Alibaba (BABA) 2Q17 RESULTS: REVENUE BEATS CONSENSUS ON STRONG GROWTH IN E-COMMERCE AND MEDIA

Executive Summary

• Alibaba reported 2Q17 non-GAAP diluted EPS of US$0.79, ahead of the US$0.70 consensus estimate and up 7% year over year. Revenues were US$5.14 billion, up 54.7% year over year and above the consensus estimates.
• Core commerce revenue totaled ¥49 billion (US$4.23 billion) for 2Q17, an increase of 40.8% year over year. Cloud Computing and Digital Media & Entertainment both recorded triple-digit year-over-year growth in revenue.
• Strong margin in the core Commerce segment will help the company to continue investment in future growth areas.