The Alibaba Group Reports Q4 2022 Financial Results

Mar 16, 2023

(Image Source: Alibaba)

The financial results for the quarter ending December 31, 2022, were released by Alibaba Group Holding Ltd.

Report Highlights

  • Revenue rose by 2% year over year to RMB247,756 million (US$35,921 million).

  • Operating income was RMB35,031 million (US$5,079 million), up 396% or RMB27,963 million over the previous year. This rise was principally the result of an RMB22,427 million decline in goodwill impairment related to the Digital media and entertainment sector. Non-GAAP metrics do not include the impairment of goodwill. Adjusted EBITA, a non-GAAP metric, increased 16% year-over-year to RMB52,048 million (US$7,546 million).

  • The company reported a net profit of RMB46,815,000,000 ($6,788,000,00) for common shareholders. The company's non-GAAP net income was RMB49,932,000,000 ($7,239,000,000), up by 12% year-on-year.

  • Per ADS, earnings were RMB17.91 ($2.60), and per share, earnings were RMB2.24 ($0.32 or HK$2.51). Increases of 14% were reported for both non-GAAP diluted earnings per ADS (RMB19.26; USD$2.79) and non-GAAP diluted earnings per share (RMB2.41; USD$0.35; HK$2.70).

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In comparison to the same period in 2021, net cash created by operating operations increased by 9% to RMB87,370 million (US$12,668 million). The company's free cash flow grew by 15% year-over-year to RMB81,514 million (US$11,818 million) in the third quarter of 2022, compared to the RMB71,022 million generated in the same period one year prior.

Alibaba Group Chairman and CEO Daniel Zhang stated, "We executed a good quarter despite lower demand, supply chain, and logistical interruptions owing to the effect of changes in COVID-19 measures. We anticipate that consumer confidence and economic activity will continue to improve in the near future. Our top priorities are expanding our client base in the face of intense competition and providing stable, long-term returns to our investors."

During the previous quarter, Alibaba improved operating efficiency and cost optimization that contributed to the significant profit growth. Notwithstanding market fluctuations, Alibaba has maintained a robust net cash position and excellent cash flow.

"During the quarter ended December 31, 2022, we repurchased 45.4 million ADSs (American Depositary Shares) for approximately US$3.3 billion under our share repurchase program as part of our ongoing commitment to improve our shareholder return," remarked Toby Xu, Chief Financial Officer of Alibaba Group.

Source: Alibaba Group Announces December Quarter 2022 Results

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