Alibaba Cloud revenue surges 90% to $825 mn

Alibaba Group said its revenue from cloud computing increased 90 percent to RMB5.667 billion or $825 million for the quarter ended September 30, 2018.
alibaba-cloud-businessThe substantial increase in Cloud computing revenue was driven by improvement in revenue mix of higher value added services and the growth in the number of paying customers.

Alibaba Cloud launched over 600 products and features, including those related to big data analytics and AI application innovation, security, and IoT service enhancements.

Alibaba Cloud in September launched Apsara 2.0, an upgrade of cloud computing operating system based on distributed computing architecture. The system enables enhanced computation performance, flexible hybrid cloud implementation and more efficient network connection.

Developers can use Alibaba Cloud IoT solutions to bring edge computing capability to connected devices.

Annual active consumers increased by 25 million to reach 601 million in the 12 months ended September 30, 2018.

Total revenue of Alibaba Group increased 54 percent to RMB85.148 billion or $12.398 billion. Alibaba’s revenue from core commerce increased 56 percent to RMB72.475 billion or $10.553 million.

Income from operations fell 19 percent to RMB13.501 million or $1.966 billion, primarily due to the consolidation of and Cainiao Network, investments in digital media and entertainment and other strategic initiatives.

Outside of the company’s commerce business, revenue from cloud computing grew 90.5 percent to 5.67 billion yuan while sales in the company’s entertainment and digital media business rose 24 percent to 5.94 billion yuan.

“We generated synergies across our businesses, demonstrating the power of the Alibaba digital economy, which will be further showcased during our upcoming 11.11 Global Shopping Festival,” said Daniel Zhang, chief executive officer of Alibaba Group.

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