Alibaba e-commerce business bounces back to pre-coronavirus levels

Cloud-computing revenue jumped 59%

Alibaba Group Holdings' profit rose 143% year-over-year in the fiscal first quarter as China's reopening from its COVID-19 lockdowns ignited a business boom.

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The Hangzhou, China-based e-commerce giant earned 46.4 billion Chinese yuan ($6.57 billion), or an adjusted 14.82 Chinese yuan per share, as revenue surged 34% year-over-year to 153.8 billion Chinese yuan ($21.8 billion) in the three months through June.

Wall Street analysts surveyed by Refinitiv were expecting adjusted earnings of 13.78 Chinese yuan per share on revenue of 147.8 billion Chinese yuan.

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BABAALIBABA GROUP HOLDING LTD258.62-1.38-0.53%

“Alibaba delivered excellent results this past quarter,” CEO Daniel Zhang said in a statement. “We were well-positioned to capture growth from the ongoing digital transformation, which has been accelerated by the pandemic, in both consumption and enterprise operations.”

Core commerce revenue jumped 34% to 133.3 billion Chinese yuan ($18.9 billion) amid expansion in rural and less developed areas.

Alibaba said its core e-commerce business has recovered to pre-COVID-19 levels and that revenue from cloud-computing jumped 59% to 12.35 billion Chinese yuan.

Annual active customers rose 16 million to 742 million in the three months since March while monthly active mobile customers rose by 28 million to 874 million in June.

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Alibaba shares gained 23% this year through Wednesday, outperforming the S&P 500’s 4.46% gain.