Earnings Results: Alibaba shares gain after big earnings beat

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Alibaba Group Holding Ltd.’s American depositary shares are up 3% in premarket trading Friday after the Chinese e-commerce giant reported a sizable earnings beat while topping expectations on revenue as well.

The company reported September-quarter net income of RMB72.5 billion ($10.1 billion), or RMB27.51 a share ($3.85), up from RMB20 billion, or RMB7.62 a share, in the year-prior quarter. Excluding non-recurring items, Alibaba’s BABA, -0.48%  adjusted earnings per share rose to RMB13.10 ($1.83) from RMB9.60, whereas analysts surveyed by FactSet were calling for RMB10.75.

Alibaba’s revenue rose to RMB119 billion ($16.7 billion) from RMB85.1 billion and came in ahead of estimates, which modeled RMB117 billion. The company saw RMB101.2 billion in revenue from its core commerce segment, which includes the popular Taobao and Tmall platforms. Alibaba had 693 million annual active customers on its China retail marketplaces and 785 million mobile monthly active users.

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The company disclosed that cloud-computing revenue climbed to RMB9.3 billion from RMB5.7 billion, marking 64% growth.

See also: Alibaba is expanding its commercial platform to U.S. small businesses

Alibaba shares have gained 29% so far this year, as the S&P 500 SPX, -0.30%  has risen 21%.

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