Alibaba Group Holding Ltd. announced its financial results for the quarter ending Dec. 31, 2024. For its fiscal Q3, Alibaba highlighted robust revenue growth in its ecommerce and cloud computing divisions.
The company’s international B2B ecommerce segment, Alibaba International Digital Commerce Group (AIDC), recorded a significant 32% year-over-year revenue increase. It reached $5.17 billion, fueled by cross-border business expansion.
Eddie Wu, CEO of Alibaba Group, emphasized the company’s strategic focus on AI-driven growth and user engagement.
“This quarter’s results demonstrated substantial progress in our ‘user first, AI-driven’ strategies and the re-accelerated growth of our core businesses,” Wu said. “We will continue to execute against our strategic priorities in ecommerce and cloud computing, including further investment to drive long-term growth.”
Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both platforms operate in China and primarily serve the Chinese market. Among Alibaba’s other marketplaces is the global B2B marketplace Alibaba.com.
Alibaba revenue in Q3
Total Alibaba revenue in Q3 reached $38.38 billion. That’s an 8% year-over-year increase.
Its income from operations was $5.65 billion, up 83% from the previous year. Meanwhile, its net income was $6.71 billion, marking a 333% rise.
The revenue growth was driven by gains across multiple segments, particularly within AIDC and cloud computing, despite increased investments in global expansion and AI technology.
Alibaba’s ecommerce divisions continued to show solid performance. Taobao and Tmall Group, the company’s core retail platforms, saw a 9% year-over-year increase in customer management revenue, totaling $13.81 billion. Alibaba attributed this growth to enhanced user experience and monetization strategies, as well as increased merchant engagement. The 88VIP loyalty program expanded to 49 million members, reflecting Alibaba’s focus on customer retention and premium services.
AIDC’s international commerce retail business saw a 36% revenue surge, reaching $4.32 billion. Key drivers included increased consumer spending on AliExpress and strong performances from Trendyol and Lazada. However, expanded investments in overseas shopping festivals and European and Gulf market penetration resulted in operating losses. The company’s newly announced joint venture with Shinsegae in South Korea aims to strengthen AliExpress Korea and Gmarket’s presence in the region.
The Cloud Intelligence Group reported a 13% year-over-year revenue increase to $4.35 billion, marking a resurgence in growth. AI-related products continued their momentum with triple-digit growth for the sixth consecutive quarter.
“Revenue growth at Cloud Intelligence Group driven by AI will continue to accelerate,” Wu noted.
He underscored the importance of Alibaba’s investment in AI infrastructure. Looking ahead, Alibaba remains focused on expanding AI-driven commerce solutions and cloud services, the company says.
Check back in for more earnings updates. Here’s last quarter’s update about Alibaba revenue and earnings.
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