The following is the content of Alibaba's third fiscal quarter conference call. If you want to refer to the financial report, please click "Ali is still robbing?" Don't be picky about such cabbage prices.
China e-commerce
Taote has gained a large number of new users for our retail business in China. We have 65.438 billion high-quality aac users, which is believed to have basically covered the vast majority of domestic consumers with purchasing power.
The future focus will shift from user growth to user retention and ARPU growth.
In the field of e-commerce, although the overall consumption growth rate slows down and competition intensifies, the overall AAC retention rate in 2020 is 202 1 which is 86%, which is stable compared with previous years, indicating that the users of our platform are sticky and healthy.
Due to the increasing number of new users in the sinking market, our overall ARPU decreased by single digits in 202 1 year. However, among the users whose annual consumption exceeds 654.38 million yuan, the ARPU of our AACs is still increasing year by year.
Local life business
International e-commerce business
Cloud services
The internationalization of cloud computing is another basic guarantee to support our globalization strategy. This quarter, Alibaba Cloud continued to invest in expanding its international infrastructure, adding two data centers in South Korea and Thailand in the Asia-Pacific region. Alibaba Cloud currently provides cloud computing services in 25 regions around the world.
In addition, we introduced the concept of "Scope 3+" to promote Alibaba's ecology to reduce carbon emissions by 65.438+0.5 billion tons by 2035. Looking forward to the future, we will continue to focus on healthy and sustainable development, serve people's livelihood, especially small and medium-sized enterprises, support industrial digital transformation, serve the real economy and benefit the society.
Financial level
Income:
In this quarter, the Group's total revenue was about RMB 242.6 billion, up 65,438+00% year-on-year. The three sectors that contributed the most to revenue were China commerce, cloud computing and international commerce, which increased by 7%, 20% and 18% respectively. Operating profit decreased by 42 billion yuan to 7 billion yuan, including 25 billion yuan of goodwill impairment related to the digital media and entertainment sectors. Excluding this influence, the operating income was 32 billion yuan, down 34% year-on-year. The adjusted EBITA was 45 billion yuan, a year-on-year decrease of 27%.
The adjusted EBITDA loss was a small loss of 92 million yuan, which benefited from economies of scale and the improvement of gross profit margin of cross-border and international business.
Cloud computing:
After the offset between business divisions, the income reached 654.38+095 billion yuan. The steady 20% year-on-year growth reflects the strong growth of user income in the financial and telecommunications industries. Single-headed customers decided to stop using our overseas cloud services based on demand unrelated to products, and the impact of this decision continues.
These two factors partially offset the above-mentioned growth caused by the decline in customer demand in the Internet industry, online entertainment and education industries. If we don't consider the influence of the biggest customers from the Internet industry, Alibaba's internal business will increase by 29% year-on-year.
The revenue contribution of customers in non-Internet industry has increased steadily. Non-Internet customers accounted for 52% of revenue. The adjusted EBITA is 65.438+34 billion yuan, which is mainly due to the economies of scale of its core cloud computing business, but it is partially offset by the increase in investment.
Digital media and entertainment:
The income is 8 billion yuan. The loss in this quarter narrowed slightly year-on-year.
Cost: The proportion of operating cost to total revenue rose to 60% in this quarter. The first reason is that the proportion of our direct sales business is relatively high, and the proportion of direct sales business has increased; Second, Taobao Caicai, Box Horse and Tmall supermarkets grew strongly, resulting in an increase in the proportion of logistics costs in revenue.
The proportion of sales and marketing increased to 15%. This increase is due to the increase in marketing and promotion expenses of our mobile business clients (such as Taobao Trading, Taobao, Lazada and Hungry) in terms of user acquisition and user stickiness.
The proportion of product development and general and management expenses was the same as that of the same period last year.
Stock repurchase
Q: The growth rate of business, especially the growth rate of core business, gives us a general guide. What will be the overall growth rate of Q 1 in 2022?
Last quarter, we saw the macro situation data released by the National Bureau of Statistics. During the period of 65438+February, the total retail sales only increased by 3%. Ali's business and macro situation are also affected by competition, only the number of units has increased. GMV's growth in the first quarter is still strong. We haven't seen the figure of 65438+ 10 month, but we think it is resilient.
Q: What do you think of different categories in the next few quarters, such as fast-moving consumer goods, clothing, consumer electronics and so on? And do you see the bottom of consumption?
We don't give guidance on quarterly total and sub-GMV. Let me introduce the general situation. In addition to the macro environment, there are two aspects to see the penetration rate of this category in e-commerce: one is the absolute value of this category in social zero, and the other is the penetration rate of e-commerce now.
From these two aspects, the penetration rate of clothing and consumer electronics has reached a relatively high level in the development of e-commerce, reaching 30%-40%.
But for fast-moving consumer goods, food, especially fresh products, the absolute market capacity is very large. Because it is a rigid demand, every family needs it, and the penetration rate of e-commerce is still relatively low.
We will see that in the future, these categories will have good digital penetration opportunities and diversified modes, and far-field, near-field and performance realization systems must be well integrated to provide a good experience.
In terms of user stratification, Ali has Box Horse, RT Mart, Hungry, Tmall Supermarket, Amoy Caicai, etc., which combines wired online and offline, and combines far field and near field.
Q: About the competitive situation and future strategy of live broadcast e-commerce?
After several years of development, live broadcast has become a very important new user experience mode and commodity promotion mode in digital commerce. We regard Taobao live broadcast platform as a part of retail digital commerce "market", which complements other "markets" and serves consumers together.
We believe that different commodity forms and categories need different ways of sales and interaction. Live broadcast is a good way, but it is not the only way. We hope to make good use of live broadcast according to the needs of users and become one of the diversified ways of user interaction.
Q: Tao Te and Tao Caicai mentioned the problem of reducing losses in the next few quarters. What is the impact on UE in terms of competition and policy, and what business highlights can be shared? If the UE increases, will the loss increase with the increase of unit volume?
Taote and Taocaicai are very important businesses in our business in China and bear different responsibilities. In terms of Taote, in the past 1 year, many new user growth was obtained through Taote; For Amoy Caicai, in the past 65,438+0 years, we have established a supply chain and logistics fulfillment network to serve sinking consumers.
For these two businesses, besides scale, we will also look at efficiency. Some efficiency comes from scale, and some comes from the pursuit of overall efficiency. For example, Tao Caicai brings UE promotion with the increase of unit density; You can also see the improvement of efficiency in Taote.
From a competitive point of view, these businesses are part of our business in China. We will pay attention to our competitors, but more attention to ourselves. The efficiency will be further improved in the future, and the overall loss will be further narrowed in the next few quarters.
Q: Is there a preliminary judgment on how long the consumption slump will last? Do you think this year's consumption is V or L or V in the first half of the year? What changes are needed to make consumption more dynamic, government stimulus policies, relaxation of epidemic control or other changes?
A: We also want to know whether it is V-shaped or U-shaped. Judging from the user behavior data and macro environment of the platform, alleviating the epidemic situation or having a consumption incentive policy will definitely help the consumption growth.
In addition to macro conditions, this is also the responsibility of the entire consumer industry practitioners. How to innovate supply and create demand can really stimulate consumption.
The just-concluded Olympic Games is a good example. Because of the arrival of the Winter Olympics, the ice and snow economy has continuously achieved the goal of 300 million people going to the ice and snow, and the ice and snow economy has become an unchanging theme. This is a good example, which proves the importance of demand creation, not only creating demand scenarios, but also creating supply, so that consumption can develop better.
Q: As mentioned earlier, another possibility of creating value is to split hidden assets. The meeting in February 65438 mentioned the news of trendyol financing, and recently it was reported that lazada was financing. We know that competitors are divesting some subsidiaries to create shareholder value. We want to know what the management thinks, especially the rookie business.
Alibaba's business development is driven by multiple business engines, and many related businesses with unique user value and user groups can also form a closed loop.
We believe that the market has not fully reflected Alibaba's business engine, which is also an important reason for us to promote the split business plan.
Now rookie, local life company, Lazada and Trendyol are all operated by independent companies. We hope that more closed-loop designs and independent businesses will be incorporated in the future, and we will also be open-minded and introduce more diversified investments when necessary to promote the market process. We will strive to create long-term shareholder value and customer value.
Q: Many businesses are self-employed, so how much self-employment will lead to direct competition with platform businesses?
1P vs 3P, Ali has no preference, as long as it can serve the needs of consumers, the interests of users come first.
Second, from the point of view of merchants/customers, whether it is direct selling or platform, we are trying to help merchants sell products, promote brands and connect users. Direct selling does not directly erect a wall between users and merchants, so that goods can reach users at efficient and flexible prices.
In the process of this service, we provide services across multiple scenarios, including platform and direct sales, national and local, far-field brand direct sales and channel direct sales.
Q: Many user growth is brought about by various buses. If the bus is more independent, how can we understand the coordination of different services?
At present, we should adapt to the thinking of consumers and users, and organize and operate our different businesses, because what we ultimately want to do is to serve users in each circle and then all users.
It is very important for us to stratify this 10 billion users and provide different services and values according to the needs of users in different circles.
Q: What are the revenue and open source plans for the cloud business? Let's analyze it from multiple dimensions such as industry development, products and sales investment.
Our customers are already very diverse (non-Internet customers account for 52%); The future cloud business is a trillion-dollar market, and the digitalization of the industry has just begun.
In terms of investment, the first priority of cloud investment is to strengthen its own proprietary technology, and the second is to strengthen the ecology and let more partners join its own ecology.
Q: A year ago, Alibaba Cloud's growth stagnated due to the loss of an important customer. Will overseas revenue of cloud business accelerate from March? How to treat the price competition of cloud services? Have any enterprises delayed going to the cloud because of macro weakness?
This will weaken the impact of the loss of key customers every quarter, and now it has entered a new cycle. Our customers are still very diversified, and the income of big customers only accounts for 2%.
As far as the macro impact is concerned, every industry is different, such as new energy vehicles, medical and health care, etc. These are industries that have a great demand for docking into the cloud, requiring computing power and intelligence, not just a simple replacement for traditional IT. At present, this China has just begun.
Q: The growth of rookie is only 15%, which is relatively slow overall. What do you think of the next few quarters?
The rookie has developed for many years, and now it is the engine of multi-business development. With the first rookie package and the last mile rookie station, it has the ability of supply chain.
Now, there is also the landing distribution ability of the origin warehouse of Todd and the cross-border logistics ability. There is also a lot of room for cross-border B2B in the future. We hope the rookie has the ability to serve our various businesses and other customers.