Key takeaways
- Alibaba reported revenue of 280.2 billion yuan for the quarter ended December 31, 2024.
- That was an 8% rise from a year earlier, helped by cloud and overseas sales.
- Cloud Intelligence revenue rose 13%, as more firms bought AI-related computing services.
- International commerce revenue grew 32%, showing faster sales beyond China.
Alibaba revenue growth reached 8% in the December 2024 quarter. Alibaba revenue growth means the company earned more from its shops, cloud services, and other businesses than a year before. Revenue hit 280.2 billion yuan, or about $38.4 billion. Cloud and overseas trade did much of the lifting.
What did Alibaba report?
Alibaba Group reported its results on February 20, 2025, for the three months ending December 31. The company calls this its fiscal third quarter. A fiscal year is a company’s own 12-month accounting calendar. It does not always match the January-to-December calendar year.
The 8% rise beat the slower pace seen in several earlier periods. Yet the total also reflects a huge, mixed business. Alibaba runs online marketplaces, delivery services, cloud computers, video platforms, and overseas shopping sites.
Net income was 48.9 billion yuan, up 333% from a year earlier. Net income is the money left after costs, taxes, and other charges. That very large jump was not mainly from selling more goods. Alibaba said gains on investments helped lift the figure.
| Business area | Revenue | Year-on-year change |
|---|---|---|
| Total Alibaba Group | 280.2 billion yuan | 8% |
| Cloud Intelligence | 31.7 billion yuan | 13% |
| International Digital Commerce | 37.8 billion yuan | 32% |
The numbers show why investors watched the report closely. China’s shoppers have been careful with money, while Alibaba faces tough rivals at home. Faster units gave the group a way to grow even when its core marketplaces moved more slowly.
Why is Alibaba revenue growth tied to cloud?
Cloud Intelligence brought in 31.7 billion yuan, a 13% increase. Cloud computing means renting storage and computing power through the internet. Think of it as hiring a giant computer only when you need it.
Alibaba said AI-related product income kept rising at a triple-digit rate for the sixth straight quarter. Triple-digit growth means at least 100% growth. The company did not give a dollar figure for that AI income.
Demand for AI needs costly chips, servers, and data centres. That helps explain why firms across the sector are spending so much. Nvidia’s higher AI server prices are one sign that the equipment remains valuable and hard to get.
Alibaba revenue growth by business, year on yearTotal group8%Cloud13%International32%
Alibaba has pushed its own Qwen AI models and cloud tools. That puts it in a race with Chinese rivals such as Tencent and Baidu. It also makes its cloud arm more important than a simple support service for online shopping.
Which parts of Alibaba grew fastest?
International Digital Commerce Group posted revenue of 37.8 billion yuan. That was 32% higher than a year before. This unit includes cross-border platforms such as AliExpress, Lazada, Trendyol, and Alibaba.com.
Its sales rose fast, but expansion costs still matter. Shipping goods across borders, finding customers, and handling returns can be expensive. So a rising sales number does not automatically mean a unit makes a large profit.
Alibaba’s China commerce group grew more slowly. Customer management revenue, which includes fees paid by sellers for marketing and services, rose 9%. The result suggests merchants still spent on Alibaba’s platforms, even as they faced fierce price competition.
Quick delivery has become part of that contest. Consumers now expect some daily items within minutes or hours. India has seen the same rush, with Flipkart Minutes reaching 1,000 stores in two years.
What does Alibaba revenue growth mean for investors?
The report gives investors evidence that Alibaba’s big bets can work. Its cloud unit is gaining from AI demand, while overseas platforms are adding customers. Still, investors will want to see whether those gains keep producing cash.
Adjusted EBITA fell 5% to 54.9 billion yuan. Adjusted EBITA is a profit measure that removes some items, such as interest, tax, and certain accounting costs. It can help compare day-to-day business performance, but it is not the same as net income.
The decline shows the trade-off. Alibaba is spending to grow fast units and improve customer deals. Those moves may help later, but they can squeeze profits now.
For a simple reading of the quarter, Alibaba revenue growth was solid rather than magical. The company sold more services and reached more buyers abroad. Its next challenge is turning that growth into steady profit while China’s online shopping fight stays intense.
Readers can check Alibaba’s figures in the company’s investor relations materials. Filings are also available through the U.S. Securities and Exchange Commission.
FAQs
How much did Alibaba’s revenue rise?
Revenue rose 8% from a year earlier to 280.2 billion yuan in the quarter ended December 31, 2024.
What drove Alibaba revenue growth?
Cloud services and international commerce were the main drivers. Cloud revenue rose 13%, while international commerce rose 32%.
Why did Alibaba’s net income jump so much?
Net income rose 333% partly because of gains on investments. That means the profit jump was much bigger than the rise in sales alone.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
