Alibaba quarterly revenue beats estimates, with fastest growth in cloud computing business

The conglomerate’s revenue has grown by 42% year-on-year.

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Alibaba disclosed on Thursday that it booked RMB 114.9 billion (USD 16.7 billion) in revenue for the quarter ending June 30 — the first quarter of the company’s 2020 fiscal year — increasing by 42% year-on-year and beating the market estimate consensus of USD 15.86 billion.

Mobile monthly active users on Alibaba’s China retail marketplaces reached 755 million in June, an increase of 34 million over the count in March.

Its quarterly revenue for cloud computing grew 66% year-over-year to RMB 7.8 billion, primarily driven by an increase in average revenue per customer.

Tencent, another internet giant, disclosed one day earlier that it made RMB 88.8 billion in revenue in the second quarter of this year, up 21% year-on-year.

Although lagging behind Alibaba in total revenue in the same quarter, Tencent managed to generate larger net profits, which reached RMB 24.7 billion, up 33% year-on-year, while Alibaba’s net income hit RMB 19.1 billion.

Alibaba did not provide a year-on-year comparison for its net income, but added that its non-GAAP net income was RMB 30.9 billion, an increase of 54% year-over-year. Non-GAAP net income forgoes one-off factors.