Alibaba Group Holding Limited (BABA) 14 May 242024 Q4 Earnings call transcript

[Audio Gap] [Operator Instructions]

I would now like to turn the call over to Rob Lin, Head of Investor Relations of Alibaba Group. Please go ahead.

Thank you. and good day, everyone. March Full Group's Results Year Alibaba Call. Conference to Quarter Fiscal and XXXX Welcome Joe Eddie Tsai, Officer; are us With Chairman; Chief Officer. Toby Wu, Financial Xu, Executive Chief

Alibaba Fan, We invited join Co-Chairman International Digital and the have call. Commerce Jiang CEO also to Group, of

A also on website. our today. of call website our is IR of will webcasted later being This this the call on section corporate replay available be

harbor. and our investment our as Today's without our business and Now organization share discussion contain strategies revenue growth beliefs, let about the as me plans Alibaba's such business, including, about quickly and forward-looking to in future repurchases. the structure, limitation, guidance governance Alibaba's safe statements as convert primary prospects, new of business cover and statements, on expectations return well to our and and Hong may plan listing Kong,

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

not discussion as report please For filed U.S. detailed and on the SEC other Hong or the the with XX-F on latest Exchange. documents this call the Kong announced assumptions uncertainties, law. and to make refer Any we and update of of statements, obligation any on today, required Form forward-looking we on based website Stock under of applicable to these are statements risks do these undertake as that except annual

flow as call, earnings are EBITA cash note non-GAAP EBITDA, that margin, Please this diluted ADS, income, use EBITDA such net non-GAAP a or on per and adjusted measures margin, that certain basis. EBITA, non-GAAP financial adjusted expressed on share, adjusted free adjusted we

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

over to will With it Eddie. that, I turn

everyone. Hello,

revenue Tmall The to quarters continued business of Group user and returned enhancement, growth. our quarter. gradually year-over-year Alibaba GMV by growth several healthy in achieved Digital has XX%. Taobao this core increased Commerce Following double-digit adjustments experience International

double-digit AI-related in revenue. core cloud increased recorded digit offerings Our public triple year-over-year year-over-year. growth revenue

that strategies are returning we This to are our working, results quarter's demonstrate growth. and

to continued at meet for merchants a China's by diverse attractive belts domestic needs supported to brands, and industrial and by strategy efficiently system its creating operate prices TTG offers the shopping that a consumers user-first products quality execute to exemplary service. of experience through

have has and results GMV, strong investments seen Our driving consumption elevating driven received user That price trust. continued We've progress, in the improvement experience purchase double-digit consumer frequency. in growth robust competitiveness and buyers in quarterly in tangible feedback. a and in user positive growth reflecting

shared enhance I growing continue numbers same the quarter, to by surpass XX experience XX key TTG's with enhancing to capabilities. areas investment member million. X time, At aimed at Last VIP double and service we year-over-year digits overall membership benefits

First, and product supply; third, quality service. second, competitive pricing;

to We measures, committed frequency boosting growth. consumption through are and driving these further purchase

of our launching experience planned. GMV For fiscal improve. At overall will schedule time, as same continues proceed TTG expect we the to will monetization platform's to year return healthy as growth shopping our gradually products also XXXX,

growth. of half further will monetization we platform product features and new In the the second CMR-centered aligned that mechanisms fiscal gradually with introduce enhance new algorithms revenue year, will

and As share we will we continue to very more leadership. investment strategy, win improve market our confident maintain platform we're our products tactics trust under and user-first consumer

in competitive for to public and of product Alibaba adjustments AI strategy focused on cloud scale quality and Alibaba to pricing the and products creating Cloud's completed advantages we the revenue reduced technology Cloud's improve. We quarter, for continued This our era, globally.

wave year-over-year. from as revenue industries, as automotive, industry financial of of accelerated is continued growth in record model technological stages companies, customers foundational generative including well early believe the companies sectors, AI-driven AI-related to various cycle. and this that the services triple-digit from demand strong as by innovation such Driven Internet and We

for general also our we customer actively Starting big rapid in monumental increase storage It cloud AI. data. to computing a matrix, has capture including in computing needs, in seen stimulated are in and for the computing investing growth we've especially Therefore, AI XXXX, demand product traditional in cloud opportunities. infrastructure demand

is Cloud with strategic billion globally. the foundational companies top Alibaba Currently, has majority open a the XXX Tongyi, April, Alibaba's source partnerships China. with foundational parameter proprietary vast in the leading late in model, At time, released established model on which par of models model same

and We infrastructure redefining will we cost development AI for across outstanding ahead, to our Alibaba that high hardware. realize platform software the industry the integrate synergies optimization and and performance. efficiency, deeply AI combines create large AI to aim Tongyi Cloud's cost benchmark advanced Looking capabilities model with premier

Based strategy, internal XXXX customers, will excluding our fiscal are substantial leading industry infrastructure on second Cloud's double-digit investments and product the revenue year. in growth half we proactive of portfolio, the Alibaba that confident including -- partner to return

Trendyol's order synergies and you Trendyol's grew application. e-commerce, grew core quarter and international will year, this Alibaba logistics share and cross-border due March we our with later. on operations. Group Fan our continued to support will enhancing hope and IPO to essential In continue Jiang details volume Trendyol withdrew this consumer AIDC XX% business, of strengthen expansion Trendyol network. the we Alibaba's year-over-year global provides more e-commerce Chinese the overseas e-commerce experience, For infrastructure and operations to revenue expanding focus will XX% retail its domestic with

have transformation year We're has been business we results. will but Alibaba. transformation in adjustments a self fiscal continue The our and healthy past year undoubtedly executing journey you. yielded for we and in confident AI-driven that user-first Alibaba organization are to have challenges, the pleased of our Group are A development well the prepared. strategy, investing will company. our long-term on and Thank year, focus In of of new

despite in up across by growth total year-on-year, and Fan, Greetings. to an achieve countries our a quarter, widespread significant business. orders and growth back market to Jiang give with were be this you competition AIDC's XX% update This pleasure continued AIDC to business. is especially it's intense in on AIDC rapid cross-border different

are around X major the the drivers let Next, focus. we've with progress share that our me you consistent made on

First, chain supply by continued consignment business from AE upgrade. service advance platform to full model. growth. choice, supply realize chain plus its to the business to order original a robust Driven platform consignment semi model transition continued model in AE business AliExpress hybrid POP, efficiency-driven and

orders rich maintaining Ali XX% we orders Choice While for merchandise user Express. around total April Ali enhanced on assortment, By experience. significantly XXXX, of accounted

and of continue investments to Trendyol while rates choice paying completion model. effective and time, and capabilities same the synergies competitiveness XX-day the doubling of year-over-year, to between make attention the we'll efficiency with delivery cross-border At X-day the AliExpress AE's further strengthened improving logistics have the both

and product is Second technology innovation.

different assortment consumers of the continue details bring to localized multi-language intelligent smart optimized world. and enhance user product search experiences high-quality We platform, so technologies and more and user efficiency targeted on. presentation cross around recommendations continue product to AI experience to in

AI increased their searches SMEs products and more subscribed by more efficiency. and AI Additionally, XX%. small AI have to optimized and now software XX,XXX to business launch the and to launched with medium products of for have millions AI starting been enhance Alibaba.com are have operating leverage enterprises in

Third is sustained key in markets. growth

position user Gulf AIDC region. significant remains of And Trendyol's its as markets grow improved key it business, our in in region. in base the potential apps locally. brand of Continued rapid expansion is user merchandise well has user in supporting in as has to rapidly, cross-border huge enhanced one about rapid investing for has downloaded Trendyol most Ali brought in achieving growth continued growth sustained recognition There majority growth investment driven e-commerce our by for actively become the Express very leading penetration supply. markets. the the its in and

investments At merchandise same enhancing more time, narrowing providing operating actively we'll in markets focus businesses better continue to grow around and world. to both losses We by services. in growth will the Thank achieve and quality efficiency, higher the by making you. certain by and differentiated on efficiency

Jiang you, Thank Fan.

fiscal XXXX. I will financial a for recap key of First, year provide highlights the

overview, a I review the detailed financials March the quarter. provide of will the Following for

an XX% while of diluted our per XX%, ongoing was Consolidated share by During billion. RMB increase our program. RMB year repurchase EBITDA income billion, consolidated XXX.X ADS to to by revenue X%. non-GAAP of adjusted increased billion, XXX earnings Non-GAAP strengthened net increase fast this XXXX, saw increased XX% XXX.X fiscal RMB total

freshable XX%, and [indiscernible] approximately grown have that percentage group businesses our points in-time XX%. and retail Excluding physical adjusted margin at would have operations, would approximately higher EBITDA revenue approximately consolidated group X.X at been have

XXXX. our or Board increased our of year the for management and fiscal consideration accounting ordinary XXX During to have cash We decreased After by the we of of year a in total 'XX, shareholders. billion of XX.X billion. USD for committee the equivalent fiscal total shares about ADS, Directors, X.X% issuance, million the leadership X.XX outstanding shares a ESOP to repurchased capital under return

per dividend Regarding X X.X certain billion a disposition USD we year We in the for ADS, cash cash of XXXX X.XX of USD dividend X for total amounting ADS, proceeds of an year cash per XXXX. out amount annual about a declared and Directors distribution billion. USD with Board USD was of ADS Furthermore, fiscal fiscal approximately cash X extraordinary has January as XXXX, onetime USD of paid dividend, which our an approved to dividend in cash financial annual from dividend investments of totaling per

to and shareholders plan we to and for USD fiscal year repurchase share dividends, XXXX, billion of billion return XXXX. combination about fiscal year a Through for XX.X returned from up the XX.X USD cash have

to we'll continue programs. our to capital are shareholders, our value returning We return and execute committed to

observed across enhanced our growth. for at me our let of the provide financial fueling Now a we supported fundamentals quarter. performance major improving March investments, XXXX aimed businesses, Overall, review by

was to Consolidated an quarter, adjusted X%. our decreased revenue During EBITA of by billion. XX billion, the RMB X% increase XXX.X consolidated RMB total

Our non-GAAP of decrease net a RMB XX.X XX%. billion, income was

repurchase decline was earnings the non-GAAP per in X%, diluted ADS ongoing share moderate program. However, given our our at

XX.X decline was in net to GAAP RMB changes income billion. RMB billion was mark-to-market previous in year. publicly due year decrease companies, gain shifted a a primarily investments billion, to XX.X our from of of traded a This Our equity RMB this which from loss X.X

to our XX, billion well reflected net billion XXXX, the same investments of strong infrastructure from quarter The Alibaba a RMB USD reflected quarter to flow majority or maintain compared capital decrease As RMB N a of year. in billion was billion, this quarter the billion. decrease Cloud of year. the RMB RMB cash same of of XX.X March as XXX.X of cash XX.X the position last RMB in XX.X special Group a we as which mainly last dividend Free billion XX.X X.X expenditures, in increase continue

percentage X look this expenses G&A development Product and revenue ratio by to let's trends during by as cost Sales decreased of at point quarter. increased stable to X%. revenue, X remained marketing excluding increased SBC ratio Cost percentage X%. point XX%. point of X expenses ratio a ratio Now by XX%, expenses percentage to percentage at

Now XX.X let's with Group results, Tmall from RMB segment of increase Group. look Tavon an billion, at Tmall X%. starting the Revenue Tavon was

quarter, the growth GMV a in driven growth, online supported our purchase number and of frequency. During order which double-digit purchases increase strong by rapid achieved by is

customer rate X% though overall a of X supported take was factors. combination -- a growth slightly overall GMV increase by Strong the declined in management impacted take revenue, rate

take Firstly, increasing our in price-competitive that was offered continues decrease Tapan Tmall platform. reflect trend growth, demand GMV to outperforming GMV to Tmall. on both due of Tapas increased The This strongly. of products rate

paying potential roll merchants as to of currently the we enhancing gradually advertising improve relatively monetization advertising paying take rate yet merchant roll Second, believe as the ROI, we among and by low incremental new in percentage -- overall merchants. tools rates was adoption new we we impacted spending further merchants our room from also as introduction out increase the new see that has have low, of that our well tools higher to as have upside the were SME out remains from take models merchants -- grade

XX quarter offset retention user which in billion last paying increase from billion, infrastructure, Direct others in wholesale partly due increase services to revenue and China increase Group X% XX.X compared to RMB and the decreased sales same due investment to in the to from billion year, XX% in revenue management RMB in business in to adjusted [indiscernible] improved members. service. higher primarily EBITDA provided XX.X and value-added RMB resulted and RMB the revenue revenue increased commerce by was frequency purchase customer Tmall primarily billion. X experience an customer to technology

of increase from during Intelligence RMB XX.X X%. Revenue an Group billion quarter, Cloud was the

We of from on low-margin are public adoption focusing reducing while strategy increasing committed to cloud project-based our revenues contracts. high-quality

double-digit database our products recorded in growth as quarter, products the core offerings, During revenue. which public cloud include elastic such and AI compute,

and continue growth AI-related experienced record During revenue to triple-digit this quarter, accelerated growth.

X.X Cloud's mix We public The AI-related roll-off efficiency. of and revenues. expect the due and in to RMB increase adjusted of growth the focus by offset strong public our XX% EBITA primarily through project-based increased impact will revenue to product cloud operating products was the improving cloud on billion.

Commerce Alibaba combined RMB revenue revenue billion, XX.X International solid order in choice, due AIDC's International Group revenue of monetization. retail in improvements XX.X increased increase to retail as business was AliExpress's XX%. comps businesses, from XX% of an well was increase as Digital to contribution primarily billion. growth RMB the The from Revenue by

Revenue Loss of including business from business, Choice was because increased a related compared to increase offset our primarily partly EBITA billion adjusted in improvements increased last cross-border an Tranduces international in investment to value-added loss loss in monetization. billion. services. of RMB businesses, to RMB by same increase the generated AIDC's of revenue RMB billion year. and commerce by increased of was AliExpress wholesale XX% by primarily X.X X.X due The X.X cross-border a quarter

Total quarter XXX compared retention incentives of XX% to to adjusted primarily of RMB its X.X a primarily the of last to granted EBITA Cainiao revenue XX.X quarter in withdraw million in for IPO. RMB was billion, billion services. recognized loss RMB loss same by fulfillment in year, the China employees the additional from the contributed connection a Cainiao cross-border to revenue due during grew increase

to X.X Group March XX.X order this a business same due loss loss Local Local increasing to to our quarter RMB a service primarily primarily the group billion, adjusted quarter and loss continued the of quarter of compared year, due narrowing by Olam's business EBITDA home from billion RMB XX% X.X the in unit in last economics billion scale. Urlama revenue of Amap. was of X driven grew service growth improved to RMB

billion decrease loss was X.X size. RMB X% reduced last the RMB to the Freshippo. due in Sun the Loss to Adjusted a our Youku. the from Revenue decreased the decrease partly in due primarily a driven down Alibaba RMB of was million of all of from of supply at and other by to The in X.X compared in DME group a XXX same EBITA billion, in revenue chain increase offset revenue scale decrease loss and revenue quarter X%. Health, [indiscernible] XX.X of mainly from mainly billion, market was to RMB loss by reduced segment business year. from decrease from Revenue

segment same was of from billion last X.X games. of other decrease loss a $X.X all profitability from increased Lingxi to the the compared to Freshippo EBITA Adjusted quarter primarily of a RMB loss billion losses and the due in in year,

this date been the the have to conversion Hong August further on for in expect we of XXXX, announcement our and we primary course. Kong preparing make primary will Lastly, complete by in listing due currently a end

capital. foster improving on us invested flows In businesses reinvest returns leadership to well closing, cash and balance our robust thereby positions strengthen core in sheet to future our growth strategically

and supports second in FY investment e-commerce the yield Fan experience our near-term and growth domestic 'XX strong mentioned, Eddie FY Jiang in will platform firstly, half -- improved enhance improved that 'XX. that user As in monetization we the GMV of anticipated

a return economics revenue second fiscal for while Alibaba Secondly, growth continuous the And improving business. in momentum, double-digit year AIDC. unit thirdly, half growth to of Cloud from rapid 'XX

growth strong businesses. our more in open of you. can positive where seeing even that's remarks are Thank the And end making up our initial sustainable in us for achieving confident we and We Q&A. results, core prepared

call. Hi, for everyone, today's

management in consecutive third-party Q&A prevail. any the only. that convenience You is the statement translator questions translation language discrepancy, original Please Chinese our session. purpose the to ask for English. for will provide the case are in In of A welcome interpretation or will note

bilingual the of Q&A be on unable are the to after translation, X you this If within the week website call hear will Chinese transcript [Interpreted] available our meeting.

session when Thank ready. you.

first [Operator comes Fong Instructions] question from UBS. Your with Kenneth

regarding I growth. versus question the have a the CMR GMV

double-digit solid for focusing competitiveness results. have deliver GMV strategy the a price despite Our intense growth competition. user and experience on

As Tuan, only the Changan the launched. our marketing, mix CMR Toby with ad shift down back the think monetization, underperforming over the be new we site-wide to incremental expect X% expansion as pace at business? then in and to reinvest should growth time? earlier to gap should the we this see we for a we to to in narrow gradual of gradually How And because CMO, the for this growth, margin should growth CMR about actually product early EBITDA GMV highlight, Or expect reaccelerate?

question. [Interpreted] the Kenny, for thanks

providing my Eddie would think just start then can I add. explanation, I

quite double-digit both I think the and said, growth GMV in I as actually, And Taobao a this as in you is Tmall strongly can see merchants. quarter, had this growth.

thing our our seen of in execution strategy, Basically, results. we the first message. a the That's growth. very -- back think So the are is important I have we

and are gradually as monetization And the penetration merchants and help product saying, we enhancing -- the monetization our eventually roll merchants, as introducing up enhancing we'll monetization in the the into introducing particularly SME well spending They -- secondly, enhancing we the ROI were the be product, their new increase. the which front. as will out are

would take time some since we it out are However, rolling gradually.

you So will growth throughout to like sort able second particularly during half of the the the of the year. the see out result we year, year, see in be coming quarter second will the of the that the

Okay.

Tmall, experience on by the color we this investment Before focusing executing Eddie the as early making? would consumer saying, on of rollout see success we're -- just like give on the customer first. explain sort Taba I strategy things, monetization you investing in of various of the we are more also product, For our

to are the we see So result, we and willing invest.

firstly. first that's So the

making. are we investment of terms in is Secondly

very do hand, monitor On closely the way. ROI. the in We we it other are a disciplined doing

from we we definitely, make, the investment see For good will can it. the ROI

way. disciplined very it's So

make of going much as terms we in much investment. ramping depending on really well the continue the -- space up how to So to experience How supplies. the the consumer as will invest we're we're

are and make So resource, to the we committed we have the investments.

Thank [Interpreted] Yes. you.

So platform, to in marketing ahead moving as whole easier with Omni we're it for we're SMEs important is platform advertise. that an moving and direction charging making

Of course, that it's important on ensure ROI. money achieve advertising to that spending are solid merchants

currently ROI. further training the doing enhance and the that and to to the the from data extent, models, testing and using So algorithms, tweaking service improve the we're testing adjusting

direction, it we are means that for certain So all but there course, enhancing as and time, different customers for and it of optimize get different this of sectors revenue. further some will, in we'll take moving eventually that is our of and a

that expect the XX to I those So take and we does direction and because time data the moving in we're ensure is algorithms, continue that's this tell will But months what certainly something like place process everything is optimal. take can you get in, I fine-tune. that to it tweak

Your with next comes Morgan question from Gary Stanley. Yu

improvement from My resume from much coming private How that behind? Cloud management please some it's of How projects Alibaba question product double-digit Cloud? is AI-related smaller -- from the the of low-margin year. encouraged expected it it's is regarding the is cloud a it composition the growth growth business? much from growth hear products? coming second revenue much half driver the of share becoming of the we to in coming in business. part And the management is to how of Could

should forward? look the kind once double-digit of at growth up medium-term business And how are then going that back level, the we cloud margin also to to we for related is

[Interpreted]

and is This take you. I'll Eddie, that. Thank [Interpreted]

new say, and If at I products. cloud that would already the of driven, being overall Most business the look growth is AI-related revenue today. AI by you of

our are but the a demand to of can forward, they going be that complementary related in to in making the also will AI, have business a growth for AI, invest there's the of cloud investment incremental also So offerings. we and use more cloud the customers customers because of the make other in effect will lot expect see more various

in So go hand. the X things hand

revenue to overall cloud's revenues. same decrease share in At project-based the the continue of we time,

that although growth In the offset double-digit fact, the this ongoing low-margin to ongoing still diminishing, -- impact of but already the parts achieved project-based business business. that continues but other of cloud by quarter, in be

phase grow a revenues expect And or But new again low-margin to as out we that we business, expect drag should driven we that into we that see year. by and continue complete AI-enabled that X project-based faster, offerings. the within, disappearance primarily cloud by of X say, to quarters public

to place offerings On expect and of the I that do kinds the we our medium to question, long driving where in back for achieve to of part profit public had to say part, public once we're have the primarily which very term, second double-digit your the get to with healthy our is would margins. margins cloud most cloud profit growth, growth, that we

stage a it to course, that very looking of When cycle. new we're in comes cycle. at of AI, We're XX-year technology IT early the

we're with So overall, But will margins from about be longer-term AI talking but the products the ongoing profit investment. healthy. healthy margins,

with Your next question comes Yao from JPMorgan. Alex

domestic growth versus that business, way, GMV quarter. did for digit rates rate help put growth to the the do past driving e-commerce slowdown double market this another it's loss? the the a quarter back So to recovered to Or in you share market? it GMV the in the understand is has to narrow e-commerce leads what what Can of pace in us great to see you

it to of alternative current the take e-commerce China e-commerce market And the broader market. does what competitors question competitive in be the is rise in a given

[Interpreted]

is overall, getting And secondly, good supporting as First think excellent Thank I and the it's that at things, [Interpreted] experience. merchandise; you. really I having shopping with X that having good consists user's right? said, price; that service. about Well, a of enhancing really thirdly,

different products it the different Now if goods can comes apply them. better further when down we to support assortment to that are -- there break of goods, we models with actually that

we manufacturers label of goods industry goods. from brands, merchants from goods goods can from or about and channel white basically, think So belts

achieve in of ensure and a And X different to is for take conversion high a merchandise. and goods we They're good are getting products offering to different those consumers kinds differentiated cost-competitive. price way the approaches efficiency can provide that players their that

with be and can good customer strong logistics supported that of service. further All

as with respect those take approach purchase new So with customer to we customers a that always the can different increasing kinds of supply, well of advantage. attracting achieve and to X aim different frequency

I made Secondly, this e-commerce as Taobao in some clear China's domestic very And that, as very there's how to to and add that market. strategic address competition win going [Interpreted] on to can forward. know, intense we competition we've choices

A big part ensuring to product of services conversion optimized well. providing also high and this to is as referring efficiency,

of is Taobao. everything could equation Of course, of important what want, important Taobao the as another part has very -- for referred richest the to I've anybody assortment. part the universal omnipotent Taobao Taobao possible or that

and So also on that respect while that maintain competitive rich goods selling to better achieving high maintaining assortment, diversified advantage. unique focusing efficiency with to volume

with question next from Ellie Jiang Your comes Macquarie.

have are by that [Interpreted] about you've some products mentioned the that understand will new whole marketing I on that follow-up the We or be have the a and competitors. been market are similar platform charges tools there launched that being launched. question launched

are some the our differentiated of determine products products? competitors? conversion logic. products? evaluate the underlying these you of our that How we would kinds the share how are could And versus factors of wondering I'm for what If some rates

you [Interpreted] differentiated versus Just how that other our they products platforms? question? Is to the asking clarify the about are question, are and marketing

solutions, focusing the So basically marketing platform [indiscernible]. [Interpreted] on omni

Right. [Interpreted] Understood.

traffic, way on you the their model at platform. and groups different of I are the in different they different users look are going very the the the if because monetization achieve business think terms and of products different be -- monetization platforms different to fundamentally

comparability. there's direct think don't any I So

is are their what certainly achieve at end the merchants they think on ROI looking that the marketing. the day investments in of I

I that the on can on at marketing we I user look can probably achieving today, Taobao platform tell on and you compare their highest can But directly marketing that get the you investments. So algorithms think for things they don't ROI nature. design any And certainly investment. are of ROI and merchants can

comes Yap Alicia with Citigroup. question next The from

solid we I X% GMV the growth double-digit that to further overall obstacle foresee CMR good. follow-up very on that could the Obviously, Congrats on improve Any growth is here? GMV is the from good CMR and quarter. prevent growth the and a have

is muted trend? that It are we the can more us Any seeing macro I'm enjoy on outlook. GMV April with share momentum to helpful. are you you potentially that be growth latest that faster just wondering consumption the how for consumer us the overall growth allows gaining despite with and trend May would seems color

this the question. Alicia, thanks [Interpreted] on take for question. I'll

as we our that growth trend we explained, observe. sustainable and GMV the we investments, I growth, think the then see from results is I what think can

So still we the time. because growth -- towards And April, of CMR, we're because good the shift a Taobao in in mix observing GMV of healthy GMV explaining, May in growth were as terms to merchants and also low some us is new this headroom of big models the increase there at stage, relatively our which has monetization monetization sort rate. a of business for a products, so

sort the of growth rollout And with catch gradually. to will with GMV seeing of CMR introduction up of our monetization be product, we

will but catch up. will So quarters, it few a lag behind it eventually

the our of side investments on of terms sort of the revenue So effectiveness the that's as of the in G&A and well on also the effect belief side. both -- investment as

[Interpreted]

said. Joe of like Alicia, and this I Eddie to Toby what Tsai. is sort supplement also

double year in question lockup you're in our lockdown. quarter was an at -- implicit compared the your think looking last of of year, March was from GMV comp the digits. easy it And out COVID I is partially to because growth coming last

of see going would macro is, of consumption to to implicit from now, Chinese I What number -- from do a And -- savings $XX broader at consumers, highest look right the we like is something cash one, that's household at as is, in the household its point. -- we could we so sort are trends? the platform reflect cash like that say see what the our We're question standpoint, trillion at system. looking

of ability First looking the of growth to some in right? actually is at during spend, all I looking growth -- I So the and items, the basis? of spending sector a are all shoots, your seen holidays. on And has going-forward the is, services May pretty think apparel some what's all, pretty Chinese we've platform, like confidence level electronics seen some growing, the think the X consumer we've -- green within also discretionary are good. our we're

us tells is to consumers that are reflect that spend. what So starting to willingness

in they We have that the no confidence the reflects future. have the they willingness what doubt ability, have but about the

So macro because seeing affected the property too early still tell by it still is positive probably downturn. sector broadly is we're environment some to the but signals,

On relaxing encouraged property very the that now that been been local governments we've restrictions. have purchase front, the

going we've seen we're see. so far, wait early But growth. confidence of to So and some level, signs

[Interpreted]

to detect chip This is Eddie. in be Joe investors anxious because I several joking than to are the this more seems just past because we it [Interpreted] a point I this I'd money. like common pattern make questions. are just Yes. like on actually even with to And across about was clearer even

really this fact, just frequency, And assortment purchase we only to increasing a like and in after what I'd is experience Taobao, to year, that growth #X efforts. clear as That's about will objective increase primary invest to CMR. right? this CMR to drive on user in year. certainly able really GMV is and result and merchandise our So objective that our successfully, those natural being be objective be can well as achieve competitiveness of enhance And

X Taobao of of story billion beyond. from commercialization, and from was and revenues million the Alimama billion And talking whole the about development in part X XXX of advertising personally and X XX I growth to to

drive put products CMR kinds of the So growth. capabilities tell those will to place that in that you I we can advertising have

certain that experience for controlling but forward we our pace for can really our good and we which a ensure to merchants move consumer. that, We're we're the do

basis. move consumer So we're on we'll this really year, and growing GMV, forward that experience focused enhancing on and

Goldman Your next from with Keung comes question Ronald Sachs.

really so deeply guess far, discussed. AIDC about So the asked haven't one no I

So the group in mostly to stable. the quarter, to increase this has the Otherwise, about because I Taobao AIDC want -- it ask losses was been earnings. the relatively

want a our -- see I We've interested fully do do their or to they're the some e-commerce? going So these to interested, to do hear what merchants international see which involved warehousing. How investment scale to semi with seen we also trends? local evolve loss peers is for from how shifting investment leave we of

[Interpreted]

the for really there for losses quarter in I the heightened this are Well, you. quarter. reasons Thank spending this in [Interpreted] principal think or X

time Middle emerging that in East, Middle was Eastern and was this in certain countries. especially that the with markets sales represents the in First year of a Ramadan

advantage of spending with to Trendyol reaching advertising taking was promotions, So that consumers. out

with occupies profit to do overall switching to take Choice, increasing Choice to catch over the AE orders overall business. for it's this the up. of And as an going Choice second AE margins little time then and of reason the And proportion has business AE as we're model, a new to

margin there to So is filled. there be a gap

of We working optimize Choice the are to model. rapidly AE efficiency

see you'll in clear within of the AE very think economics quarters And Choice unit enhancement several the I model.

new the efficiency. course, stabilizes, model continue balancing achieving as we'll So also that pay more with of to attention, growth,

consignment with per cross-border to had where about And your warehouse which their about a full that's It's question, se. versus second semi-consignment merchants shipping. preplace really do on in local not so model, for merchandise local

other that and kind -- merchandise of can Our suited model that some cross-border other model shipment better. of other better for because reasons, to the that categories is characteristics are of just work local take on categories, a business

at we've locally. this into warehouses East, a past of well, end other Korea like developing But the and So South some we're think consumer overseas the to we can down places categories, shipped And better. more But sellers Europe. preplacing Middle the more be model work merchants of to in will be comes done day, local for working merchandise as It local lot competitiveness really the on in the categories, preference. and in competitive. cross-border

and different receive these how So consumers accordingly. we continue to plan track approaches

next comes with question CICC. Bai Your from Yang

be related question going returns out? it the share you to because returns some about play forward do those the we to And this resulting plans make to dividend X% have repurchase in continue will concerns yield. plan to deliver now see plans My in But the I [Interpreted] ability an stock those something like to company's how low to guarantee to the seems your term, equivalent of the can has to how with shareholders. longer And currently But of rather kinds price. shareholders?

thank for that Well, question. [Interpreted] you

implement been run Our the started plan XXXX. has a over And the we all approved March we long-term X to Board in way years. started to of something place X just shareholder have return plan the isn't by current years to past plan. to the several that through It's back. It

at XX.X it The to USD that look and XX we amount XX you billion the around was recent repurchases year, If leaves USD the share billion. around more USD with last billion that of did year, deploy. in approximately, to us continue

this a plan long-term is So that to. we're committed

hand future, For on have look cash the deliver areas how are to about related returns one at those core And continue in on the in hand, flows. we the the needs of other our us, as but business, to company's management right AIDC company, for thinking and now. AI, to also of emerging the the we'll new company like that also important, the investment example, shareholders to

will to together those But we share program. the be comprise to X our program together. we dividend returns And shareholder kinds make words, shareholders at integrated of that basis. other to return an on continue the view. going committed buyback take distributions and We forward, look In

Your next America. question comes from Joyce Ju with of Bank

AIDC, in most basis terms And the further there's longer-term which your further on where categories? is about of cross-border. of users [Interpreted] understand of growth? you Choice around What of a about the color on How more making together you understand with I'm Cainiao growth? model years give sources few growing? next a that Perhaps kind stable that in more in terms now AliExpress. regions, of AE to My us it the in the even We is like potential growing orders total wanting collaboration on see for of model how could particular. question little Or represent couple the which also quarters on also investments or next XX% in represents most

course, a Alibaba best of air really model a categories. an kinds those light in is AE has business effectively. goods. Choice light cost has that And and advantage [Interpreted] that It small Goods be in shipped suited, past, can the for in had is Express Well, packages, small where is that space. and of strong that advantage

for on also the markets, goods, also of We example, for working working kinds developing deployment as are -- larger models growing different different local warehouses ocean Korea, of for kinds for and piloting on freight so of and well. supply South additionally heavier chain

strategy start then demand light categories those with that advantage, any to to kinds to support makes build market general chain and supply the is our in of market. where packages, we particular So that and that up other have small sense for

we in integrating Choice Another allow with consumer have example, those need Asia, meaning big into platforms to those that important any markets. AE investments Middle Lazada markets, sales in the those in platforms East. direct Trendyol to for and for AE regions, these is different offering local marketing currently different in make thing And Southeast that doesn't Choice in branding to

those So us very to ahead markets. that's allowing different into rapidly move

sense to Of the in we markets. different don't they an Turkey, for they supply. apparel, local kind course, different In there better where can have of example, categories advantage it make an categories in that advantage but other of achieve case have when comes

to and categories look going So in then decide which the each how. bring that look our bring. situation market, at We can and market, resources, of course, we're what that at we own we in market to

Mizuho. Your James next with question comes from Lee

development, Is end it loses Is voice, scale agents based business AI your And about AI language few think for questions help video? language parameters? your as maybe scale? for model about X large as your of be should us your focus number and create your and where you understand the And Or agents agents, talk applications, goal such can we shopping or focused is? own cloud. And different a merchants? consumers And are it for model? maybe image on to text, on you about modalities your to the large of data,

asking your of you objectives ongoing our of for about the clarify first development large main Could [Interpreted] please the I just thrust models? ask to question? you Are

model. Yes. China have throughout terms large Is of text, Because they language based language model. on the in voice, scale one on it companies has of parameters? different of Is largest image to different the to focus? focus of have modality that large focus internationally, in that growing one data, Development the to

will different artificial make [Interpreted] anybody take general working model companies towards to AGI, different choices the in the way, models shares model I develop the get intelligence. along same developing who's applications, and there, kinds to goal, routes vertical think leveraging the large different But their is space, certain Right. and that all Well, of companies the can of choose along may way. and foundational

and covering the day, to of voice video the think and is the end from at ultimate text all audio encompassing of AGI, I all -- goal achieve and everything for But players, that. to image, through

think, but vertical models I So different the objective, getting different kinds pathways objective. is of perhaps way, to there, common along a the

I objectives AI research large development and major our Alibaba, around models. For think ongoing there X really and underlying in are investments large

pursuit our the is AI models per as for foundational of first developing The I AGI. AGI, just explained, moving own se, towards

internally is objective second cloud language -- model. large cloud offering with our Alibaba The within integrating Tongyi, our

from and well customers offerings, bringing cloud enabling Integrating and very AI them our can benefit cost-efficient them and together hardware effective functionality. our that to our tightly capabilities provide and to capabilities so integrated extremely AI high we software highly --

any businesses businesses major one look its Alibaba I company there's that AI around of don't I the simultaneously. has think one if and really you like And as other world, major of as cloud think anywhere, its

huge opportunity. as see a we So that

own objective third business. other within Alibaba the enable leveraging of development Tongyi then own the and And to to really the their Group better applications their is businesses develop

So Tongyi, thinking large like but applications Cork Taba. [indiscernible] benefit from improve can of our and even also applications. leveraging They their further own to model,

further integration the cloud Tongyi model to that second on I Just offerings. point just tight between expand made our and our about

widely it's available the in most anywhere open-source Our open-source made also undoubtedly world. certainly top #X we've that And the model the speaking Chinese adopted. is model

choice our very that's development the environment level using because So when them. it comes most choose cost when to natural also for to high Cloud efficiency, you develop to them have to model the in time environment that, open-source very of their of familiar a developers because it's own deploy but something, Alibaba

tight integration So that's our can simple Tongyi, business other Alibaba's leverage between we and of showing just and very how example indeed, model, a aspects business and models. cloud that

this And our everyone, participation thank today. concludes quarter. earnings for That Okay. your you, call

participating. you Thank conclude for conference does for our today. That

disconnect. now may You