Executive Summary

• Alibaba reported 4Q18 revenues of ¥61.9 billion, up 61% year over year. The company attributed the strong results to the robust revenue growth from its core commerce segment, as well as the Alibaba Cloud business.
• Core commerce revenues reached ¥51.3 billion, up 62% year over year.International retail revenues were up 63% year over year, primarily driven by robust gross merchandise volume (GMV) from AliExpress and Lazada.
• Cloud computing sales reached ¥4.4 billion, up 103% year over year, driven by robust growth in paying customers, as well as increased usage of cloud services.
• Alibaba expects revenue growth for 2019 to be over 60% year over year, although its margin will continue to be squeezed due to heavy investments to sustain long-term growth.