Alibaba, often called as the fastest growing cloud company in the world, has once again declared stellar results for the third that ended in September.
A statement released by the company says that overall sales increased by 61 percent, and this includes both its cloud computing and core ecommerce businesses. The cloud computing revenue alone rose by 99 percent to reach $447 million for the quarter. Much of this increase is attributed to value-added services that the company offered to its customers such as content delivery network, security services, data analysis and more. The addition of these services lead to an increase in the number of paying customers, and this is what led to the surge in revenue for the company.
Further, the company said that it wants to capitalize on its cloud business and to this end, it wants to invest $15 billion over the next three years. Much of this money is expected to go towards research and development and also, to further expand its portfolio of cloud services for customers.
Besides cloud, its core ecommerce business also did well for Alibaba. It climbed 63 percent to fetch about $6.98 billion for the company during the last quarter. Much of this revenue came from new active users, that increased to 549 million during the last three months. These numbers go to show the power that Alibaba yields in the Chinese ecommerce market.
These numbers blew past the analysts expectations, which is again not a surprise. The company reported a non-GAAP revenue of $8.3 billion or $1.29 per share while analysts were expecting just $7.9 billion or $1.09 per share.
Due to these impressive numbers, the company raised its full-year revenue growth to a range of 49 to 53 percent. Earlier, it was pegged at a range of 45 to 49 percent.
Such impressive growth numbers are a sure threat to the cloud industry giants, namely, AWS, Microsoft and Google. Though Alibaba is not even in the range of what these three giants earn, it could catch up over time, if Alibaba is able to produce the same results over the next few years.
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