Alibaba Group Holding Ltd 6-K, filed May 14, 2024

Alibaba Group Holding Ltd (BABA)

6-K 2024-05-14 For: 2024-05-14

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Added on April 02, 2026

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Alibaba Group Holding Ltd filed this 6-K on May 14, 2024.

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	ALIBABA GROUP HOLDING LIMITED

Date: May 14, 2024	By:	/s/ Toby Hong XU
	Name:	Toby Hong XU
	Title:	Chief Financial Officer

	Three months ended March 31,
	2023			2024
	RMB			RMB			US$		YoY % Change

	(in millions, except percentages and per share amounts)
Revenue		208,200			221,874			30,729		7	%

Income from operations		15,240			14,765			2,045		(3	)%
Operating margin		7	%		7	%
Adjusted EBITDA⁽¹⁾		32,123			30,807			4,267		(4	)%⁽²⁾
Adjusted EBITDA margin⁽¹⁾		15	%		14	%
Adjusted EBITA⁽¹⁾		25,280			23,969			3,320		(5	)%⁽²⁾
Adjusted EBITA margin⁽¹⁾		12	%		11	%

Net income		21,996			919			127		(96	)%⁽³⁾
Net income attributable to ordinary shareholders		23,516			3,270			453		(86	)%⁽³⁾
Non-GAAP net income⁽¹⁾		27,375			24,418			3,382		(11	)%⁽³⁾

Diluted earnings per share⁽⁴⁾		1.12			0.16			0.02		(86	)%⁽³⁾⁽⁵⁾
Diluted earnings per ADS⁽⁴⁾		9.00			1.30			0.18		(86	)%⁽³⁾⁽⁵⁾
Non-GAAP diluted earnings per share⁽¹⁾⁽⁴⁾		1.34			1.27			0.18		(5	)%⁽³⁾⁽⁵⁾
Non-GAAP diluted earnings per ADS⁽¹⁾⁽⁴⁾		10.71			10.14			1.40		(5	)%⁽³⁾⁽⁵⁾

(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 decreases were primarily attributable to the increase in investments in our e-commerce businesses and retention incentives granted to Cainiao employees, partly offset by revenue growth and improved operating efficiency.
(3)	The year-over-year decrease in net income was primarily attributable to a net loss from our investments in publicly-traded companies during the quarter, compared to a net gain in the same quarter last year, due to mark-to-market changes, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss attributable to noncontrolling interests. We excluded share-based compensation expense, gains/losses of investments, impairment of intangible assets, and certain other items from our non-GAAP measurements.
(4)	Each ADS represents eight ordinary shares.
(5)	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.

	Three months ended March 31,
	2023			2024
	RMB			RMB			US$			YoY % Change

	(in millions, except percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management		60,545			63,574			8,805			5	%
- Direct sales and others⁽²⁾		25,212			24,690			3,419			(2	)%
		85,757			88,264			12,224			3	%
China commerce wholesale		4,132			4,952			686			20	%
Total Taobao and Tmall Group		89,889			93,216			12,910			4	%

Cloud Intelligence Group		24,742			25,595			3,545			3	%

Alibaba International Digital Commerce Group:
International commerce retail		14,247			22,278			3,086			56	%
International commerce wholesale		4,668			5,170			716			11	%
Total Alibaba International Digital Commerce Group		18,915			27,448			3,802			45	%

Cainiao Smart Logistics Network Limited		18,915			24,557			3,401			30	%
Local Services Group		12,340			14,628			2,026			19	%
Digital Media and Entertainment Group		4,989			4,945			685			(1	)%
All others⁽³⁾		53,303			51,458			7,126			(3	)%
Total segment revenue		223,093			241,847			33,495			8	%
Unallocated		232			397			55
Inter-segment elimination		(15,125	)		(20,370	)		(2,821	)
Consolidated revenue		208,200			221,874			30,729			7	%

	Three months ended March 31,
	2023			2024
	RMB			RMB			US$			YoY % Change ⁽⁴⁾

	(in millions, except percentages)
Taobao and Tmall Group		39,041			38,501			5,332			(1	)%
Cloud Intelligence Group		987			1,432			198			45	%
Alibaba International Digital Commerce Group		(2,171	)		(4,085	)		(566	)		(88	)%
Cainiao Smart Logistics Network Limited		(319	)		(1,342	)		(186	)		(321	)%
Local Services Group		(4,063	)		(3,198	)		(443	)		21	%
Digital Media and Entertainment Group		(1,129	)		(884	)		(122	)		22	%
All others⁽²⁾		(1,855	)		(2,818	)		(390	)		(52	)%
Total segment adjusted EBITA		30,491			27,606			3,823			(9	)%
Unallocated ⁽³⁾		(4,364	)		(2,900	)		(402	)
Inter-segment elimination		(847	)		(737	)		(101	)
Consolidated adjusted EBITA		25,280			23,969			3,320			(5	)%
Less: Share-based compensation expense		(7,546	)		(7,123	)		(987	)
Less: Amortization and impairment of intangible assets		(2,494	)		(2,081	)		(288	)
Income from operations		15,240			14,765			2,045			(3	)%

	Three months ended March 31,							% of
	2023			2024				Revenue
	RMB	% of Revenue		RMB	US$	% of Revenue		YoY change

	(in millions, except percentages)
Costs and expenses:
Cost of revenue	138,823	67	%	148,098	20,511	67	%	0	%
Product development expenses	13,880	7	%	14,085	1,951	6	%	(1	)%
Sales and marketing expenses	24,931	12	%	28,826	3,992	13	%	1	%
General and administrative expenses	12,832	6	%	14,019	1,942	6	%	0	%
Amortization and impairment of intangible assets	2,494	1	%	2,081	288	1	%	0	%
Total costs and expenses	192,960	93	%	207,109	28,684	93	%	0	%

Share-based compensation expense:
Cost of revenue	1,235	1	%	891	124	0	%	(1	)%
Product development expenses	2,938	2	%	2,037	282	1	%	(1	)%
Sales and marketing expenses	858	0	%	735	102	0	%	0	%
General and administrative expenses	2,515	1	%	3,460	479	2	%	1	%
Total share-based compensation expense	7,546	4	%	7,123	987	3	%	(1	)%

Costs and expenses excluding share-based compensation expense:
Cost of revenue	137,588	66	%	147,207	20,387	67	%	1	%
Product development expenses	10,942	5	%	12,048	1,669	5	%	0	%
Sales and marketing expenses	24,073	12	%	28,091	3,890	13	%	1	%
General and administrative expenses	10,317	5	%	10,559	1,463	4	%	(1	)%
Amortization and impairment of intangible assets	2,494	1	%	2,081	288	1	%	0	%
Total costs and expenses excluding share-based compensation expense	185,414	89	%	199,986	27,697	90	%	1	%

	Year ended March 31,
	2023			2024
	RMB			RMB			US$		YoY % Change

	(in millions, except percentages and per share amounts)
Revenue		868,687			941,168			130,350		8	%

Income from operations		100,351			113,350			15,699		13	%⁽²⁾
Operating margin		12	%		12	%
Adjusted EBITDA⁽¹⁾		175,710			191,668			26,546		9	%⁽³⁾
Adjusted EBITDA margin⁽¹⁾		20	%		20	%
Adjusted EBITA⁽¹⁾		147,911			165,028			22,856		12	%⁽³⁾
Adjusted EBITA margin⁽¹⁾		17	%		18	%

Net income		65,573			71,332			9,879		9	%⁽⁴⁾
Net income attributable to ordinary shareholders		72,509			79,741			11,044		10	%⁽⁴⁾
Non-GAAP net income⁽¹⁾		141,379			157,479			21,811		11	%⁽⁴⁾

Diluted earnings per share⁽⁵⁾		3.43			3.91			0.54		14	%⁽⁴⁾⁽⁶⁾
Diluted earnings per ADS⁽⁵⁾		27.46			31.24			4.33		14	%⁽⁴⁾⁽⁶⁾
Non-GAAP diluted earnings per share⁽¹⁾⁽⁵⁾		6.82			7.78			1.08		14	%⁽⁴⁾⁽⁶⁾
Non-GAAP diluted earnings per ADS⁽¹⁾⁽⁵⁾		54.56			62.23			8.62		14	%⁽⁴⁾⁽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 attributable to an increase in adjusted EBITA and a decrease in share-based compensation expense, partly offset by the increase in impairment of intangible assets and goodwill. During the fiscal year, the impairment of intangible assets and goodwill was mainly in relation to Sun Art and Youku respectively.
(3)	The year-over-year increases were primarily contributed by revenue growth and improved operating efficiency that was partly offset by the increase in investments in our e-commerce businesses.
(4)	The year-over-year increase in net income was primarily attributable to the increase in income from operations, partly offset by the increase in net loss from our equity investments due to mark-to-market changes, while net income attributable to ordinary shareholders and earnings per share/ADS further take into account the relevant attributions to noncontrolling interests. We excluded share-based compensation expense, gains/losses of investments, impairment of intangible assets and goodwill, and certain other items from our non-GAAP measurements.
(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.

	Year ended March 31,												% of
	2023					2024							Revenue
	RMB		% of Revenue			RMB		US$		% of Revenue			YoY change

	(in millions, except percentages)
Costs and expenses:
Cost of revenue		549,695		63	%		586,323		81,205		62	%		(1	)%
Product development expenses		56,744		7	%		52,256		7,237		6	%		(1	)%
Sales and marketing expenses		103,496		12	%		115,141		15,947		12	%		0	%
General and administrative expenses		42,183		5	%		41,985		5,815		5	%		0	%
Amortization and impairment of intangible assets		13,504		1	%		21,592		2,990		2	%		1	%
Impairment of goodwill		2,714		0	%		10,521		1,457		1	%		1	%
Total costs and expenses		768,336		88	%		827,818		114,651		88	%		0	%

Share-based compensation expense:
Cost of revenue		5,710		1	%		3,012		417		0	%		(1	)%
Product development expenses		13,514		2	%		7,623		1,056		1	%		(1	)%
Sales and marketing expenses		3,710		0	%		2,265		314		0	%		0	%
General and administrative expenses		7,897		1	%		5,646		782		1	%		0	%
Total share-based compensation expense		30,831		4	%		18,546		2,569		2	%		(2	)%

Costs and expenses excluding share-based compensation expense:
Cost of revenue		543,985		62	%		583,311		80,788		62	%		0	%
Product development expenses		43,230		5	%		44,633		6,181		5	%		0	%
Sales and marketing expenses		99,786		12	%		112,876		15,633		12	%		0	%
General and administrative expenses		34,286		4	%		36,339		5,033		4	%		0	%
Amortization and impairment of intangible assets		13,504		1	%		21,592		2,990		2	%		1	%
Impairment of goodwill		2,714		0	%		10,521		1,457		1	%		1	%
Total costs and expenses excluding share-based compensation expense		737,505		84	%		809,272		112,082		86	%		2	%

(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.

	As of March 31,		As of March 31,
	2023		2024
	RMB		RMB		US$

	(in millions)
Assets
Current assets:
Cash and cash equivalents		193,086		248,125		34,365
Short-term investments		326,492		262,955		36,419
Restricted cash and escrow receivables		36,424		38,299		5,304
Equity securities and other investments		4,892		59,949		8,303
Prepayments, receivables and other assets		137,072		143,536		19,879
Total current assets		697,966		752,864		104,270

Equity securities and other investments		245,737		220,942		30,600
Prepayments, receivables and other assets		110,926		116,102		16,080
Investment in equity method investees		207,380		203,131		28,133
Property and equipment, net		176,031		185,161		25,645
Intangible assets, net		46,913		26,950		3,733
Goodwill		268,091		259,679		35,965
Total assets		1,753,044		1,764,829		244,426

Liabilities, Mezzanine Equity and Shareholders’ Equity
Current liabilities:
Current bank borrowings		7,466		12,749		1,766
Current unsecured senior notes		4,800		16,252		2,251
Income tax payable		12,543		9,068		1,256
Accrued expenses, accounts payable and other liabilities		275,950		297,883		41,256
Merchant deposits		13,297		12,737		1,764
Deferred revenue and customer advances		71,295		72,818		10,085
Total current liabilities		385,351		421,507		58,378

The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated:

	Three months ended March 31,									Year ended March 31,
	2023			2024						2023			2024
	RMB			RMB			US$			RMB			RMB			US$

	(in millions)									(in millions)
Net income		21,996			919			127			65,573			71,332			9,879
Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA:
Interest and investment income, net		(10,496	)		5,702			790			11,071			9,964			1,380
Interest expense		1,736			2,177			301			5,918			7,947			1,101
Other income, net		(1,308	)		(2,963	)		(410	)		(5,823	)		(6,157	)		(853	)
Income tax expenses		3,758			5,722			793			15,549			22,529			3,120
Share of results of equity method investees		(446	)		3,208			444			8,063			7,735			1,072
Income from operations		15,240			14,765			2,045			100,351			113,350			15,699
Share-based compensation expense		7,546			7,123			987			30,831			18,546			2,569
Amortization and impairment of intangible assets		2,494			2,081			288			13,504			21,592			2,990
Impairment of goodwill, and others		—			—			—			3,225			11,540			1,598
Adjusted EBITA		25,280			23,969			3,320			147,911			165,028			22,856
Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights		6,843			6,838			947			27,799			26,640			3,690
Adjusted EBITDA		32,123			30,807			4,267			175,710			191,668			26,546

(1)	See the table above for the reconciliation of net income to non-GAAP net income for more information of these non-GAAP adjustments.
(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.