Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced its financial results for the quarter ended September 30, 2024.
“This quarter we continued to invest in the user experience and strengthen product offerings to serve our consumers. We entered into long-term collaborations with industry peers to broaden payment and logistics services on Taobao and Tmall platforms, which we expect will accelerate our overall growth. Growth in our Cloud business accelerated from prior quarters, with revenues from public cloud products growing in double digits and AI-related product revenue delivering triple-digit growth. We are more confident in our core businesses than ever and will continue to invest in supporting long-term growth. Our other businesses continued to improve their operating efficiency, with most of them continuing to increase their profitability or reduce losses,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
“Our revenue growth this quarter was driven by improving monetization of Taobao and Tmall Group, which included GMV-based service fees and merchant adoption of our marketing tool Quanzhantui. Consistent with our strategy, we continue to invest in our core businesses while enhancing operational efficiency. During the quarter we repurchased US$4.1 billion of shares, achieving earnings accretion to our shareholders through a net 2.1% reduction in total shares outstanding since the end of June,” said Toby Xu, Chief Financial Officer of Alibaba Group.
BUSINESS HIGHLIGHTS
In the quarter ended September 30, 2024:
- Revenue was RMB236,503 million (US$33,701 million), an increase of 5% year-over-year.
- Income from operations was RMB35,246 million (US$5,023 million), an increase of 5% year-over-year, primarily due to the decrease in non-cash share-based compensation expense, partly offset by the decrease in adjusted EBITA. We excluded non-cash share-based compensation expense from our non-GAAP measurements. Adjusted EBITA, a non-GAAP measurement, decreased 5% year-over-year to RMB40,561 million (US$5,780 million), was primarily attributable to the increase in investments in our e-commerce businesses, partly offset by revenue growth and improved operating efficiency.
- Net income attributable to ordinary shareholders was RMB43,874 million (US$6,252 million). Net income was RMB43,547 million (US$6,205 million), an increase of 63% year-over-year, primarily attributable to the mark-to-market changes from our equity investments, decrease in impairment of our investments and increase in income from operations. Non-GAAP net income in the quarter ended September 30, 2024 was RMB36,518 million (US$5,204 million), a decrease of 9% compared to RMB40,188 million in the same quarter of 2023.
- Diluted earnings per ADS was RMB18.17 (US$2.59). Diluted earnings per share was RMB2.27 (US$0.32 or HK$2.52). Non-GAAP diluted earnings per ADS was RMB15.06 (US$2.15), a decrease of 4% year-over-year. Non-GAAP diluted earnings per share was RMB1.88 (US$0.27 or HK$2.08), a decrease of 4% year-over-year.
- Net cash provided by operatingactivities was RMB31,438 million (US$4,480 million), a decrease of 36% compared to RMB49,231 million in the same quarter of 2023. Free cash flow, a non-GAAP measurement of liquidity, was RMB13,735 million (US$1,957 million), a decrease of 70% compared to RMB45,220 million in the same quarter of 2023. The decrease in free cash flow was mainly attributed to our investments in Alibaba Cloud infrastructure, refund to Tmall merchants after we cancelled the annual service fee and other working capital changes related to factors including scale down of certain direct sales businesses.
Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.
BUSINESS AND STRATEGIC UPDATES
Taobao and Tmall Group
During the quarter we increased investment in strategic initiatives such as price-competitive products, customer service, membership program benefits and technology, with the aim of enhancing user experience. These efforts led to higher purchase frequency and improved feedback regarding the overall shopping experience year-over-year.
We adopted a more open approach for payment and logistics services on our platforms to make shopping on our platforms more convenient to a larger base of consumers and improve merchants’ operating efficiency. We have already observed much stronger momentum in new purchasers, and we believe our focus on user growth and retention will drive the overall growth of our platforms.
Starting from September 1, we implemented a software service fee based on the GMV of completed transactions on our platform, which puts us in line with the common practice of the e-commerce industry. In the meantime, we cancelled the annual service fee for Tmall merchants and provided software service fee rebates to certain small and medium-sized merchants. In addition, Quanzhantui, our AI-powered platform-wide marketing tool, saw steady increase in merchant adoption. Merchants benefit from the use of Quanzhantui through improvement of their marketing efficiency, and with higher efficiency we expect merchants to increase their marketing spending on our platform.
During the quarter, online GMV growth was supported by double-digit order growth year-over-year, mainly driven by the increase in purchase frequency, partly offset by the decline in average order value. In October and November, we had a successful 11.11 Global Shopping Festival, during which Taobao and Tmall achieved robust growth in GMV and a record number of purchasers.
The number of 88VIP members, our highest spending consumer group, continued to increase by double-digits year-over-year, reaching 46 million during the quarter. Our premium shoppers are loyal customers who increase our purchase frequency and drive GMV growth. Accordingly, we target to continue to grow the subscription of 88VIP membership by investing in improved benefits and services.
Cloud Intelligence Group
For the quarter ended September 30, 2024, revenue from Cloud Intelligence Group was RMB29,610 million (US$4,219 million), an increase of 7% year-over-year.
During this quarter, overall revenue excluding Alibaba-consolidated subsidiaries grew over 7% year-over-year, driven by double-digit public cloud growth, including increasing adoption of AI-related products. AI-related product revenue grew at triple-digits year-over-year for the fifth consecutive quarter. We will continue to invest in anticipation of customer growth and in technology, particularly in AI infrastructure, to capture the increasing trend of cloud adoption for AI and to maintain our market leadership.
Alibaba Cloud has gained notable recognition as the service provider of choice in China for public cloud and AI training and applications. According to The Forrester Wave™: Public Cloud Platforms in China 2024 report, Alibaba Cloud was named a Leader, achieving the highest score possible in 23 out of 32 criteria, as well as the top scores in both the current offering and strategy categories. During the quarter, Alibaba Cloud was also recognized as a Leader in the Omdia Universe: Chinese Commercial Foundation Model 2024 report, ranking first in both strategy execution and technical capabilities. These achievements underscore Alibaba Cloud's leadership as the best-in-class public cloud and AI platform in China.
In September, we held our 16th annual cloud computing developer summit and exhibition, the Apsara Conference 2024, during which Cloud Intelligence Group unveiled new technologies, including:
- Qwen (????) Large Model Family Upgrades: We introduced significant upgrades across the Qwen large model family, including the release of the open-source Qwen 2.5 series, which has become one of the leading models in the global open-source ecosystem, with the flagship Qwen 2.5-72B demonstrating strong results across benchmarks, outperforming industry players. As of September 30, 2024, more than 70,000 derivative models have been developed on Hugging Face based on the Qwen family of models since it was first open-sourced in 2023, demonstrating its position as one of the most widely adopted open-source models globally.
- Cost-efficient and Accessible AI: Alibaba Cloud remains committed to providing customers with the best value in AI capabilities. During this quarter, we significantly improved cost-efficiency for the customers of Qwen models by reducing the charge rate for API calls, making advanced AI technologies more affordable and accessible.
- Comprehensive AI Infrastructure Upgrades: To better position ourselves to capture AI adoption, we have strengthened AI infrastructure to enhance scalability and performance. Recently, we launched GPU container services, and upgraded AI server as well as high-performance network products. These improvements have significantly enhanced model training and inference efficiency across various industries.
Alibaba International Digital Commerce Group (“AIDC”)
For the quarter ended September 30, 2024, revenue from AIDC grew 29% year-over-year to RMB31,672 million (US$4,513 million). The strong performance continued to be driven by growth of cross-border businesses, in particular AliExpress’ Choice business. AliExpress and Trendyol platforms continued their investment to increase mindshare in select markets in Europe and the Gulf region. At the same time, we improved efficiency of our operations and investment. As a result, the unit economics of the Choice business improved on a sequential basis.
The AliExpress platform continued to enhance its value proposition by expanding its supplier base, enriching its product offerings and meeting the needs of local consumers. During the quarter, AliExpress launched the “AliExpressDirect” model, aiming to expand product choice and optimize fulfillment efficiency by leveraging local inventories. In addition, synergies between AliExpress and the cross-border logistics operations of Cainiao have further strengthened AliExpress’ competitiveness, with average delivery time shortened significantly quarter-over-quarter.
Cainiao Smart Logistics Network Limited (“Cainiao”)
For the quarter ended September 30, 2024, revenue from Cainiao grew 8% year-over-year to RMB24,647 million (US$3,512 million), primarily driven by increase in revenue from cross-border fulfillment solutions.
We will continue to drive synergies between Cainiao and our cross-border e-commerce business. To meet the demands of an expanding cross-border e-commerce business, Cainiao’s strategy is to strengthen its end-to-end capabilities by developing a highly-digitalized global logistics network. Furthermore, Cainiao Express started providing logistics services on other e-commerce platform in October, further expanding its market reach.
Local Services Group
For the quarter ended September 30, 2024, revenue from Local Services Group grew by 14% year-over-year to RMB17,725 million (US$2,526 million), driven by the order growth of both Amap and Ele.me, as well as revenue growth from marketing services. During this quarter, Local Services Group losses narrowed significantly year-over-year, driven by improving operating efficiency as well as increasing scale. During National Day holiday in October, Amap recorded an all-time high of over 300 million peak daily active users.
Digital Media and Entertainment Group
During the quarter ended September 30, 2024, revenue of Digital Media and Entertainment Group was RMB5,694 million (US$811 million), a decrease of 1% year-over-year. Loss of Digital Media and Entertainment Group narrowed year-over-year, with Youku progressively reducing its operating loss due to increased advertising revenue as well as improved content investment efficiency during the quarter.
Share Repurchases
During the quarter ended September 30, 2024, we repurchased a total of 414 million ordinary shares (equivalent to 52 million ADSs) for a total of US$4.1 billion. As of September 30, 2024, we had 18,620 million ordinary shares (equivalent to 2,327 million ADSs) outstanding, a net decrease of 405 million ordinary shares compared to June 30, 2024, or a 2.1% net reduction in our outstanding shares after accounting for shares issued under our ESOP. The remaining amount of Board authorization for our share repurchase program, which is effective through March 2027, was US$22.0 billion as of September 30, 2024.
SEPTEMBER QUARTER SUMMARY FINANCIAL RESULTS
|
|
Three months ended September 30,
|
|
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
YoY %
Change
|
|
|
(in millions, except percentages and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
224,790
|
|
236,503
|
|
33,701
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
33,584
|
|
35,246
|
|
5,023
|
|
5%(2)
|
|
Operating margin
|
15%
|
|
15%
|
|
|
|
|
|
Adjusted EBITDA(1)
|
49,237
|
|
47,327
|
|
6,744
|
|
(4)%(3)
|
|
Adjusted EBITDA margin(1)
|
22%
|
|
20%
|
|
|
|
|
|
Adjusted EBITA(1)
|
42,845
|
|
40,561
|
|
5,780
|
|
(5)%(3)
|
|
Adjusted EBITA margin(1)
|
19%
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
26,696
|
|
43,547
|
|
6,205
|
|
63%(4)
|
|
Net income attributable to ordinary shareholders
|
27,706
|
|
43,874
|
|
6,252
|
|
58%(4)
|
|
Non-GAAP net income(1)
|
40,188
|
|
36,518
|
|
5,204
|
|
(9)%(3)
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share(5)
|
1.35
|
|
2.27
|
|
0.32
|
|
69%(4)(6)
|
|
Diluted earnings per ADS(5)
|
10.77
|
|
18.17
|
|
2.59
|
|
69%(4)(6)
|
|
Non-GAAP diluted earnings per share(1)(5)
|
1.95
|
|
1.88
|
|
0.27
|
|
(4)%(3)(6)
|
|
Non-GAAP diluted earnings per ADS(1)(5)
|
15.63
|
|
15.06
|
|
2.15
|
|
(4)%(3)(6)
|
| ____________________ |
|
(1)
|
See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.
|
|
(2)
|
The year-over-year increase was primarily due to the decrease in non-cash share-based compensation expense, partly offset by the decrease in adjusted EBITA.
|
|
(3)
|
The year-over-year decreases were primarily attributable to the increase in investments in our e-commerce businesses, partly offset by revenue growth and improved operating efficiency.
|
|
(4)
|
The year-over-year increases were primarily attributable to the mark-to-market changes from our equity investments, decrease in impairment of our investments and increase in income from operations, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss attributable to noncontrolling interests.
|
|
(5)
|
Each ADS represents eight ordinary shares.
|
|
(6)
|
The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.
|
SEPTEMBER QUARTER SEGMENT RESULTS
Revenue for the quarter ended September 30, 2024 was RMB236,503 million (US$33,701 million), an increase of 5% year-over-year compared to RMB224,790 million in the same quarter of 2023.
The following table sets forth a breakdown of our revenue by segment for the periods indicated:
|
|
Three months ended September 30,
|
|
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
YoY %
Change
|
|
|
(in millions, except percentages)
|
|
Taobao and Tmall Group:
|
|
|
|
|
|
|
|
|
China commerce retail
|
|
|
|
|
|
|
|
|
- Customer management
|
68,661
|
|
70,364
|
|
10,027
|
|
2%
|
|
- Direct sales and others(1)
|
23,899
|
|
22,644
|
|
3,227
|
|
(5)%
|
|
|
92,560
|
|
93,008
|
|
13,254
|
|
0%
|
|
China commerce wholesale
|
5,094
|
|
5,986
|
|
853
|
|
18%
|
|
Total Taobao and Tmall Group
|
97,654
|
|
98,994
|
|
14,107
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
Cloud Intelligence Group
|
27,648
|
|
29,610
|
|
4,219
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
Alibaba International Digital Commerce Group:
|
|
|
|
|
|
|
|
|
International commerce retail
|
18,978
|
|
25,618
|
|
3,650
|
|
35%
|
|
International commerce wholesale
|
5,533
|
|
6,054
|
|
863
|
|
9%
|
|
Total Alibaba International Digital Commerce Group
|
24,511
|
|
31,672
|
|
4,513
|
|
29%
|
|
|
|
|
|
|
|
|
|
|
Cainiao Smart Logistics Network Limited
|
22,823
|
|
24,647
|
|
3,512
|
|
8%
|
|
Local Services Group
|
15,564
|
|
17,725
|
|
2,526
|
|
14%
|
|
Digital Media and Entertainment Group
|
5,779
|
|
5,694
|
|
811
|
|
(1)%
|
|
All others(2)
|
48,052
|
|
52,178
|
|
7,435
|
|
9%
|
|
Unallocated
|
277
|
|
469
|
|
67
|
|
|
|
Inter-segment elimination
|
(17,518)
|
|
(24,486)
|
|
(3,489)
|
|
|
|
Consolidated revenue
|
224,790
|
|
236,503
|
|
33,701
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
Six months ended September 30,
|
|
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
YoY %
Change
|
|
|
(in millions, except percentages)
|
|
Taobao and Tmall Group:
|
|
|
|
|
|
|
|
|
China commerce retail
|
|
|
|
|
|
|
|
|
- Customer management
|
148,322
|
|
150,479
|
|
21,443
|
|
1%
|
|
- Direct sales and others(1)
|
54,066
|
|
49,950
|
|
7,118
|
|
(8)%
|
|
|
202,388
|
|
200,429
|
|
28,561
|
|
(1)%
|
|
China commerce wholesale
|
10,219
|
|
11,938
|
|
1,701
|
|
17%
|
|
Total Taobao and Tmall Group
|
212,607
|
|
212,367
|
|
30,262
|
|
(0)%
|
|
|
|
|
|
|
|
|
|
|
Cloud Intelligence Group
|
52,713
|
|
56,159
|
|
8,003
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
Alibaba International Digital Commerce Group:
|
|
|
|
|
|
|
|
|
International commerce retail
|
36,116
|
|
49,309
|
|
7,026
|
|
37%
|
|
International commerce wholesale
|
10,518
|
|
11,656
|
|
1,661
|
|
11%
|
|
Total Alibaba International Digital Commerce Group
|
46,634
|
|
60,965
|
|
8,687
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
Cainiao Smart Logistics Network Limited
|
45,987
|
|
51,458
|
|
7,333
|
|
12%
|
|
Local Services Group
|
30,014
|
|
33,954
|
|
4,838
|
|
13%
|
|
Digital Media and Entertainment Group
|
11,160
|
|
11,275
|
|
1,607
|
|
1%
|
|
All others(2)
|
93,850
|
|
99,179
|
|
14,133
|
|
6%
|
|
Unallocated
|
526
|
|
888
|
|
126
|
|
|
|
Inter-segment elimination
|
(34,545)
|
|
(46,506)
|
|
(6,627)
|
|
|
|
Consolidated revenue
|
458,946
|
|
479,739
|
|
68,362
|
|
5%
|
| ____________________ |
|
(1)
|
Direct sales and others revenue under Taobao and Tmall Group primarily represents Tmall Supermarket, Tmall Global and other direct sales businesses, where revenue and cost of inventory are recorded on a gross basis.
|
|
(2)
|
All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, DingTalk and other businesses. The majority of revenue within All others consists of direct sales revenue, which is recorded on a gross basis.
|
The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:
|
|
Three months ended September 30,
|
|
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
YoY %
Change(3)
|
|
|
(in millions, except percentages)
|
|
Taobao and Tmall Group
|
47,077
|
|
44,590
|
|
6,354
|
|
(5)%
|
|
Cloud Intelligence Group
|
1,409
|
|
2,661
|
|
379
|
|
89%
|
|
Alibaba International Digital Commerce Group
|
(384)
|
|
(2,905)
|
|
(414)
|
|
(657)%
|
|
Cainiao Smart Logistics Network Limited
|
906
|
|
55
|
|
8
|
|
(94)%
|
|
Local Services Group
|
(2,564)
|
|
(391)
|
|
(56)
|
|
85%
|
|
Digital Media and Entertainment Group
|
(201)
|
|
(178)
|
|
(25)
|
|
11%
|
|
All others(1)
|
(1,437)
|
|
(1,582)
|
|
(225)
|
|
(10)%
|
|
Unallocated(2)
|
(1,019)
|
|
(1,271)
|
|
(181)
|
|
|
|
Inter-segment elimination
|
(942)
|
|
(418)
|
|
(60)
|
|
|
|
Consolidated adjusted EBITA
|
42,845
|
|
40,561
|
|
5,780
|
|
(5)%
|
|
Less: Non-cash share-based compensation expense
|
(6,830)
|
|
(3,666)
|
|
(522)
|
|
|
|
Less: Amortization of intangible assets
|
(2,431)
|
|
(1,649)
|
|
(235)
|
|
|
|
Income from operations
|
33,584
|
|
35,246
|
|
5,023
|
|
5%
|
|
|
Six months ended September 30,
|
|
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
YoY %
Change(3)
|
|
|
(in millions, except percentages)
|
|
Taobao and Tmall Group
|
96,396
|
|
93,400
|
|
13,309
|
|
(3)%
|
|
Cloud Intelligence Group
|
2,325
|
|
4,998
|
|
712
|
|
115%
|
|
Alibaba International Digital Commerce Group
|
(804)
|
|
(6,611)
|
|
(942)
|
|
(722)%
|
|
Cainiao Smart Logistics Network Limited
|
1,783
|
|
673
|
|
96
|
|
(62)%
|
|
Local Services Group
|
(4,546)
|
|
(777)
|
|
(111)
|
|
83%
|
|
Digital Media and Entertainment Group
|
(138)
|
|
(281)
|
|
(40)
|
|
(104)%
|
|
All others(1)
|
(3,170)
|
|
(2,845)
|
|
(405)
|
|
10%
|
|
Unallocated(2)
|
(2,482)
|
|
(2,142)
|
|
(305)
|
|
|
|
Inter-segment elimination
|
(1,148)
|
|
(819)
|
|
(117)
|
|
|
|
Consolidated adjusted EBITA
|
88,216
|
|
85,596
|
|
12,197
|
|
(3)%
|
|
Less: Non-cash share-based compensation expense
|
(5,201)
|
|
(7,775)
|
|
(1,108)
|
|
|
|
Less: Amortization and impairment of intangible assets
|
(4,910)
|
|
(3,441)
|
|
(490)
|
|
|
|
Less: Impairment of goodwill
|
(2,031)
|
|
–
|
|
–
|
|
|
|
Less: Provision for the shareholder class action lawsuits
|
–
|
|
(3,145)
|
|
(448)
|
|
|
|
Income from operations
|
76,074
|
|
71,235
|
|
10,151
|
|
(6)%
|
| ____________________ |
|
(1)
|
All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Fliggy, DingTalk and other businesses.
|
|
(2)
|
Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are not allocated to individual segments.
|
|
(3)
|
For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss in YoY% is shown in terms of positive growth rate.
|
Taobao and Tmall Group
(i) Segment revenue
- China Commerce Retail Business
Revenue from our China commerce retail business in the quarter ended September 30, 2024 was RMB93,008 million (US$13,254 million), compared to RMB92,560 million in the same quarter of 2023.
Customer management revenue increased by 2% year-over-year, primarily due to the online GMV growth, while take rate remained stable year-over-year.
Direct sales and others revenue under China commerce retail business in the quarter ended September 30, 2024 was RMB22,644 million (US$3,227 million), a decrease of 5% compared to RMB23,899 million in the same quarter of 2023, primarily attributable to the decrease in sales of appliances.
- China Commerce Wholesale Business
Revenue from our China commerce wholesale business in the quarter ended September 30, 2024 was RMB5,986 million (US$853 million), an increase of 18% compared to RMB5,094 million in the same quarter of 2023, primarily due to the increase in revenue from value-added services provided to paying members.
(ii) Segment adjusted EBITA
Taobao and Tmall Group adjusted EBITA decreased by 5% to RMB44,590 million (US$6,354 million) in the quarter ended September 30, 2024, compared to RMB47,077 million in the same quarter of 2023, primarily due to the increase in investment in user experience, partly offset by the increase in revenue from customer management service.
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was RMB29,610 million (US$4,219 million) in the quarter ended September 30, 2024, an increase of 7% compared to RMB27,648 million in the same quarter of 2023. Overall revenue excluding Alibaba-consolidated subsidiaries increased by 7% year-over-year, mainly driven by the double-digit revenue growth of public cloud products including AI-related products, partly offset by the decrease in non-public cloud revenue as we transition away from the low-margin project-based revenues to focus on high-quality revenues.
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA increased by 89% to RMB2,661 million (US$379 million) in the quarter ended September 30, 2024, compared to RMB1,409 million in the same quarter of 2023, primarily due to shift in product mix toward higher-margin public cloud products including AI-related products and improving operating efficiency, partly offset by the increasing investments in customer growth and technology.
Alibaba International Digital Commerce Group
(i) Segment revenue
- International Commerce Retail Business
Revenue from our International commerce retail business in the quarter ended September 30, 2024 was RMB25,618 million (US$3,650 million), an increase of 35% compared to RMB18,978 million in the same quarter of 2023, primarily driven by the increase in revenue contributed by AliExpress’ Choice and Trendyol. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate fluctuations.
- International Commerce Wholesale Business
Revenue from our International commerce wholesale business in the quarter ended September 30, 2024 was RMB6,054 million (US$863 million), an increase of 9% compared to RMB5,533 million in the same quarter of 2023, primarily due to the increase in revenue generated by cross-border-related value-added services.
(ii) Segment adjusted EBITA
Alibaba International Digital Commerce Group adjusted EBITA was a loss of RMB2,905 million (US$414 million) in the quarter ended September 30, 2024, compared to a loss of RMB384 million in the same quarter of 2023, primarily due to the increase in investments in AliExpress and Trendyol’s cross-border businesses, partly offset by Lazada’s significant reduction in operating loss from improvements in its monetization and operating efficiency.
Cainiao Smart Logistics Network Limited
(i) Segment revenue
Revenue from Cainiao Smart Logistics Network Limited was RMB24,647 million (US$3,512 million) in the quarter ended September 30, 2024, an increase of 8% compared to RMB22,823 million in the same quarter of 2023, primarily driven by the increase in revenue from cross-border fulfillment solutions.
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited adjusted EBITA decreased by 94% to RMB55 million (US$8 million) in the quarter ended September 30, 2024, compared to RMB906 million in the same quarter of 2023, primarily due to the increased investments in cross-border fulfillment solutions.
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was RMB17,725 million (US$2,526 million) in the quarter ended September 30, 2024, an increase of 14% compared to RMB15,564 million in the same quarter of 2023, driven by the order growth of both Amap and Ele.me, as well as revenue growth from marketing services.
(ii) Segment adjusted EBITA
Local Services Group adjusted EBITA was a loss of RMB391 million (US$56 million) in the quarter ended September 30, 2024, compared to a loss of RMB2,564 million in the same quarter of 2023, primarily due to improved operating efficiency and increasing scale.
Digital Media and Entertainment Group
(i) Segment revenue
Revenue from Digital Media and Entertainment Group was RMB5,694 million (US$811 million) in the quarter ended September 30, 2024, a decrease of 1% compared to RMB5,779 million in the same quarter of 2023.
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group adjusted EBITA in the quarter ended September 30, 2024 was a loss of RMB178 million (US$25 million), compared to a loss of RMB201 million in the same quarter of 2023.
All Others
(i) Segment revenue
Revenue from All others segment was RMB52,178 million (US$7,435 million) in the quarter ended September 30, 2024, an increase of 9% compared to RMB48,052 million in the same quarter of 2023, mainly due to the increase in revenue from retail businesses including Freshippo and Alibaba Health.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the quarter ended September 30, 2024 was a loss of RMB1,582 million (US$225 million), compared to a loss of RMB1,437 million in the same quarter of 2023.
SEPTEMBER QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:
|
|
Three months ended September 30,
|
|
% of
Revenue
YoY
change
|
|
|
2023
|
|
2024
|
|
|
|
RMB
|
|
% of
Revenue
|
|
RMB
|
|
US$
|
|
% of
Revenue
|
|
|
|
(in millions, except percentages)
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
139,664
|
|
62.1%
|
|
144,029
|
|
20,524
|
|
60.9%
|
|
(1.2)%
|
|
Product development expenses
|
14,218
|
|
6.3%
|
|
14,182
|
|
2,020
|
|
6.0%
|
|
(0.3)%
|
|
Sales and marketing expenses
|
25,485
|
|
11.3%
|
|
32,471
|
|
4,627
|
|
13.7%
|
|
2.4%
|
|
General and administrative expenses
|
9,408
|
|
4.2%
|
|
9,777
|
|
1,393
|
|
4.1%
|
|
(0.1)%
|
|
Amortization of intangible assets
|
2,431
|
|
1.1%
|
|
1,649
|
|
235
|
|
0.7%
|
|
(0.4)%
|
|
Total costs and expenses
|
191,206
|
|
|
|
202,108
|
|
28,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
1,244
|
|
0.6%
|
|
619
|
|
89
|
|
0.3%
|
|
(0.3)%
|
|
Product development expenses
|
3,006
|
|
1.3%
|
|
1,757
|
|
250
|
|
0.7%
|
|
(0.6)%
|
|
Sales and marketing expenses
|
850
|
|
0.4%
|
|
549
|
|
78
|
|
0.2%
|
|
(0.2)%
|
|
General and administrative expenses
|
1,730
|
|
0.8%
|
|
1,221
|
|
174
|
|
0.5%
|
|
(0.3)%
|
|
Total share-based compensation expense(1)
|
6,830
|
|
|
|
4,146
|
|
591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses excluding share-based compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
138,420
|
|
61.6%
|
|
143,410
|
|
20,435
|
|
60.6%
|
|
(1.0)%
|
|
Product development expenses
|
11,212
|
|
5.0%
|
|
12,425
|
|
1,770
|
|
5.3%
|
|
0.3%
|
|
Sales and marketing expenses
|
24,635
|
|
11.0%
|
|
31,922
|
|
4,549
|
|
13.5%
|
|
2.5%
|
|
General and administrative expenses
|
7,678
|
|
3.4%
|
|
8,556
|
|
1,219
|
|
3.6%
|
|
0.2%
|
|
Amortization of intangible assets
|
2,431
|
|
1.1%
|
|
1,649
|
|
235
|
|
0.7%
|
|
(0.4)%
|
|
Total costs and expenses excluding share-based compensation expense
|
184,376
|
|
|
|
197,962
|
|
28,208
|
|
|
|
|
| ____________________ |
|
(1)
|
This includes both cash and non-cash share-based compensation expenses.
|
Cost of revenue – Cost of revenue in the quarter ended September 30, 2024 was RMB144,029 million (US$20,524 million), or 60.9% of revenue, compared to RMB139,664 million, or 62.1% of revenue, in the same quarter of 2023. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have decreased from 61.6% in the quarter ended September 30, 2023 to 60.6% in the quarter ended September 30, 2024.
Product development expenses – Product development expenses in the quarter ended September 30, 2024 were RMB14,182 million (US$2,020 million), or 6.0% of revenue, compared to RMB14,218 million, or 6.3% of revenue, in the same quarter of 2023. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 5.0% in the quarter ended September 30, 2023 to 5.3% in the quarter ended September 30, 2024.
Sales and marketing expenses – Sales and marketing expenses in the quarter ended September 30, 2024 were RMB32,471 million (US$4,627 million), or 13.7% of revenue, compared to RMB25,485 million, or 11.3% of revenue, in the same quarter of 2023. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 11.0% in the quarter ended September 30, 2023 to 13.5% in the quarter ended September 30, 2024, primarily due to our increased investments in e-commerce businesses.
General and administrative expenses – General and administrative expenses in the quarter ended September 30, 2024 were RMB9,777 million (US$1,393 million), or 4.1% of revenue, compared to RMB9,408 million, or 4.2% of revenue, in the same quarter of 2023. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have increased from 3.4% in the quarter ended September 30, 2023 to 3.6% in the quarter ended September 30, 2024.
Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the quarter ended September 30, 2024 was RMB4,146 million (US$591 million), compared to RMB6,830 million in the same quarter of 2023.
The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:
|
|
Three months ended September 30,
|
|
|
|
|
2023
|
|
2024
|
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
YoY %
Change
|
|
|
(in millions, except percentages)
|
|
By type of awards:
|
|
|
|
|
|
|
|
|
Alibaba Group share-based awards(1)
|
4,840
|
|
2,786
|
|
397
|
|
(42)%
|
|
Ant Group share-based awards(2)
|
85
|
|
12
|
|
2
|
|
(86)%
|
|
Others(3)
|
1,905
|
|
1,348
|
|
192
|
|
(29)%
|
|
Total share-based compensation expense(4)
|
6,830
|
|
4,146
|
|
591
|
|
(39)%
|
| ____________________ |
|
(1)
|
This represents Alibaba Group share-based awards granted to our employees.
|
|
(2)
|
This represents Ant Group share-based awards granted to our employees, which is subject to mark-to-market accounting treatment.
|
|
(3)
|
This represents share-based awards of our subsidiaries.
|
|
(4)
|
This includes both cash and non-cash share-based compensation expenses.
|
Share-based compensation expense related to Alibaba Group share-based awards decreased in the quarter ended September 30, 2024 compared to the same quarter of 2023. This decrease was primarily due to the decrease in the number of the awards granted.
We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.
Amortization of intangible assets – Amortization of intangible assets in the quarter ended September 30, 2024 was RMB1,649 million (US$235 million), a decrease of 32% from RMB2,431 million in the same quarter of 2023.
Income from operations and operating margin
Income from operations in the quarter ended September 30, 2024 was RMB35,246 million (US$5,023 million), or 15% of revenue, an increase of 5% compared to RMB33,584 million, or 15% of revenue, in the same quarter of 2023, primarily due to the decrease in non-cash share-based compensation expense, partly offset by the decrease in adjusted EBITA.
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA decreased 4% year-over-year to RMB47,327 million (US$6,744 million) in the quarter ended September 30, 2024, compared to RMB49,237 million in the same quarter of 2023. Adjusted EBITA decreased 5% year-over-year to RMB40,561 million (US$5,780 million) in the quarter ended September 30, 2024, compared to RMB42,845 million in the same quarter of 2023, primarily attributable to the increase in investments in our e-commerce businesses, partly offset by revenue growth and improved operating efficiency. A reconciliation of net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement.
Adjusted EBITA by segment
Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled “September Quarter Segment Results” above.
Interest and investment income, net
Interest and investment income, net in the quarter ended September 30, 2024 was RMB18,607 million (US$2,652 million), an increase of 262% compared to RMB5,136 million in the same quarter of 2023, primarily attributable to the mark-to-market changes from our equity investments.
The above-mentioned investment gains and losses were excluded from our non-GAAP net income.
Other income (expense), net
Other income (expense), net in the quarter ended September 30, 2024 was an expense of RMB1,478 million (US$211 million), compared to income of RMB1,391 million in the same quarter of 2023, primarily attributable to the net exchange loss compared to the net exchange gain in the same period last year, arising from the exchange rate fluctuation between Renminbi and U.S. dollar.
Income tax expenses
Income tax expenses in the quarter ended September 30, 2024 were RMB7,379 million (US$1,052 million), compared to RMB5,797 million in the same quarter of 2023.
Share of results of equity method investees
Share of results of equity method investees in the quarter ended September 30, 2024 was a profit of RMB978 million (US$139 million), compared to a loss of RMB5,764 million in the same quarter of 2023, primarily due to the year-over-year decrease in impairment of equity method investees. The following table sets forth a breakdown of share of results of equity method investees for the periods indicated:
|
|
Three months ended September 30,
|
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions)
|
|
Share of profit (loss) of equity method investees
|
|
|
|
|
|
|
- Ant Group
|
846
|
|
2,478
|
|
353
|
|
- Others
|
(1,146)
|
|
(746)
|
|
(106)
|
|
Impairment loss
|
(4,469)
|
|
–
|
|
–
|
|
Others(1)
|
(995)
|
|
(754)
|
|
(108)
|
|
Total
|
(5,764)
|
|
978
|
|
139
|
| ____________________ |
|
(1)
|
“Others” mainly include basis differences arising from equity method investees, share-based compensation expense related to share-based awards granted to employees of our equity method investees, as well as gain or loss arising from the deemed disposal of the equity method investees.
|
We record our share of results of all equity method investees one quarter in arrears. The year-over-year increase in share of profit of Ant Group was mainly because the share of results in the same quarter last year reflected a RMB7.07 billion fine on Ant Group imposed by PRC regulators announced in July 2023.
Net income and Non-GAAP net income
Our net income in the quarter ended September 30, 2024 was RMB43,547 million (US$6,205 million), compared to RMB26,696 million in the same quarter of 2023, primarily attributable to the mark-to-market changes from our equity investments, the decrease in impairment of our investments and increase in income from operations.
Excluding non-cash share-based compensation expense, gains/losses of investments, and certain other items, non-GAAP net income in the quarter ended September 30, 2024 was RMB36,518 million (US$5,204 million), a decrease of 9% compared to RMB40,188 million in the same quarter of 2023. A reconciliation of net income to non-GAAP net income is included at the end of this results announcement.
Net income attributable to ordinary shareholders
Net income attributable to ordinary shareholders in the quarter ended September 30, 2024 was RMB43,874 million (US$6,252 million), compared to RMB27,706 million in the same quarter of 2023, primarily attributable to the mark-to-market changes from our equity investments, the decrease in impairment of our investments and increase in income from operations.
Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended September 30, 2024 was RMB18.17 (US$2.59), compared to RMB10.77 in the same quarter of 2023. Excluding non-cash share-based compensation expense, gains/losses of investments, and certain other items, non-GAAP diluted earnings per ADS in the quarter ended September 30, 2024 was RMB15.06 (US$2.15), a decrease of 4% compared to RMB15.63 in the same quarter of 2023.
Diluted earnings per share in the quarter ended September 30, 2024 was RMB2.27 (US$0.32 or HK$2.52), compared to RMB1.35 in the same quarter of 2023. Excluding non-cash share-based compensation expense, gains/losses of investments, and certain other items, non-GAAP diluted earnings per share in the quarter ended September 30, 2024 was RMB1.88 (US$0.27 or HK$2.08), a decrease of 4% compared to RMB1.95 in the same quarter of 2023.
A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares.
Cash and cash equivalents, short-term investments and other treasury investments
As of September 30, 2024, cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, were RMB554,378 million (US$78,998 million), compared to RMB617,230 million as of March 31, 2024. Other treasury investments consist of fixed deposits, certificate of deposits and marketable debt securities with original maturities over one year for treasury purposes. The decrease in cash and cash equivalents, short-term investments and other treasury investments during the six months ended September 30, 2024 was primarily due to cash used in repurchase of ordinary shares of RMB72,889 million (US$10,387 million), dividend payment of RMB29,022 million (US$4,136 million) and acquisition of additional equity interests in non-wholly owned subsidiaries of RMB19,947 million (US$2,842 million), partly offset by free cash flow generated from operations of RMB31,107 million (US$4,433 million) and net proceeds from convertible unsecured senior notes and the payments for capped call transactions of RMB31,065 million (US$4,427 million).
Net cash provided by operating activities and free cash flow
During the quarter ended September 30, 2024, net cash provided by operating activities was RMB31,438 million (US$4,480 million), a decrease of 36% compared to RMB49,231 million in the same quarter of 2023. Free cash flow, a non-GAAP measurement of liquidity, was RMB13,735 million (US$1,957 million), a decrease of 70% compared to RMB45,220 million in the quarter ended September 30, 2023. The decrease in free cash flow was mainly attributed to our investments in Alibaba Cloud infrastructure, refund to Tmall merchants after we cancelled the annual service fee and other working capital changes related to factors including scale down of certain direct sales businesses. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement.
Net cash provided by investing activities
During the quarter ended September 30, 2024, net cash provided by investing activities of RMB964 million (US$137 million) primarily reflected (i) a decrease in short-term investments by RMB18,053 million (US$2,573 million) and (ii) cash inflow of RMB4,013 million (US$572 million) from disposal of investments. These cash inflows were partly offset by (i) capital expenditures of RMB17,491 million (US$2,492 million), and (ii) cash outflow of RMB4,038 million (US$575 million) for investment and acquisition activities.
Net cash used in financing activities
During the quarter ended September 30, 2024, net cash used in financing activities of RMB66,782 million (US$9,516 million) primarily reflected cash used in repurchase of ordinary shares of RMB30,194 million (US$4,303 million), dividend payment of RMB28,870 million (US$4,114 million) and acquisition of additional equity interests in non-wholly owned subsidiaries of RMB11,610 million (US$1,654 million).
Employees
As of September 30, 2024, we had a total of 197,991 employees, compared to 198,162 as of June 30, 2024.
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group’s management will hold a conference call to discuss the financial results at 7:30 a.m. U.S. Eastern Time (8:30 p.m. Hong Kong Time) on Friday, November 15, 2024.
All participants must pre-register to join this conference call using the Participant Registration link below:
English: https://s1.c-conf.com/diamondpass/10042440-pohtg.html
Chinese: https://s1.c-conf.com/diamondpass/10042441-ywtss.html
Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference.
A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en-US/ir-financial-reports-quarterly-results. An archived webcast will be available through the same link following the call. A replay of the conference call will be available for one week from the date of the conference (Dial-in number: +1 855 883 1031; English conference PIN 10042440; Chinese conference PIN 10042441).
Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en-US/investor-relations on November 15, 2024 to view the earnings release and accompanying slides prior to the conference call.
ABOUT ALIBABA GROUP
Alibaba Group’s mission is to make it easy to do business anywhere. The company aims to build the future infrastructure of commerce. It envisions that its customers will meet, work and live at Alibaba, and that it will be a good company that lasts for 102 years.
EXCHANGE RATE INFORMATION
This results announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong dollars (“HK$”) for the convenience of the reader. Unless otherwise stated, all translations of RMB into US$ were made at RMB7.0176 to US$1.00, the exchange rate on September 30, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board, and all translations of RMB into HK$ were made at RMB0.90179 to HK$1.00, the middle rate on September 30, 2024 as published by the People’s Bank of China. The percentages stated in this announcement are calculated based on the RMB amounts and there may be minor differences due to rounding.
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 “may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,” “intend,” “seek,” “plan,” “believe,” “potential,” “continue,” “ongoing,” “target,” “guidance,” “is/are likely to” and similar statements. In addition, statements that are not historical facts, including statements about Alibaba Group’s new organizational and governance structure, Alibaba’s strategies and business and operational plans, Alibaba’s beliefs, expectations and guidance regarding the growth of its business, revenue and return on investments, share repurchases and the business outlook and quotations from management in this announcement, are or contain forward-looking statements. 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 implementation of Alibaba Group’s new organizational and governance structure; Alibaba’s ability to compete, innovate and maintain or grow its business; risks associated with sustained investments in Alibaba’s businesses; fluctuations in general economic and business conditions in China and globally; uncertainties arising from competition among countries and geopolitical tensions, including national trade, investment, protectionist or other policies and export control, economic or trade sanctions; 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 U.S. Securities and Exchange Commission and announcements on the website of The Stock Exchange of Hong Kong Limited. All information provided in this results announcement is as of the date of this results announcement 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 our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS 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 U.S. GAAP Measures” in this results announcement.
We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our 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. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results.
We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet.
Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and 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.
Adjusted EBITDA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.
Adjusted EBITA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.
Non-GAAP net income represents net income before non-cash share-based compensation expense, amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments, and others (including provision in relation to matters outside the ordinary course of business), and adjustments for the tax effects.
Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.
Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants.
The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement 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 CONSOLIDATED INCOME STATEMENTS
|
|
|
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions, except per share data)
|
|
(in millions, except per share data)
|
|
Revenue
|
224,790
|
|
236,503
|
|
33,701
|
|
458,946
|
|
479,739
|
|
68,362
|
|
Cost of revenue
|
(139,664)
|
|
(144,029)
|
|
(20,524)
|
|
(282,011)
|
|
(290,135)
|
|
(41,344)
|
|
Product development expenses
|
(14,218)
|
|
(14,182)
|
|
(2,020)
|
|
(24,683)
|
|
(27,555)
|
|
(3,927)
|
|
Sales and marketing expenses
|
(25,485)
|
|
(32,471)
|
|
(4,627)
|
|
(52,532)
|
|
(65,167)
|
|
(9,286)
|
|
General and administrative expenses
|
(9,408)
|
|
(9,777)
|
|
(1,393)
|
|
(16,705)
|
|
(23,057)
|
|
(3,285)
|
|
Amortization and impairment of intangible assets
|
(2,431)
|
|
(1,649)
|
|
(235)
|
|
(4,910)
|
|
(3,441)
|
|
(490)
|
|
Impairment of goodwill
|
–
|
|
–
|
|
–
|
|
(2,031)
|
|
–
|
|
–
|
|
Other gains, net
|
–
|
|
851
|
|
121
|
|
–
|
|
851
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
33,584
|
|
35,246
|
|
5,023
|
|
76,074
|
|
71,235
|
|
10,151
|
|
Interest and investment income, net
|
5,136
|
|
18,607
|
|
2,652
|
|
(762)
|
|
17,129
|
|
2,441
|
|
Interest expense
|
(1,854)
|
|
(2,427)
|
|
(346)
|
|
(3,638)
|
|
(4,615)
|
|
(658)
|
|
Other income (expense), net
|
1,391
|
|
(1,478)
|
|
(211)
|
|
2,755
|
|
(1,221)
|
|
(174)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax and share of results of equity method investees
|
38,257
|
|
49,948
|
|
7,118
|
|
74,429
|
|
82,528
|
|
11,760
|
|
Income tax expenses
|
(5,797)
|
|
(7,379)
|
|
(1,052)
|
|
(11,819)
|
|
(17,442)
|
|
(2,485)
|
|
Share of results of equity method investees
|
(5,764)
|
|
978
|
|
139
|
|
(2,914)
|
|
2,483
|
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
26,696
|
|
43,547
|
|
6,205
|
|
59,696
|
|
67,569
|
|
9,629
|
|
Net loss attributable to noncontrolling interests
|
1,151
|
|
486
|
|
70
|
|
2,393
|
|
854
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Alibaba Group Holding Limited
|
27,847
|
|
44,033
|
|
6,275
|
|
62,089
|
|
68,423
|
|
9,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of mezzanine equity
|
(141)
|
|
(159)
|
|
(23)
|
|
(51)
|
|
(280)
|
|
(40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ordinary shareholders
|
27,706
|
|
43,874
|
|
6,252
|
|
62,038
|
|
68,143
|
|
9,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to ordinaryshareholders(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.36
|
|
2.34
|
|
0.33
|
|
3.04
|
|
3.58
|
|
0.51
|
|
Diluted
|
1.35
|
|
2.27
|
|
0.32
|
|
3.01
|
|
3.50
|
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per ADS attributable to ordinaryshareholders(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
10.90
|
|
18.71
|
|
2.67
|
|
24.31
|
|
28.62
|
|
4.08
|
|
Diluted
|
10.77
|
|
18.17
|
|
2.59
|
|
24.08
|
|
28.00
|
|
3.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in calculating earnings per ordinary share (million shares)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
20,335
|
|
18,761
|
|
|
|
20,414
|
|
19,045
|
|
|
|
Diluted
|
20,526
|
|
19,322
|
|
|
|
20,567
|
|
19,459
|
|
|
| ____________________ |
|
(1)
|
Each ADS represents eight ordinary shares.
|
|
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
As of March 31,
|
|
As of September 30,
|
|
|
2024
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions)
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
248,125
|
|
182,992
|
|
26,076
|
|
Short-term investments
|
262,955
|
|
155,530
|
|
22,163
|
|
Restricted cash and escrow receivables
|
38,299
|
|
45,480
|
|
6,481
|
|
Equity securities and other investments
|
59,949
|
|
50,266
|
|
7,163
|
|
Prepayments, receivables and other assets
|
143,536
|
|
174,834
|
|
24,913
|
|
Total current assets
|
752,864
|
|
609,102
|
|
86,796
|
|
|
|
Equity securities and other investments
|
220,942
|
|
344,658
|
|
49,113
|
|
Prepayments, receivables and other assets
|
116,102
|
|
115,960
|
|
16,524
|
|
Investment in equity method investees
|
203,131
|
|
202,548
|
|
28,863
|
|
Property and equipment, net
|
185,161
|
|
207,917
|
|
29,628
|
|
Intangible assets, net
|
26,950
|
|
22,906
|
|
3,264
|
|
Goodwill
|
259,679
|
|
259,621
|
|
36,996
|
|
Total assets
|
1,764,829
|
|
1,762,712
|
|
251,184
|
|
|
|
|
|
|
|
|
Liabilities, Mezzanine Equity and Shareholders’ Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Current bank borrowings
|
12,749
|
|
16,938
|
|
2,414
|
|
Current unsecured senior notes
|
16,252
|
|
15,786
|
|
2,249
|
|
Income tax payable
|
9,068
|
|
8,115
|
|
1,156
|
|
Accrued expenses, accounts payable and other liabilities
|
297,883
|
|
322,743
|
|
45,991
|
|
Merchant deposits
|
12,737
|
|
3,813
|
|
543
|
|
Deferred revenue and customer advances
|
72,818
|
|
77,473
|
|
11,040
|
|
Total current liabilities
|
421,507
|
|
444,868
|
|
63,393
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
|
|
|
|
|
|
As of March 31,
|
|
As of September 30,
|
|
|
2024
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
Deferred revenue
|
4,069
|
|
4,318
|
|
615
|
|
Deferred tax liabilities
|
53,012
|
|
54,747
|
|
7,801
|
|
Non-current bank borrowings
|
55,686
|
|
51,302
|
|
7,311
|
|
Non-current unsecured senior notes
|
86,089
|
|
83,608
|
|
11,914
|
|
Non-current convertible unsecured senior notes
|
–
|
|
34,626
|
|
4,934
|
|
Other liabilities
|
31,867
|
|
31,365
|
|
4,470
|
|
Total liabilities
|
652,230
|
|
704,834
|
|
100,438
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Mezzanine equity
|
10,728
|
|
11,592
|
|
1,651
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
Ordinary shares
|
1
|
|
1
|
|
–
|
|
Additional paid-in capital
|
397,999
|
|
380,145
|
|
54,170
|
|
Treasury shares at cost
|
(27,684)
|
|
(36,185)
|
|
(5,156)
|
|
Statutory reserves
|
14,733
|
|
15,885
|
|
2,264
|
|
Accumulated other comprehensive income
|
3,598
|
|
467
|
|
66
|
|
Retained earnings
|
597,897
|
|
593,612
|
|
84,589
|
|
|
|
|
|
|
|
|
Total shareholders’ equity
|
986,544
|
|
953,925
|
|
135,933
|
|
Noncontrolling interests
|
115,327
|
|
92,361
|
|
13,162
|
|
|
|
|
|
|
|
|
Total equity
|
1,101,871
|
|
1,046,286
|
|
149,095
|
|
|
|
|
|
|
|
Total liabilities, mezzanine equity and equity
|
1,764,829
|
|
1,762,712
|
|
251,184
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
49,231
|
|
31,438
|
|
4,480
|
|
94,537
|
|
65,074
|
|
9,273
|
|
Net cash (used in) provided by investing activities
|
(23,761)
|
|
964
|
|
137
|
|
(11,166)
|
|
(34,865)
|
|
(4,968)
|
|
Net cash used in financing activities
|
(12,382)
|
|
(66,782)
|
|
(9,516)
|
|
(37,018)
|
|
(86,364)
|
|
(12,307)
|
|
Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables
|
813
|
|
(2,456)
|
|
(350)
|
|
5,132
|
|
(1,797)
|
|
(256)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) in cash and cash equivalents, restricted cash and escrow receivables
|
13,901
|
|
(36,836)
|
|
(5,249)
|
|
51,485
|
|
(57,952)
|
|
(8,258)
|
|
Cash and cash equivalents, restricted cash and escrow receivables at beginning of period
|
267,094
|
|
265,308
|
|
37,806
|
|
229,510
|
|
286,424
|
|
40,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, restricted cash and escrow receivables at end of period
|
280,995
|
|
228,472
|
|
32,557
|
|
280,995
|
|
228,472
|
|
32,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES
|
|
|
|
The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated:
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions)
|
|
(in millions)
|
|
Net income
|
26,696
|
|
43,547
|
|
6,205
|
|
59,696
|
|
67,569
|
|
9,629
|
|
Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and investment income, net
|
(5,136)
|
|
(18,607)
|
|
(2,652)
|
|
762
|
|
(17,129)
|
|
(2,441)
|
|
Interest expense
|
1,854
|
|
2,427
|
|
346
|
|
3,638
|
|
4,615
|
|
658
|
|
Other (income) expense, net
|
(1,391)
|
|
1,478
|
|
211
|
|
(2,755)
|
|
1,221
|
|
174
|
|
Income tax expenses
|
5,797
|
|
7,379
|
|
1,052
|
|
11,819
|
|
17,442
|
|
2,485
|
|
Share of results of equity method investees
|
5,764
|
|
(978)
|
|
(139)
|
|
2,914
|
|
(2,483)
|
|
(354)
|
|
Income from operations
|
33,584
|
|
35,246
|
|
5,023
|
|
76,074
|
|
71,235
|
|
10,151
|
|
Non-cash share-based compensation expense
|
6,830
|
|
3,666
|
|
522
|
|
5,201
|
|
7,775
|
|
1,108
|
|
Amortization and impairment of intangible assets
|
2,431
|
|
1,649
|
|
235
|
|
4,910
|
|
3,441
|
|
490
|
|
Impairment of goodwill
|
–
|
|
–
|
|
–
|
|
2,031
|
|
–
|
|
–
|
|
Provision for the shareholder class action lawsuits
|
–
|
|
–
|
|
–
|
|
–
|
|
3,145
|
|
448
|
|
Adjusted EBITA
|
42,845
|
|
40,561
|
|
5,780
|
|
88,216
|
|
85,596
|
|
12,197
|
|
Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights
|
6,392
|
|
6,766
|
|
964
|
|
13,073
|
|
12,892
|
|
1,837
|
|
Adjusted EBITDA
|
49,237
|
|
47,327
|
|
6,744
|
|
101,289
|
|
98,488
|
|
14,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)
|
|
|
|
The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated:
|
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
26,696
|
|
43,547
|
|
6,205
|
|
59,696
|
|
67,569
|
|
9,629
|
|
Adjustments to reconcile net income to non-GAAP net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash share-based compensation expense
|
6,830
|
|
3,666
|
|
522
|
|
5,201
|
|
7,775
|
|
1,108
|
|
Amortization and impairment of intangible assets
|
2,431
|
|
1,649
|
|
235
|
|
4,910
|
|
3,441
|
|
490
|
|
Provision for the shareholder class action lawsuits
|
–
|
|
–
|
|
–
|
|
–
|
|
3,145
|
|
448
|
|
(Gain) Loss on deemed disposals/disposals/ revaluation of investments
|
(1,731)
|
|
(12,697)
|
|
(1,809)
|
|
7,307
|
|
(8,116)
|
|
(1,157)
|
|
Impairment of goodwill and investments, and others
|
7,604
|
|
756
|
|
108
|
|
11,873
|
|
5,067
|
|
722
|
|
Tax effects (1)
|
(1,642)
|
|
(403)
|
|
(57)
|
|
(3,877)
|
|
(1,672)
|
|
(238)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
40,188
|
|
36,518
|
|
5,204
|
|
85,110
|
|
77,209
|
|
11,002
|
| ____________________ |
|
(1)
|
Tax effects primarily comprise tax effects relating to non-cash share-based compensation expense, amortization and impairment of intangible assets and certain gains and losses from investments, and others.
|
| ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)
|
|
|
|
The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated:
|
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions, except per share data)
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ordinary shareholders – basic
|
27,706
|
|
43,874
|
|
6,252
|
|
62,038
|
|
68,143
|
|
9,710
|
|
Dilution effect on earnings arising from non-cash share-based awards operated by equity method investees and subsidiaries
|
(66)
|
|
(56)
|
|
(8)
|
|
(134)
|
|
(131)
|
|
(19)
|
|
Adjustments for interest expense attributable to convertible unsecured senior notes
|
–
|
|
69
|
|
10
|
|
–
|
|
95
|
|
14
|
|
Net income attributable to ordinary shareholders – diluted
|
27,640
|
|
43,887
|
|
6,254
|
|
61,904
|
|
68,107
|
|
9,705
|
|
Non-GAAP adjustments to net income attributable to ordinary shareholders(1)
|
12,478
|
|
(7,524)
|
|
(1,072)
|
|
22,949
|
|
8,521
|
|
1,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net incomeattributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS
|
40,118
|
|
36,363
|
|
5,182
|
|
84,853
|
|
76,628
|
|
10,919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares)(2)
|
20,526
|
|
19,322
|
|
|
|
20,567
|
|
19,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share(2)(3)
|
1.35
|
|
2.27
|
|
0.32
|
|
3.01
|
|
3.50
|
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share(2)(4)
|
1.95
|
|
1.88
|
|
0.27
|
|
4.13
|
|
3.94
|
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per ADS(2)(3)
|
10.77
|
|
18.17
|
|
2.59
|
|
24.08
|
|
28.00
|
|
3.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per ADS(2)(4)
|
15.63
|
|
15.06
|
|
2.15
|
|
33.00
|
|
31.50
|
|
4.49
|
|
|
|
|
|
|
|
|
|
|
|
|
| ____________________ |
|
(1)
|
Non-GAAP adjustments excluding the attributions to the noncontrolling interests. See the table above for items regarding the reconciliation of net income to non-GAAP net income (before excluding the attributions to the noncontrolling interests).
|
|
(2)
|
Each ADS represents eight ordinary shares.
|
|
(3)
|
Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.
|
|
(4)
|
Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share, on a diluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.
|
|
ALIBABA GROUP HOLDING LIMITED
RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)
|
|
|
|
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 September 30,
|
|
Six months ended September 30,
|
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in millions)
|
|
(in millions)
|
|
Net cash provided by operating activities
|
49,231
|
|
31,438
|
|
4,480
|
|
94,537
|
|
65,074
|
|
9,273
|
|
Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses)
|
(4,112)
|
|
(16,977)
|
|
(2,419)
|
|
(10,119)
|
|
(28,916)
|
|
(4,120)
|
|
Less: Changes in the buyer protection fund deposits
|
101
|
|
(726)
|
|
(104)
|
|
(109)
|
|
(5,051)
|
|
(720)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
45,220
|
|
13,735
|
|
1,957
|
|
84,309
|
|
31,107
|
|
4,433
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241114291910/en/