Chinese e-commerce giant, Alibaba today disclosed a 42% jump in quarterly revenue that beat analyst estimates, defying a slowing economy and a trade war with the United States.
Aided by growth in its core e-commerce and cloud computing businesses, the company’s revenue rose to 114.92 billion yuan ($16.32 billion) in the first quarter from 80.92 billion yuan, outpacing an average analyst estimate of 111.6 billion yuan.
Joe Tsai, Alibaba’s Executive Vice-Chairman, attributed the results to China’s demographic trends and continued urbanization, pointing to the growing urban middle class willing to shell out for brands on Alibaba’s e-commerce platforms.
Net profit for the quarter was 21.2 billion ($3.1 billion), more than double from the same period a year earlier.
Revenue in the Hangzhou-based company’s core e-commerce segment, which accounts for the vast majority of its business, jumped 44 percent, while the smaller but fast-growing cloud computing unit surged 66 percent.