Alibaba Group Announces March Quarter 2025 and Fiscal Year 2025 Results
HANGZHOU, China--(BUSINESS WIRE)--May 15, 2025--
Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), "Alibaba", "Alibaba Group" or the "company") today announced its financial results for the quarter and fiscal year ended March 31, 2025.
"Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our 'user first, AI-driven' strategy, with core business growth continuing to accelerate. Driven by strong demand for AI, Cloud Intelligence Group quarterly revenue growth accelerated to 18%, with AI-related product revenue achieving triple-digit growth for the seventh consecutive quarter. Customer management revenue at Taobao and Tmall Group grew 12% this quarter, reflecting the sustained impact of investments in user experience and effective monetization. Looking ahead, we will remain focused on our core businesses and continue to drive AI + Cloud as a new engine for our long-term growth," said Eddie Wu, Chief Executive Officer of Alibaba Group.
"We delivered a strong quarter with revenue growth of 7% and EBITA growth of 36%. We are confident in our business outlook and will continue to invest in our core businesses to strengthen our competitive advantages. We remain committed to enhancing shareholder returns. During fiscal year 2025, we repurchased US$11.9 billion of shares, thereby achieving a 5.1% net reduction in outstanding shares. In addition, our board of directors approved the distribution of annual and special dividends totaling US$4.6 billion," said Toby Xu, Chief Financial Officer of Alibaba Group.
BUSINESS HIGHLIGHTS
In the quarter ended March 31, 2025:
-- Revenue was RMB236,454 million (US$32,584 million), an increase of 7%
year-over-year.
-- Income from operations was RMB28,465 million (US$3,923 million), an
increase of 93% year-over-year, primarily due to the increase in adjusted
EBITA and a decrease in non-cash share-based compensation expense. We
excluded non-cash share-based compensation expense from our non-GAAP
measurements. Adjusted EBITA, a non-GAAP measurement, increased 36%
year-over-year to RMB32,616 million (US$4,495 million), primarily
attributable to revenue growth and improved operating efficiency, partly
offset by the increase in investments in our e-commerce businesses and
technology.
-- Net income attributable to ordinary shareholders was RMB12,382 million
(US$1,706 million). Net income was RMB11,973 million (US$1,650 million),
an increase of 1203% year-over-year, primarily due to the mark-to-market
changes from our equity investments, the increase in income from
operations and the decrease in impairment of equity method investments,
partly offset by the losses arising from the disposal of subsidiaries.
Non-GAAP net income in the quarter ended March 31, 2025 was RMB29,847
million (US$4,113 million), an increase of 22% compared to RMB24,418
million in the same quarter of 2024.
-- Diluted earnings per ADS was RMB5.17 (US$0.71). Diluted earnings per
share was RMB0.65 (US$0.09 or HK$0.70). Non-GAAP diluted earnings per ADS
was RMB12.52 (US$1.73), an increase of 23% year-over-year. Non-GAAP
diluted earnings per share was RMB1.57 (US$0.22 or HK$1.70), an increase
of 23% year-over-year.
-- Net cash provided by operating activities was RMB27,520 million (US$3,792
million), an increase of 18% compared to RMB23,340 million in the same
quarter of 2024. Free cash flow, a non-GAAP measurement of liquidity, was
RMB3,743 million (US$516 million), a decrease of 76% compared to
RMB15,361 million in the same quarter of 2024, which was mainly
attributed to the increase in our cloud infrastructure expenditure,
partly offset by year-over-year increase of adjusted EBITDA.
In the fiscal year ended March 31, 2025:
-- Revenue was RMB996,347 million (US$137,300 million), an increase of 6%
year-over-year.
-- Income from operations was RMB140,905 million (US$19,417 million), an
increase of 24% year-over-year, primarily due to the decrease in
impairment of intangible assets and goodwill, the decrease in non-cash
share-based compensation expense and the increase in adjusted EBITA. We
excluded impairment of intangible assets and goodwill, and non-cash
share-based compensation expense from our non-GAAP measurements. Adjusted
EBITA, a non-GAAP measurement, increased 5% year-over-year to RMB173,065
million (US$23,849 million), primarily attributable to revenue growth and
improved operating efficiency, partly offset by the increase in
investments in our e-commerce businesses and technology.
-- Net income attributable to ordinary shareholders was RMB129,470 million
(US$17,841 million). Net income was RMB125,976 million (US$17,360
million), an increase of 77% year-over-year, primarily due to the
mark-to-market changes from our equity investments and the increase in
income from operations, partly offset by the losses arising from the
disposal of subsidiaries. Non-GAAP net income in fiscal year 2025 was
RMB158,122 million (US$21,790 million), which remained stable compared to
RMB157,479 million in fiscal year 2024.
-- Diluted earnings per ADS was RMB53.59 (US$7.38). Diluted earnings per
share was RMB6.70 (US$0.92 or HK$7.26). Non-GAAP diluted earnings per ADS
was RMB65.41 (US$9.01), an increase of 5% year-over-year. Non-GAAP
diluted earnings per share was RMB8.18 (US$1.13 or HK$8.86), an increase
of 5% year-over-year.
-- Net cash provided by operating activities was RMB163,509 million
(US$22,532 million), a decrease of 10% compared to RMB182,593 million in
fiscal year 2024. Free cash flow, a non-GAAP measurement of liquidity,
was RMB73,870 million (US$10,180 million), a decrease of 53% compared to
RMB156,210 million in fiscal year 2024, which was mainly attributed to
the increase in our cloud infrastructure expenditure, partly offset by
year-over-year increase of adjusted EBITDA.
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
For the quarter ended March 31, 2025, our customer management revenue grew 12% year-over-year to RMB71,077 million (US$9,794 million), primarily driven by the improvement of take rate year-over-year. Our take rate benefited from the impact of the software service fee and increasing penetration of Quanzhantui. Merchants benefit through Quanzhantui's convenience of use and improvement of marketing efficiency.
We continued to invest in user growth and other strategic initiatives such as price-competitive products, customer service, membership program benefits and AI technology applications to enhance user experience. These efforts led to stronger momentum in new consumer growth and continuous increase in orders.
On the merchant end, we remained focused on improving their operating environment and ensuring their sustainable development on our platform. In particular, we increased support of merchants that provide high-quality products and customer services, including support for marketing, new product launches and customer management.
The number of 88VIP members, our highest spending consumer group, continued to increase by double digits year-over-year, surpassing 50 million. We will continue to focus on improving the retention rate of 88VIP membership.
Alibaba International Digital Commerce Group ("AIDC")
For the quarter ended March 31, 2025, revenue from AIDC grew 22% year-over-year to RMB33,579 million (US$4,627 million), primarily driven by strong performance in cross-border businesses. During the quarter, AIDC continued to focus on enhancing operating and investment efficiency, leading to narrowed loss of the segment year-over-year. In particular, the unit economics of the AliExpress' Choice business improved on a sequential basis.
AIDC has a diverse geographical presence, with a consistent strategic focus on key regions such as select European markets and the Gulf Region. AliExpress and Trendyol, in particular, continue to diversify and enrich their product offerings by engaging local merchants and partners, through different business models in different markets. We believe that our diverse businesses and product offerings across geographies will continue to enhance our competitive advantages in the evolving global e-commerce landscape.
Cloud Intelligence Group
For the quarter ended March 31, 2025, revenue from Cloud Intelligence Group was RMB30,127 million (US$4,152 million), an increase of 18% year-over-year. During this quarter, the year-over-year growth of overall revenue excluding Alibaba-consolidated subsidiaries accelerated to 17%. This momentum was primarily driven by an even faster public cloud revenue growth, including the increasing adoption of AI-related products.
Notably, AI-related product revenue maintained triple-digit year-over-year growth for the seventh consecutive quarter. Our AI products are seeing broader adoption across a wide range of industry verticals including Internet, retail, manufacturing, and media, with a growing focus on value-added applications. For example, Lingma, our AI coding assistant launched last year, has seen strong adoption among enterprise customers and delivered robust revenue growth. We will continue to invest in anticipation of customer growth and technology innovation, including AI products and services, to increase cloud adoption for AI and maintain our market leadership.
In the 2025 Gartner$(R)$ Innovation Guide for Generative AI Technologies, which assessed vendors across four defined submarkets, Alibaba Cloud was the only Chinese provider named an Emerging Leader in all four areas: Generative AI Model Providers, Generative AI Engineering, Generative AI Specialized Cloud Infrastructure, and AI Knowledge Management Apps/General Productivity.
We remain committed to advancing multi-modal AI technology and expanding our open-source initiatives. In April, we launched the Qwen3 series, a new generation of hybrid reasoning models that combine the capabilities of fast, simple responses and deeper chain-of-thought reasoning into a single model. The Qwen3 series covers a full range of model sizes, including two MoE (Mixture-of-Experts) models and six dense models. The flagship MoE model, Qwen3-235B-A22B, with 235 billion parameters but only 22 billion activated parameters, delivers efficiency and world-leading performance in key benchmarks such as code generation, mathematics, and general reasoning. The smaller models, including the dense models and the lightweight MoE model Qwen3-30B-A3B, are designed for ease of adoption by developers and enterprises, while delivering strong performance at lower costs. All Qwen3 models have been fully open-sourced on ModelScope, Hugging Face, and other platforms. We believe the full open-sourcing of Qwen3 will drive innovation and new applications by developers, start-ups and enterprises.
Cainiao Smart Logistics Network Limited ("Cainiao")
For the quarter ended March 31, 2025, revenue of Cainiao Smart Logistics Network Limited was RMB21,573 million (US$2,973 million), a decrease of 12% year-over-year. This is the result of the increasing integration of logistics offerings into our e-commerce businesses.
Local Services Group
For the quarter ended March 31, 2025, revenue from Local Services Group grew 10% year-over-year to RMB16,134 million (US$2,223 million), driven by the order growth of both Amap and Ele.me, as well as revenue growth from marketing services.
For the quarter ended March 31, 2025, overall losses continued to narrow year-over-year as scale increased and unit economics improved due to operating efficiency.
Digital Media and Entertainment Group
For the quarter ended March 31, 2025, revenue of Digital Media and Entertainment Group was RMB5,554 million (US$765 million), an increase of 12% year-over-year, primarily driven by the strong performance of the movie and entertainment businesses and the increase in Youku's advertising revenue.
During the quarter, the adjusted EBITA of Digital Media and Entertainment Group turned positive, primarily driven by Youku's profitability.
Share Repurchases and Dividends
During the quarter ended March 31, 2025, we repurchased a total of 51 million ordinary shares (equivalent to 6 million ADSs) for a total of US$0.6 billion. These purchases were made in the U.S. market under our share repurchase program. For the fiscal year ended March 31, 2025, we repurchased a total of 1,197 million ordinary shares (equivalent to 150 million ADSs) for a total of US$11.9 billion, resulting in a net decrease of 995 million ordinary shares, or a 5.1% net reduction in our outstanding shares after accounting for shares issued under our ESOP.
Our board of directors has approved a two-part dividend in the total amount of US$0.25 per ordinary share or US$2.00 per ADS comprised of (i) an annual regular cash dividend for fiscal year 2025 in the amount of US$0.13125 per ordinary share or US$1.05 per ADS, and (ii) a one-time extraordinary cash dividend as a distribution of proceeds from disposition of certain businesses and financial investments in the amount of US$0.11875 per ordinary share or US$0.95 per ADS, in each case payable in U.S. dollars, to holders of ordinary shares and holders of ADSs, as of the close of business on June 12, 2025, Hong Kong Time and New York Time, respectively. The aggregate amount of the dividend will be approximately US$4.6 billion. As at the date hereof, the company does not hold any treasury shares whether in the Central Clearing and Settlement System, or otherwise. All the shares bought back by the company pending cancellation will not receive the annual dividend for the fiscal year ended March 31, 2025.
For holders of ordinary shares, in order to qualify for the dividend, all valid documents for the transfers of shares accompanied by the relevant share certificates must be lodged with the company's Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, not later than 4:30 p.m. on June 12, 2025, Hong Kong Time. The payment date is expected to be on or around July 3, 2025 for holders of ordinary shares and on or around July 10, 2025 for holders of ADSs.
MARCH QUARTER SUMMARY FINANCIAL RESULTS
Three months ended March 31,
----------------------------------------
2024 2025
------------ --------------------------
RMB RMB US$ YoY % Change
------------ ------------- ----------- ------------
(in millions, except percentages and per share
amounts)
Revenue 221,874 236,454 32,584 7%
Income from
operations 14,765 28,465 3,923 93%(2)
Operating
margin 7% 12%
Adjusted
EBITDA(1) 30,807 41,783 5,758 36%(3)
Adjusted
EBITDA
margin(1) 14% 18%
Adjusted
EBITA(1) 23,969 32,616 4,495 36%(3)
Adjusted EBITA
margin(1) 11% 14%
Net income 919 11,973 1,650 1203%(4)
Net income
attributable
to ordinary
shareholders 3,270 12,382 1,706 279%(4)
Non-GAAP net
income(1) 24,418 29,847 4,113 22%(4)
Diluted
earnings per
share(5) 0.16 0.65 0.09 296%(4)(6)
Diluted
earnings per
ADS(5) 1.30 5.17 0.71 296%(4)(6)
Non-GAAP
diluted
earnings per
share(1)(5) 1.27 1.57 0.22 23%(4)(6)
Non-GAAP
diluted
earnings per
ADS(1)(5) 10.14 12.52 1.73 23%(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 due to the increase in
adjusted EBITA and a decrease in non-cash share-based compensation
expense.
(3) The year-over-year increases were primarily attributable to revenue
growth and improved operating efficiency, partly offset by the increase
in investments in our e-commerce businesses and technology.
(4) The year-over-year increases were primarily due to the mark-to-market
changes from our equity investments, the increase in income from
operations and the decrease in impairment of equity method investments,
partly offset by the losses arising from the disposal of subsidiaries,
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 non-cash share-based compensation
expense, gains/losses of investments, impairment of goodwill and
intangible assets, 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.
MARCH QUARTER SEGMENT RESULTS
Revenue for the quarter ended March 31, 2025 was RMB236,454 million (US$32,584 million), an increase of 7% year-over-year compared to RMB221,874 million in the same quarter of 2024.
The following table sets forth a breakdown of our revenue by segment for the periods indicated:
Three months ended March 31,
--------------------------------
2024 2025
---------- --------------------
RMB RMB US$ YoY % Change
---------- ---------- -------- ------------
(in millions, except percentages)
Taobao and Tmall
Group:
China commerce
retail
- Customer
management 63,574 71,077 9,794 12%
- Direct sales and
others(1) 24,690 24,504 3,377 (1)%
---------- ---------- --------
88,264 95,581 13,171 8%
China commerce
wholesale 4,952 5,788 798 17%
---------- ---------- --------
Total Taobao and Tmall
Group 93,216 101,369 13,969 9%
Alibaba International
Digital Commerce
Group:
International
commerce retail 22,278 27,603 3,804 24%
International
commerce
wholesale 5,170 5,976 823 16%
---------- ---------- --------
Total Alibaba
International Digital
Commerce Group 27,448 33,579 4,627 22%
Cloud Intelligence
Group 25,595 30,127 4,152 18%
Cainiao Smart
Logistics Network
Limited 24,557 21,573 2,973 (12)%
Local Services Group 14,628 16,134 2,223 10%
Digital Media and
Entertainment Group 4,945 5,554 765 12%
All others(2) 51,458 53,988 7,440 5%
Unallocated 397 446 61
Inter-segment
elimination (20,370) (26,316) (3,626)
---------- ---------- --------
Consolidated revenue 221,874 236,454 32,584 7%
========== ========== ========
____________________
(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, as well as other revenue from value-added services.
(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 March 31,
--------------------------------
2024 2025
----------- -------------------
RMB RMB US$ YoY % Change(3)
----------- ---------- ------- ---------------
(in millions, except percentages)
Taobao and Tmall
Group 38,501 41,749 5,753 8%
Alibaba
International
Digital Commerce
Group (4,085) (3,574) (492) 13%
Cloud Intelligence
Group 1,432 2,420 333 69%
Cainiao Smart
Logistics Network
Limited (1,342) (606) (83) 55%
Local Services
Group (3,198) (2,316) (319) 28%
Digital Media and
Entertainment
Group (884) 36 5 N/A
All others(1) (2,818) (2,535) (349) 10%
Unallocated(2) (2,900) (2,030) (280)
Inter-segment
elimination (737) (528) (73)
----------- ---------- -------
Consolidated
adjusted EBITA 23,969 32,616 4,495 36%
Less: Non-cash
share-based
compensation
expense (7,123) (2,781) (383)
Less: Amortization
and impairment of
intangible assets,
and others (2,081) (1,370) (189)
----------- ---------- -------
Income from
operations 14,765 28,465 3,923 93%
=========== ========== =======
____________________
(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 March 31, 2025 was RMB95,581 million
(US$13,171 million), an increase of 8% compared to RMB88,264 million in
the same quarter of 2024. Customer management revenue increased by 12%
year-over-year, primarily driven by the improvement of take rate
year-over-year. Direct sales and others revenue under China commerce
retail business in the quarter ended March 31, 2025 was RMB24,504 million
(US$3,377 million), a decrease of 1% compared to RMB24,690 million in the
same quarter of 2024, primarily driven by the decrease in direct sales
revenue as a result of our planned reduction of certain direct sales
businesses, partly offset by the increase in revenue from value-added
services.
-- China Commerce Wholesale Business Revenue from our China commerce
wholesale business in the quarter ended March 31, 2025 was RMB5,788
million (US$798 million), an increase of 17% compared to RMB4,952 million
in the same quarter of 2024, primarily due to an increase in revenue from
value-added services provided to paying members.
(ii) Segment adjusted EBITA
Taobao and Tmall Group adjusted EBITA increased by 8% to RMB41,749 million (US$5,753 million) in the quarter ended March 31, 2025, compared to RMB38,501 million in the same quarter of 2024, primarily due to the increase in revenue from customer management service, partly offset by the increase in investments in user experience 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 March 31, 2025 was
RMB27,603 million (US$3,804 million), an increase of 24% compared to
RMB22,278 million in the same quarter of 2024, primarily driven by the
increase in revenue contributed by AliExpress 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 March 31, 2025 was
RMB5,976 million (US$823 million), an increase of 16% compared to
RMB5,170 million in the same quarter of 2024, primarily due to an
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 RMB3,574 million (US$492 million) in the quarter ended March 31, 2025, compared to a loss of RMB4,085 million in the same quarter of 2024, primarily due to Lazada's significant reduction in operating losses driven by its improvement in monetization and operating efficiency.
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was RMB30,127 million (US$4,152 million) in the quarter ended March 31, 2025, an increase of 18% compared to RMB25,595 million in the same quarter of 2024. Overall revenue excluding Alibaba-consolidated subsidiaries increased by 17% year-over-year, primarily driven by an even faster public cloud revenue growth, including the increasing adoption of AI-related products.
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA increased by 69% to RMB2,420 million (US$333 million) in the quarter ended March 31, 2025, compared to RMB1,432 million in the same quarter of 2024, primarily due to faster public cloud revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation.
Cainiao Smart Logistics Network Limited
(i) Segment revenue
Revenue from Cainiao Smart Logistics Network Limited was RMB21,573 million (US$2,973 million) in the quarter ended March 31, 2025, a decrease of 12% compared to RMB24,557 million in the same quarter of 2024, primarily due to the decrease in revenue from domestic logistics services as a result of our e-commerce businesses taking on certain logistics platform role.
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited adjusted EBITA was a loss of RMB606 million (US$83 million) in the quarter ended March 31, 2025, compared to a loss of RMB1,342 million in the same quarter of 2024, primarily due to retention incentives granted to Cainiao employees in connection with the withdrawal of its initial public offering in the same quarter last year.
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was RMB16,134 million (US$2,223 million) in the quarter ended March 31, 2025, an increase of 10% compared to RMB14,628 million in the same quarter of 2024, 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 RMB2,316 million (US$319 million) in the quarter ended March 31, 2025, compared to a loss of RMB3,198 million in the same quarter of 2024, as unit economics improved due to operating efficiency and increased scale.
Digital Media and Entertainment Group
(i) Segment revenue
Revenue from Digital Media and Entertainment Group was RMB5,554 million (US$765 million) in the quarter ended March 31, 2025, an increase of 12% compared to RMB4,945 million in the same quarter of 2024, primarily driven by the revenue growth of the movie and entertainment businesses of Alibaba Pictures.
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group adjusted EBITA in the quarter ended March 31, 2025 was a profit of RMB36 million (US$5 million), compared to a loss of RMB884 million in the same quarter of 2024, primarily due to the improved operating results of Youku.
All Others
(i) Segment revenue
Revenue from All others segment was RMB53,988 million (US$7,440 million) in the quarter ended March 31, 2025, an increase of 5% compared to RMB51,458 million in the same quarter of 2024, primarily due to the increase in revenue from Freshippo and Alibaba Health, partly offset by the decrease in revenue from Sun Art due to its sale and deconsolidation in February 2025.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the quarter ended March 31, 2025 was a loss of RMB2,535 million (US$349 million), compared to a loss of RMB2,818 million in the same quarter of 2024.
MARCH QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:
Three months ended March 31,
------------------------------------------ -------
2024 2025
---------------- ------------------------
% of
Revenue
% of % of YoY
RMB Revenue RMB US$ Revenue change
------- ------- ------- ------ ------- -------
(in millions, except percentages)
Costs and
expenses:
Cost of revenue 148,098 66.7% 145,626 20,068 61.6% (5.1)%
Product
development
expenses 14,085 6.3% 14,934 2,058 6.3% 0.0%
Sales and
marketing
expenses 28,826 13.0% 36,179 4,985 15.3% 2.3%
General and
administrative
expenses 14,019 6.3% 10,331 1,423 4.4% (1.9)%
Amortization and
impairment of
intangible
assets 2,081 0.9% 833 115 0.4% (0.5)%
------- ------- ------
Total costs and
expenses 207,109 207,903 28,649
======= ======= ======
Share-based
compensation
expense:
Cost of revenue 891 0.4% 417 57 0.2% (0.2)%
Product
development
expenses 2,037 0.9% 1,538 212 0.7% (0.2)%
Sales and
marketing
expenses 735 0.3% 654 90 0.3% 0.0%
General and
administrative
expenses 3,460 1.6% 826 114 0.3% (1.3)%
------- ------- ------
Total
share-based
compensation
expense(1) 7,123 3,435 473
======= ======= ======
Costs and
expenses
excluding
share-based
compensation
expense:
Cost of revenue 147,207 66.3% 145,209 20,011 61.4% (4.9)%
Product
development
expenses 12,048 5.4% 13,396 1,846 5.7% 0.3%
Sales and
marketing
expenses 28,091 12.7% 35,525 4,895 15.0% 2.3%
General and
administrative
expenses 10,559 4.8% 9,505 1,309 4.0% (0.8)%
Amortization and
impairment of
intangible
assets 2,081 0.9% 833 115 0.4% (0.5)%
------- ------- ------
Total costs and
expenses
excluding
share-based
compensation
expense 199,986 204,468 28,176
======= ======= ======
____________________
(1) This includes both cash and non-cash share-based compensation expenses.
Cost of revenue -- Cost of revenue in the quarter ended March 31, 2025 was RMB145,626 million (US$20,068 million), or 61.6% of revenue, compared to RMB148,098 million, or 66.7% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have decreased from 66.3% in the quarter ended March 31, 2024 to 61.4% in the quarter ended March 31, 2025, primarily due to the decrease in scale of low margin direct sales businesses, and improvement in monetization and operating efficiency.
Product development expenses -- Product development expenses in the quarter ended March 31, 2025 were RMB14,934 million (US$2,058 million), or 6.3% of revenue, compared to RMB14,085 million, or 6.3% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 5.4% in the quarter ended March 31, 2024 to 5.7% in the quarter ended March 31, 2025.
Sales and marketing expenses -- Sales and marketing expenses in the quarter ended March 31, 2025 were RMB36,179 million (US$4,985 million), or 15.3% of revenue, compared to RMB28,826 million, or 13.0% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 12.7% in the quarter ended March 31, 2024 to 15.0% in the quarter ended March 31, 2025, primarily due to our increased investments in e-commerce businesses.
General and administrative expenses -- General and administrative expenses in the quarter ended March 31, 2025 were RMB10,331 million (US$1,423 million), or 4.4% of revenue, compared to RMB14,019 million, or 6.3% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have decreased from 4.8% in the quarter ended March 31, 2024 to 4.0% in the quarter ended March 31, 2025.
Share-based compensation expense -- Total share-based compensation expense included in the cost and expense items above in the quarter ended March 31, 2025 was RMB3,435 million (US$473 million), compared to RMB7,123 million in the same quarter of 2024.
The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:
Three months ended March 31,
--------------------------------
2024 2025
----------- -------------------
RMB RMB US$ YoY % Change
----------- ----------- ------ ------------
(in millions, except percentages)
By type of awards:
Alibaba Group
share-based
awards(1) 4,350 2,712 374 (38)%
Ant Group share-based
awards(2) 25 9 1 (64)%
Others(3) 2,748 714 98 (74)%
----------- ----------- ------
Total share-based
compensation
expense(4) 7,123 3,435 473 (52)%
=========== =========== ======
____________________
(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 decreased in the quarter ended March 31, 2025 compared to the same quarter of 2024. This decrease was primarily due to the decrease in the number of the awards granted and the increase in long-term cash incentives granted after considering the macroeconomic environment and the general trends in the talent market.
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 and impairment of intangible assets -- Amortization and impairment of intangible assets in the quarter ended March 31, 2025 was RMB833 million (US$115 million), a decrease of 60% from RMB2,081 million in the same quarter of 2024.
Income from operations and operating margin
Income from operations in the quarter ended March 31, 2025 was RMB28,465 million (US$3,923 million), or 12% of revenue, an increase of 93% compared to RMB14,765 million, or 7% of revenue, in the same quarter of 2024, primarily due to the increase in adjusted EBITA and a decrease in non-cash share-based compensation expense.
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA increased 36% year-over-year to RMB41,783 million (US$5,758 million) in the quarter ended March 31, 2025, compared to RMB30,807 million in the same quarter of 2024. Adjusted EBITA increased 36% year-over-year to RMB32,616 million (US$4,495 million) in the quarter ended March 31, 2025, compared to RMB23,969 million in the same quarter of 2024, primarily attributable to revenue growth and improved operating efficiency, partly offset by the increase in investments in our e-commerce businesses and technology. 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 "March Quarter Segment Results" above.
Interest and investment income, net
Interest and investment income, net in the quarter ended March 31, 2025 was a loss of RMB7,516 million (US$1,036 million), compared to a loss of RMB5,702 million in the same quarter of 2024, primarily due to the losses arising from the disposal of subsidiaries, partly offset by the mark-to-market changes from our equity investments and the decrease in impairment of our investments.
The above-mentioned investment gains and losses were excluded from our non-GAAP net income.
Other income, net
Other income, net in the quarter ended March 31, 2025 was RMB20 million (US$3 million), a decrease of 99% compared to RMB2,963 million in the same quarter of 2024, primarily due to the net exchange loss in this quarter compared to the net exchange gain in the same quarter last year, arising from the exchange rate fluctuation between Renminbi and U.S. dollar.
Income tax expenses
Income tax expenses in the quarter ended March 31, 2025 were RMB6,854 million (US$945 million), compared to RMB5,722 million in the same quarter of 2024.
Share of results of equity method investees
Share of results of equity method investees in the quarter ended March 31, 2025 was a profit of RMB354 million (US$49 million), compared to a loss of RMB3,208 million in the same quarter of 2024. The following table sets forth a breakdown of share of results of equity method investees for the periods indicated:
Three months ended March 31,
--------------------------------
2024 2025
------------ ------------------
RMB RMB US$
------------ -------- --------
(in millions)
Share of profit (loss) of equity
method investees
- Ant Group 2,570 1,763 243
- Others 358 (981) (135)
Impairment loss (5,403) (43) (6)
Others(1) (733) (385) (53)
------------ -------- --------
Total (3,208) 354 49
============ ======== ========
____________________
(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 decrease in share of profit of Ant Group was mainly attributable to investments in new growth initiatives, partly offset by an increase in fair value of certain investments. Impairment loss decreased year-over-year as we recorded impairment losses of RMB5,403 million in the same quarter last year, primarily due to a prolonged decline in the public market value of an equity method investee against its carrying value.
Net income and Non-GAAP net income
Our net income in the quarter ended March 31, 2025 was RMB11,973 million (US$1,650 million), compared to RMB919 million in the same quarter of 2024, primarily due to the mark-to-market changes from our equity investments, the increase in income from operations, and the decrease in impairment of equity method investments, partly offset by the losses arising from the disposal of subsidiaries.
Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in the quarter ended March 31, 2025 was RMB29,847 million (US$4,113 million), an increase of 22% compared to RMB24,418 million in the same quarter of 2024. 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 March 31, 2025 was RMB12,382 million (US$1,706 million), compared to RMB3,270 million in the same quarter of 2024, primarily due to the mark-to-market changes from our equity investments, the increase in income from operations, and the decrease in impairment of equity method investments, partly offset by the losses arising from the disposal of subsidiaries.
Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended March 31, 2025 was RMB5.17 (US$0.71), compared to RMB1.30 in the same quarter of 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per ADS in the quarter ended March 31, 2025 was RMB12.52 (US$1.73), an increase of 23% compared to RMB10.14 in the same quarter of 2024.
Diluted earnings per share in the quarter ended March 31, 2025 was RMB0.65 (US$0.09 or HK$0.70), compared to RMB0.16 in the same quarter of 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per share in the quarter ended March 31, 2025 was RMB1.57 (US$0.22 or HK$1.70), an increase of 23% compared to RMB1.27 in the same quarter of 2024.
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.
Net cash provided by operating activities and free cash flow
During the quarter ended March 31, 2025, net cash provided by operating activities was RMB27,520 million (US$3,792 million), an increase of 18% compared to RMB23,340 million in the same quarter of 2024. Free cash flow, a non-GAAP measurement of liquidity, was RMB3,743 million (US$516 million), a decrease of 76% compared to RMB15,361 million in the same quarter of 2024. The decrease in free cash flow was mainly attributed to the increase in our cloud infrastructure expenditure, partly offset by year-over-year increase of adjusted EBITDA. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement.
Net cash used in investing activities
During the quarter ended March 31, 2025, net cash used in investing activities of RMB39,547 million (US$5,450 million) primarily reflected capital expenditures of RMB24,612 million (US$3,392 million) and an increase in other treasury investments by RMB15,248 million (US$2,101 million).
Net cash used in financing activities
During the quarter ended March 31, 2025, net cash used in financing activities of RMB4,102 million (US$565 million) primarily reflected cash used in repurchase of ordinary shares of RMB4,584 million (US$632 million) and acquisition of additional equity interests in non-wholly owned subsidiaries of RMB2,028 million (US$279 million), partly offset by net proceeds from bank borrowings of RMB3,418 million (US$471 million).
Employees
As of March 31, 2025, we had a total of 124,320 employees, compared to 194,320 as of December 31, 2024. The decrease in number of employees was mainly the result of sale and deconsolidation of Sun Art, partly offset by new hires.
FULL FISCAL YEAR SUMMARY FINANCIAL RESULTS
Year ended March 31,
---------------------------------------
2024 2025
------------ -------------------------
RMB RMB US$ YoY % Change
------------ ------------ ----------- -------------
(in millions, except percentages and per share
amounts)
Revenue 941,168 996,347 137,300 6%
Income from
operations 113,350 140,905 19,417 24%(2)
Operating
margin 12% 14%
Adjusted
EBITDA(1) 191,668 202,325 27,881 6%(3)
Adjusted
EBITDA
margin(1) 20% 20%
Adjusted
EBITA(1) 165,028 173,065 23,849 5%(3)
Adjusted EBITA
margin(1) 18% 17%
Net income 71,332 125,976 17,360 77%(4)
Net income
attributable
to ordinary
shareholders 79,741 129,470 17,841 62%(4)
Non-GAAP net
income(1) 157,479 158,122 21,790 0%(4)
Diluted
earnings per
share(5) 3.91 6.70 0.92 72%(4)(6)
Diluted
earnings per
ADS(5) 31.24 53.59 7.38 72%(4)(6)
Non-GAAP
diluted
earnings per
share(1)(5) 7.78 8.18 1.13 5%(4)(6)
Non-GAAP
diluted
earnings per
ADS(1)(5) 62.23 65.41 9.01 5%(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 due to the decrease in
impairment of intangible assets and goodwill, the decrease in non-cash
share-based compensation expense and the increase in adjusted EBITA.
(3) The year-over-year increases were primarily attributable to revenue
growth and improved operating efficiency, partly offset by the increase
in investments in our e-commerce businesses and technology.
(4) The year-over-year increases were primarily due to the mark-to-market
changes from our equity investments and the increase in income from
operations, partly offset by the losses arising from the disposal of
subsidiaries, 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 non-cash
share-based compensation expense, gains/losses of investments,
impairment of goodwill and intangible assets, 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.
FULL FISCAL YEAR SEGMENT RESULTS
Revenue for fiscal year 2025 was RMB996,347 million (US$137,300 million), an increase of 6% year-over-year compared to RMB941,168 million in fiscal year 2024.
The following table sets forth a breakdown of our revenue by segment for the periods indicated:
Year ended March 31,
-----------------------------
2024 2025
-------- -------------------
RMB RMB US$ YoY % Change
-------- --------- -------- ------------
(in millions, except percentages)
Taobao and Tmall Group:
China commerce retail
- Customer management 304,009 322,346 44,420 6%
- Direct sales and
others(1) 110,405 103,180 14,219 (7)%
-------- --------- --------
414,414 425,526 58,639 3%
China commerce
wholesale 20,479 24,301 3,349 19%
-------- --------- --------
Total Taobao and Tmall
Group 434,893 449,827 61,988 3%
Alibaba International
Digital Commerce Group:
International commerce
retail 81,654 108,465 14,947 33%
International commerce
wholesale 20,944 23,835 3,284 14%
-------- --------- --------
Total Alibaba
International Digital
Commerce Group 102,598 132,300 18,231 29%
Cloud Intelligence Group 106,374 118,028 16,265 11%
Cainiao Smart Logistics
Network Limited 99,020 101,272 13,956 2%
Local Services Group 59,802 67,076 9,243 12%
Digital Media and
Entertainment Group 21,145 22,267 3,068 5%
All others(2) 192,331 206,269 28,425 7%
Unallocated 1,297 1,924 265
Inter-segment elimination (76,292) (102,616) (14,141)
-------- --------- --------
Consolidated revenue 941,168 996,347 137,300 6%
======== ========= ========
____________________
(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, as well as other revenue from value-added services.
(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:
Year ended March 31,
---------------------------
2024 2025
-------- -----------------
RMB RMB US$ YoY % Change(3)
-------- -------- ------- ---------------
(in millions, except percentages)
Taobao and Tmall Group 194,827 196,232 27,041 1%
Alibaba International
Digital Commerce Group (8,035) (15,137) (2,086) (88)%
Cloud Intelligence Group 6,121 10,556 1,455 72%
Cainiao Smart Logistics
Network Limited 1,402 302 41 (78)%
Local Services Group (9,812) (3,689) $(508.SI)$ 62%
Digital Media and
Entertainment Group (1,539) $(554.SI)$ (76) 64%
All others(1) (9,160) (8,536) (1,176) 7%
Unallocated(2) (6,190) (4,337) (598)
Inter-segment
elimination (2,586) (1,772) (244)
-------- -------- -------
Consolidated adjusted
EBITA 165,028 173,065 23,849 5%
Less: Non-cash
share-based
compensation expense (18,546) (13,970) (1,925)
Less: Amortization and
impairment of
intangible assets (21,592) (6,336) (873)
Less: Impairment of
goodwill, and others (11,540) (11,854) (1,634)
-------- -------- -------
Income from operations 113,350 140,905 19,417 24%
======== ======== =======
____________________
(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 fiscal year 2025 was RMB425,526 million (US$58,639 million),
an increase of 3% compared to RMB414,414 million in fiscal year 2024.
Customer management revenue increased by 6% year-over-year, primarily
driven by the online GMV growth and improvement of take rate
year-over-year. Direct sales and others revenue under China commerce
retail business in fiscal year 2025 was RMB103,180 million (US$14,219
million), a decrease of 7% compared to RMB110,405 million in fiscal year
2024, primarily due to the decrease in direct sales revenue as a result
of our planned reduction of certain direct sales businesses, partly
offset by the increase in revenue from value-added services.
-- China Commerce Wholesale Business Revenue from our China commerce
wholesale business in fiscal year 2025 was RMB24,301 million (US$3,349
million), an increase of 19% compared to RMB20,479 million in fiscal year
2024, primarily due to an increase in revenue from value-added services
provided to paying members.
(ii) Segment adjusted EBITA
Taobao and Tmall Group adjusted EBITA increased by 1% to RMB196,232 million (US$27,041 million) in fiscal year 2025, compared to RMB194,827 million in fiscal year 2024, primarily due to the increase in revenue from customer management service, partly offset by the increase in investments in user experience and technology.
Alibaba International Digital Commerce Group
(i) Segment revenue
-- International Commerce Retail Business Revenue from our International
commerce retail business in fiscal year 2025 was RMB108,465 million
(US$14,947 million), an increase of 33% compared to RMB81,654 million in
fiscal year 2024, primarily driven by the increase in revenue contributed
by AliExpress 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 fiscal year 2025 was RMB23,835 million
(US$3,284 million), an increase of 14% compared to RMB20,944 million in
fiscal year 2024, primarily due to an 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 RMB15,137 million (US$2,086 million) in fiscal year 2025, compared to a loss of RMB8,035 million in fiscal year 2024, primarily due to the increase in investments in AliExpress and Trendyol's cross-border businesses, partly offset by Lazada's significant reduction in operating losses due to its improvement in monetization and operating efficiency, as well as improvements in profitability of Trendyol's domestic businesses.
Cloud Intelligence Group
(i) Segment revenue
Revenue from Cloud Intelligence Group was RMB118,028 million (US$16,265 million) in fiscal year 2025, an increase of 11% compared to RMB106,374 million in fiscal year 2024. Overall revenue excluding Alibaba-consolidated subsidiaries increased by 10% year-over-year, primarily driven by an even faster public cloud revenue growth, including the increasing adoption of AI-related products.
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA increased by 72% to RMB10,556 million (US$1,455 million) in fiscal year 2025, compared to RMB6,121 million in fiscal year 2024, primarily due to faster public cloud revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation.
Cainiao Smart Logistics Network Limited
(i) Segment revenue
Revenue from Cainiao Smart Logistics Network Limited was RMB101,272 million (US$13,956 million) in fiscal year 2025, an increase of 2% compared to RMB99,020 million in fiscal year 2024, primarily driven by the increase in revenue from cross-border fulfillment solutions, partly offset by the decrease in revenue from domestic logistics services as a result of our e-commerce businesses taking on certain logistics platform role.
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited adjusted EBITA decreased by 78% to RMB302 million (US$41 million) in fiscal year 2025, compared to RMB1,402 million in fiscal year 2024, primarily due to the decrease in profits from cross-border fulfillment solutions.
Local Services Group
(i) Segment revenue
Revenue from Local Services Group was RMB67,076 million (US$9,243 million) in fiscal year 2025, an increase of 12% compared to RMB59,802 million in fiscal year 2024, 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 RMB3,689 million (US$508 million) in fiscal year 2025, compared to a loss of RMB9,812 million in fiscal year 2024, as unit economics improved due to operating efficiency and increased scale.
Digital Media and Entertainment Group
(i) Segment revenue
Revenue from Digital Media and Entertainment Group was RMB22,267 million (US$3,068 million) in fiscal year 2025, an increase of 5% compared to RMB21,145 million in fiscal year 2024, driven by the strong revenue growth of the movie and entertainment businesses of Alibaba Pictures, and Youku.
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group adjusted EBITA in fiscal year 2025 was a loss of RMB554 million (US$76 million), compared to a loss of RMB1,539 million in fiscal year 2024, primarily due to the narrowing of loss from Youku.
All Others
(i) Segment revenue
Revenue from All others segment was RMB206,269 million (US$28,425 million) in fiscal year 2025, an increase of 7% compared to RMB192,331 million in fiscal year 2024, primarily due to the increase in revenue from Freshippo and Alibaba Health, partly offset by the decrease in revenue from Sun Art due to its sale and deconsolidation in February 2025.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in fiscal year 2025 was a loss of RMB8,536 million (US$1,176 million), compared to a loss of RMB9,160 million in fiscal year 2024, primarily due to improved operating results from Sun Art, Freshippo and Alibaba Health, partly offset by the increased investment in technology businesses.
FULL FISCAL YEAR OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:
Year ended March 31,
------------------------------------------- -------
2024 2025
---------------- -------------------------
% of
Revenue
% of % of YoY
RMB Revenue RMB US$ Revenue change
------- ------- ------- ------- ------- -------
(in millions, except percentages)
Costs and
expenses:
Cost of revenue 586,323 62.3% 598,285 82,446 60.0% (2.3)%
Product
development
expenses 52,256 5.6% 57,151 7,876 5.7% 0.1%
Sales and
marketing
expenses 115,141 12.2% 144,021 19,847 14.5% 2.3%
General and
administrative
expenses 41,985 4.5% 44,239 6,096 4.4% (0.1)%
Amortization and
impairment of
intangible
assets 21,592 2.3% 6,336 873 0.6% (1.7)%
Impairment of
goodwill 10,521 1.1% 6,171 850 0.6% (0.5)%
------- ------- -------
Total costs and
expenses 827,818 856,203 117,988
======= ======= =======
Share-based
compensation
expense:
Cost of revenue 3,012 0.3% 2,162 298 0.2% (0.1)%
Product
development
expenses 7,623 0.8% 6,700 923 0.7% (0.1)%
Sales and
marketing
expenses 2,265 0.2% 2,137 295 0.2% 0.0%
General and
administrative
expenses 5,646 0.6% 4,578 631 0.5% (0.1)%
------- ------- -------
Total
share-based
compensation
expense(1) 18,546 15,577 2,147
======= ======= =======
Costs and
expenses
excluding
share-based
compensation
expense:
Cost of revenue 583,311 62.0% 596,123 82,148 59.8% (2.2)%
Product
development
expenses 44,633 4.7% 50,451 6,953 5.1% 0.4%
Sales and
marketing
expenses 112,876 12.0% 141,884 19,552 14.2% 2.2%
General and
administrative
expenses 36,339 3.9% 39,661 5,465 4.0% 0.1%
Amortization and
impairment of
intangible
assets 21,592 2.3% 6,336 873 0.6% (1.7)%
Impairment of
goodwill 10,521 1.1% 6,171 850 0.6% (0.5)%
------- ------- -------
Total costs and
expenses
excluding
share-based
compensation
expense 809,272 840,626 115,841
======= ======= =======
____________________
(1) This includes both cash and non-cash share-based compensation expenses.
Cost of revenue -- Cost of revenue in fiscal year 2025 was RMB598,285 million (US$82,446 million), or 60.0% of revenue, compared to RMB586,323 million, or 62.3% of revenue, in fiscal year 2024. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have decreased from 62.0% in fiscal year 2024 to 59.8% in fiscal year 2025, primarily due to the decrease in scale of low margin direct sales businesses, and improvement in monetization and operating efficiency.
Product development expenses -- Product development expenses in fiscal year 2025 were RMB57,151 million (US$7,876 million), or 5.7% of revenue, compared to RMB52,256 million, or 5.6% of revenue, in fiscal year 2024. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 4.7% in fiscal year 2024 to 5.1% in fiscal year 2025.
Sales and marketing expenses -- Sales and marketing expenses in fiscal year 2025 were RMB144,021 million (US$19,847 million), or 14.5% of revenue, compared to RMB115,141 million, or 12.2% of revenue, in fiscal year 2024. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 12.0% in fiscal year 2024 to 14.2% in fiscal year 2025, primarily due to our increased investments in e-commerce businesses.
General and administrative expenses -- General and administrative expenses in fiscal year 2025 were RMB44,239 million (US$6,096 million), or 4.4% of revenue, compared to RMB41,985 million, or 4.5% of revenue, in fiscal year 2024. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have increased from 3.9% in fiscal year 2024 to 4.0% in fiscal year 2025.
Share-based compensation expense -- Total share-based compensation expense included in the cost and expense items above in fiscal year 2025 was RMB15,577 million (US$2,147 million), compared to RMB18,546 million in fiscal year 2024.
The following table sets forth our analysis of share-based compensation expense for the periods indicated by type of share-based awards:
Year ended March 31,
-------------------------
2024 2025
--------- --------------
RMB RMB US$ YoY % Change
--------- ------- ----- ------------
(in millions, except percentages)
By type of awards:
Alibaba Group share-based
awards(1) 17,974 11,121 1,533 (38)%
Ant Group share-based
awards(2) (6,691) 4 1 N/A
Others(3) 7,263 4,452 613 (39)%
--------- ------- -----
Total share-based
compensation expense(4) 18,546 15,577 2,147 (16)%
========= ======= =====
____________________
(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 decreased in fiscal year 2025 compared to fiscal year 2024. This decrease was primarily due to the decrease in the number of the awards granted and the increase in long-term cash incentives granted after considering the macroeconomic environment and the general trends in the talent market.
Share-based compensation expense related to Ant Group share-based awards was a net reversal in fiscal year 2024 because we made a mark-to-market adjustment during the fiscal year relating to Ant Group share-based awards granted to our employees, reflecting a decrease in the value of Ant Group.
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 and impairment of intangible assets -- Amortization and impairment of intangible assets in fiscal year 2025 was RMB6,336 million (US$873 million), a decrease of 71% from RMB21,592 million in fiscal year 2024. In fiscal year 2025, impairment of intangible assets of RMB634 million (US$87 million) was recorded mainly relating to our businesses within All others segment. In fiscal year 2024, an impairment of intangible assets of RMB12,084 million was recorded relating to Sun Art within All others segment.
Impairment of goodwill -- Impairment of goodwill in fiscal year 2025 was RMB6,171 million (US$850 million), a decrease of 41% from RMB10,521 million in fiscal year 2024, which mainly related to Digital Media and Entertainment Group and All others segment.
Income from operations and operating margin
Income from operations in fiscal year 2025 was RMB140,905 million (US$19,417 million), or 14% of revenue, an increase of 24% compared to RMB113,350 million, or 12% of revenue, in fiscal year 2024, primarily due to the decrease in impairment of intangible assets and goodwill, the decrease in non-cash share-based compensation expense and the increase in adjusted EBITA.
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA increased 6% year-over-year to RMB202,325 million (US$27,881 million) in fiscal year 2025, compared to RMB191,668 million in fiscal year 2024. Adjusted EBITA increased 5% year-over-year to RMB173,065 million (US$23,849 million) in fiscal year 2025, compared to RMB165,028 million in fiscal year 2024, primarily attributable to revenue growth and improved operating efficiency, partly offset by the increase in investments in our e-commerce businesses and technology. 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 "Full Fiscal Year Segment Results" above.
Interest and investment income, net
Interest and investment income, net in fiscal year 2025 was a gain of RMB20,759 million (US$2,861 million), compared to a loss of RMB9,964 million in fiscal year 2024, primarily due to the mark-to-market changes from our equity investments and the decrease in impairment of our investments, partly offset by the losses arising from the disposal of subsidiaries.
The above-mentioned gains and losses were excluded from our non-GAAP net income.
Other income, net
Other income, net in fiscal year 2025 was RMB3,387 million (US$467 million), a decrease of 45% compared to RMB6,157 million in fiscal year 2024, primarily due to change in input VAT super-credit rate from 5% to 0% in calendar year 2024.
Income tax expenses
Income tax expenses in fiscal year 2025 were RMB35,445 million (US$4,884 million), compared to RMB22,529 million in fiscal year 2024.
Share of results of equity method investees
Share of results of equity method investees in fiscal year 2025 was a profit of RMB5,966 million (US$822 million), compared to a loss of RMB7,735 million in fiscal year 2024. The following table sets forth a breakdown of share of results of equity method investees for the periods indicated:
Year ended March 31,
------------------------
2024 2025
-------- --------------
RMB RMB US$
-------- ------- -----
(in millions)
Share of profit (loss) of equity method
investees
- Ant Group 7,860 12,648 1,743
- Others (2,154) (2,276) (314)
Impairment loss (9,895) (2,723) (375)
Others(1) (3,546) (1,683) (232)
-------- ------- -----
Total (7,735) 5,966 822
======== ======= =====
____________________
(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 attributable to an increase in fair value of certain investments, partly offset by the investments in new growth initiatives.
Net income and Non-GAAP net income
Our net income in fiscal year 2025 was RMB125,976 million (US$17,360 million), compared to RMB71,332 million in fiscal year 2024, primarily due to the mark-to-market changes from our equity investments and the increase in income from operations, partly offset by the losses arising from the disposal of subsidiaries.
Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in fiscal year 2025 was RMB158,122 million (US$21,790 million), which remained stable compared to RMB157,479 million in fiscal year 2024. 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 fiscal year 2025 was RMB129,470 million (US$17,841 million), compared to RMB79,741 million in fiscal year 2024, primarily due to the mark-to-market changes from our equity investments and the increase in income from operations, partly offset by the losses arising from the disposal of subsidiaries.
Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in fiscal year 2025 was RMB53.59 (US$7.38), compared to RMB31.24 in fiscal year 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per ADS in fiscal year 2025 was RMB65.41 (US$9.01), an increase of 5% compared to RMB62.23 in fiscal year 2024.
Diluted earnings per share in fiscal year 2025 was RMB6.70 (US$0.92 or HK$7.26), compared to RMB3.91 in fiscal year 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per share in fiscal year 2025 was RMB8.18 (US$1.13 or HK$8.86), an increase of 5% compared to RMB7.78 in fiscal year 2024.
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 March 31, 2025, cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use, were RMB597,132 million (US$82,287 million), compared to RMB617,230 million as of March 31, 2024. Other treasury investments consist of fixed deposits, certificates of deposit 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 year ended March 31, 2025, was primarily due to cash used in repurchase of ordinary shares of RMB86,662 million (US$11,942 million), dividend payment of RMB29,077 million (US$4,007 million), acquisition of additional equity interests in non-wholly owned subsidiaries of RMB21,949 million (US$3,025 million), repayment of unsecured senior notes of RMB16,220 million (US$2,235 million) and net cash outflow of RMB7,662 million (US$1,056 million) for investment and acquisition activities, partly offset by free cash flow generated from operations of RMB73,870 million (US$10,180 million) and net proceeds from the issuance of unsecured and convertible senior notes and the payments for capped call transactions of RMB67,032 million (US$9,237 million).
Net cash provided by operating activities and free cash flow
Net cash provided by operating activities in fiscal year 2025 was RMB163,509 million (US$22,532 million), a decrease of 10% compared to RMB182,593 million in fiscal year 2024. Free cash flow, a non-GAAP measurement of liquidity, was RMB73,870 million (US$10,180 million), a decrease of 53% compared to RMB156,210 million in fiscal year 2024. The decrease in free cash flow was mainly attributed to the increase in our cloud infrastructure expenditure, partly offset by year-over-year increase of adjusted EBITDA. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement.
Net cash used in investing activities
During fiscal year 2025, net cash used in investing activities of RMB185,415 million (US$25,551 million) primarily reflected an increase in other treasury investments by RMB126,041 million (US$17,369 million) and capital expenditures of RMB85,972 million (US$11,847 million), partly offset by a decrease in short-term investments by RMB23,395 million (US$3,224 million).
Net cash used in financing activities
During fiscal year 2025, net cash used in financing activities of RMB76,215 million (US$10,502 million) primarily reflected cash used in repurchase of ordinary shares of RMB86,662 million (US$11,942 million), dividend payment of RMB29,077 million (US$4,007 million) and acquisition of additional equity interests in non-wholly owned subsidiaries of RMB21,949 million (US$3,025 million), partly offset by net proceeds from the issuance of unsecured and convertible senior notes and the payments for capped call transactions of RMB67,032 million (US$9,237 million).
Employees
As of March 31, 2025, we had a total of 124,320 employees, compared to 204,891 as of March 31, 2024. The decrease in number of employees was mainly the result of sale and deconsolidation of Sun Art, partly offset by new hires.
WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group's management will hold a conference call to discuss the financial results at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Hong Kong Time) on Thursday, May 15, 2025.
All participants must pre-register to join this conference call using the Participant Registration link below:
English: https://s1.c-conf.com/diamondpass/10046682-j7a0c5.html
Chinese: https://s1.c-conf.com/diamondpass/10046685-k9a6cf.html
Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference.
A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en/ir/earnings. An archived webcast will be available through the same link following the call. A replay of the conference call will be available for one week from the date of the conference (Dial-in number: +1 855 883 1031; English conference PIN 10046682; Chinese conference PIN 10046685).
Please visit Alibaba Group's Investor Relations website at https://www.alibabagroup.com/en/ir/home on May 15, 2025 to view the earnings release and accompanying slides prior to the conference call.
ABOUT ALIBABA GROUP
Alibaba Group's mission is to make it easy to do business anywhere. The company aims to build the future infrastructure of commerce. It envisions that its customers will meet, work and live at Alibaba, and that it will be a good company that lasts for 102 years.
EXCHANGE RATE INFORMATION
This results announcement contains translations of certain Renminbi ("RMB") amounts into U.S. dollars ("US$") and Hong Kong dollars ("HK$") for the convenience of the reader. Unless otherwise stated, all translations of RMB into US$ were made at RMB7.2567 to US$1.00, the exchange rate on March 31, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board, and all translations of RMB into HK$ were made at RMB0.92283 to HK$1.00, the middle rate on March 31, 2025 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, its financial results, return on investments, strategic investments and dispositions and 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; risks related to strategic transactions; 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; changes to our shareholder return initiatives; 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 March 31, Year ended March 31,
------------------------------ ------------------------------
2024 2025 2024 2025
--------- ------------------- --------- -------------------
RMB RMB US$ RMB RMB US$
--------- --------- -------- --------- --------- --------
(in millions, except per share (in millions, except per share
data) data)
Revenue 221,874 236,454 32,584 941,168 996,347 137,300
Cost of revenue (148,098) (145,626) (20,068) (586,323) (598,285) (82,446)
Product development
expenses (14,085) (14,934) (2,058) (52,256) (57,151) (7,876)
Sales and marketing
expenses (28,826) (36,179) (4,985) (115,141) (144,021) (19,847)
General and
administrative
expenses (14,019) (10,331) (1,423) (41,985) (44,239) (6,096)
Amortization and
impairment of
intangible assets (2,081) (833) (115) (21,592) (6,336) (873)
Impairment of
goodwill -- -- -- (10,521) (6,171) (850)
Other (losses) gains,
net -- (86) (12) -- 761 105
--------- --------- -------- --------- --------- --------
Income from
operations 14,765 28,465 3,923 113,350 140,905 19,417
Interest and
investment income,
net (5,702) (7,516) (1,036) (9,964) 20,759 2,861
Interest expense (2,177) (2,496) (344) (7,947) (9,596) (1,323)
Other income, net 2,963 20 3 6,157 3,387 467
--------- --------- -------- --------- --------- --------
Income before income
tax and share of
results of equity
method investees 9,849 18,473 2,546 101,596 155,455 21,422
Income tax expenses (5,722) (6,854) (945) (22,529) (35,445) (4,884)
Share of results of
equity method
investees (3,208) 354 49 (7,735) 5,966 822
--------- --------- -------- --------- --------- --------
Net income 919 11,973 1,650 71,332 125,976 17,360
Net loss attributable
to noncontrolling
interests 2,446 586 81 8,677 4,133 569
--------- --------- -------- --------- --------- --------
Net income
attributable to
Alibaba Group
Holding Limited 3,365 12,559 1,731 80,009 130,109 17,929
Accretion of
mezzanine equity (95) (177) (25) (268) (639) (88)
--------- --------- -------- --------- --------- --------
Net income
attributable to
ordinary
shareholders 3,270 12,382 1,706 79,741 129,470 17,841
========= ========= ======== ========= ========= ========
Earnings per share
attributable to
ordinary
shareholders(1)
Basic 0.17 0.67 0.09 3.95 6.89 0.95
Diluted 0.16 0.65 0.09 3.91 6.70 0.92
Earnings per ADS
attributable to
ordinary
shareholders(1)
Basic 1.32 5.36 0.74 31.61 55.12 7.60
Diluted 1.30 5.17 0.71 31.24 53.59 7.38
Weighted average
number of shares
used in calculating
earnings per
ordinary share
(million shares)(1)
Basic 19,763 18,487 20,182 18,791
Diluted 19,980 19,153 20,359 19,318
____________________
(1) Each ADS represents eight ordinary shares.
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
As of March 31, As of March 31,
--------------- ------------------
2024 2025
--------------- ------------------
RMB RMB US$
--------------- --------- -------
(in millions)
Assets
Current assets:
Cash and cash equivalents 248,125 145,487 20,049
Short-term investments 262,955 228,826 31,533
Restricted cash and escrow
receivables 38,299 43,781 6,033
Equity securities and other
investments 59,949 53,780 7,411
Prepayments, receivables and
other assets 143,536 202,175 27,860
--------------- --------- -------
Total current assets 752,864 674,049 92,886
Equity securities and other
investments 220,942 356,818 49,171
Prepayments, receivables and other
assets 116,102 83,431 11,497
Investment in equity method
investees 203,131 210,169 28,962
Property and equipment, net 185,161 203,348 28,022
Intangible assets, net 26,950 20,911 2,882
Goodwill 259,679 255,501 35,209
--------------- --------- -------
Total assets 1,764,829 1,804,227 248,629
=============== ========= =======
Liabilities, Mezzanine Equity and
Shareholders' Equity
Current liabilities:
Current bank borrowings 12,749 22,562 3,109
Current unsecured senior notes 16,252 -- --
Income tax payable 9,068 11,638 1,604
Accrued expenses, accounts
payable and other liabilities 297,883 332,537 45,825
Merchant deposits 12,737 274 37
Deferred revenue and customer
advances 72,818 68,335 9,417
--------------- --------- -------
Total current liabilities 421,507 435,346 59,992
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)
As of March 31, As of March 31,
--------------- ------------------
2024 2025
--------------- ------------------
RMB RMB US$
--------------- --------- -------
(in millions)
Deferred revenue 4,069 4,536 625
Deferred tax liabilities 53,012 48,454 6,677
Non-current bank borrowings 55,686 49,909 6,878
Non-current unsecured senior notes 86,089 122,398 16,867
Non-current convertible unsecured
senior notes -- 35,834 4,938
Other liabilities 31,867 17,644 2,432
--------------- --------- -------
Total liabilities 652,230 714,121 98,409
--------------- --------- -------
Commitments and contingencies
Mezzanine equity 10,728 11,713 1,613
Shareholders' equity:
Ordinary shares 1 1 --
Additional paid-in capital 397,999 381,379 52,555
Treasury shares at cost (27,684) (36,329) (5,006)
Statutory reserves 14,733 15,936 2,196
Accumulated other comprehensive
income 3,598 3,393 468
Retained earnings 597,897 645,478 88,949
--------------- --------- -------
Total shareholders' equity 986,544 1,009,858 139,162
Noncontrolling interests 115,327 68,535 9,445
--------------- --------- -------
Total equity 1,101,871 1,078,393 148,607
--------------- --------- -------
Total liabilities, mezzanine equity
and equity 1,764,829 1,804,227 248,629
=============== ========= =======
ALIBABA GROUP HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March
31, Year ended March 31,
--------------------------- ------------------------------
2024 2025 2024 2025
-------- ----------------- --------- -------------------
RMB RMB US$ RMB RMB US$
-------- -------- ------- --------- --------- --------
(in millions) (in millions)
Net cash
provided by
operating
activities 23,340 27,520 3,792 182,593 163,509 22,532
Net cash
provided by
(used in)
investing
activities 20,267 (39,547) (5,450) (21,824) (185,415) (25,551)
Net cash used
in financing
activities (54,012) (4,102) (565) (108,244) (76,215) (10,502)
Effect of
exchange rate
changes on
cash and cash
equivalents,
restricted
cash and
escrow
receivables 1,900 $(569.SI)$ (78) 4,389 965 133
-------- -------- ------- --------- --------- --------
(Decrease)
Increase in
cash and cash
equivalents,
restricted
cash and
escrow
receivables (8,505) (16,698) (2,301) 56,914 (97,156) (13,388)
Cash and cash
equivalents,
restricted
cash and
escrow
receivables
at beginning
of period 294,929 205,966 28,383 229,510 286,424 39,470
-------- -------- ------- --------- --------- --------
Cash and cash
equivalents,
restricted
cash and
escrow
receivables
at end of
period 286,424 189,268 26,082 286,424 189,268 26,082
======== ======== ======= ========= ========= ========
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
March 31, Year ended March 31,
----------------------- --------------------------
2024 2025 2024 2025
------- -------------- ------- -----------------
RMB RMB US$ RMB RMB US$
------- ------ ------ ------- -------- -------
(in millions) (in millions)
Net income 919 11,973 1,650 71,332 125,976 17,360
Adjustments to
reconcile net
income to
adjusted EBITA
and adjusted
EBITDA:
Interest and
investment
income, net 5,702 7,516 1,036 9,964 (20,759) (2,861)
Interest
expense 2,177 2,496 344 7,947 9,596 1,323
Other income,
net (2,963) (20) (3) (6,157) (3,387) (467)
Income tax
expenses 5,722 6,854 945 22,529 35,445 4,884
Share of
results of
equity method
investees 3,208 (354) (49) 7,735 (5,966) (822)
------- ------ ------ ------- -------- -------
Income from
operations 14,765 28,465 3,923 113,350 140,905 19,417
Non-cash
share-based
compensation
expense 7,123 2,781 383 18,546 13,970 1,925
Amortization
and
impairment of
intangible
assets 2,081 833 115 21,592 6,336 873
Impairment of
goodwill, and
others -- 537 74 11,540 11,854 1,634
------- ------ ------ ------- -------- -------
Adjusted EBITA 23,969 32,616 4,495 165,028 173,065 23,849
Depreciation
and
impairment of
property and
equipment,
and operating
lease cost
relating to
land use
rights 6,838 9,167 1,263 26,640 29,260 4,032
------- ------ ------ ------- -------- -------
Adjusted EBITDA 30,807 41,783 5,758 191,668 202,325 27,881
======= ====== ====== ======= ======== =======
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
March 31, Year ended March 31,
----------------------- -------------------------
2024 2025 2024 2025
------- -------------- ------- ----------------
RMB RMB US$ RMB RMB US$
------- ------ ------ ------- ------- -------
(in millions) (in millions)
Net income 919 11,973 1,650 71,332 125,976 17,360
Adjustments to reconcile net income
to non-GAAP net income:
Non-cash share-based compensation
expense 7,123 2,781 383 18,546 13,970 1,925
Amortization and impairment of
intangible assets 2,081 833 115 21,592 6,336 873
Loss (Gain) on deemed
disposals/disposals/revaluation
of investments 4,994 12,306 1,696 21,659 (8,764) (1,208)
Impairment of goodwill and
investments, and others 10,657 897 123 33,679 22,435 3,092
Tax effects(1) (1,356) 1,057 146 (9,329) (1,831) (252)
------- ------ ------ ------- ------- -------
Non-GAAP net income 24,418 29,847 4,113 157,479 158,122 21,790
======= ====== ====== ======= ======= =======
____________________
(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
March 31, Year ended March 31,
---------------------- -------------------------
2024 2025 2024 2025
------ -------------- ------- ----------------
RMB RMB US$ RMB RMB US$
------ ------ ------ ------- ------- -------
(in millions, except (in millions, except per
per share data) share data)
Net income
attributable to
ordinary
shareholders --
basic 3,270 12,382 1,706 79,741 129,470 17,841
Dilution effect on
earnings arising
from non-cash
share-based awards
operated by equity
method investees and
subsidiaries (15) (82) (11) (228) (300) (41)
Adjustments for
interest expense
attributable to
convertible
unsecured senior
notes -- 70 10 -- 235 32
------ ------ ------ ------- ------- -------
Net income
attributable to
ordinary
shareholders --
diluted 3,255 12,370 1,705 79,513 129,405 17,832
Non-GAAP adjustments
to net income
attributable to
ordinary
shareholders(1) 22,073 17,610 2,426 78,846 28,535 3,933
------ ------ ------ ------- ------- -------
Non-GAAP net income
attributable to
ordinary
shareholders for
computing non-GAAP
diluted earnings per
share/ADS 25,328 29,980 4,131 158,359 157,940 21,765
------ ------ ------ ------- ------- -------
Weighted average
number of shares on
a diluted basis for
computing non-GAAP
diluted earnings per
share/ADS (million
shares)(2) 19,980 19,153 20,359 19,318
Diluted earnings per
share(2)(3) 0.16 0.65 0.09 3.91 6.70 0.92
Non-GAAP diluted
earnings per
share(2)(4) 1.27 1.57 0.22 7.78 8.18 1.13
Diluted earnings per
ADS(2)(3) 1.30 5.17 0.71 31.24 53.59 7.38
Non-GAAP diluted
earnings per
ADS(2)(4) 10.14 12.52 1.73 62.23 65.41 9.01
____________________
(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 March
31, Year ended March 31,
--------------------------- ----------------------------
2024 2025 2024 2025
-------- ----------------- -------- ------------------
RMB RMB US$ RMB RMB US$
-------- -------- ------- -------- -------- --------
(in millions) (in millions)
Net cash provided
by operating
activities 23,340 27,520 3,792 182,593 163,509 22,532
Less: Purchase of
property and
equipment
(excluding land
use rights and
construction in
progress relating
to office
campuses) (10,174) (23,993) (3,306) (27,579) (84,278) (11,614)
Less: Purchase of
intangible assets
(excluding those
acquired through
acquisitions) -- -- -- (842) -- --
Less: Changes in
the buyer
protection fund
deposits 2,195 216 30 2,038 (5,361) (738)
-------- -------- ------- -------- -------- --------
Free cash flow 15,361 3,743 516 156,210 73,870 10,180
======== ======== ======= ======== ======== ========
View source version on businesswire.com: https://www.businesswire.com/news/home/20250514856295/en/
CONTACT: Investor Relations Contact
Lydia Liu
Head of Investor Relations
Alibaba Group Holding Limited
investor@alibaba-inc.com
Media Contacts
Cathy Yan
cathy.yan@alibaba-inc.com
Ivy Ke
ivy.ke@alibaba-inc.com
(END) Dow Jones Newswires
May 15, 2025 05:35 ET (09:35 GMT)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.