Shares of Alibaba Group Holding Ltd. were off more than 3% in premarket trading Thursday after the Chinese e-commerce giant fell short of expectations with its latest financial results.
The company reported fiscal second-quarter net income of RMB5.4 billion ($833 billion), or RMB1.97 per American depositary share, down from RMB28.8 billion, or RMB10.48 per ADS, in the year-earlier quarter. On an adjusted basis, Alibaba 9988, -5.34% BABA, -4.07% earned RMB11.20 per ADS, down from RMB17.97 per ADS a year prior and below the FactSet consensus, which called for RMB11.86 per ADS.
“This quarter, Alibaba continued to firmly invest into our three strategic pillars of domestic consumption, globalization, and cloud computing to establish solid foundations for our long-term goal of sustainable growth in the future,” Chief Executive Daniel Zhang said in a release.
Revenue increased to RMB200.7 billion from RMB155.1 billion, while analysts tracked by FactSet had been modeling RMB204.1 billion
Alibaba noted that it saw 1.24 billion annual active customers in the 12 months that ended Sept. 30. That marked a roughly 62 million increase from what the company recognized in the June quarter. Alibaba’s active-customer total consisted of 953 million customers in China and 285 million customers overseas.
The company said that it now expects to grow fiscal 2022 revenue by 20% to 23%.