- Alibaba (NYSE:BABA) shares are down 4.4% premarket after Q3 results that beat revenue estimates but missed on EPS. FY18 guidance was increased to a growth of 55% to 56% (was: 49% to 53%), which would represent a range of about $245.3B to $246.9B (consensus: $242.6B).
- Segment revenue: Core Commerce, $11.26B (+57% Y/Y); Cloud Computing, $553M (+104%); Digital Media and Entertainment, $832M (+33%); Innovation Initiatives and Others, $119M (+9%).
- Key metrics: Annual active consumers on China retail marketplaces, 515M (+16% Y/Y); Mobile MAUs on China retail marketplace, 580M (+18%); adjusted EBITDA, $5.56M; operating margin, 31%; cash from operating activities, $8.48B; FCF, $7.09B; cash and equivalents, $33.87B.
- Ant Financial: Alibaba agrees to a 33% equity stake in Ant Financial for retail and expansion benefits tied to mobile payments. Under the new terms, Alibaba will acquire newly-issued Ant Financial equity in exchange for certain IP rights. There won’t be any cash impact to Alibaba following the transaction’s completion. After closing, the companies will terminate the current profit-sharing agreement that had Ant paying service fees equal to 37.5% of its pre-tax profits.
- Press release
- Previously: Alibaba misses by $0.04, beats on revenue (Feb. 1)
- Now read: Wall Street Breakfast: Big Results Expected From 'Big Tech'
Original article