E-commerce giant Alibaba Group Holding Ltd, which has made an impressive initial public offering (IPO) debut at the New York Stock Exchange (NYSE) in September this year, saw a surge in its shares to a record high on Tuesday following strong second-quarter results.
Thrilled over the strong second-quarter results, the Chinese company said it would invest for the long term to expand its customer base.
“We delivered a strong quarter with significant growth across our key operating metrics,” Jonathan Lu, Alibaba chief executive, said in the earnings statement.
This is the first quarterly report of Alibaba since it made a successful USD 25 billion listing at the NYSE in September. The company’s shares increased about 2.7 percent to over USD 104.50. The firm listed at USD 68 per share at the NYSE in September.
The company’s revenue surged 53.7 percent to USD 2.74 billion against the expected sales of USD 2.7 billion, the fastest growth in three quarters.
On the other side, the diluted earnings per share were USD 0.20 and non-GAAP diluted earnings per share were reported at USD 0.45, up 9.4 percent year-on-year.
However, Alibaba’s overall profit margins dropped to a two-year low of 18 percent as extraordinary costs the firm chiefly attributed to share-based compensation charges of USD 490 million around the time of its IPO ate into profits.
The company aims to boost its user base by carrying more and more investments.
“We will continue to make strategic investments to grow our revenue… and to strengthen our eco-system for a long time,” Chief Financial Officer Maggie Wu said during an earnings call with financial analysts.
Joe Tsai, the company’s executive vice chair, said that these strategic investments aims at adding more customers and convert them into permanent users of range of core e-commerce businesses of Alibaba while boosting the number of products and services offered by the company.
The company also revealed that it would also be investing in new initiatives like its mobile operating system, digital entertainment and location-based services.
Latest posts by Christina Langfold (see all)
- Scientists Discover the Second Fastest Spinning Pulsar In The Universe - Sep 9, 2017
- Coral Reef Damage Scares Florida Keys Researchers and Businesses - Jun 26, 2017
- Nike to Slash Global Workforce by 1,400 - Jun 16, 2017