Alibaba Group Holding Limited (BABA) 23 Feb 232023 Q3 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's December Quarter 2022 Results Conference Call. After management's prepared remarks, there will be a Q&A session. I would now like to turn the call over to Rob Lin, Head of Investor Relations of Alibaba Group. ahead. go Please

Chairman; day, of Quarter Good today. on are welcome Alibaba of from will Executive to Zhang, is call This Thank being the corporal also Results everyone, website website. Conference our December webcast Vice Tai, Joe XXXX and IR today available Xu, Call. Group's later CFO. Chairman call section you. the CEO; and Toby our With be Daniel replay us A

safe harbor. the discussion let may statements. cover Now me forward-looking Today's contain quickly

involve inherent results statements our risks Forward-looking may and cause to current uncertainties actual from that differ materially expectations.

detailed the update and as report flow adjusted and margin, call uncertainties, on do website as Kong Stock of a SEC forward-looking filed please annual and of assumptions of EBITDA, XX-F expressed that today, U.S. latest income, documents margin, the that these this this earnings on net other as we such undertake measures or diluted Hong any EBITDA, basis. and our share adjusted For call, ADS on adjusted statements, these non-GAAP Any we make Form with are per Exchange. use financial discussion on refer statements non-GAAP on applicable announced risks obligation required based law. adjusted cash note certain except non-GAAP we the to on that Please to free EBITDA under a EBITDA were are not

same year. year-over-year this Our to growth to Unless otherwise all stated, mentioned the refer growth of found versus last GAAP measures release. call results press reconciliation earnings in and of GAAP on our be non-GAAP quarter rate the can metrics

to will Daniel. now turn With that, I

rapid flow effective call past in delivered for these optimization in free year-on-year and cash Thanks, change EBITDA challenges, Despite our joining our business you the operating we the through challenges significant our Thank cost business Rob. due situation COVID and adjusted December. efficiency. today. to and Hello, during This earnings operations experienced double-digit quarter, management, everyone. growth

peak lifting on general, wave, becoming of are the of back sectors has and now the the significantly. chains consumer transformation is active. operations end rising. and business Logistics In across Digital normal everything With confidence different supply and manufacturing entire confidence quickly accelerated COVID-related getting measures resumed has with industries at track.

Against positive our GDP this estimated Recently, to IMF growth X.X% the backdrop, are this for China various businesses showing trends. year. raised the

Given and a to year. to Alibaba's for the macro development of major recovery, quickly internally progress trends tone measures respond the Alibaba's need I the economic own need change to the as in environment the to the China's theme represents environment macro adapt and set expectation have We this for the the key the for lifting following cycles. chosen development. in and COVID-related of word reopening, to progress The

economic development, globalization. across confident China's strategic ecosystem circumstances, businesses streamlined and unique In although computing different pillars we remain our in consumption, cloud post-COVID complex of own face their our

situation in capture plan in Now February business a our how past in I the color will environment, businesses. a opportunities difficult together quarter different some January this we how share performed our COVID across to on with -- and and

consumption During COVID Tmall digit by quickly impacted and market GMV December China demand Pohang and dropped was the quarter, cases. year-on-year, consumer mid-single suppressed. the highly was

the traveling holidays. weak, other physical cases and online year, spring commerce places to home better National the strongly. weak, of discretionary the well and while goods to trend festival highly category, by remained released January overall From Bureau sales health China. were our goods of be February grow during and with This continues is to as other early Statistics China of of consistent COVID terms In people care apparel impacted due this of to wellness-related as or

subsided recovery merchants work in also normal, and travel as But of in apparel sports spring outdoors, such our to as categories the to of to February, all influence return have and as at their especially life expressed festival COVID business. and get desire cases strong

continue. this recovery We will expect

operations, value the reinforce customer proposition user we and and with Tmall following to strengthening Palbo are our on leadership the experience our In measures. market

user enhanced time platform. consumer are Polvo the spent. and most China's First, Tmall and comprehensive is most online shoppers efficient home population of stickiness transaction to and

formats advantage We introduce are content to of of streaming building on the and continuing consumer by video, product in user form engagement. discovery, stickiness, consumption-related influence variety other our a to live strengthen short-form and competitive

purchasing for enhance money divisions. is value Second, Price proposition. consumer factor in key a always

mechanisms, products pricing through goods on We direct marketplace features will from cobas as improve to model and and innovations of offerings. marketing farm-to-table such design the promotional continue competitive retail the factory

digital for Third, retail. labor

capture chains using will local deliveries. necessities to highly [indiscernible] for retail consumers frequency We as needs [indiscernible] supply sensitive orders such digital through and fulfill business quite our neighborhood from that everyday local

than In to increased local of picked non-restaurant growth rate from Notably, order higher far cases. The to in consumer services, for saw improvements [indiscernible] ratios marketing quarter the logistics. and this due average value revenue restaurant consumption home-based efficiencies increase growth in order lower was order higher up was end in volume due business expense it Ongoing COVID operating what restaurants. rate an resulted volume towards in

economics unit continue [Indiscernible] continued will to it improve. demonstrate and positive to

capabilities its operating adjust supporting delivery supply strategies Olam COVID, recovery. During and safeguarded

affected. scale were briefly user and scale AMS cases, COVID services used peak During of

eased, Amap recovered. usage quickly cases As of

Fliggy's booking platform, volume and outbound travel quickly new room also various during growth holidays. grew Spring services. the consumer hailing activity providing very Ride rapidly. Amap has domestic a and Festival destination-based hotel become

past recovery booking domestic and noticeably overall hotel As ongoing of domestic and faster over National China Fliggy's years, the Administration, comparison Tourism a the ticket cave XXXX in and airplane by significantly than the our to performance reported chain the was of result the travel developments outbreak. better of before the supply capability service X

was to for Turkey emergency suddenly our and When with made earthquakes grew commerce, hit overall local growth growing business deliver by even XX% early strong actively support In over progress. we steady relief. volume continued various as services organized order in international Chandi deliver faster. year-on-year consumer February,

in our all far, Trends mobilized and business So disaster to operations are stable, safe. remain employees relief. aid they have resources Turkey

we optimize order by to invest order Southeast continued also XX% business volume We region per growth, the as year-on-year. remain Asia. in for to continuing loss Lazada, Lazada's for to more than of reduced committed firmly As

is greatly the France bound positive with Through AliExpress on order the Cainiao, to optimized key rate growth. ease deliveries impact Roger exchange to close continued and order and continue and improve collaboration routes Spain show quality in of as VAT services to volume starting and foreign

strategy retail commerce. and to Our on of Southeast continue localized a firmly focused mix globalization and cross-border will through be Europe Asia

businesses to cycles. economic sustainable continue will that and withstand make We long-term can build investments

year. also celebrating this a robust logistics and [Indiscernible] comprehensive green international to tenth progress It in course has response mile, It anniversary is the and Last built covering and business emergency more. make continuing technology its logistics. logistics China is for logistics.

our China, In Tmall for expand customers. [indiscernible] services continue delivery [indiscernible] its [indiscernible] to

million includes through recent than more from those were in XX to to post November delivered most directly Tmall the XX, delivered or residential daily through During Taobao dose peak, doorsteps location orders customers' Taobao its which at communities.

built over Taobao its international past years. few the also has logistics network own

sorting more it than this past operation. in centers international quarter, As had XX of

was revenue overall double-digit The decline cloud year-on-year. this growth revenue business cloud rate cloud project X% public in a for growth due Our by partially quarter to from hybrid offset delays year-on-year, was which was COVID. rate

financial the growth industry, of education terms are and services, among by drivers. automobiles In revenue

few change I organizational decision on Alibaba my last in important an considerations. announced acting role Alibaba President towards the as a took addition current This the Cloud, and based CEO of on also end was to of role year. of of We Chairman Group.

impact is computing of cloud have Alibaba an strategies the one Cloud other First, and future. on for Alibaba's just entire for Group. the not Innovation as technologies Alibaba will core

Second, and continue drive foundation Alibaba digital integration. Cloud physical through the which Alibaba real is also economy to the will serves

this critical in period AI. of and breakthrough is cloud believe we computing a Third, technological for nurses and the development

believe cloud As globally, service digitalization the potential the one computing infrastructure digital computing industrial the cloud of strongly economy. of as the and of role vast in providers leading to we

Going leadership at we reinforce and market areas position ahead. our opportunities a few strengthen to forward, focus will as we look the on

to computing performance services while continuing and the enhance technology costs optimize the of investment. manage stability our security through First, and cloud

computing. Second, continue dynamic and for build a industry cloud ecosystem to developers

our sectors. and to collaborate solutions with to different Third, in partners provide industries customers industry intelligence-based

Fourth, platform. continue that collaboration integrate product platform cloud-based development a forward online into, workplace and intelligent application service our holistic to push

Lastly, of is exciting disruptive area AI, computer this breakthrough essential. in power initiative by generative

building will we continue model. hand, own our large-scale one On pretraining

to this means and opportunities of historical cycles. for current the in Internet Internet. we year are the applications. and the culture, We and XXth capture for Chinese in the complete market industrial X marks computing ready We cloud also for to captured gone opportunities computing provide in power China traditional models to various consumer Group's e-commerce This X start China Alibaba through have year AI the its generative

expenses We commerce vast and other the will both of technology, continue to capture ahead of our through opportunities environment. the on society impact and

Although that there very evaluate, future development. and in difficult China's we remain are Alibaba the many highly confident are of in ahead journey uncertainties the to

you, Thank everyone.

Toby, pass to results. Let the me who will financial share microphone our

Thank you, Daniel.

with Let me quarter. highlights for the start financial

revenue an RMB billion, X% total was our XXX of quarter, This increase year-over-year.

to was RMB an of in decrease in RMB an segment an in X.X RMB and digital EBITDA. billion billion, increase Income year-over-year, impairment XX.X increase RMB relation billion XX XX from operations goodwill mainly adjusted at by of driven media billion entertainment

to in to efficiency to loss-making During improve of operating enhancing points percentage December continued that operating adjusted XX%. costs EBITDA Overall X have XX% quarter, margin RMB EBITDA XX increase adjusted billion. improved resulted performance in our year-over-year by we businesses optimizing and by

XX% a at revenue cost year-over-year at ratio percentage of Cost in remained Now SBC. excluding as December quarter. stable let's of trends look revenue,

driving our inventory costs, and stable, logistics, optimizing services through continue direct of were logistics operation primarily revenue ratio to but we up sales grow, keep of to able and acquisition Our traffic our improving businesses content cost cost efficiency. and

reflecting effort decreased optimizing spending Product stable marketing points in XX% across and acquisition user continued businesses. retention during quarter. and user ratio expenses Sales development year-over-year December percentage X our the quarter, remained expenses to ratio in

administrative year-over-year, in offset a December EBITDA, X.X pickup of method and mainly due remained X% decrease at in quarter. expenses investees RMB billion adjusted ratio XX% to of or equity RMB increase net XX.X increase equity our General was Non-GAAP an income billion, stable partly by results. in

Our income income increase RMB XX.X due XX.X an decrease the Google of earlier. non-GAAP impairment increase net was primarily and in billion RMB billion, XX.X net to GAAP RMB in mentioned billion year-over-year,

cash USD maintain position XX, to December billion RMB billion. we continue net strong or of XX As of a XXX XXXX,

Our billion billion, X operating XX RMB X.X by CapEx versus year ago. at the and ago. cash down billion operating by December activities free and flow XX strong supported billion, cash RMB XX by RMB were respectively, flow is were X billion, healthy between up generation. X the flow X.X flow cash was and cash billion XXXX free Majority In cash RMB versus difference RMB operating net cash was position from quarter, of which RMB year

inflow cash investment an compared billion Net including to same period last X.X billion, was activities, outflow acquisition RMB from the RMB and year. of X.X disposals, in

Importantly, cash through balance we strong our have and given generation capability. shareholders share continued flow returns to enhance sheet repurchases free to

During share XX.X quarter, ADS repurchased billion for repurchase and program. the X.X USD we million of RMB our approximately approximately our

results. at segment let's Now our look

of mid-single disruption declined impacts. GMV, a China quarter goods commerce and XX.X segment a rates billion. a management logistics percentage Customer XXX Pay result points of COVID-related declined by by RMB digit. caused management to decrease from to further online supply December physical higher revenue year-over-year Revenue by Taobao in due year-over-year. X% RMB order mainly Customer paid few cancellation was GMV versus X% billion, revenue decreased as Tmall and chain

billion, revenue other growth increased billion businesses. grew Alibaba XX segment by direct EBITDA sales to December XXX primarily Health's and sales in by million China our XX% and of adjusted driven RMB to RMB XX.X quarter. Freshippo Commerce Direct strong RMB

This from by reflected loss EBITDA significant XX%. deal, partly in Fresh Paltai, customer offset Segment management Taobao decrease hip from stable profit margin services. reductions and remained at a

commerce XX% in Our an was revenue billion, quarter of RMB increase international XX.X segment December year-over-year.

quarter. retail international revenue and as also billion. subsidies. and increase to increased primarily of recovered a strong growth XX.X growth efficient revenue AliExpress driven RMB business XX% more of was Revenue growth accelerated result by by commerce its saw this Lazada use Trendyol order from The of

the year-over-year. our to XXX billion from X.X narrowed from reduced The loss International and reduction losses RMB remained segment was primarily Commerce by business wholesale year-over-year loss Trendyol alibaba.com in December adjusted Revenue by stable EBITDA Lazada. contributed quarter. million RMB

operating efficiency from was improvement well Chandi of monetization continues in enhanced narrowing result revenue enhanced value-added ongoing efficiency. a operating to offering more services have by growth generate rate losses strong Lazada of as as and continued

Our growth of December by X% revenue to local Olam. RMB home billion, primarily due in value order to segment consumer XX of positive higher services average grew quarter business, X GMV driven

saw X.X RMB also recorded by per loss economics order billion increasing to year-over-year EBITDA RMB and per improve adjusted continued its reduction business, value, services reduced segment while consumer delivery unit Its major positive X.X losses. driven within by year-over-year Most to this other of improve billion. was businesses to loss Local order by the quarter. Ele.me this UE reduced cost average order continued reducing remained Ele.me

XX% Tania, grew service service to from contributed by primarily well later services. in since domestic after international elimination, from revenue customer year-over-year result to in revenue XX.X intersegment of Revenue solution as XXXX upgrade a increase enhance as the as RMB logistics from consumer increase billion, experience fulfillment model

as from mainly X%, offset loss growth. high-quality cloud revenue In December intersegment Tania's driven RMB healthy elimination reduced quarter, continue RMB RMB by to by segment after EBITDA revenue external public of December December generated by XX partially declining growth, XX% double-digit customers. adjusted Tania quarter, revenue of increase XX.X loss year-over-year. cloud billion quarter, was XX recorded from we drive hybrid Revenue of in total recurring cloud in was million an million

automobile non-Internet services which industry. growth XX% by contributed decline solid services from of was non-Internet The was X% public education, was financial industries, growth Revenue of industries offset driven partially car by and in mainly revenue the growth overall revenue.

from by gradually has in overseas mainly the business. customers services by using driven that stopped cloud industry Internet international our declined Internet top revenue the from Revenue X%, its for customer declining

in other from Internet the saw On quarter. we improving demands hand, customers December

of XXX quarter, a year-over-year. Adjusted Revenue December to profit Entertainment quarter in EBITDA driven cloud by primarily investment of loss Youku capability. revenue XXX RMB our Talk which segment, from production in by the December was was in to Ding RMB content Cloud Alibaba billion, from comprise Digital was & disciplined Adjusted narrowing million of XX a million, due due the increased X.X primarily of X%, in Media decrease from Alibaba reduced Pictures. billion a million of X.X RMB RMB EBITDA by RMB segment loss of and and year-over-year, decrease

Let up me with final some thoughts. wrap

continued operating on earnings the December have that key quarter our to our Our of we the results and macro the uncertainties execute to Despite year. weighted shareholders' to continue factors of core these financial to we repurchases. and fiscal revenue on quality in a organization, were challenging customer-centric return results through efficiency XXXX. by higher ongoing share and ability another structure focus since global set objectives supported initiatives, delivering and consumers the improved demonstrate Consistency beginning and success and enhanced cost achieve have growth, persistence in key growth operating throughout our

As is year stimulate Daniel which capitalize mentioned, XXXX, operational we XXXX be capabilities. a a Alibaba. gradual recover will we In financial believe our China's of consumption would strengthened progress recovery. that for expected activity XXXX, in have will It and and economic

benefit strong and XX in will our We We allowing are flexibility key grow shareholders. position to from USD exited us with returns confident businesses billion improve stakeholders, enhancements us net the including a China's financial XXXX those well position of cash, for that to recovery. financial

that major operating mindset growth and you. their investments competitive maintaining our efficiency. prospects of In while we in intend enhanced to improve Thank businesses XXXX, increase position

Now turn to let's Q&.

management only. Chinese welcome note provide For in In translation the address for questions ask today's session. And original call, is of Please third-party are prevail. Q&A asked. translator our convenience or case English. purpose secular you statement interpretation language will discrepancy, you the questions that to for our A language the any management your will the will in the in

Q&A already. to speaker after on Now within session Language] start conference and be bilingual Please If of operator, you. meeting. SI available the please you connect call our website transcript are Chinese Thank lines. the our X the unable hear week this translation, will [Foreign

Instructions]. [Operator

Yao comes JPMorgan. Your first from Alex from question

And question cycles marking to long of the you like by been back I'd has the Daniel, that questions. a some addresses speech, I'll the culture. But completion shorter-term long start to asking complete term. years, XX that, term, for with in your now said X after come Alibaba around Chinese as starting

cycles past and around these the cloud. logistics digitalization captured X around XX-plus commerce, Alibaba through over enabled our years, around And opportunities has

will the big or you do So think be next looking Alibaba growth. area achieve areas where forward, significant can what

As first has XX being Alibaba major said, seized X e-commerce opportunities there are the you years, and cloud. yourself that in

in But And big rapid be what think X years, the developments, marshaling growth. the this see, where environment competitiveness of and part to efficiencies. operational to in involve as of very achieve that and will Alibaba then as some success year, some with will coming driving see the Alibaba short opportunities of the in the the you we've X changes important challenges, well core of better next further huge do opportunities short seen can major chat how back and at looking optimization its competitive you term term costs the GPT

those Thank take will questions you, one and by I Alex, one.

past the we applying Alibaba. X digital commerce, and globalization. around our opportunities consumption, XX-plus remain that around and as firmly major strategy the years, of to this over the been indeed, And We technology long-term is First, logistics strategies for us indeed committed, cloud computing. cloud to see core always, have

And about it indeed globalization, offerings. of when talk is our we and globalization consumption cloud-based

So those firmly to strategies. committed core a to main

for it's areas, in to our can we to we're by enough focused new We in strategies remain continue those those enough, because more us simply, one evolve core and that seek doing accomplish X find it's out arenas one. core as we can those there, [indiscernible] in them to than compete. huge we continue to not to is think continue big look X at very opportunities Well, technology and which the we that is on especially market high enough confident and

consumption. with Beginning

front, today of latest China's at in growth period And will China, if from years. If can GDP. about you forecast monetary economic for a look a you what X% if annum IMF think of GDP numbers imagine of in the percentage XX the per the be consumption X% international look maintained, that like the size China growth as of

And year in imagine X% if for the the China's contribution economy does a the GDP. of size consumption proportion or can by China certainly that XX years, grow you within of

today talking down SP-X will we're proportion certainly the higher So on road. be about Years trillion. XXX against XX trillion even That

to XX to different at trajectory back Turning evolve. e-commerce years ago, through already . has a the It's look traveled technology. can off completely taken we've that years continued ago, XX We look.

and the said churn. past And future, coming impact in is will experiences the to now completely digitalization new consumption. consumer Congress an mentioned. way impact think on we've on having AI, consumption It's an we when been also transformative technologies But these be to looking the and not organized. that new I side. accomplished. we new this that's formats which just And supply in not And chains just digitalize Well, that getting create generative would floor, and But have that really you also having I comes to of it certainly is they're the the think started. including exciting

is you support an industry getting figures look that. China just really and to where few is can a This started,

look the figures within of as at U.S., proportion [indiscernible]. you high at In from it's XX% GDP States. if in the it's First the proportion X%. it's of numbers, you if spending look are XX% cloud within in in X%. all, of China These United today, And only China, IT the IT spending total as

develop technology which fore for figures continues opportunity also reality, to that think virtual new huge come So China. before. represent generative a cutting-edge AI in X of discussed the VR, technologies like to course, we've those And but I us as a

technologies as these power are them. compute deployed support when to require they're massive they All of

growth demand power. we So see in for expect compute exponential to

technologies just trends the I of offering comes as think it course, and So to exciting And story are that those leaders pursue world. as and continue to just breakthroughs create unshakably will to intend that We're and already to for China of X vendor, new the in consumption but to technological us, X is continuing the we started. purely in world, take and company. we've for more not in adopted and to to leader when embrace to make committed the China new strategies we and prospects computing the be core world, and Alibaba a getting order these our cloud while in for a cloud to

always about business And market. we then there I said, keyword on Alibaba And basis. that as the in new on has overarching to We'll daily technologies user and But in developments seeking the identified as our as in market question value. of our theme XXXX. be and a our progress progress for moving technology create second also new in your ways developments course, are

with drive We to will business be new future. technology and of business create going to into with value in the progress new investing, kinds new therefore, integrate to and new prospects technology tremendous

over always past has And that's XX in fact, done years. what Alibaba the

low-price We haven't been a competitor.

subsidies. haven't been heavy on We relying

haven't technology business We always competition. impossible could that become the in engaged in technology in low-quality impossible Rather, make make that can we've possible. had that low-level also the been been and invested belief possible, a become also

to open will continue drive technology business. breakthroughs to we frontiers in commerce and in and So new new up seek

The next Sachs. Goldman question Ronald from from Keung is

We was theme operational a for the optimizing know major in and structure that XXXX, cost driving efficiencies. Alibaba

about, I'm growth a wondering that turning GMV when potentially into turning situation, GMV to positive we to positive as talked Going see we've the can again. hopefully happening. you pickup in expect leading to XXXX, see expect macroeconomic

new returning and see we we year people of are positive we what also, behavior. going are between numbers. expect subsidization are achieve to GMV in because investment to lot the At in in And GDP know point this can there growth engaging how growth who balance a

So going growth balance investment? how and on achieve between are that we to

just the following that of all the following in in you, of part Well, else. just that we're the we've China. your starting do question of Obviously, situation like very had that pickup everybody measures with closely, COVID end consumption to seen with like

challenging people lay as still my normalize Life of comprehensive especially did country. detailed time and work, indeed, script festival the festival, in through with consumption out thereafter in the picture earlier, in I a spring traveling time across sentiment, as a and with the Lantern was I however, could. and widely But to the numbers behavior. improvement certainly large consumption expressed around January began in

shared impact to I what business. all to outdoor want And have bumper desire we that, a apparel, everything to including health. years. categories, make up over had strong is with in and they a They also year in that see you different back XXXX lost across the past the sports, Certainly, for get to X merchants

That's certainly a for all the the shared across hole merchants. board

resumption Of of if only you like, about normalcy, course, been since just it's the been X.X a short It's time. month.

So we ongoing develop. eyes do the our on keep need continues how picture to to

optimistic are situation. we improvement certainly, continued the But in about

days, part to engage The out to nothing with turn had and win other subsidies in heavy subsidies comes of new. idea price more opportunities order to your price and of competition try bright question up a with look, there to price Every do couple business. their are market in somebody around

it in consumers turnaround to able really no But and of has is way products it's kind being to really a on invest in relying best term end ever merchant technology clear-eyed business managed which sustainable the the turn, I day, return achieve subsidies. take nobody, cycle. of about in is the What can think look a sustainable best the make so a that at prices provide continue the that merchants model to in empowers to innovation. long At the that at if history, a player by takes price you innovation

experience has of that. Alibaba lot to do in merchants a empowering So

And experience have Toby in pockets script, with enable growth. mechanisms platform deep have sustainable billion as said to in we cash. XX USD utilizing in also We his

leverage leadership these market. create we for approaches to continue So in users the can maintain to our value and

Merrill is of Leung question Bank Lynch. Eddie from next The America from

services. landscape. question various turnaround video to UV a there has now local in at local We positive that we time, are that and lead My this do heavily there's Yes. same the competitive platforms could unit also short-form in to But understand services, economics has investing in that continuing further are been changes to and understand with improve. the

to could us, continue you services So I'm please, strategy wondering going leadership talk that about and your forward if local to strengthen position. for maintain to

local services, to different you is comes to-home because services, it know, to-storm and kind the when of are destination. one store X kinds to-destinations there positive really of Well, or as

be with They any be destination, find starting media, can video offering. in context can allow something the kind to can their platform, through it media or other destination, business else They So it the to order. promote short-form a store or of a ways services. place develop of media consumers to-destination local local an

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that map that So of the spans to-destination influence fulfillment. to transformation that Amap to like audience and discovery with location-enabled succeeded tool of Amap and do opportunities and front a certainly, physical transformation simple whole opened has from very any to any over store. new in media few offering with find traffic has the a can kind up search important successful Alibaba an location we've on drive realizing the past years, a But to it paradigm taking

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is this local talk to-home, about we when So neighborhood or e-commerce.

you essentials. at in to But X demand kinds restaurant other to include So medicine, all the not time. but X daily neighborhood need fulfillment same this orders. to place home It deliveries or be integrate it successfully space, include that, it's could local just able in neighborhood groceries to things could restaurant of from level succeed neighborhood food like example supply of also are and

something local to in be because in great way integrate certainly possibly is a could a only to demand in Eluma the need you the this intersect no is they synergies. and fulfillment that local And that capabilities, achieve. has need chemical real-time this to again, single a to where been the media And achieves supply, success local coordinate ever continuum space-time outlet hope in able

beyond far capabilities any the that's of media-oriented player. So

our versus going you're And very grow business successfully cities if of business to after XXX will identified. continue We services course, in priority cities. XX look cities the local your we've different

the we've and We continue to that build drive with cities growth. improve consumers continuing to confidence service focus and key identified, to on the long-term win

The from Barclays. Jiong is from next question Shao

said Thank that underway you Alibaba quarter, certain are you, we investments. to management. the past know exceeded in within there XX initiatives cash other USD billion. monetize flow on And that free Toby,

And of dividends shareholder you potential considering program. things what a example, USD for the to conducted last be share to the available the in I'm or you to Are other can buyback the methods value other distributing further share of could buybacks X.X buyback under billion quarter, returns expanding any there increase But for Alibaba scale wondering shareholders. increase program?

question. your for you Thank

things. on a touched of couple You

investments. media various we some of First, will seen reports, from as have our you all divesting been have

point are strategic that's planning corporate those think normal going company plan. exiting from that's When of I exit on of a you any you part And current at making those investments, lot investments indeed a some that's make make a point. at certain is original strategic also for the investments. to any timely

about You talked share buyback our program. also

increased USD already billion about previously it billion. XX billion of announced. XX to been fact, last total by been a upsized, program. USD had It we as And that XX as time, was a In spoke USD had

another USD X.X the a we bought buyback think and billion program our is good December return way of we to do In quarter, back that share shares, pursuing shareholders. the to value

Now under enlarged to buyback the still a quota XX deployed. USD share remaining billion be existing of already we have programs,

in can at in Directors the to quarter, point no, remaining further deploy by line further is and our to deploy not of to at So that we time, point to minds shareholder on of the quota are XX rather, order in it what's value. time expanding best make billion, this USD it that of considering authorization this we given when with use how how enhance us in Board

next The Alicia is Yap question Citigroup. from from

us to and bit about to create focus intends invest and how growth a lead the on boost that we of this new adopting cloud business innovation and businesses. where wondering will, break color just technological explain if be to to opportunities to appreciate be business businesses met. and more Daniel accelerated little for basis. in result CMR you innovations breakthroughs that a revenue will new earlier in continue see services, give perhaps or I these new remarks if up like the opportunities local some new that follow could example, in new as for or us Alibaba for I'd on year models can I'm on models But a which down Daniel's will means to could expect technological segment-by-segment

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earnings you IR you, months speaking you. be time today's and We forward look transcript quarter. for that And you to your will our Thank in next and coming engaging concludes look and today. our to meeting website replay Thank call. this available everyone, with Okay. to the you Other in to listening week. in forward

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