Alibaba said revenue from Cloud Intelligence Group was RMB25.595 billion ($3.545 billion) for the quarter ended March 31, 2024, a growth of 3 percent year-over-year.
For fiscal year 2024, Alibaba’s revenue from Cloud Intelligence Group rose 3 percent to $14.733 billion. The marginal growth in cloud revenue is despite slashing price of its Cloud services in China and foreign markets.
“We are committed to our strategy of focusing on high quality revenues from increasing public cloud adoption while reducing low-margin project-based contracts. During the quarter, our core public cloud offerings, which include products such as elastic compute, database and AI products, recorded double-digit year-over-year growth in revenue,” Alibaba said.
Alibaba’s revenue from Cloud Intelligence Group excluding Alibaba-consolidated subsidiaries decreased slightly year-over-year as it transitions away from low-margin project-based revenues. Alibaba expects the strong revenue growth in public cloud and AI-related products will offset the impact of the roll-off of project-based revenues.
Alibaba said the cost benefits from infrastructure scale and advanced technologies enabled it to reduce prices across more than 100 public cloud products this quarter. The goal of Alibaba is to enhance cost efficiency for customers and boost public cloud adoption in China. In April 2024, Alibaba extended these price reductions to overseas public cloud offerings, further improving competitiveness in global markets.
During this quarter, AI-related revenue experienced accelerated growth and continued to record triple-digit growth. AI-related revenue was generated from various sectors including foundational model companies, Internet companies, as well as customers from industries such as financial services and automotive.
Alibaba’s Cloud Intelligence Group adjusted EBITA increased by 45 percent to RMB1,432 million (US$198 million) in the quarter ended March 31, 2024, compared to RMB987 million in the same quarter of 2023, primarily due to improving product mix through our focus on public cloud and operating efficiency.
