BEIJING — Chinese technology giant Alibaba Group expects to rake in more than 500 billion renminbi, or $72 billion, in fiscal 2020, it shared on Wednesday, as the group revealed its top line for the year ended March surged 51 percent, on the back of strong core commerce growth.
Revenue for the group overall reached 93.5 billion renminbi, or $13.93 billion, while adjusted EBITDA increased 29 percent year-over-year to 25.17 billion, or $3.75 billion. Non-GAAP net income was 20.06 billion renminbi, or $2.99 billion, an increase of 42 percent year-over-year.
“We delivered another strong quarter and excellent fiscal year, led by fiscal year revenue growth of 51 percent as well as robust user growth and engagement across our ecosystem,” said Maggie Wu, chief financial officer of Alibaba Group.
“Over the years, our steady profit growth and cash flow have enabled us to strengthen our core business, invest in new businesses and create unique value for our customers. These investments have expanded our total addressable market and positioned us well for long-term growth. Looking ahead to fiscal 2020, we expect revenue to be over 500 billion renminbi, reflecting our confidence and positive momentum going forward.”
The core retail business saw a strong uptick in user acquisition thanks to higher referrals from its payments platform, Alipay, and a revamp of the Taobao app, which added a more community content in the form of curated posts, short videos, and live-streams. On China retail marketplaces, Alibaba’s total GMV came to 5.73 trillion renminbi, or $853 billion, up 19 percent year, keeping the company on track to reach their goal of topping $1 trillion total by fiscal year-end 2020.
Annual active consumers on Alibaba’s China retail marketplaces reached 654 million, an increase of 18 million at the end of last year, while mobile monthly active users on our China retail marketplaces reached 721 million at the end of March, an increase of 22 million. More than 70 percent of the growth in annual active consumers was from less developed cities.
“Growing e-commerce competition in China hasn’t stopped Alibaba from leading the way, adding more additional dollars than most of their closest competitors combined,” said eMarketer analyst Monica Peart. “Despite its massive size, it continues to grow at the rate of the market. Therefore, any share taken by its competitors will be hard won as technology-enhanced ‘smart retail’ becomes the new frontier for all players.”
The company also addressed ratcheted up trade tensions between China and the U.S. Joseph Tsai, Alibaba executive vice chairman, said “The trade talks put aisle on Alibaba on the right side of all the issues on the table.”
“We’re not concerned about slowing China exports affecting GDP growth because the Chinese economy is shifting from an export economy to a domestic consumption economy,” Tsai said. “Job expansion is continuing in China. Over the last five years, while China lost 14 million manufacturing jobs, the economy added 70 million service jobs that drove real disposable income growth and consumption.”
The middle class in China has surpassed 300 million, almost as large as the entire U.S. population, he noted, and is set to double over the next 10 years.