
|
|
18,961
|
|
3,056
|
|
11,318
|
|
74,005
|
|
11,927
|
|
Cash and cash equivalents at beginning of period
|
|
28,119
|
|
88,089
|
|
14,197
|
|
30,396
|
|
33,045
|
|
5,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
41,714
|
|
107,050
|
|
17,253
|
|
41,714
|
|
107,050
|
|
17,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
|
|
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES
|
|
|
|
The table below sets forth a reconciliation of our income from
operations to non-GAAP EBITDA for the periods indicated:
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions)
|
|
(in millions)
|
|
Income from operations
|
|
8,801
|
|
9,347
|
|
1,506
|
|
19,469
|
|
20,536
|
|
3,310
|
|
Add: Share-based compensation expense
|
|
659
|
|
4,313
|
|
695
|
|
1,919
|
|
8,396
|
|
1,353
|
|
Add: Amortization of intangible assets
|
|
123
|
|
614
|
|
99
|
|
197
|
|
1,446
|
|
233
|
|
Add: Depreciation and amortization of property and equipment and
land use rights
|
|
394
|
|
654
|
|
106
|
|
947
|
|
1,617
|
|
261
|
|
Add: Impairment of goodwill and intangible assets
|
|
—
|
|
175
|
|
28
|
|
44
|
|
175
|
|
28
|
|
Add: Equity-settled donation expense
|
|
1,269
|
|
—
|
|
—
|
|
1,269
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA
|
|
11,246
|
|
15,103
|
|
2,434
|
|
23,845
|
|
32,170
|
|
5,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below sets forth a reconciliation of our net income to
non-GAAP net income for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
8,357
|
|
5,983
|
|
964
|
|
17,742
|
|
21,451
|
|
3,457
|
|
Add: Share-based compensation expense
|
|
659
|
|
4,313
|
|
695
|
|
1,919
|
|
8,396
|
|
1,353
|
|
Add: Amortization of intangible assets
|
|
123
|
|
614
|
|
99
|
|
197
|
|
1,446
|
|
233
|
|
Add: Impairment of goodwill, intangible assets and investments
|
|
55
|
|
1,032
|
|
166
|
|
124
|
|
1,032
|
|
166
|
|
Add: (Gain) loss on deemed disposals/disposals/ revaluation of
investments
|
|
—
|
|
241
|
|
39
|
|
(312)
|
|
(6,247)
|
|
(1,006)
|
|
Add: Amortization of excess value receivable arising from the
restructuring of commercial arrangements with Ant Financial
|
|
—
|
|
66
|
|
11
|
|
—
|
|
101
|
|
16
|
|
Add: Expenses relating to the sale of shares by existing
shareholders in initial public offering
|
|
—
|
|
36
|
|
6
|
|
—
|
|
231
|
|
37
|
|
Add: Equity-settled donation expense
|
|
1,269
|
|
—
|
|
—
|
|
1,269
|
|
—
|
|
—
|
|
Add: One-time charge for financing-related fees as a result of early
repayment of bank borrowings
|
|
—
|
|
830
|
|
134
|
|
664
|
|
830
|
|
134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
10,463
|
|
13,115
|
|
2,114
|
|
21,603
|
|
27,240
|
|
4,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
|
|
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE
GAAP MEASURES (CONTINUED)
|
|
|
|
The table below sets forth a reconciliation of our diluted EPS to
non-GAAP diluted EPS for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions, except per share data)
|
|
(in millions, except per share data)
|
|
Net income attributable to ordinary shareholders
|
|
8,266
|
|
5,936
|
|
957
|
|
17,533
|
|
21,256
|
|
3,426
|
|
Add: Reversal of accretion upon assumed conversion of Convertible
Preference Shares
|
|
8
|
|
—
|
|
—
|
|
24
|
|
15
|
|
2
|
|
Add: Dividend eliminated upon assumed conversion of Convertible
Preference Shares
|
|
52
|
|
—
|
|
—
|
|
156
|
|
97
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ordinary shareholders for computing
diluted EPS
|
|
8,326
|
|
5,936
|
|
957
|
|
17,713
|
|
21,368
|
|
3,444
|
|
Add: Non-GAAP adjustments to net income(a)
|
|
2,106
|
|
7,132
|
|
1,150
|
|
3,861
|
|
5,789
|
|
933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income attributable to ordinary shareholders
for computing non-GAAP diluted EPS
|
|
10,432
|
|
13,068
|
|
2,107
|
|
21,574
|
|
27,157
|
|
4,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares on a diluted basis
|
|
2,343
|
|
2,588
|
|
|
|
2,320
|
|
2,467
|
|
|
|
Diluted EPS(b)
|
|
3.55
|
|
2.29
|
|
0.37
|
|
7.63
|
|
8.66
|
|
1.40
|
|
Add: Non-GAAP adjustments to net income per share(c)
|
|
0.90
|
|
2.76
|
|
0.44
|
|
1.67
|
|
2.35
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS(d)
|
|
4.45
|
|
5.05
|
|
0.81
|
|
9.30
|
|
11.01
|
|
1.77
|
|
_______________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See the table above about the reconciliation of net income to
non-GAAP net income for more information of these non-GAAP
adjustments.
|
|
(b) Diluted EPS is derived from net income attributable to ordinary
shareholders for computing diluted EPS divided by weighted average
number of shares on a diluted basis.
|
|
(c) Non-GAAP adjustments to net income per share is derived from
non-GAAP adjustments to net income divided by weighted average
number of shares on a diluted basis.
|
|
(d) Non-GAAP diluted EPS is derived from non-GAAP net income
attributable to ordinary shareholders for computing non-GAAP diluted
EPS divided by weighted average number of shares on a diluted basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below sets forth a reconciliation of net cash provided by
operating activities to free cash flow for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
Nine months ended December 31,
|
|
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
(in millions)
|
|
(in millions)
|
|
Net cash provided by operating activities
|
|
14,922
|
|
19,408
|
|
3,128
|
|
24,579
|
|
35,450
|
|
5,714
|
|
Less: Purchase of property and equipment and intangible assets
(excluding land use rights and construction in progress)
|
|
(1,187)
|
|
(1,222)
|
|
(197)
|
|
(3,010)
|
|
(4,070)
|
|
(656)
|
|
Add: Changes in loan receivables, net
|
|
3,428
|
|
4,738
|
|
764
|
|
8,367
|
|
11,076
|
|
1,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
17,163
|
|
22,924
|
|
3,695
|
|
29,936
|
|
42,456
|
|
6,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
|
|
SELECTED OPERATING DATA
|
|
|
|
GMV
|
|
|
|
The table below sets forth the GMV transacted on our China retail
marketplaces and mobile GMV as a percentage of GMV for the periods
indicated:
|
|
|
|
|
|
Three months ended
|
|
|
|
Mar 31,
|
|
Jun 30,
|
|
Sep 30,
|
|
Dec 31,
|
|
Mar 31,
|
|
Jun 30,
|
|
Sep 30,
|
|
Dec 31,
|
|
|
|
2013
|
|
2013
|
|
2013
|
|
2013
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
(in billions of RMB except percentages)
|
|
GMV
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taobao Marketplace GMV
|
|
223
|
|
|
257
|
|
|
275
|
|
|
346
|
|
|
295
|
|
|
342
|
|
|
380
|
|
|
494
|
|
|
Tmall GMV
|
|
71
|
|
|
88
|
|
|
99
|
|
|
183
|
|
|
135
|
|
|
159
|
|
|
176
|
|
|
293
|
|
|
Total GMV
|
|
294
|
|
|
345
|
|
|
374
|
|
|
529
|
|
|
430
|
|
|
501
|
|
|
556
|
|
|
787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile GMV (as a percentage of total GMV)
|
|
11
|
%
|
|
12
|
%
|
|
15
|
%
|
|
20
|
%
|
|
27
|
%
|
|
33
|
%
|
|
36
|
%
|
|
42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual active buyers
|
|
|
|
The table below sets forth the number of active buyers on our China
retail marketplaces for the periods indicated:
|
|
|
|
|
|
|
|
Twelve months ended
|
|
|
|
Mar 31,
|
|
Jun 30,
|
|
Sep 30,
|
|
Dec 31,
|
|
Mar 31,
|
|
Jun 30,
|
|
Sep 30,
|
|
Dec 31,
|
|
|
|
2013
|
|
2013
|
|
2013
|
|
2013
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
(in millions)
|
|
Annual active buyers
|
|
172
|
|
185
|
|
202
|
|
231
|
|
255
|
|
279
|
|
307
|
|
334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile
|
|
|
|
The table below sets forth information with respect to mobile GMV,
mobile revenue and mobile rates of monetization realized in respect
of our China retail marketplaces for the periods presented:
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
Mar 31,
|
|
Jun 30,
|
|
Sep 30,
|
|
Dec 31,
|
|
Mar 31,
|
|
Jun 30,
|
|
Sep 30,
|
|
Dec 31,
|
|
|
|
2013
|
|
2013
|
|
2013
|
|
2013
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
|
|
(in millions of RMB, except percentages)
|
|
China retail marketplaces:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GMV
|
|
294,184
|
|
|
345,134
|
|
|
373,659
|
|
|
528,709
|
|
|
430,085
|
|
|
500,916
|
|
|
555,666
|
|
|
787,047
|
|
|
Mobile GMV
|
|
31,507
|
|
|
41,299
|
|
|
54,823
|
|
|
104,391
|
|
|
118,001
|
|
|
164,428
|
|
|
199,054
|
|
|
326,889
|
|
|
as a percentage of GMV
|
|
11
|
%
|
|
12
|
%
|
|
15
|
%
|
|
20
|
%
|
|
27
|
%
|
|
33
|
%
|
|
36
|
%
|
|
42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
6,754
|
|
|
8,667
|
|
|
8,645
|
|
|
16,149
|
|
|
9,371
|
|
|
12,639
|
|
|
12,769
|
|
|
21,275
|
|
|
Mobile revenue
|
|
147
|
|
|
240
|
|
|
332
|
|
|
1,171
|
|
|
1,162
|
|
|
2,454
|
|
|
3,719
|
|
|
6,420
|
|
|
as a percentage of revenue
|
|
2
|
%
|
|
3
|
%
|
|
4
|
%
|
|
7
|
%
|
|
12
|
%
|
|
19
|
%
|
|
29
|
%
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Monetization rate
|
|
2.30
|
%
|
|
2.51
|
%
|
|
2.31
|
%
|
|
3.05
|
%
|
|
2.18
|
%
|
|
2.52
|
%
|
|
2.30
|
%
|
|
2.70
|
%
|
|
Mobile monetization rate
|
|
0.47
|
%
|
|
0.58
|
%
|
|
0.61
|
%
|
|
1.12
|
%
|
|
0.98
|
%
|
|
1.49
|
%
|
|
1.87
|
%
|
|
1.96
|
%
|
Copyright Business Wire 2015