Alibaba Group Announces June Quarter 2024 Results
Hangzhou, China, August 15, 2024 – Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988
(HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced its financial
results for the quarter ended June 30, 2024.
“Our results this quarter demonstrated our strategy at work. Our focus on enhancing user experience byoffering quality products at attractive prices with great service led to stabilizing market share of Taobao andTmall Group as we returned the business on the growth trajectory. The cloud business achieved positive
revenue growth momentum, driven by public cloud and AI-related product adoption as we continue to invest
to maintain our market leadership,” said Eddie Wu, Chief Executive Officer of Alibaba Group.
“In this quarter, we continue to invest for growth in our core businesses while reducing losses in otherbusiness units through operating efficiency. We maintained the integrity of our margins and delivered
consistent adjusted EBITA. We also returned significant value to shareholders at a pace higher than pastquarters, as we made US$5.8 billion of share repurchases that included a concurrent repurchase of shares inconnection with our convertible notes offering. This transaction underscores our confidence in our businessoutlook,” said Toby Xu, Chief Financial Officer of Alibaba Group.
BUSINESS HIGHLIGHTS
In the quarter ended June 30, 2024:•

Revenue was RMB243,236 million (US$33,470 million), an increase of 4% year-over-year.

•

Income from operations was RMB35,989 million (US$4,952 million), a decrease of 15% or
RMB6,501 million year-over-year, primarily due to a reversal of share-based compensation
expense of RMB6,901 million during the same quarter in the prior year, as discussed in “June
Quarter Other Financial Results” below. We excluded non-cash share-based compensation
expense from our non-GAAP measurements. Adjusted EBITA, a non-GAAP measurement,
decreased 1% year-over-year to RMB45,035 million (US$6,197 million).

•

Net income attributable to ordinary shareholders was RMB24,269 million (US$3,340
million). Net income was RMB24,022 million (US$3,306 million), a decrease of 27% year-overyear, primarily due to a decrease in income from operations and the increase in impairment of
our investments, partly offset by the mark-to-market changes from our equity investments. NonGAAP net income in the quarter ended June 30, 2024 was RMB40,691 million (US$5,599
million), a decrease of 9% compared to RMB44,922 million in the same quarter of 2023.

•

Diluted earnings per ADS was RMB9.89 (US$1.36). Diluted earnings per share was
RMB1.24 (US$0.17 or HK$1.36). Non-GAAP diluted earnings per ADS was RMB16.44(US$2.26), a decrease of 5% year-over-year. Non-GAAP diluted earnings per share was
RMB2.05 (US$0.28 or HK$2.25), a decrease of 5% year-over-year.

•

Net cash provided by operating activities was RMB33,636 million (US$4,628 million), a
decrease of 26% compared to RMB45,306 million in the same quarter of 2023. Free cash flow, a
non-GAAP measurement of liquidity, was RMB17,372 million (US$2,390 million), a decrease of
56% compared to RMB39,089 million in the same quarter of 2023. The decrease in free cash
flow mainly reflected the increase in expenditure related to our investments in Alibaba Cloud1

infrastructure and other working capital changes related to factors including our planned
reduction of direct sales businesses.
Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of thisresults announcement.
BUSINESS AND STRATEGIC UPDATESTaobao and Tmall GroupWe increased investment in strategic initiatives such as price-competitive products, customer service,membership program benefits and technology, with the aim to enhance user experience. These efforts led tobetter consumer retention, increased purchase frequency, and positive feedback regarding the overall
shopping experience.
We improved matching of products with user needs and conversion of user traffic to purchases throughinvestments in technology such as recommendation and matching algorithms, as well as increasing pricecompetitive offerings through diversification of suppliers. In April, we launched our new AI-powered
platform-wide marketing tool, Quanzhantui, which features automated bidding, optimized targeting andperformance dashboard visualization. This new product aims at increasing merchants’ marketing spending
and improving their marketing efficiency, and we have observed steady increase in merchant adoption.
During the quarter, we achieved high-single-digit online GMV growth and double-digit order growth yearover-year, driven by increase in the number of purchasers and purchase frequency. In particular, we had asuccessful 6.18 Shopping Festival, which delivered strong online GMV growth year-over-year, as we
implemented user-friendly promotion mechanisms and increased mindshare for being a comprehensive andprice-competitive shopping destination.
The number of 88VIP members continued to increase by double-digits year-over-year, surpassing 42 million
during the quarter. We aim to enlarge our pool of premium shoppers by continuing increasing thesubscription of 88VIP membership and enhancing their purchase willingness through improved benefits andservices.
Cloud Intelligence GroupFor the quarter ended June 30, 2024, revenue from Cloud Intelligence Group was RMB26,549 million(US$3,653 million), a growth of 6% year-over-year.
During this quarter, overall revenue excluding Alibaba-consolidated subsidiaries grew over 6% year-overyear, driven by double-digit public cloud growth and increasing adoption of AI-related products. AI-related
product revenue continued to grow at triple-digits year-over-year. We will continue to invest in customers
and technology, particularly in AI infrastructure, to increase cloud adoption for AI and maintain our market
leadership.
Alibaba Cloud has gained notable recognition as the cloud service provider of choice in China for AI
training and applications. According to the recently released 2024 Gartner® “Magic Quadrant™ for Data
Science and Machine Learning Platforms” report, Alibaba Cloud has been mentioned as the only Asia-based
cloud service provider among global players.
Our ongoing commitment to open-source development has led to widespread recognition of our Qwen 2.0
series of large language models among global developers. Qwen 2.0 demonstrates substantial performance
improvements across areas such as reasoning, code generation and mathematics, while enhancing safety
features and expanding to support 27 languages. The number of paying users using Alibaba Cloud’s AI
platform (百炼) increased by over 200% quarter-over-quarter.

2

During the Paris 2024 Olympics, Alibaba Cloud’s technology, which enables remote video production andtransmission through cloud infrastructure, overtook satellite as the primary means of broadcast for the firsttime in Olympics history. Two-thirds of national broadcasters used live signals transmitted by Alibaba
Cloud in real-time around the world, reaching billions of viewers. Alibaba Cloud also hosted more than
11,000 hours of Olympic Broadcasting Services-produced games related video content used by thebroadcasters. Additionally, this is the first Olympic Games to extensively use AI, with Alibaba Cloud’s AI
technology deployed in 14 Olympic venues to generate high-fidelity 360-degree replays in real-time.
Alibaba International Digital Commerce Group (“AIDC”)
For the quarter ended June 30, 2024, revenue from AIDC grew 32% year-over-year to RMB29,293 million(US$4,031 million). The strong performance was driven by growth of cross-border businesses, in particular
the Choice business on AliExpress. During this quarter, our AliExpress and Trendyol platforms stepped up
investments in initiatives to increase mindshare in select markets in Europe and the Gulf region. In addition,
we continued our efforts to improve efficiency of our operations and investment.
The AliExpress platform expanded its supplier base and now includes local merchants to enrich its productofferings and better meet the needs of local consumers. During the quarter, AliExpress and Magazine Luiza(“Magalu”), a leading retailer in Brazil, entered into a partnership in which Magalu will open and operate astorefront on AliExpress and vice versa. In addition, during this quarter, the unit economics of the Choicebusiness improved significantly on a sequential basis.
Cainiao Smart Logistics Network Limited (“Cainiao”)
For the quarter ended June 30, 2024, revenue from Cainiao grew 16% year-over-year to RMB26,811 million(US$3,689 million), primarily driven by increase in revenue from cross-border fulfillment solutions.
We continue to drive synergies between Cainiao and our cross-border e-commerce business, as Cainiao
executes its strategy to strengthen its end-to-end capabilities through developing a highly-digitalized global
logistics network.
Local Services GroupFor the quarter ended June 30, 2024, revenue from Local Services Group grew by 12% year-over-year to
RMB16,229 million (US$2,233 million), driven by order growth of both Amap and Ele.me, as well as
revenue growth from marketing services. For this quarter, Local Services Group’s losses narrowed
significantly on a year-over-year basis due to improving operating efficiency and increasing scale.
Digital Media and Entertainment Group
During the quarter ended June 30, 2024, revenue of Digital Media and Entertainment Group was RMB5,581
million (US$768 million), an increase of 4% year-over-year, primarily driven by GMV and revenue growthof its online ticketing platform for live events.
ESG Updates
In July, we published our 2024 Environmental, Social and Governance Report. The report provides updates
on our key ESG strategic dimensions, including progress and performance in key initiatives such as ourcarbon neutrality pledges. The full version of the report is available on our official website.
Share Repurchases
During the quarter ended June 30, 2024, we repurchased a total of 613 million ordinary shares (equivalent to77 million ADSs) for a total of US$5.8 billion, including the repurchase of approximately US$1.2 billion of3

ADSs through privately negotiated transactions concurrently with the issuance of our convertible notes on
May 23, 2024.
As of June 30, 2024, we had 19,024 million ordinary shares (equivalent to 2,378 million ADSs) outstanding,a net decrease of 445 million ordinary shares compared to March 31, 2024, or a 2.3% net reduction in ouroutstanding shares after accounting for shares issued under our ESOP.

4JUNE QUARTER SUMMARY FINANCIAL RESULTS
Three months ended June 30,
2023
2024
YoY %
RMB
RMB
US$
Change(in millions, except percentages and per share amounts)
Revenue

234,156

243,236

33,470

4%

Income from operations
Operating margin
Adjusted EBITDA(1)Adjusted EBITDA margin(1)Adjusted EBITA(1)Adjusted EBITA margin(1)42,49018%
52,05222%
45,371
19%

35,98915%
51,161
21%
45,03519%4,952(15)%(2)7,040(2)%(3)6,197(1)%(3)

Net income
Net income attributable to ordinary shareholders
Non-GAAP net income(1)33,00034,332
44,922

24,022
24,26940,691

3,306
3,340
5,599

(27)%(4)(29)%(4)(9)%(4)

Diluted earnings per share(5)Diluted earnings per ADS(5)Non-GAAP diluted earnings per share(1) (5)Non-GAAP diluted earnings per ADS(1) (5)

1.66
13.30
2.17
17.37

1.24
9.89
2.05
16.44

0.17
1.36
0.28
2.26

(26)%(4)(6)(26)%(4)(6)(5)%(4)(6)(5)%(4)(6)(1) See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest
Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results
announcement.
(2) The year-over-year decrease was primarily due to a reversal of share-based compensation expense of RMB6,901 million during
the quarter ended June 30, 2023, as discussed in “June Quarter Other Financial Results” below.
(3) The year-over-year decreases were primarily attributable to the increase in investments in our e-commerce businesses, partly
offset by improved operating efficiency.
(4) The year-over-year decreases were primarily due to a decrease in income from operations and the increase in impairment of
our investments, partly offset by the mark-to-market changes from our equity investments, while net income attributable toordinary shareholders and earnings per share/ADS would further take into account the net loss attributable to noncontrollinginterests. We excluded non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill andintangible assets, and certain other items from our non-GAAP measurements.
(5) Each ADS represents eight ordinary shares.
(6) The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences fromthe year-over-year percentages calculated based on the RMB amounts after rounding.

5

JUNE QUARTER SEGMENT RESULTS
Revenue for the quarter ended June 30, 2024 was RMB243,236 million (US$33,470 million), an increase of
4% year-over-year compared to RMB234,156 million in the same quarter of 2023.
The following table sets forth a breakdown of our revenue by segment for the periods indicated (1):Three months ended June 30,
2023
2024
RMB
RMB
US$
(in millions, except percentages)
Taobao and Tmall Group:
China commerce retail- Customer management- Direct sales and others(2)YoY %ChangeChina commerce wholesale
Total Taobao and Tmall Group

79,66130,167
109,828
5,125
114,953

80,11527,306
107,421
5,952
113,373

11,024
3,758
14,782819
15,601

1%
(9)%
(2)%
16%
(1)%

Cloud Intelligence Group

25,06526,5493,653

6%

Alibaba International Digital Commerce Group:
International commerce retailInternational commerce wholesale
Total Alibaba International Digital Commerce Group

17,138
4,985
22,123

23,691
5,602
29,293

3,260
771
4,031

38%
12%
32%

Cainiao Smart Logistics Network Limited
Local Services Group
Digital Media and Entertainment GroupAll others(3)Total segment revenue
UnallocatedInter-segment elimination
Consolidated revenue

23,164
14,4505,381
45,798250,934249(17,027)
234,156

26,811
16,2295,581
47,001
264,837419(22,020)
243,236

3,689
2,233
768
6,468
36,44358(3,031)
33,470

16%
12%
4%
3%
6%

4%

(1) Starting from the quarter ended September 30, 2023, we reclassified the revenue of our DingTalk business, which waspreviously reported under Cloud Intelligence Group, to All others, the purpose of which was to provide DingTalk with greater
autonomy to promote innovation and enhance competitiveness. Our CODM started to review information under this newreporting structure and segment reporting has been updated to conform to this change as well as the way we manage and monitor
segment performance. Comparative figures were reclassified to conform to this presentation.
(2) Direct sales and others revenue under Taobao and Tmall Group primarily represents Tmall Supermarket, Tmall Global andother direct sales businesses, where revenue and cost of inventory are recorded on a gross basis.
(3) All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly
consists of UCWeb and Quark businesses), Fliggy, DingTalk (previously reported under Cloud Intelligence Group segment)
and other businesses. The majority of revenue within All others consists of direct sales revenue, which is recorded on a grossbasis.

6

The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated (1):Taobao and Tmall Group
Cloud Intelligence Group
Alibaba International Digital Commerce Group
Cainiao Smart Logistics Network Limited
Local Services Group
Digital Media and Entertainment GroupAll others(2)Total segment adjusted EBITA
Unallocated(3)Inter-segment elimination
Consolidated adjusted EBITA
Less: Non-cash share-based compensation expense
Less: Amortization and impairment of intangible
assetsLess: Impairment of goodwill
Less: Provision for the shareholder class action
lawsuits
Income from operations

Three months ended June 30,
2023
2024
RMB
RMB
US$
(in millions, except percentages)
49,31948,810
6,716
916
2,337
322
(420)
(3,706)
(510)
877
618
85
(1,982)
(386)
(53)
63
(103)
(14)
(1,733)(1,263)(174)
47,04046,307
6,372(1,463)
(871)
(120)
(206)
(401)
(55)
45,37145,035
6,197
1,629(4,109)(565)(2,479)(2,031)(1,792)
–

(247)
–

–
42,490(3,145)35,989

(433)
4,952

YoY %
Change(4)(1)%155%(782)%
(30)%
81%
N/A
27%
(2)%

(1)%

(15)%

(1) Starting from the quarter ended September 30, 2023, we reclassified the results of our DingTalk business, which was previously
reported under Cloud Intelligence Group, to All others, the purpose of which was to provide DingTalk with greater autonomy
to promote innovation and enhance competitiveness. Our CODM started to review information under this new reporting
structure and segment reporting has been updated to conform to this change as well as the way we manage and monitor segment
performance. Comparative figures were reclassified to conform to this presentation.
(2) All others include Sun Art, Freshippo, Alibaba Health, Lingxi Games, Intime, Intelligent Information Platform (which mainly
consists of UCWeb and Quark businesses), Fliggy, DingTalk (previously reported under Cloud Intelligence Group segment)
and other businesses.
(3) Unallocated primarily relates to certain costs incurred by corporate functions and other miscellaneous items that are notallocated to individual segments.
(4) For a more intuitive presentation, widening of loss in YoY% is shown in terms of negative growth rate, and narrowing of loss
in YoY% is shown in terms of positive growth rate.

Taobao and Tmall Group(i) Segment revenue•

China Commerce Retail Business
Revenue from our China commerce retail business in the quarter ended June 30, 2024 was
RMB107,421 million (US$14,782 million), a decrease of 2% compared to RMB109,828 million in
the same quarter of 2023 due to the 9% decrease in direct sales revenue described below.
Customer management revenue increased by 1% year-over-year, primarily due to a high-single-digit
year-over-year growth in online GMV, partly offset by a decline in take rate. The year-over-year
decrease in take rate was primarily due to increasing proportion of GMV generated from new models
that currently have lower monetization rates.
Direct sales and others revenue under China commerce retail business in the quarter ended June 30,2024 was RMB27,306 million (US$3,758 million), a decrease of 9% compared to RMB30,167
million in the same quarter of 2023, primarily attributable to the decline in sales of consumer

7

electronics and appliances due to our planned reduction of certain direct sales businesses, partly
offset by the increase in sales of groceries.
•

China Commerce Wholesale Business
Revenue from our China commerce wholesale business in the quarter ended June 30, 2024 was
RMB5,952 million (US$819 million), an increase of 16% compared to RMB5,125 million in thesame quarter of 2023, primarily due to an increase in revenue from value-added services provided to
paying members.

(ii) Segment adjusted EBITA
Taobao and Tmall Group adjusted EBITA decreased by 1% to RMB48,810 million (US$6,716
million) in the quarter ended June 30, 2024, compared to RMB49,319 million in the same quarter of2023, primarily due to the increase in investments in user experience (which resulted in enhanced
consumer retention and increased purchase frequency) and technology infrastructure, partly offset by
the narrowing losses in certain businesses.
Cloud Intelligence Group(i) Segment revenue
Revenue from Cloud Intelligence Group was RMB26,549 million (US$3,653 million) in the quarter
ended June 30, 2024, an increase of 6% compared to RMB25,065 million in the same quarter of2023. Overall revenue excluding Alibaba-consolidated subsidiaries increased by 6% year-over-year,
mainly driven by the double-digit revenue growth of public cloud products including AI-related
products, partly offset by the decrease in non-public cloud revenue as we transition away from thelow-margin project-based revenues to focus on high-quality revenues.
(ii) Segment adjusted EBITA
Cloud Intelligence Group adjusted EBITA increased by 155% to RMB2,337 million (US$322
million) in the quarter ended June 30, 2024, compared to RMB916 million in the same quarter of2023, primarily due to improving product mix through our focus on public cloud adoption andoperating efficiency, partly offset by the increasing investments in customers and technology.
Alibaba International Digital Commerce Group(i) Segment revenue•

International Commerce Retail Business
Revenue from our International commerce retail business in the quarter ended June 30, 2024 was
RMB23,691 million (US$3,260 million), an increase of 38% compared to RMB17,138 million in thesame quarter of 2023, primarily driven by order growth from AliExpress’ Choice, as well as
improvements in monetization. As certain of our international businesses generate revenue in local
currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate
fluctuations.

•International Commerce Wholesale Business
Revenue from our International commerce wholesale business in the quarter ended June 30, 2024
was RMB5,602 million (US$771 million), an increase of 12% compared to RMB4,985 million in thesame quarter of 2023, primarily due to an increase in revenue generated by cross-border-related
value-added services.

8

(ii) Segment adjusted EBITA
Alibaba International Digital Commerce Group adjusted EBITA was a loss of RMB3,706 million(US$510 million) in the quarter ended June 30, 2024, compared to a loss of RMB420 million in thesame quarter of 2023, primarily due to the increase in investments in AliExpress and Trendyol’s
cross-border businesses, partly offset by Lazada’s significant reduction in operating loss from
improvements in its monetization and operating efficiency.
Cainiao Smart Logistics Network Limited(i) Segment revenue
Revenue from Cainiao Smart Logistics Network Limited was RMB26,811 million (US$3,689
million) in the quarter ended June 30, 2024, an increase of 16% compared to RMB23,164 million in
the same quarter of 2023, primarily driven by the increase in revenue from cross-border fulfillment
solutions.
(ii) Segment adjusted EBITA
Cainiao Smart Logistics Network Limited adjusted EBITA decreased by 30% to RMB618 million(US$85 million) in the quarter ended June 30, 2024, compared to RMB877 million in the samequarter of 2023, primarily due to increased investments in cross-border fulfillment solutions, partly
offset by improved operating efficiency.
Local Services Group(i) Segment revenue
Revenue from Local Services Group was RMB16,229 million (US$2,233 million) in the quarter
ended June 30, 2024, an increase of 12% compared to RMB14,450 million in the same quarter of2023, driven by the order growth of both Amap and Ele.me, as well as revenue growth frommarketing services.
(ii) Segment adjusted EBITA
Local Services Group adjusted EBITA was a loss of RMB386 million (US$53 million) in the quarter
ended June 30, 2024, compared to a loss of RMB1,982 million in the same quarter of 2023, primarily
due to improving operating efficiency and increasing scale.
Digital Media and Entertainment Group(i) Segment revenue
Revenue from Digital Media and Entertainment Group was RMB5,581 million (US$768 million) in
the quarter ended June 30, 2024, an increase of 4% compared to RMB5,381 million in the samequarter of 2023.
(ii) Segment adjusted EBITA
Digital Media and Entertainment Group adjusted EBITA in the quarter ended June 30, 2024 was aloss of RMB103 million (US$14 million), compared to a profit of RMB63 million in the samequarter of 2023.

9All Others(i) Segment revenue
Revenue from All others segment was RMB47,001 million (US$6,468 million) in the quarter ended
June 30, 2024, an increase of 3% compared to RMB45,798 million in the same quarter of 2023,
primarily due to the increase in revenue from Freshippo, Alibaba Health and Intelligent Information
Platform, partly offset by the decrease in revenue from Lingxi Games and Sun Art.
(ii) Segment adjusted EBITA
Adjusted EBITA from All others segment in the quarter ended June 30, 2024 was a loss of
RMB1,263 million (US$174 million), compared to a loss of RMB1,733 million in the same quarterof 2023, primarily due to improved operating results from Sun Art, Freshippo, Alibaba Health andLingxi Games, partly offset by increased investment in technology businesses.

10JUNE QUARTER OTHER FINANCIAL RESULTS
Costs and Expenses
The following tables set forth a breakdown of our costs and expenses, share-based compensation expense,and costs and expenses excluding share-based compensation expense by function for the periods indicated:
Three months ended June 30,
2023
2024
RMB
Costs and expenses:
Cost of revenue
Product development expenses
Sales and marketing expenses
General and administrative expenses
Amortization and impairment ofintangible assets
Impairment of goodwill
Total costs and expenses
Share-based compensation expense:
Cost of revenue
Product development expenses
Sales and marketing expenses
General and administrative expenses
Total share-based compensation expense
Costs and expenses excluding sharebased compensation expense:
Cost of revenue
Product development expenses
Sales and marketing expenses
General and administrative expenses
Amortization and impairment ofintangible assets
Impairment of goodwill
Total costs and expenses excluding sharebased compensation expense

% of
% of
Revenue
Revenue
RMB
US$(in millions, except percentages)% ofRevenueYoYchange142,347
10,46527,047
7,297

60.8%
4.5%
11.6%
3.1%

146,106
13,37332,696
13,28020,105
1,840
4,499
1,827

60.1%
5.5%
13.4%
5.5%

(0.7)%
1.0%
1.8%
2.4%

2,479
2,031
191,666

1.1%
0.9%

1,792
–
207,247

247–
28,5180.7%–(0.4)%(0.9)%

(307)
(242)
(125)
(955)
(1,629)(0.1)%(0.1)%(0.1)%(0.4)%

586
1,803
399
1,343
4,131

80
248
55
185
568

0.2%
0.7%
0.2%
0.6%

0.3%
0.8%
0.3%
1.0%

142,654
10,707
27,172
8,252

60.9%
4.6%
11.6%
3.5%

145,520
11,57032,297
11,93720,025
1,592
4,444
1,642

59.8%
4.8%
13.3%
4.9%

(1.1)%
0.2%
1.7%
1.4%

2,479
2,031

1.1%
0.9%

1,792
–

247
–

0.7%
–

(0.4)%(0.9)%

203,116

27,950193,295

Cost of revenue – Cost of revenue in the quarter ended June 30, 2024 was RMB146,106 million(US$20,105 million), or 60.1% of revenue, compared to RMB142,347 million, or 60.8% of revenue, in thesame quarter of 2023. Without the effect of share-based compensation expense, cost of revenue as apercentage of revenue would have decreased from 60.9% in the quarter ended June 30, 2023 to 59.8% in thequarter ended June 30, 2024.
Product development expenses – Product development expenses in the quarter ended June 30, 2024 were
RMB13,373 million (US$1,840 million), or 5.5% of revenue, compared to RMB10,465 million, or 4.5% ofrevenue, in the same quarter of 2023. Without the effect of share-based compensation expense, productdevelopment expenses as a percentage of revenue would have increased from 4.6% in the quarter ended
June 30, 2023 to 4.8% in the quarter ended June 30, 2024.
Sales and marketing expenses – Sales and marketing expenses in the quarter ended June 30, 2024 were
RMB32,696 million (US$4,499 million), or 13.4% of revenue, compared to RMB27,047 million, or 11.6%
of revenue, in the same quarter of 2023. Without the effect of share-based compensation expense, sales and11marketing expenses as a percentage of revenue would have increased from 11.6% in the quarter ended June30, 2023 to 13.3% in the quarter ended June 30, 2024, primarily due to our increased investments in ecommerce businesses.
General and administrative expenses – General and administrative expenses in the quarter ended June 30,2024 were RMB13,280 million (US$1,827 million), or 5.5% of revenue, compared to RMB7,297 million, or
3.1% of revenue, in the same quarter of 2023. Without the effect of share-based compensation expense,
general and administrative expenses as a percentage of revenue would have increased from 3.5% in thequarter ended June 30, 2023 to 4.9% in the quarter ended June 30, 2024, primarily due to a one-time
provision for the previously disclosed shareholder class action lawsuits of RMB3,145 million (US$433
million) during the quarter.
Share-based compensation expense – Total share-based compensation expense included in the cost andexpense items above in the quarter ended June 30, 2024 was RMB4,131 million (US$568 million),compared to a net reversal of RMB1,629 million in the same quarter of 2023.
The following table sets forth our analysis of share-based compensation expense for the quarters indicatedby type of share-based awards:
Three months ended June 30,
2023
2024
RMB
By type of awards:
Alibaba Group share-based awards(1)
Ant Group share-based awards(2)Others(3)Total share-based compensation expense

YoY %
RMB
US$
Change(in millions, except percentages)

4,267(6,834)938(1,629)

3,091
(27)
1,067
4,131

425
(4)
147
568

(28)%
(100)%14%
N/A(1) This represents Alibaba Group share-based awards granted to our employees.
(2) This represents Ant Group share-based awards granted to our employees, which is subject to mark-to-market accounting
treatment.
(3) This represents share-based awards of our subsidiaries.

Share-based compensation expense related to Alibaba Group share-based awards decreased in the quarter
ended June 30, 2024 compared to the same quarter of 2023. This decrease was primarily due to the generaldecrease in the average fair market value and number of the awards granted.
Share-based compensation expense related to Ant Group share-based awards was a net reversal for thequarter ended June 30, 2023 because we made a mark-to-market adjustment during the quarter relating to
Ant Group share-based awards granted to our employees, reflecting a decrease in the value of Ant Group.
We expect that our share-based compensation expense will continue to be affected by changes in the fairvalue of the underlying awards and the quantity of awards we grant in the future.
Amortization and impairment of intangible assets – Amortization and impairment of intangible assets inthe quarter ended June 30, 2024 was RMB1,792 million (US$247 million), a decrease of 28% from
RMB2,479 million in the same quarter of 2023.
Impairment of goodwill – Impairment of goodwill of RMB2,031 million was recorded in the quarter ended
June 30, 2023 because the carrying value of a reporting unit within All others segment exceeded its fairvalue.

12

Income from operations and operating margin
Income from operations in the quarter ended June 30, 2024 was RMB35,989 million (US$4,952 million), or
15% of revenue, a decrease of 15% compared to RMB42,490 million, or 18% of revenue, in the samequarter of 2023, primarily due to the reversal of share-based compensation expense of RMB6,901 million
during the quarter ended June 30, 2023 in relation to the mark-to-market adjustment of Ant Group sharebased awards granted to our employees.
Adjusted EBITDA and Adjusted EBITA
Adjusted EBITDA decreased 2% year-over-year to RMB51,161 million (US$7,040 million) in the quarter
ended June 30, 2024, compared to RMB52,052 million in the same quarter of 2023. Adjusted EBITA
decreased 1% year-over-year to RMB45,035 million (US$6,197 million) in the quarter ended June 30, 2024,
compared to RMB45,371 million in the same quarter of 2023, primarily attributable to the increase ininvestments in our e-commerce businesses, partly offset by improved operating efficiency. A reconciliationof net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement.
Adjusted EBITA by segment
Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are
set forth in the section entitled “June Quarter Segment Results” above.
Interest and investment income, net
Interest and investment income, net in the quarter ended June 30, 2024 was a loss of RMB1,478 million(US$203 million), compared to a loss of RMB5,898 million in the same quarter of 2023, primarily due to adecrease in net loss from our investments in publicly-traded companies as a result of mark-to-market
changes.
The above-mentioned investment gains and losses were excluded from our non-GAAP net income.
Other income, net
Other income, net in the quarter ended June 30, 2024 was RMB257 million (US$35 million), a decrease of
81% compared to RMB1,364 million in the same quarter of 2023.
Income tax expenses
Income tax expenses in the quarter ended June 30, 2024 were RMB10,063 million (US$1,384 million),compared to RMB6,022 million in the same quarter of 2023.
Share of results of equity method investees
Share of results of equity method investees in the quarter ended June 30, 2024 was RMB1,505 million(US$207 million), a decrease of 47% compared to RMB2,850 million in the same quarter of 2023. The
following table sets forth a breakdown of share of results of equity method investees for the periods
indicated:

13

2023
RMB
Share of profit (loss) of equity method investees- Ant Group- Others
Impairment loss
Others(1)TotalThree months ended June 30,
2024
RMB(in millions)
4,364
(502)
(12)
(1,000)
2,850

US$

3,917
(588)
(2,157)
333
1,505

539
(81)
(297)
46
207

(1) “Others” mainly include basis differences arising from equity method investees, share-based compensation expense related toshare-based awards granted to employees of our equity method investees, as well as gain or loss arising from the deemed
disposal of the equity method investees.

We record our share of results of all equity method investees one quarter in arrears. We recorded an
impairment loss of RMB2,157 million (US$297 million) in this quarter with respect to equity method
investees, primarily due to a prolonged decline in the public market value of an equity method investee
against its carrying value.
Net income and Non-GAAP net income
Our net income in the quarter ended June 30, 2024 was RMB24,022 million (US$3,306 million), comparedto RMB33,000 million in the same quarter of 2023, primarily due to a decrease in income from operations,and the increase in impairment of our investments, partly offset by the mark-to-market changes from ourequity investments.
Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill
and intangible assets, and certain other items, non-GAAP net income in the quarter ended June 30, 2024 was
RMB40,691 million (US$5,599 million), a decrease of 9% compared to RMB44,922 million in the samequarter of 2023. A reconciliation of net income to non-GAAP net income is included at the end of thisresults announcement.
Net income attributable to ordinary shareholders
Net income attributable to ordinary shareholders in the quarter ended June 30, 2024 was RMB24,269
million (US$3,340 million), compared to RMB34,332 million in the same quarter of 2023, primarily due toa decrease in income from operations, and the increase in impairment of our investments, partly offset by the
mark-to-market changes from our equity investments.
Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share
Diluted earnings per ADS in the quarter ended June 30, 2024 was RMB9.89 (US$1.36), compared to
RMB13.30 in the same quarter of 2023. Excluding non-cash share-based compensation expense,
gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, nonGAAP diluted earnings per ADS in the quarter ended June 30, 2024 was RMB16.44 (US$2.26), a decreaseof 5% compared to RMB17.37 in the same quarter of 2023.
Diluted earnings per share in the quarter ended June 30, 2024 was RMB1.24 (US$0.17 or HK$1.36),
compared to RMB1.66 in the same quarter of 2023. Excluding non-cash share-based compensation expense,
gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, nonGAAP diluted earnings per share in the quarter ended June 30, 2024 was RMB2.05 (US$0.28 or HK$2.25),
a decrease of 5% compared to RMB2.17 in the same quarter of 2023.
A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share isincluded at the end of this results announcement. Each ADS represents eight ordinary shares.
14

Cash and cash equivalents, short-term investments and other treasury investments
As of June 30, 2024, cash and cash equivalents, short-term investments and other treasury investments
included in equity securities and other investments on the consolidated balance sheets, were RMB613,678
million (US$84,445 million), compared to RMB617,230 million as of March 31, 2024. Other treasury
investments consist of fixed deposits, certificate of deposits and marketable debt securities with original
maturities over one year for treasury purposes. The decrease in cash and cash equivalents, short-term
investments and other treasury investments during the quarter ended June 30, 2024 was primarily due tocash used in repurchase of ordinary shares of RMB42,695 million (US$5,875 million) and acquisition of
additional equity interests in non-wholly owned subsidiaries of RMB8,337 million (US$1,147 million),
partly offset by free cash flow generated from operations of RMB17,372 million (US$2,390 million) and thenet proceeds from the issuance of convertible unsecured senior notes and the purchase of capped call of
RMB31,065 million (US$4,275 million).
Net cash provided by operating activities and free cash flow
During the quarter ended June 30, 2024, net cash provided by operating activities was RMB33,636 million(US$4,628 million), a decrease of 26% compared to RMB45,306 million in the same quarter of 2023. Free
cash flow, a non-GAAP measurement of liquidity, was RMB17,372 million (US$2,390 million), a decreaseof 56% compared to RMB39,089 million in the same quarter of 2023. The year-over-year decrease mainlyreflected the increase in expenditure related to our investments in Alibaba Cloud infrastructure and otherworking capital changes related to factors including our planned reduction of direct sales businesses. A
reconciliation of net cash provided by operating activities to free cash flow is included at the end of thisresults announcement.
Net cash used in investing activities
During the quarter ended June 30, 2024, net cash used in investing activities of RMB35,829 million(US$4,930 million) primarily reflected (i) an increase in other treasury investments by RMB112,148 million(US$15,432 million), (ii) capital expenditure of RMB12,094 million (US$1,664 million), and (iii) cash
outflow of RMB1,769 million (US$243 million) for investment and acquisition activities. These cash
outflows were partly offset by a decrease in short-term investments by RMB87,417 million (US$12,029
million) and cash inflow of RMB2,496 million (US$343 million) from disposal of investments.
Net cash used in financing activities
During the quarter ended June 30, 2024, net cash used in financing activities of RMB19,582 million(US$2,695 million) primarily reflected cash used in repurchase of ordinary shares of RMB42,695 million(US$5,875 million) and acquisition of additional equity interests in non-wholly owned subsidiaries of
RMB8,337 million (US$1,147 million), partly offset by the net proceeds from the issuance of convertible
unsecured senior notes and the purchase of capped call of RMB31,065 million (US$4,275 million).
Employees
As of June 30, 2024, we had a total of 198,162 employees, compared to 204,891 as of March 31, 2024.

15

WEBCAST AND CONFERENCE CALL INFORMATION
Alibaba Group’s management will hold a conference call to discuss the financial results at 7:30 a.m. U.S.
Eastern Time (7:30 p.m. Hong Kong Time) on Thursday, August 15, 2024.
All participants must pre-register to join this conference call using the Participant Registration link below:
English: https://s1.c-conf.com/diamondpass/10040376-uTdhw.html
Chinese: https://s1.c-conf.com/diamondpass/10040377-puyhg.html
Upon registration, each participant will receive details for the conference call, including dial-in numbers,
conference call passcode and a unique access PIN. To join the conference, please dial the number provided,
enter the passcode followed by your PIN, and you will join the conference.
A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en-US/irfinancial-reports-quarterly-results. An archived webcast will be available through the same link following
the call. A replay of the conference call will be available for one week from the date of the conference (Dialin number: +1 855 883 1031; English conference PIN 10040376; Chinese conference PIN 10040377).
Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en-US/investorrelations on August 15, 2024 to view the earnings release and accompanying slides prior to the conference
call.
ABOUT ALIBABA GROUP
Alibaba Group’s mission is to make it easy to do business anywhere. The company aims to build the future
infrastructure of commerce. It envisions that its customers will meet, work and live at Alibaba, and that it
will be a good company that lasts for 102 years.
Investor Relations Contact
Rob LinHead of Investor Relations
Alibaba Group Holding Limited
investor@alibaba-inc.com
Media Contacts
Cathy Yancathy.yan@alibaba-inc.com
Ivy Keivy.ke@alibaba-inc.com
EXCHANGE RATE INFORMATIONThis results announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars(“US$”) and Hong Kong dollars (“HK$”) for the convenience of the reader. Unless otherwise stated, alltranslations of RMB into US$ were made at RMB7.2672 to US$1.00, the exchange rate on June 28, 2024 as
set forth in the H.10 statistical release of the Federal Reserve Board, and all translations of RMB into
HK$ were made at RMB0.91268 to HK$1.00, the middle rate on June 28, 2024 as published by the People’s
Bank of China. The percentages stated in this announcement are calculated based on the RMB amounts andthere may be minor differences due to rounding.

16

SAFE HARBOR STATEMENTS
This announcement contains forward-looking statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements
can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,”“intend,” “seek,” “plan,” “believe,” “potential,” “continue,” “ongoing,” “target,” “guidance,” “is/are likely
to” and similar statements. In particular, the settlement in principle of our shareholder class action lawsuits
is subject to various conditions, including completion of confirmatory discovery, negotiation and executionof the full settlement agreement and approval by the court. In addition, statements that are not historicalfacts, including statements about Alibaba Group’s new organizational and governance structure, Alibaba’splan to convert to primary listing in Hong Kong, Alibaba’s strategies and business and operational plans,
Alibaba’s beliefs, expectations and guidance regarding the growth of its business, revenue and return on
investments, share repurchases and the business outlook and quotations from management in thisannouncement, are or contain forward-looking statements. Alibaba may also make forward-looking
statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), inannouncements made on the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock
Exchange”), in press releases and other written materials and in oral statements made by its officers,
directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties.
A number of factors could cause actual results to differ materially from those contained in any forwardlooking statement. These factors include but are not limited to the following: Alibaba’s corporate structure,including the VIE structure it uses to operate certain businesses in the PRC; the implementation of Alibaba
Group’s new organizational and governance structure; Alibaba’s ability to maintain the trusted status of its
ecosystem; Alibaba’s ability to compete, innovate and maintain or grow its business, including expanding its
international and cross-border businesses and operations and managing a large and complex organization;risks associated with sustained investments in Alibaba’s businesses; fluctuations in general economic andbusiness conditions in China and globally; uncertainties arising from competition among countries andgeopolitical tensions, including national trade, investment, protectionist or other policies and export control,
economic or trade sanctions; risks associated with Alibaba’s acquisitions, investments and alliances;
uncertainties and risks associated with a broad range of complex laws and regulations (including in the areasof privacy and data protection and cybersecurity, anti-monopoly and anti-unfair competition, content
regulation, consumer protection and regulation of Internet platforms) in the PRC and globally; cybersecurity
risks; Alibaba’s plan to convert to primary listing in Hong Kong; and assumptions underlying or related toany of the foregoing. Further information regarding these and other risks is included in Alibaba’s filings
with the SEC and announcements on the website of the Hong Kong Stock Exchange. All information
provided in this results announcement is as of the date of this results announcement and are based onassumptions that we believe to be reasonable as of this date, and Alibaba does not undertake any obligation
to update any forward-looking statement, except as required under applicable law.
NON-GAAP FINANCIAL MEASURES
To supplement our consolidated financial statements, which are prepared and presented in accordance with
GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA(including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net
income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these nonGAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to
the Nearest Comparable U.S. GAAP Measures” in this results announcement.
We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted
earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by
the effect of certain income or expenses that we include in income from operations, net income and diluted
earnings per share/ADS. We believe that these non-GAAP measures provide useful information about ourcore operating results, enhance the overall understanding of our past performance and future prospects andallow for greater visibility with respect to key metrics used by our management in its financial andoperational decision-making. We present three different income measures, namely adjusted EBITDA,

17adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency
to investors about our operating results.
We consider free cash flow to be a liquidity measure that provides useful information to management andinvestors about the amount of cash generated by our business that can be used for strategic corporatetransactions, including investing in our new business initiatives, making strategic investments andacquisitions and strengthening our balance sheet.
Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS
and free cash flow should not be considered in isolation or construed as an alternative to income fromoperations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance oras an indicator of our operating performance. These non-GAAP financial measures presented here do nothave standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titledmeasures presented by other companies. Other companies may calculate similarly titled measuresdifferently, limiting their usefulness as comparative measures to our data.
Adjusted EBITDA represents net income before interest and investment income, net, interest expense,
other income, net, income tax expenses, share of results of equity method investees, certain non-cash
expenses, consisting of share-based compensation expense, amortization and impairment of intangible
assets, impairment of goodwill, depreciation and impairment of property and equipment, and operating lease
cost relating to land use rights, and others (including provision in relation to matters outside the ordinary
course of business), which we do not believe are reflective of our core operating performance during theperiods presented.
Adjusted EBITA represents net income before interest and investment income, net, interest expense, otherincome, net, income tax expenses, share of results of equity method investees, certain non-cash expenses,
consisting of share-based compensation expense, amortization and impairment of intangible assets,
impairment of goodwill, and others (including provision in relation to matters outside the ordinary course ofbusiness), which we do not believe are reflective of our core operating performance during the periods
presented.
Non-GAAP net income represents net income before non-cash share-based compensation expense,
amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of
investments, impairment of goodwill and investments, and others (including provision in relation to mattersoutside the ordinary course of business), and adjustments for the tax effects.
Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary
shareholders divided by the weighted average number of outstanding ordinary shares for computing nonGAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents nonGAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.
Free cash flow represents net cash provided by operating activities as presented in our consolidated cash
flow statement less purchases of property and equipment (excluding acquisition of land use rights andconstruction in progress relating to office campuses) and intangible assets (excluding those acquired throughacquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer
protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows frominvesting activities in order to provide greater transparency into cash flow from our revenue-generating
business operations. We exclude “acquisition of land use rights and construction in progress relating to
office campuses” because the office campuses are used by us for corporate and administrative purposes andare not directly related to our revenue-generating business operations. We also exclude buyer protection
fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose ofcompensating buyers for claims against merchants.

18

The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP
Measures” in this results announcement has more details on the non-GAAP financial measures that are mostdirectly comparable to GAAP financial measures and the related reconciliations between these financial
measures.

19

ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED INCOME STATEMENTS
Three months ended June 30,
2023
2024
RMB

RMB

US$

(in millions, except per share data)
234,156(142,347)(10,465)(27,047)(7,297)(2,479)(2,031)

243,236(146,106)(13,373)(32,696)(13,280)(1,792)–33,470(20,105)(1,840)(4,499)(1,827)(247)–

Income from operations
Interest and investment income, net
Interest expense
Other income, net

42,490(5,898)(1,784)
1,364

35,989(1,478)(2,188)
257

4,952
(203)
(301)
35

Income before income tax and share of results of equity method
investees
Income tax expenses
Share of results of equity method investees

36,172(6,022)2,850

32,580(10,063)
1,505

4,483
(1,384)207

Net income
Net loss attributable to noncontrolling interests

33,000
1,242

24,022
368

3,306
50

Net income attributable to Alibaba Group Holding Limited

34,242

24,3903,356

Accretion of mezzanine equity
Net income attributable to ordinary shareholders

90
34,332(121)
24,269(16)
3,340

Earnings per share attributable to ordinary shareholders(1)BasicDiluted

1.68
1.66

1.26
1.24

0.17
0.17

Earnings per ADS attributable to ordinary shareholders(1)BasicDiluted

13.40
13.30

10.04
9.89

1.38
1.36

Weighted average number of shares used in calculating earnings
per ordinary share (million shares)(1)
Basic
Diluted20,493
20,60819,32919,595

Revenue
Cost of revenue
Product development expenses
Sales and marketing expenses
General and administrative expenses
Amortization and impairment of intangible assets
Impairment of goodwill(1)

Each ADS represents eight ordinary shares.

20

ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED BALANCE SHEETSAs of March 31,
2024
RMB
AssetsCurrent assets:
Cash and cash equivalents
Short-term investments
Restricted cash and escrow receivables
Equity securities and other investments
Prepayments, receivables and other assets
Total current assets
Equity securities and other investments
Prepayments, receivables and other assets
Investment in equity method investees
Property and equipment, net
Intangible assets, net
Goodwill
Total assets
Liabilities, Mezzanine Equity and Shareholders’EquityCurrent liabilities:
Current bank borrowings
Current unsecured senior notes
Income tax payable
Accrued expenses, accounts payable and otherliabilities
Merchant deposits
Deferred revenue and customer advances
Total current liabilities

21

As of June 30,
2024
RMB(in millions)US$

248,125
262,955
38,29959,949143,536
752,864

219,167
176,030
46,14153,727
158,625
653,690

30,15824,223
6,349
7,393
21,82889,951

220,942
116,102203,131
185,161
26,950259,679
1,764,829

330,935
117,340
203,873
194,222
25,272259,722
1,785,054

45,53816,14628,054
26,726
3,478
35,739245,632

12,74916,252
9,068

13,567
16,343
6,868

1,867
2,249
945

297,883
12,737
72,818421,507339,279
12,44974,384
462,890

46,686
1,713
10,236
63,696

ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)
As of March 31,
2024
RMB

As of June 30,
2024

4,069
53,012
55,68686,089–31,867652,230

RMB(in millions)
4,313
54,27955,631
86,57435,82232,185
731,694

Mezzanine equity

10,728

10,903

1,501

Shareholders’ equity:
Ordinary shares
Additional paid-in capital
Treasury shares at cost
Statutory reserves
Accumulated other comprehensive income
Retained earnings

1
397,999(27,684)
14,7333,598
597,8971
381,469(27,687)
15,056
4,446
564,740–
52,492(3,810)2,072
612
77,711

Total shareholders’ equity
Noncontrolling interests

986,544
115,327

938,025
104,432

129,077
14,370Total equity

1,101,871

1,042,457

143,447

Total liabilities, mezzanine equity and equity

1,764,829

1,785,054

245,632

Deferred revenue
Deferred tax liabilities
Non-current bank borrowings
Non-current unsecured senior notes
Non-current convertible unsecured senior notes
Other liabilities
Total liabilities

US$
593
7,469
7,655
11,913
4,929
4,429
100,684

Commitments and contingenciess

22

ALIBABA GROUP HOLDING LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended June 30,
2023
2024
RMB
RMB
US$

(in millions)
Net cash provided by operating activities
Net cash provided by (used in) investing activities
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents, restricted cash and escrowreceivables

45,306
12,595(24,636)

33,636(35,829)(19,582)

4,628(4,930)(2,695)

4,319

659

91

Increase (Decrease) in cash and cash equivalents,
restricted cash and escrow receivables
Cash and cash equivalents, restricted cash andescrow receivables at beginning of period

37,584(21,116)(2,906)

229,510

286,424

39,413

Cash and cash equivalents, restricted cash andescrow receivables at end of period

267,094

265,308

36,50723

ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.
GAAP MEASURESThe table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated:
Three months ended June 30,
2023
2024
RMB

Net income
Adjustments to reconcile net income to adjusted EBITA and adjusted
EBITDA:
Interest and investment income, net
Interest expense
Other income, net
Income tax expenses
Share of results of equity method investees
Income from operations
Non-cash share-based compensation expense
Amortization and impairment of intangible assets
Impairment of goodwill
Provision for the shareholder class action lawsuits
Adjusted EBITA
Depreciation and impairment of property and equipment, andoperating lease cost relating to land use rights
Adjusted EBITDA

24

RMB(in millions)
33,00024,022

US$
3,306

5,898
1,784
(1,364)
6,022(2,850)42,490(1,629)
2,479
2,031
–
45,371

1,478
2,188
(257)
10,063(1,505)35,989
4,109
1,792
–
3,145
45,035

203
301
(35)
1,384
(207)
4,952
565
247
–
433
6,197

6,681
52,052

6,126
51,161843
7,040

ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.
GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods
indicated:
Three months ended June 30,

2023
RMB

2024
RMB
(in millions)US$

Net income
Adjustments to reconcile net income to non-GAAP net income:Non-cash share-based compensation expense
Amortization and impairment of intangible assets
Provision for the shareholder class action lawsuits
Loss on deemed disposals/disposals/revaluation of investments
Impairment of goodwill and investments, and others
Tax effects (1)33,00024,022

3,306(1,629)
2,479
–
9,038
4,269
(2,235)

4,109
1,792
3,145
4,581
4,311
(1,269)

565
247
433
630
593
(175)

Non-GAAP net income

44,922

40,691

5,599(1) Tax effects primarily comprise tax effects relating to non-cash share-based compensation expense, amortization andimpairment of intangible assets and certain gains and losses from investments, and others.

25

ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.
GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted
earnings per share/ADS for the periods indicated:
Three months ended June 30,
2023
2024
RMB
RMB
US$
(in millions, except per share data)
Net income attributable to ordinary shareholders – basic
Dilution effect on earnings arising from non-cash share-based
awards operated by equity method investees andsubsidiaries
Adjustments for interest expense attributable to convertible
unsecured senior notes
Net income attributable to ordinary shareholders – diluted
Non-GAAP adjustments to net income attributable to ordinary
shareholders(1)34,332

24,269

3,340

(68)

(75)

(10)

–

26

4

34,26424,2203,334

10,471

16,045

2,207

Non-GAAP net income attributable to ordinary
shareholders for computing non-GAAP diluted
earnings per share/ADS

44,73540,2655,541

Weighted average number of shares on a diluted basis forcomputing non-GAAP diluted earnings per share/ADS(million shares)(2)20,60819,595

Diluted earnings per share(2)(3)

1.66

1.24

0.17

Non-GAAP diluted earnings per share(2)(4)

2.17

2.05

0.28

Diluted earnings per ADS(2)(3)

13.30

9.89

1.36

Non-GAAP diluted earnings per ADS(2)(4)

17.37

16.44

2.26

(1) See the table above for the reconciliation of net income to non-GAAP net income for more information of these non-GAAP
adjustments.
(2) Each ADS represents eight ordinary shares.
(3) Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted
average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted
earnings per share after adjusting for the ordinary share-to-ADS ratio.
(4) Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders
by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share, on adiluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after
adjusting for the ordinary share-to-ADS ratio.

26

ALIBABA GROUP HOLDING LIMITEDRECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S.
GAAP MEASURES (CONTINUED)
The table below sets forth a reconciliation of net cash provided by operating activities to free cash flow for
the periods indicated:
Three months ended June 30,

2023
RMB

2024
RMB
(in millions)US$

Net cash provided by operating activities
Less: Purchase of property and equipment (excluding
land use rights and construction in progress relating to
office campuses)
Less: Changes in the buyer protection fund deposits

45,30633,6364,628(6,007)(210)(11,939)(4,325)(1,643)(595)

Free cash flow

39,08917,3722,39027