Alibaba International Q3 Financial Report: Total Revenue Grew 44%, with Tmall Choice Accounting for Over Half the Order Volume

[Ebrun Original] On February 7th, Alibaba released its Q3 financial report for the fiscal year 2024. The financial data shows that the revenue of AIDC increased by 44% year-on-year to 28.516 billion RMB, exceeding the market's expected 26.1 billion RMB. The overall orders increased by 24% year-on-year, particularly due to the growth in orders brought by Choice channel. Alibaba stated that it will continue to increase its investment in the coming quarters.

Of note is that in this quarter, Alibaba International's adjusted EBITA loss was 3.146 billion RMB, compared to a loss of 645 million RMB in the same period last year, representing a significant increase year-on-year and quarter-on-quarter. Alibaba explained that this was mainly due to increased investments in international businesses such as Tmall Choice and Trendyol.

By business segment, Alibaba's international retail business (including AliExpress, Lazada, Trendyol, etc.) generated a revenue of 23.26 billion RMB, an increase of 56% year-on-year. Alibaba stated that the growth mainly came from the strong performance of all major retail platforms, particularly the contribution of the Choice.

This quarter, AliExpress achieved a more than 60% year-on-year growth in orders, mainly driven by the Choice business. Financial data shows that in January 2024, Choice orders accounted for approximately half of the total order volume of AliExpress, achieving continued high-speed growth in orders.

This quarter, Trendyol continued to record strong double-digit growth in orders. While maintaining its leading position in e-commerce in Turkey, Trendyol further expanded its business to the Middle East through its rich supply of goods and fast, reliable logistics experience.

Lazada continues to focus on improving operational efficiency. As the monetization rate continues to increase and logistics costs decrease, the loss per order of Lazada narrowed year-on-year.

Alibaba International's wholesale business generated a revenue of 5.256 billion RMB, an increase of 8% year-on-year, mainly from the growth of value-added service revenue related to cross-border businesses. This quarter, Alibaba.com continued to step up investment in AI. In 2023, Alibaba.com's AI tools have been fully optimized in three major business scenarios: product release, reply to inquiries, and data analysis, and will continue to iteratively upgrade large-scale business capabilities; and the strategic focus of 2024 is on AI e-commerce and making deterministic efforts around buyers. It is reported that Alibaba.com's GMV growth rate in 2023 is around 20%, and the growth volume of overseas users exceeds 10%.