Alibaba expects its revenues to grow 60% in fiscal 2019
Chinese tech giant Alibaba (BABA) continues to see robust revenue growth. In fiscal 4Q18 (quarter ended March 2018), the company’s revenues grew 61.0% from fiscal 4Q17 to reach ~61.9 billion yuan (~$9.9 billion). The company expects its revenues to grow 60.0% in the next fiscal year.
The e-commerce giant’s net profit in fiscal 4Q18 fell 29.0% from fiscal 4Q17 to ~7.6 billion yuan (~$1.2 billion). However, this decline was due to a one-time gain in fiscal 4Q17. Excluding this one-time gain, its profit grew 37.0% year-over-year (or YoY).
Alibaba expects the strength in its e-Commerce and Cloud segments to drive its fiscal 2019 revenues. The company’s Cloud segment grew 100.0% in fiscal 4Q18, reaching 13.4 billion yuan ($2.1 billion). Its core e-Commerce business saw revenue growth of 62.0% YoY in fiscal 4Q18, reaching ~51.3 billion yuan (or $8.2 billion). This segment includes China’s largest online retail sites, Taobao and Tmall.
Alibaba is on an acquisition spree
Alibaba (BABA) has been on an acquisition streak lately as it looks for more avenues of growth. Alibaba invested $2.0 billion in Southeast Asian retail company Lazada in March, in addition to the $2.0 billion stake it acquired last year. The company also invested more than $5.0 billion for the full buyout of Ele.me, China’s largest online food delivery company.
Alibaba stock was up 7.1% on May 7 since releasing its fiscal 4Q18 reports on May 4. BABA stock is up 13.3% in 2018 year-to-date.