Alibaba.com Limited announced unaudited financial results for the quarter ended March 31, 2009. Revenue was up 19 percent YOY, and net income declined 16 percent YOY, which the company said was expected "as a result of previously announced investments in customers, people and technology to position the Company for future growth."
The Financial Times article that reported the news summed up the company's strategy with its headline, "Alibaba sacrifices profit for market share."
Alibaba.com CEO David Wei said, "Although the worldwide economy weakened during the first quarter and China's export sector declined by nearly 20 percent, our increase in revenue and paying members shows that we are providing SMEs around the world with an affordable and effective global trade solution when they need it most. We are pleased that Alibaba.com helps sustain the operations of so many SMEs which are the backbone of most economies around the world."
Alibaba reported a record-high quarterly net addition of 49,544 paying members to reach 481,575, up 47 percent year-over-year (YOY). Registered users topped 40 million, up 36 percent YOY.
Registered users on the international marketplace grew by 76 percent YOY, while storefronts on the international marketplace grew 39 percent YOY. Registered users on the China marketplace grew by 27 percent YOY, and storefronts on the China marketplace grew by 62 percent YOY.
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Alibaba.com Limited announced unaudited financial results for the quarter ended March 31, 2009. Revenue was up 19 percent YOY, and net income declined 16 percent YOY, which the company said was expected "as a result of previously announced investments in customers, people and technology to position the Company for future growth."