[caption id="attachment_88251" align="aligncenter" width="720"] Source: Company reports/Coresight Research[/caption]   4Q19 Results For 4Q19, ended March 31, 2019, Alibaba reported revenues of ¥93.5 billion ($13.9 billion), up 51% year over year and beating the consensus estimate of ¥91.7 billion ($13.3 billion). This revenue increase was primarily driven by growth in China retail marketplaces and cloud computing. Operating margin fell to 9.4%, primarily due to the impact of the settlement of a US federal class-action lawsuit. Non-GAAP diluted EPS increased 49.6% to ¥8.57 ($1.28), beating the consensus estimate of ¥6.50. For the fiscal year 2019, Alibaba reported revenues of ¥376.8 billion ($56.2 billion), up 51% year over year. Core commerce revenues reached ¥58.4 billion ($8.7 billion), up 45% from 4Q18. It was primarily driven by strong revenue growth from customer management and commission in the retail marketplaces segment.

• China commerce wholesale reached ¥2.5 billion ($380 million), up 35% year over year. The growth was propelled by an increase in the average revenue from paying members on 1688.com, Alibaba’s domestic wholesale marketplace.
• International commerce retail reached ¥4.9 billion ($737 million), up 25% year over year. The consolidation of Trendyol, Turkey’s leading e-commerce platform, and AliExpress contributed to this revenue growth.
• Local consumer services recorded ¥5.3 billion ($785 million). The segment mainly consists of revenues from platform commissions and food delivery and other services provided by on-demand food-delivery platform Ele.me.

Cloud computing revenues reached ¥7.7 billion ($1.2 billion), up 76% year over year and primarily driven by an increase in average spending per customer. Digital media and entertainment reported revenues of ¥5.7 billion ($845 million), up 8% year over year. Mobile value-added services provided by UCWeb, such as mobile search and game publishing, have mainly contributed to the growth. Innovation initiatives and others reported revenues of ¥1.2 billion ($180 million), up 22% year over year due to the revenue growth from Tmall Genie and Amap. As of 4Q19, annual active consumers on China retail marketplaces were 654 million, increasing by 18 million from the 12-month period ended December 31, 2018. Mobile monthly active users on China retail marketplaces were 721 million, increasing by 22 million over December 2018. Outlook The company expects revenue to top ¥500 billion for the fiscal year 2020. The consensus estimate of revenue and non-GAAP diluted EPS for the first quarter of 2020 are ¥111.8 billion and ¥10.35, respectively, according to Bloomberg.