Chinese e-commerce giant Alibaba Group Holding Ltd beat fourth-quarter revenue forecasts on Wednesday, thanks to growth in its core business and its diversification into cloud computing and other services, said Reuters.
Revenue from the company’s cloud computing business rose 76% in the fourth quarter, Alibaba reported. Cloud computing is still a relatively small part of Alibaba’s overall business, accounting for 8% of group revenue in the fourth quarter. However, the company is now the world’s third-largest cloud service provider, after Microsoft Corp and Amazon.com Inc, and the largest in China with a market share of over 40%, according to data from IDC.
It reported a 51% increase in group revenue for January-March from a year earlier to RMB 93.50 billion ($13.6 billion), beating estimates of RMB 91.58 billion, according to IBES data from Refinitiv. Sales excluding revenue from consolidated businesses grew 39% year-on-year.
Alibaba has invested in new business lines such as cloud computing as a boom in its core e-commerce has peaked and its top line growth is slowing.