Alibaba Group Holding revealed that its Cloud Intelligence Group achieved a revenue of RMB28,066 million (US$3,953 million) for the quarter ended December 31, 2023, marking a 3 percent increase compared to the same period in 2022.
The revenue growth from the Cloud Intelligence Group was primarily driven by Alibaba-consolidated businesses, reflecting the company’s efforts to enhance revenue quality by reducing low-margin project-based contracts. Despite a decrease in revenue from such contracts, revenue from public cloud products and services witnessed healthy year-over-year growth, underscoring the group’s commitment to prioritizing public cloud offerings.
Moreover, the Cloud Intelligence Group’s adjusted EBITA surged by 86 percent to RMB2,364 million (US$333 million) in Q4 2023, compared to RMB1,269 million in Q4 2022. This significant increase in profitability was attributed to an improved product mix, particularly through the focus on public cloud services, and enhanced operational efficiency.
Alibaba remains at the forefront of innovation, leveraging its proprietary large language model, Tongyi Qiawen, to enhance search conversion and monetization within its Taobao app. Additionally, the company continues to prioritize public cloud initiatives, optimizing its business structure and enhancing sales operations to cater to various customer segments effectively.
Recent highlights include the introduction of the latest general-purpose ECS instance g8i by Alibaba Cloud in January 2024, showcasing improved performance and AI inferencing capabilities. Furthermore, Alibaba Cloud was recognized as a Leader in the 2023 Gartner Magic Quadrant for Cloud Database Management Systems, maintaining its leadership position for the fourth consecutive year.
Despite challenges, Alibaba reported a total revenue of RMB260,348 million (US$36,669 million), representing a 5 percent year-over-year increase for the quarter ended December 31, 2023. Eddie Wu, Chief Executive Officer of Alibaba Group, in its earnings report, emphasized the company’s commitment to enhancing core user experiences, driving growth in Taobao and Tmall Group, and sustaining the momentum in the international commerce business through focused investments in public cloud products.