Alibaba Group (BABA 117.50, -3.22) has given up 2.7% in pre-market after missing earnings expectations on better than expected revenue. Hoping to offset disappointing earnings, the company's Board of Directors authorized a $6.00 billion repurchase plan.
The e-commerce site reported below-consensus fourth quarter earnings of $0.63 per share on a 60.0% year-over-year jump in revenue to $5.61 billion, which exceeded expectations. Strong revenue growth was recorded in each of the company's four segments with core commerce revenue jumping 47.0% year-over-year to $4.59 billion.
Digital media and entertainment revenue surged 234.0% year-over-year to $571 million. The increase was driven by the consolidation of Youku Tudou, an increase in revenue from mobile value-added services provided by UCWeb, and revenue from apps and game publishing.
Cloud computing revenue spiked 103.0% to $314 million due to a 70.0% year-over-year increase in paying customers to 874,000.
Innovation Initiatives revenue jumped 88.0% to $133 million due to higher revenue from YunOS and AutoNavi.
Gross Merchandise Value on the company's China marketplace increased 22.0% year-over-year to $547 million. Mobile GMV represented 79.0% of total GMV and was up 49.0% year-over-year.
Annual active buyers on the company's retail marketplace in China increased by 11 million year-over-year to 454 million while mobile Monthly Active Users increased by 14 million to 507 million.
Customers in the company's cloud computing business increased to 874,000 from 765,000 in the previous quarter, but the unit still recorded an operating loss of $73 million.