On May 14th, Alibaba released its performance for the quarter ended March 31, 2024 and the fiscal year 2024 (from April 1, 2023 to March 31, 2024). The financial report shows that the company's revenue for the quarter increased by 7% year-on-year to RMB 221.874 billion, while the adjusted EBITA (a non GAAP financial indicator) decreased by 5% year-on-year to RMB 23.969 billion, mainly due to increased investment in e-commerce business and retention incentives granted to Cainiao employees.
In the fiscal year 2024, Alibaba Group's revenue reached 941.168 billion yuan, and adjusted EBITA profit increased by 12% year-on-year to 165.028 billion yuan.
The financial report shows that as of March 31, 2024, the total transaction volume (GMV) and order volume of Taobao and Tmall products have achieved double-digit growth year-on-year, with 88VIP members exceeding 35 million, maintaining double-digit growth. Driven by strong growth in the number of purchasing users and transaction frequency, Taotian Group achieved a revenue of 93.216 billion yuan, a year-on-year increase of 4%, and a year-on-year increase of 5% in customer management fee (CMR) revenue, which is expected to meet the expectations of the comprehensive supermarket market.
When discussing the business and strategic progress of Taotian Group, the financial report pointed out that "we are increasing strategic investment in areas such as price competitive product supply, customer service, membership system rights and technology, aiming to improve user experience, thereby increasing consumer retention rate and increasing purchase frequency.". Based on this strategy, Taobao and Tmall have launched intensive reform measures this quarter, increasing investment in related fields.
Since the end of December last year, Taobao has successively launched a series of measures, including a refund only policy, free shipping services in Xinjiang, use before pay, upgrading the store experience rating system, and comprehensive renovation of the web version, to comprehensively optimize the user experience. For 88VIP and other member users, Taobao has also introduced value-added services such as unlimited returns, free shipping, and points for cash red envelopes, deepening the product optimization strategy centered on user experience.
According to the store opening data released by Tmall in the first quarter of 2024, the number of new merchants has increased by 60% year-on-year, with sports outdoor, smart home, health and wellness, pet exquisite care, trendy clothing, high-end skincare and other fields becoming new growth hotspots. The year-on-year growth rate of new merchants has exceeded 100%.
Alibaba Group CEO Wu Yongming said, "This quarter's performance indicates that our strategy is effective, and Alibaba is returning to the growth track. By focusing on user experience, the GMV of Taotian and international e-commerce businesses has achieved double-digit year-on-year growth." He said that Alibaba will continue to firmly execute the strategic focus and seize growth opportunities for the future.