March Quarter 2017 Results
March Quarter 2017 Results
March Quarter 2017 Results
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Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “potential,” “continue,” “ongoing,” “targets,” “guidance”
and similar statements. Among other things, statements that are not historical facts, including statements about Alibaba’s
strategies and business plans, Alibaba’s beliefs and expectations regarding the growth of its businesses and its revenue for the full
fiscal year, the business outlook and quotations from management in this presentation, as well as Alibaba’s strategic and
operational plans, are or contain forward-looking statements. Alibaba may also make forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the “SEC”), in press releases and other written materials and in oral
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uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking
statement, including but not limited to the following: Alibaba’s goals and strategies; Alibaba’s future business development;
Alibaba’s ability to maintain the trusted status of its ecosystem, reputation and brand; risks associated with increased investments
in Alibaba’s business and new business initiatives; risks associated with strategic acquisitions and investments; Alibaba’s ability to
retain or increase engagement of consumers, merchants and other participants in its ecosystem and enable new offerings;
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concerns; competition; security breaches; the continued growth of the e-commerce market in China and globally; risks associated
with the performance of our business partners, including but not limited to Ant Financial, and fluctuations in general economic and
business conditions in China and globally and assumptions underlying or related to any of the foregoing. Further information
regarding these and other risks is included in Alibaba’s filings with the SEC. All information provided in this presentation is as of the
date of this presentation and are based on assumptions that we believe to be reasonable as of this date, and Alibaba does not
undertake any obligation to update any forward-looking statement, except as required under applicable law.
This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the
United States (“GAAP”), including adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted EPS and free cash
flow. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see GAAP to
Non-GAAP Reconciliation.
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March Quarter 2017 Financial Highlights
Notes: Unless otherwise indicated, all figures above are for the three months ended March 31, 2017.
(1) For the month ended March 31, 2017; in a given month, the number of unique mobile devices that were used to visit or access certain of
our mobile applications at least once during that month.
(2) All translations of RMB into US$ were made at RMB6.8832 to US$1.00.
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Quarterly Revenue
• Total revenue YoY growth of 60% was mainly driven by the robust revenue growth across all our
segments, in particular our China commerce retail revenue growth.
• Our revenue is more diversified. Revenue from China commerce retail business represents 67%
of total revenue, down from 76% in the same quarter of 2016.
47% 47%
45%
38.6
34.3 41%
32.2 39%
24.2
37%
40.8
23.4 24.1 25.8
18.3
Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31,
2016 2016 2016 2016 2017 2016 2016 2016 2016 2017
China commerce retail revenue Others Total revenue YoY growth rate (%)
Core commerce revenue YoY growth rate (%)
Note: For the three months ended on the respective dates.
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Continued Upward Trend in Monetizing User Base
Annual China Retail Revenue / Annual Active Buyer (1) Annual China Retail Mobile Revenue / Mobile MAU (2)
(RMB) (RMB)
260 200
US$36(3) US$26(3)
240 180
220 160
200 140
180 120
160 100
140 80
120 60
Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31,
2015 2015 2015 2016 2016 2016 2016 2017 2015 2015 2015 2016 2016 2016 2016 2017
Notes:
(1) China commerce retail revenue per active buyer for each of the above periods is calculated by dividing the China commerce retail
revenue for the last 12-month period by the annual active buyers for the same 12-month period.
(2) Annual mobile revenue per mobile MAU from China commerce retail is calculated by dividing mobile revenue from China commerce
retail for the last 12-month period by the mobile MAUs for the last month of the same period.
(3) All translations of RMB into US$ were made at RMB6.8832 to US$1.00.
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User Growth - Active Buyers & Mobile MAUs
460 507
454 500 493
450
443 450
439 450
440 427
434
410
430
400
423
420
350
410
400 300
For 12M Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, For 1M Mar 31, Jun 30, Sep 30, Dec 31, Mar 31,
ended 2016 2016 2016 2016 2017 ended 2016 2016 2016 2016 2017
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Quarterly Cost Trends
35% 37% 8% 5% 8%
18.5
14.3
Mar 31, 2016 Dec 31, 2016 Mar 31, 2017 Mar 31, 2016 Dec 31, 2016 Mar 31, 2017
Sales & Marketing Expenses (Excluding SBC) General & Administrative Expenses (Excluding SBC)
(RMB Bn) (RMB Bn)
% of % of
10% 8% 10% 4% 4% 6%
Revenue Revenue
4.1 3.9
2.3 2.1 2.2
1.0
Mar 31, 2016 Dec 31, 2016 Mar 31, 2017 Mar 31, 2016 Dec 31, 2016 Mar 31, 2017
International Commerce
Wholesale
Mar 17 RMB 31,570 RMB 2,163 RMB 3,927 RMB 919 RMB 38,579
Revenue US$ 4,587 US$ 314 US$ 571 US$ 133 - US$ 5,605
(MM) 47% YoY 103% YoY 234% YoY 88% YoY 60% YoY
Mar 17 Adjusted
RMB 18,579 RMB (169) RMB (1,711) RMB (682) RMB (866) RMB 15,151
EBITA
US$ 2,699 US$ (24) US$ (249) US$ (99) US$ (126) US$ 2,201
(MM)
Mar 17
Adjusted EBITA 59% (8%) (44%) (74%) 39%
Margin (%)
Mar 16 Adjusted
EBITA Margin 59% (16%) (17%) (210%) 43%
(%)
Notes:
1. Segmental information is presented after elimination of inter-company transactions.
2. Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments.
3. All translations of RMB into US$ were made at RMB6.8832 to US$1.00. 9
Fiscal 2017 Highlights
Notes: Unless otherwise indicated, all figures above are for the twelve months ended March 31, 2017.
(1) All translations of RMB into US$ were made at RMB6.8832 to US$1.00.
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Fiscal 2017 Segment Reporting
Core Commerce Cloud Digital Media Innovation Un- Consolidated
Computing Entertainment Initiatives allocated(2)
& Others
China Commerce Retail
International Commerce
Wholesale
RMB 133,880 RMB 6,663 RMB 14,733 RMB 2,997 RMB 158,273
F17 Revenue
US$ 19,450 US$ 968 US$ 2,141 US$ 435 - US$ 22,994
(MM)
45% YoY 121% YoY 271% YoY 65% YoY 56% YoY
F17 Adjusted RMB 82,432 RMB (476) RMB (6,542) RMB (3,125) RMB (3,117) RMB 69,172
EBITA (MM) US$ 11,976 US$ (69) US$ (951) US$ (454) US$ (453) US$ 10,049
F17 Adjusted
EBITA 62% (7%) (44%) (104%) 44%
Margin (%)
F16 Adjusted
EBITA 63% (41%) (46%) (191%) 48%
Margin (%)
Notes:
1. Segmental information is presented after elimination of inter-company transactions.
2. Unallocated expenses are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments.
3. All translations of RMB into US$ were made at RMB6.8832 to US$1.00. 11
Share of Results of Equity Investees
Our share of Koubei’s loss for the quarter ended December 31, 2016, which we picked up in arrears in our income
statements in the quarter ended March 31, 2017, reflects Koubei’s higher promotional spending in the December quarter.
The share of results of equity investees in fiscal year 2017 was a loss of RMB5,027 million, as compared to a loss of
RMB1,730 million in fiscal year 2016, primarily due to an increase in share of losses of Cainiao Network and other equity
investees, as well as an accounting loss related to the dilution of our ownership interest in Weibo in fiscal year 2017, which
resulted from Weibo’s issuance of share-based compensation, as compared to accounting gains related the dilution of our
ownership interests in Cainiao Network and Evergrande FC, as these investees each raised capital at a higher valuation in
fiscal year 2016.
In RMB MM unless otherwise stated Mar Q 2016 Dec Q 2016 Mar Q 2017 FY2016 FY2017
Share of profit (loss) of equity investees:
- Koubei (762) (237) (505) (867) (990)
- Youku Tudou** (152) – – (391) –
- Cainiao Network (94) (234) (375) (295) (1,056)
- Other equity investees (102) (373) (41) 62 (838)
Impairment loss – (245) – – (245)
Dilution gains (losses) 745 (82) (61) 827 (336)
Others* (347) (377) (462) (1,066) (1,562)
TOTAL (712) (1,548) (1,444) (1,730) (5,027)
* Others mainly include amortization of intangible assets of equity investees and share-based compensation expenses.
** We began consolidating the results of Youku Tudou in the quarter ended June 30, 2016, and consequently, ceased to account for our investments in Youku Tudou as an equity method
investee. 12
GAAP to Adjusted/Non-GAAP Measures
Reconciliation For the Three Months Ended
Mar 31, 2016 Mar 31, 2017
Adjusted EBITDA (RMB MM) (RMB MM) (US$MM)
Income from operations 5,112 9,532 1,385
Add: Share-based compensation expense 4,553 4,306 625
Add: Depreciation and amortization of property and equipment and land
use rights 1,090 1,446 210
Add: Amortization of intangible assets 743 1,313 191
Adjusted EBITDA 11,498 16,597 2,411
Adjusted EBITDA margin 48% 43%
Non-GAAP net income
Net income 5,314 9,852 1,431
Add: Share-based compensation expense 4,553 4,306 625
Add: Amortization of intangible assets 743 1,313 191
Add: Impairment of goodwill and investments 3 133 19
Less: Gain on deemed disposals/disposals/ revaluation of investments
and others (3,334) (5,603) (812)
Add: Amortization of excess value receivable arising from the
restructuring of commercial arrangements with Ant Financial 65 65 9
Adjusted for tax effects on non-GAAP adjustments 212 374 54
Non-GAAP net income 7,556 10,440 1,517
Non-GAAP Free cash flow
Net cash provided by operating activities 5,082 10,746 1,561
Less: Purchase of property, equipment and intangible assets
(excluding land use rights and construction in progress) (683) (2,832) (411)
Add: Changes in loan receivables, net and others (11) 66 9
Non-GAAP free cash flow 4,388 7,980 1,159
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