Alibaba Keeps Growing


Looks like Alibaba is on a roller-coaster ride and there’s nothing to stop it, as is evident from the results of last quarter.

During the quarter that ended on June 30, Alibaba’s cloud business crossed more than one million customers the revenue during this period rose to 2.43 billion yuan, which roughly equals US$359 million.

According to the reports released by the company, it saw an increase of 137,000 paying customers. As a result, a good chunk of its revenue came from value-added services and it drove up the average revenue per user (ARPU) metric.

Among the high-paying clients, some of the notable ones are China’s CITIC Group, Huaneng Group and PICC Finance.

This good news is sure to motivate the company to take many more steps to widen its worldwide customer base. Already, it’s been opening many centers in different parts of the world, starting from Sydney in Australia to Dubai and even London to provide cloud services to a global clientele.

Besides cloud, many of the core business segments also saw a robust growth during the second quarter. In this period, Alibaba’s retail e-commerce business grew by a whopping 57 percent as it touched $5.4 billion in sales. A notable aspect is that the revenue per buyer as well as the customer base have increased, thereby setting the stage for increased growth over the next few quarters too.

Overall, Alibaba’s revenues increased a massive 56 percent year-on-year to reach revenue of around $7.4 billion. These numbers make Alibaba one of the largest companies in the world and it joins ranks with those of Microsoft, Google and Amazon.

Much of this success can be attributed to the fact that Alibaba and its subsidiaries dominate the Chinese digital market. So, how can dominance in one country make it into the elite $400-billion and up club?

Simply because China is the world’s single largest Internet market with more than 700 million customers. To give you a perspective, that roughly twice the entire population of the United States. To top it, any average Chinese spends more money online than Americans.

This surge in Internet users has happened in a controlled space where many American companies don’t have access and this is probably why Alibaba was able to make such rapid strides within a short period of time.

Though we can continue to debate about whether this protectionism is right or wrong, one thing that’s going to stay for sure is Alibaba’s astounding growth as it marches on to capture the world market.

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