E-commerce giant Alibaba reported revenue of 53.2 billion yuan ($7.7 billion), a steep 54 percent year-on-year increase for the quarter ending Dec. 31, 2016.
The company’s core commerce business, which increased by 45 percent, accounted for 46.6 billion yuan ($6.7 billion) of the overall revenue, while diversification into cloud computing; media and entertainment; and innovation made up the balance.
Net income for the quarter was 17.2 billion yuan ($2.5 billion) and income from operations was 20.7 billion yuan ($3 billion).
“Our robust December quarter demonstrates the strength of the Chinese consumer and Alibaba’s ability to create value across our vast ecosystem,” said Daniel Zhang, chief executive officer of Alibaba Group. “The 11.11 Shopping Festival featured Alibaba at its best, integrating commerce, entertainment and social engagement, all happening globally at record scale.”
The Nov. 11 Single’s Day, was a revenue driver. Alibaba processed 175,000 orders per second, which totaled 120.7 billion yuan ($17.4 billion), 82 percent of which occurred on mobile.
The company also credits investments in data-driven engagement, cloud computer, digital media and entertainment for revenue gains. Also, its “New Retail” solution allows it to capitalize on more of China’s $4.8 trillion retail sector. Through New Retail, Alibaba is leveraging its consumer reach and big data capabilities to partner with brick-and-mortar retailers through equity investments and operational integration for truly omnichannel engagement.
Alibaba remains focused on growing internationally with investments in Tmall Global for imports, AliExpress for exports and Lazada in the Southeast Asian market.
Based on these results, the company has adjusted its guidance up from 48 percent to 53 percent for the 2017 fiscal year.