Alibaba Group (BABA) Q1 2025 earnings summary

Executive summary

• Revenue for the June 2024 quarter rose 4% year-over-year to RMB243.2 billion ($33.5 billion), with Taobao and Tmall Group showing high single-digit GMV growth and double-digit order growth, and cloud business showing positive momentum.

• Adjusted EBITDA/EBITA decreased 1% year-over-year to RMB45.0 billion ($6.2 billion), reflecting increased investments in technology, user experience, and core businesses.

• Net income attributable to ordinary shareholders was RMB24.3 billion ($3.34 billion), down 29% year-over-year, mainly due to lower operating income, higher tax expenses, and investment impairments.

• Alibaba repurchased $5.8 billion in shares, including transactions linked to convertible note issuance, reducing outstanding shares by 2.3% sequentially.

• Free cash flow dropped to RMB17.4 billion ($2.4 billion), mainly due to increased AI/cloud infrastructure investment and working capital changes.

Financial highlights

• Total consolidated revenue was RMB243.2 billion, up 4% year-over-year.

• Adjusted EBITDA/EBITA was RMB45.0 billion, down 1% year-over-year; non-GAAP net income was RMB40.7 billion, down 9%; GAAP net income was RMB24 billion, down 27%.

• Diluted EPS was RMB1.24, down 26% year-over-year; non-GAAP diluted EPS was RMB2.05, down 5%.

• Free cash flow was RMB17.4 billion, down from RMB39.1 billion a year ago.

• Net cash position as of June 30, 2024, was RMB405.7 billion ($55.8 billion); cash and equivalents, short-term and other treasury investments totaled RMB613.7 billion ($84.4 billion).

Outlook and guidance

• Management continues to invest in AI/cloud infrastructure and technology to drive future growth, with CMR growth expected to align with GMV as new monetization tools and service fees are rolled out.

• Alibaba Cloud external revenue expected to return to double-digit growth in the second half of the fiscal year, with AI products driving more than half of the growth.

• Most loss-making businesses targeted to break even within 1–2 years and contribute to profitability at scale.

• Continued high CapEx investment in AI infrastructure anticipated for the next several quarters, with high ROI expected due to strong demand.

• Ongoing share repurchases signal confidence in future performance.