Alibaba (BABA) FY3Q17 Results: Another Solid Quarter Thanks to Robust Online Ad Growth

Executive Summary

• Alibaba reported FY3Q17 revenue of ¥53.3 billion, up 54.1% year over year, and beat consensus by 6%. The company attributed the strong results to robust growth of online marketing service revenue, as well as growth in commission revenue and consumer usage.
• Core commerce revenue reached ¥46.6 billion, up 45% year over year. The growth was mainly driven by the 42% year-over-year increase in China retail revenue of ¥40.8 billion. International retail revenue growth also accelerated to 288% year over year, thanks to AliExpress and Lazada.
• Cloud computing sales reached ¥1.8 billion, up 115% year over year, driven by a 99.7% year-over-year increase in the number of paying customers to 765,000, as well as an increase in their usage of cloud computing.
• Alibaba raised its  full-year FY17 revenue growth guidance to 53% from 48%.