Chinese e-commerce giant Alibaba is surprising everybody with its booming success.
The shopping firm, which is headed by Chinese billionaire Jack Ma, reported 61 percent growth in quarterly revenue on Thursday. The July-September profits, which added up to a total of 55.12 billion Chinese yuan, or $8.34 billion, beat retail and financial analyst expectations that capped revenue at 52 billion yuan.
“We are seeing the early results from our efforts to integrate online and offline with our New Retail strategy, and consumers have benefited from access to high-quality products, improved customer experience and the tremendous convenience of shopping anytime, anywhere,” CEO Daniel Zhang said in a statement.
While Alibaba has both online and brick-and-mortar stores, it is the brand’s e-commerce roots that are proving particularly profitable, bringing in 46.43 million yuan ($6.98 million). Its primary commerce, online revenue, surged by 63 percent, while the number of active mobile users rose by 20 million during the period.
According to the company, over 549 million online users go on Alibaba’s sites regularly, a number that independent reports now expect to rise even more. Now that the quarterly trends are in, Alibaba has identified plans to expand its core online base by investing more heavily in cloud computing, logics and digital entertainment.
As the quarterly results showed a surge in overseas consumers, the company plans to expand its focus to Chinese shoppers living in other parts of Asia and the world.
After jumping to nearly $192 USD earlier in the day, Alibaba stocks were still in the high at $187.71 USD as of 10:30 a.m. ET.