On August 20, Alibaba Group Holding Ltd. (NYSE: BABA) reported net income of 10.44 billion yuan ($1.54 billion) in the first reporting quarter, or 3.71 yuan per American Depositary Share (ADS), compared with profit of 42.38 billion yuan (17.98 yuan per ADS) a year earlier.
On an adjusted basis, Alibaba earned 8.52 yuan ($1.26) per ADS. Alibaba’s revenue increased to 268.95 billion yuan ($39.64 billion) from 247.65 billion yuan a year earlier. Adjusted earnings were expected at 11.28 yuan per ADS on revenue of 268.52 billion yuan ($39.79 billion). Revenue from the company’s cloud division (including AI services) rose 45% to 48.4 billion yuan.
Capital expenditures increased 75% to 67.7 billion Chinese yuan ($10 billion), primarily driven by uneven timing of customer procurement, increased processor computing power, and higher prices across a wide range of microchips.