Q3 2025 Alibaba Group Holding Ltd Earnings Call Transcript
Key Points
- Alibaba Group Holding Ltd (BABA) reported an 11% year-over-year revenue growth, excluding consolidated subsidiaries, with AI-related product revenue maintaining triple-digit growth for the sixth consecutive quarter.
- The company launched Qwen2.5-MAX, a flagship AI foundation model, achieving industry-leading performance and attracting over 290,000 companies and developers globally.
- Taobao and Tmall saw strong growth in new consumers and orders, with 88 VIP members reaching 49 million, maintaining double-digit growth.
- Alibaba's international e-commerce business maintained strong growth, driven by cross-border businesses and improved operating efficiency.
- Amap, part of Alibaba's other Internet platform businesses, achieved profitability this quarter, highlighting improved operating efficiency across segments.
- Free cash flow decreased by 31% to RMB39 billion, mainly due to increased expenditure related to investments in cloud infrastructure.
- AIDC reported a loss of RMB5 billion, compared to a loss of RMB3.1 billion in the same quarter last year, due to increased investments in overseas markets.
- Revenue from Cainiao decreased by 1%, with its adjusted EBITDA decreasing by 76%, amid ongoing restructuring with e-commerce businesses.
- Despite strong revenue growth, Alibaba's cloud business faces fierce competition in China, potentially impacting margin levels compared to international peers.
- The company plans to make significant investments in AI and cloud infrastructure over the next three years, which could impact short-term profitability due to high CapEx.
Good day, ladies and gentlemen, thank you for standing by. Welcome to Alibaba Group's December quarter 2024 results conference call. (Operator Instructions)
I would now like to turn the call over to Lydia Lu, Head of Investor Relations of Alibaba Group. Please go ahead.
Good day, everyone. Welcome to Alibaba Group's December quarter 2024 earnings conference call. With us are Joe Tsai, Chairman; Eddie Wu, Chief Executive Officer; Toby Xu, Chief Financial Officer; Jiang Fan, Chief Executive Officer of Alibaba E-commerce Business Group. This call is also being webcast from the IR section of our corporate website. A replay of the call will be available on our website later today.
Now, let me quickly cover the safe harbor. As usual, we would like to remind everyone that today's discussions may contain forward-looking statements, particularly statements about our business prospects and expected financial results that are subject to risks and uncertainties, which could cause actual
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