Alibaba Group Holdings (NYSE: BABA) report its fiscal first-quarter earnings on Auguest 15.
The company saw its profits jump 42% over last year to stand at CNY 114.92 billion (USD 16.3 billion) in the quarter ended June 30. Operating profit was CNY 24.38 billion (USD 3.55 billion).
Cloud business raked in CNY 7.79 billion (USD 1.13 billion) accounting for 6.78% of the total revenue of Alibaba Group. Alibaba Cloud became the second largest segment of Alibaba, following its core e-commerce business.
Alibaba Cloud was the fastest growing sector with a year-over-year revenue growth rate of 66%. Core commerce segment grew by 44%; innovation initiatives and others expanded 21% growth; digital media and entertainment advanced 6%.
Adjusted EBITA was a loss of CNY 353 million (USD 52 million).
The revenue growth was primarily driven by an increase in average revenue per customer. According to the report, in the second quarter, Alibaba Cloud launched over 300 new products and features, including those related to core cloud offerings, security, data intelligence and AI applications. The company will continue investing in talent and technology infrastructure, it claims.
Besides, the company is focusing on SaaS offerings and helping its SaaS partners to build and commercialize their offerings at scale within the Alibaba Cloud SaaS marketplace. Partners of Alibaba Cloud are provided with AI applications, data analytics software development operation tools to better deploy solutions in multiple industries.