By Michael Dabaie
Alibaba Group Holding Ltd. American depositary receipts were up 13.5% at $93.39 Thursday after its fourth-quarter results beat analyst expectations.
The company didn't give financial guidance due to the resurgence of Covid-19 in China.
The Chinese provider of online and mobile marketplaces reported revenue of 204.05 billion yuan, or $32.19 billion, up 9% and beating the FactSet consensus forecast for CNY199.47 billion. Adjusted earning per ADS came to CNY7.95, or $1.25, beating the FactSet consensus for CNY7.10.
Chief Executive Daniel Zhang said in the company's earnings call that the resurgence of Covid has impacted Alibaba's business to varying degrees.
"Overall...we saw a low single-digit decline in revenue growth in April compared to the same period last year. Online physical goods [gross merchandise value] of our China retail marketplaces excluding unpaid orders saw year-over-year decline in the low teens' percentage in April," Mr. Zhang said.
The CEO said cities with new Covid cases in April represented more than half of the company's China retail marketplace's gross merchandise value.
Annual active consumers reached about 1.31 billion for the 12 months ended March 31, up 28.3 million from the 12 months ended Dec. 31. This included more than 1 billion consumers in China and 305 million consumers overseas.
Alibaba passed on issuing guidance, citing uncertainty from the Covid-19 pandemic.
"Since mid-March 2022, our domestic businesses have been significantly affected by the Covid-19 resurgence in China, particularly in Shanghai. Considering the risks and uncertainties arising from Covid-19, which we are not able to control and are difficult for us to predict, we believe it is prudent at this time not to give financial guidance as we typically do at the start of the fiscal year," the company said.
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(END) Dow Jones Newswires