Alibaba revenue beats expectations despite contraction

Aug 3, 2022, 6:04 PM | Updated: Aug 4, 2022, 8:50 pm
FILE - A woman walks past the offices of Chinese e-commerce firm Alibaba in Beijing on Dec. 13, 202...

FILE - A woman walks past the offices of Chinese e-commerce firm Alibaba in Beijing on Dec. 13, 2021. Alibaba Group Holding on Thursday, Aug. 4, 2022, beat market expectations for revenue in its quarter ended June, even as revenue was nearly flat and the company continues to grapple with the fallout from increased regulatory scrutiny and slowing economy growth. (AP Photo/Andy Wong, File)

(AP Photo/Andy Wong, File)

HONG KONG (AP) — Chinese e-commerce firm Alibaba Group Holding on Thursday beat market expectations for revenue in its quarter ended June, even as revenue was nearly flat and its net income plunged 50%.

The company has been grappling with increased regulatory scrutiny and fines and a slowing economy.

Alibaba reported revenues of 205.6 billion ($30.4 billion) for its quarter ended June, down 0.1% from the same period last year but still better than the average analyst estimate of $30.09 billion, according to FactSet. It was the first time the company has reported a contraction in sales.

Net income tumbled 50% to 22.7 billion yuan ($3.4 billion). Excluding one-time charges, adjusted earnings per ADS totaled $1.75, topping the average analyst estimate of $1.60 per share.

The company’s U.S.-listed shares rose 5% in early trading Thursday. Its shares traded in Hong Kong slipped 2.2% early Friday.

Alibaba was hit hard in the last quarter as China locked down various cities around the country to stem the spread of the coronavirus. Online shopping tends to flourish during such times, but the company said in a statement that revenue fell “mainly due to impacts from COVID-19 resurgence and restrictions that resulted in supply chain and logistics disruptions in April and most of May.”

Customers in the bustling, cosmopolitan city of Shanghai, for example, were unable to shop online or even order food delivery during its two-month lockdown.

Alibaba, headquartered in the eastern city of Hangzhou, has also in recent years been scrutinized heavily by regulators and been ordered to pay anti-monopoly fines. Its cloud business has been linked to China’s largest cybersecurity breach, when a hacker online attempted to sell over a billion personal records purportedly from a Shanghai police database.

Alibaba faces fierce competition from rivals such as and Pinduoduo, which has reported an increase in user numbers.

Last week, the U.S. Securities and Exchange Commission added Alibaba to a growing list of companies that could face delisting from U.S. stock exchanges unless they give U.S. regulators unfettered access to their auditing processes and financial books.

Meanwhile, Alibaba is seeking a primary listing in Hong Kong by the end of the year that would allow mainland Chinese investors direct access to its stock as it seeks a more diversified investor base.

This story has been corrected to reflect that the decline in revenue was 0.1% in the second paragraph.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Associated Press

Much of drought-plagued West Coast faces salmon fishing ban

The surreal and desperate scramble boosted the survival rate of the hatchery-raised fish, but still it was not enough to reverse the declining stocks in the face of added challenges.
1 day ago
UCLA's Jaime Jaquez Jr. (24) shoots while defended by Gonzaga's Rasir Bolton (45) in the first half...
Associated Press

Gonzaga beats UCLA 79-76 in Sweet 16 on Strawther’s shot

Julian Strawther hit a 3-pointer with 6 seconds left to answer a 3-pointer by UCLA's Amari Bailey, lifting Gonzaga to a wild 79-76 NCAA Tournament win over UCLA Thursday night in the Sweet 16.
1 day ago
Associated Press

Officials: Safety device, human error derailed Wash. train

A safety device failed, knocking a train off the tracks last week, spilling diesel after leaving an oil refinery in Anacortes.
1 day ago
File - Credit cards as seen July 1, 2021, in Orlando, Fla. A low credit score can hurt your ability...
Associated Press

What the Fed rate increase means for your credit card bill

The Federal Reserve raised its key rate by another quarter point Wednesday, bringing it to the highest level in 15 years as part of an ongoing effort to ease inflation by making borrowing more expensive.
2 days ago
police lights distracted drivers shooting...
Associated Press

Authorities: Missing mom, daughter in Washington found dead

A missing Washington state woman and her daughter were found dead Wednesday, according to police.
2 days ago
Associated Press

Google’s artificially intelligent ‘Bard’ set for next stage

Google announced Tuesday it's allowing more people to interact with “ Bard,” the artificially intelligent chatbot the company is building to counter Microsoft's early lead in a pivotal battleground of technology.
3 days ago

Sponsored Articles

Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.
SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Alibaba revenue beats expectations despite contraction