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China Alibaba.com Reports Q3 Financial Results 2009

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Posted by Aliuser on Nov 10, 2009 in Alibaba Financial Results

Alibaba (HKSE 1688) reported a 20.4 per cent quarterly net profit decline year-on-year due to its continuing investments in customers, people and technolgoy as part of its strategic growth plan.

The China largest B2B platform says in its statement that:

Our operating profit margin was 25.2 percent in the period, a decrease from 45.1% in the same period last year and a decrease from 30.0 percent in the second quarter of 2009. The operating profit margin decrease year-on-year was mainly due to our planned investments for the future expansion of our business while the quarter-on-quarter decrease was mainly due to the planned investments in particular in marketing spending as a
percentage of revenue.

Aliuser at Alirens.com sums up below highlights:

Revenue in Q3 2009 up 32.1 percent y-o-y and 12.3 percent q-o-q
Net additions of 14,415 China Gold Supplier members to reach a total of 84,868, up 175.2 percent y-o-y and 20.5 percent q-o-q
Continued, steady growth of China TrustPass members with 33,623 net additions in the quarter to reach a total of 475,422 with 34.9 percent growth y-o-y and 7.6 percent growth q-o-q
Deferred revenue up 42.1 percent y-o-y to reach RMB3 billion (US$434.6 million)
International marketplace surpassed 10 million registered users with 51.6 percent growth y-o-y and 10.8 percent growth q-o-q with all marketplaces reaching a total of 45.3 million registered users and 6.1 million storefronts

The company foresee a stronger economic environment in Q4 and remain cautiously optimistic for next year.

“As we continue to build this ecosystem in cooperation with Alibaba Group, we will focus on additional opportunities for our customers to maximize their competitive 3 advantage in the marketplace.” Alibaba CEO David Wei said in the statement.

Click here to see more details about the Alibaba Q3 2009 financial results, analysis articles: Next for Alibaba and Alibaba.com Q3 profit down 20 pct, beats expectations.