Alibaba is gearing up for a spending spree as it looks to move past its antitrust issues.
Alibaba generated RMB 187.39 billion (USD 28.6 billion) in total revenue in its latest quarterly earnings announced Thursday, up 64% year-over-year (YoY), and exceeding market expectations of RMB 180 billion (USD 27.9 billion).
However, the March quarter wasn’t all positive, as the company also recorded a net loss of RMB 5.47 billion (USD 850 million) for the three months, while many analysts had expected a profit during the period. The company is embarking on a new round of investments to augment its existing offerings, targeting areas like supply chain, customer and merchant management, and other complementary sectors.
Alibaba added 32 million annual active customers to its marketplace platforms in China, bringing its total count to 811 million. Notably, 70% of these new users hail from rural areas and lower-tier cities. Alibaba has been revving up services in these locations to stem the rise of Shanghai-based rival Pinduoduo.
While it is still not certain whether the RMB 18.2 billion (USD 2.8 billion) fine from China’s State Administration for Market Regulation would spell the end of Alibaba’s regulatory headaches, the company’s CEO Daniel Zhang sought to assuage investor concerns. “We believe the best way to overcome these challenges is to look forward and invest for the long term to create value for our customers through technology and innovation and to solve major problems in society,” Zhang told investors on the earnings call.
