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Authorized Public Exchange Item Number: Launch Network (ID: China-Venture) Author: Lin Orange
The sudden technical failure during the earnings conference call and the long silence made Alibaba a bit nervous. Dark clouds like the suspension of Ant Group’s listing still hang over him, without clearing.
The current situation is not so optimistic. Last night, after Alibaba released its earnings report, the price of its pre-trade stake in US stocks fell 4%. In the three days since Ant Group announced the suspension of listing, Alibaba’s share price has fallen by almost 8% and its market value has fallen $ 67.2 billion (approximately RMB 444.2 billion), which is less. than Baidu’s market value (closed at $ 49.3 billion on the 5th). Many.
In simple terms, from July to September, Alibaba’s revenue still maintained a steady growth of 30% to 155.059 billion yuan. As a result of the 15.7 billion capital incentive fee paid to Ant employees, operating profit fell 33%.
Although the growth rate of e-commerce core revenue slowed from 34% in the previous quarter to 26% this quarter. However, the growth rates of cloud computing and Cainiao Logistics performed well, increasing by 60% and 73% respectively. Alibaba CFO Wu Wei even predicted in the financial report that there will be two quarters to turn losses into profits.
Monthly active users who have received much attention have “only” increased by 7 million this quarter, reaching a total of 881 million, which is less than the 899 million expected. Compared to the previous quarter, from April to June 2020, monthly active users increased by 28 million. This gap caused quite a stir in the market.
In the past three months, Alibaba has issued 15.7 billion yuan in capital rewards to Ant employees
At the end of September, Alibaba’s revenue remained healthy. Revenue was 155.59 billion yuan, beating market expectations of 154.841 billion yuan, and the growth rate was 30.3% year-on-year, slightly lower than the 33.78% in the previous quarter.
Alibaba CEO Zhang Yong believes that, to some extent, the online business has gradually recovered even before the epidemic. He told the earnings conference call: “The epidemic has accelerated the pace of digitization. More and more people have become consumers online. From the perspective of frequency of consumption, clothing and fast-moving consumer goods they have penetrated food, drink and fresh food. ” There are more consumers online. If you look at the specific performance of these quarters, the epidemic has been effectively controlled in China and people’s lives have returned to normal, but online consumption habits during the epidemic have continued. “
Since Alibaba acquired a 33% stake in Ant Group last year, it confirmed a capital gain of approximately 69.2 billion yuan. In the July-September quarter, Alibaba paid 15,753 million yuan in capital incentive commissions to ant-related employees, causing a decrease in operating profit for the July-September quarter, Alibaba’s operating profit was 13,634 million yuan. , A year-on-year decrease of 33%. Excluding the impact, Alibaba’s operating profit was 29.69 billion yuan, a year-on-year increase of 44%.
In fact, in addition to Ant’s capital incentives, Alibaba also issued 7.7 billion capital incentive fees to the group’s employees this quarter. Overall, Alibaba spent a total of 24.694 billion yuan on capital incentive fees, an increase of 203% year-on-year. Capital incentive expenses for the three months ended September 30, 2020 represented 16% of revenue, compared with 7% in the same period last year.
From the perspective of the business division, the outstanding business performance in the third quarter of 2020 is in cloud computing and the rookie. The specific data are the following:
The main retail business revenue was 95.47 billion yuan, a year-on-year increase of 26% and the previous value growth rate was 34%;
Cainiao’s revenue was 8.226 billion yuan, an increase of 73% year-on-year, and the previous value was 54%;
Local life income was 8.839 billion yuan, a year-on-year increase of 29%, and the previous value was 15%;
Cloud computing revenue was 14.889 billion yuan, an increase of 60% year-on-year, and the previous value was 59%;
Revenue from the digital media and entertainment business, including the games business, was 8.06 billion yuan, an increase of 8%;
Innovative companies’ revenue was 1.172 billion yuan, an increase of 10%.
The growth rate of cloud computing in the quarter was gratifying. At the earnings conference, Alibaba CFO Wu Wei predicted that cloud computing will turn losses into earnings in the next two quarters. In this quarter, cloud computing lost 156 million yuan, compared with 521 million yuan in the same period last year.
Monthly life is not as expected, Taobao special edition and live broadcast have high hopes
After the financial report was released, Alibaba’s share price took a hit and fell. Some analysts said that one of the main reasons is that its monthly active users did not meet expectations.
At the end of September, Ali’s annual active buyers reached 757 million, an increase of 15 million month-on-month, which was the same as the growth from January to March and was less than the 16 million from April to June. Monthly mobile active users were 881 million, less than the 899 million expected.
Monthly mobile users and yearly active buyers are one of the financial reporting focuses of all eCommerce companies. The reason why it is valued so much is because this data shows the vitality and competitiveness of this platform at this stage.
During the July-September quarter, Alibaba’s monthly mobile active users increased by 7 million, while the previous value increased by 28 million. Perhaps because the difference between the two values is too large, the market will think that this is one of the main reasons for the fall in Ali’s share price.
In fact, the number of active users is the biggest concern of investors. On the earnings conference call, half of investors’ questions focused on the special edition of Taobao, launched last year, the e-commerce platform that targets low-end cities and offers low-priced products. At that time, it was considered to be a good business after Juhuasuan. Other product.
Some investors asked about the scale of the number of new users of the Taobao Special Edition. How many users will be the original Taobao users? How much overlap between Taobao and Taobao and Tmall Special Edition users?
Zhang Yong replied that Alibaba did not consider transferring Taobao-related users to the special edition for now, but used online marketing and user interaction to attract new consumers to the special edition app.
“Its positioning is very clear, profitable, good experience and rich selection of products. We have also seen the monthly activity of the special edition. It reached 70 million in September, a net increase of 30 million from before March. Taobao has already touched Hay a large percentage of netizens, so they are not completely non-overlapping. If someone is a user of two applications at the same time, is there any change in their general consumption behavior? We can see that their consumption frequency has increased. We will continue to increase Activity of the user. “
In addition to the special edition, Alibaba’s quarterly earnings report also revealed some new data.
At the end of September, GMV (excluding pending orders) in Tmall’s online physical commodity transaction volume increased 21% year-on-year. Fast-moving consumer goods remain the fastest growing category at Tmall, primarily driven by strong momentum from food and beverage, health, beauty and personal care. In addition, the growth rate of Tmall clothing has returned to a higher level than before the outbreak of the new crown epidemic. In the same period, Taobao GMV (excluding pending orders) increased by more than ten percent year on year.
Taobao’s live streaming volume is also revealed for the first time. From September 2019 to September 2020, Taobao GMV live stream was 350 billion yuan. By comparison, the GMV of Taobao Live is currently higher than that of Douyin and Kuaishou. According to the May 36Kr report, Kuaishou’s live streaming e-commerce business has a GMV target of 250 billion yuan in 2020, while Douyin’s live e-commerce GMV target is 200 billion yuan. Since live streaming has gradually become an important portal for e-commerce, it also means that Taobao live streaming will face the challenge of e-commerce with short videos as a portal.
In order to increase the interaction between users and live broadcasts, Alibaba said in its financial report that it has redesigned the homepage of Taobao’s live broadcast to make it easier for users to discover new products and new brands. . In September this year, the Taobao home page was recently revised to provide a better immersive experience for the user. For example, the information flow recommendation on the home page has been expanded to make the product display more vivid. “We believe the new interface will help improve user engagement and increase consumer purchase conversion rates in the future.” The financial report described it.
Not only that, Taobao will also create a new “Taobao Shopping” content video community. This is a content community platform similar to Xiaohongshu and Station B. Creative content will be displayed in the form of graphics (or video), which is a bit similar to good weed.
Touzhong.com was previously informed that Taobao is looking for UP owners at station B and invited them to stay on Taobao’s new content products. Taobao Xiaoer sent a letter to B UP station, saying: “Taobao will have a new online content center, which is tens of millions of traffic positions.” An olive branch was issued for UP, inviting him to live in the Taobao content community and become a content creator.
In other words, Taoxi e-commerce will launch a content center similar to Xiaohongshu and Station B to cultivate consumers who “plant and cultivate grass” and finally complete the “weeding (purchase and transaction)” on one platform. closed loop.
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