Alibaba Q3 Report 2023

BUSINESS HIGHLIGHTS

In the quarter ended September 30, 2023:

• Revenue was RMB224,790 million (US$30,810 million), an increase of 9% year-over-year.
• Income from operations was RMB33,584 million (US$4,603 million), an increase of 34% yearover-year. The year-over-year increase was primarily attributable to an increase in adjusted EBITA, as well as a decrease in share-based compensation expense. We excluded share-based compensation expense from our non-GAAP measurements. Adjusted EBITA, a non-GAAP measurement, increased 18% year-over-year to RMB42,845 million (US$5,872 million).
• Net income attributable to ordinary shareholders was RMB27,706 million (US$3,797 million). Net income was RMB26,696 million (US$3,659 million), compared to net loss of RMB22,467 million in the same quarter of 2022, primarily attributable to a net gain arising from the increase in fair value of our equity investments, compared to a net loss from these investments in the same quarter last year, and an increase in adjusted EBITA. We excluded net gains or losses arising from the changes in fair value of our investments from our non-GAAP measurements. Non-GAAP net income was RMB40,188 million (US$5,508 million), an increase of 19% year-over-year.