Alibaba Holding Co. (BABA – Get Report) posted stronger-than-expected fourth quarter earnings Wednesday as consumer growth on its online marketplace surged and its tie-up with Starbucks (SBUX – Get Report), the world's largest coffee chain, helped boost revenues and its cloud computing sales surged.
Alibaba said non-GAAP earnings in March, the company's fourth quarter, $ 1.27 per share, 39.5% of the same year last year Consensus forecast of 95 cents per share. Group revenues rose 41% to $ 13,932 billion and again topped analysts' estimates of $ 13.33 billion.
Cloud computing revenues, Alibaba said, rose 76% from last year to 7.726 million Chinese yuan ($ 1
"More and more, Alibaba is synonymous with everyday consumption in China, growing our base to 654 million annual active consumers and extending our penetration in less-developed cities," said CEO Daniel Zhang. "Our cloud and data technology and tremendous traction in New Retail have enabled us to continuously transform the way businesses operate in China and other emerging markets, which will contribute to our long-term growth."
Alibaba's US-listed shares were marked 4.5% higher in pre-market trading immediately following the earnings release to indicate the opening price of $ 182.46 each, and to move that year-to-date gain to around 33%.
Alibaba said its tie-up with Starbucks, which includes on-demand delivery, had 2,100 stores in 35 cities in China, and the Alipay and Taobao apps had helped accelerate membership gains for the Starbucks reward program.