The earnings call for Alibaba Group’s fourth quarter, ending December 31, 2024, took place on February 20, 2025, at 7:30 a.m. ET. Participants included Joe Tsai, Eddie Wu, Toby Xu, and Jiang Fan from Alibaba, with Lydia Liu, Vice President and Head of Investor Relations, facilitating the discussion.
The earnings call comprised three main sections: prepared remarks, questions and answers, and call participants. The conference commenced with an overview by Lydia Liu, explaining Alibaba’s strategic focus and the financial results for the December 2024 quarter.
Eddie Wu, the Chief Executive Officer, discussed Alibaba’s comprehensive strategy focusing on user-centric and AI-driven initiatives within their core businesses: e-commerce and AI plus cloud services. Alibaba’s transformation has shown positive momentum, with significant growth across these sectors. Wu emphasized the accelerating demand for Alibaba Cloud products, fueled by the rapid proliferation of AI technology, and highlighted the introduction of Qwen 2.5-Max, a leading AI foundation model. He noted the company’s investments in AI infrastructure, foundation models, and application development as part of its broader AI strategy.
Furthermore, improvements in financial performance were noted in several divisions, including Taobao and Tmall, which saw new user growth and enhanced monetization reflected in a 9% year-over-year revenue increase. The international e-commerce segment also experienced robust growth, driven by cross-border business efficiency enhancements, while efforts in operating efficiency were reported across Alibaba’s various business units.
Toby Xu, the Chief Financial Officer, detailed the financial results, highlighting a substantial 11% year-on-year revenue increase for Alibaba, excluding consolidated subsidiaries. AI-related product lines continued to see triple-digit growth for the sixth consecutive quarter. Xu also addressed the strategic divestment of non-core assets, effective debt management, and shareholder returns through share buybacks.
During the Q&A session, analysts inquired about cloud revenue growth potential and capital expenditure plans, exploring how AI adoption may continue to reshape revenue streams and profitability margins. In response, Alibaba executives shared insights into future investments and strategies to maintain technological and market leadership.
In closing, Alibaba reiterated its commitment to enhancing shareholder value while strategically focusing on high-growth business areas, including AI and cloud computing, to capitalize on emerging opportunities.
