Alibaba Group announced its financial results for the first quarter of fiscal year 2025 (ending June 30, 2024). The group's total revenue reached RMB 243.236 billion, an increase of 4% year-on-year, exceeding market expectations.

Based on this calculation, Alibaba generated an average daily operating revenue of approximately RMB 2.7 billion during this period, with a daily average net profit of RMB 260 million.

AI Drives Alibaba Cloud Back to Growth

Alibaba Cloud achieved a double leap in revenue and profit during this quarter, thanks to the strong impetus of AI technology, re-entering the track of high-speed growth.

Financial report data shows that Alibaba Cloud's quarterly revenue grew to RMB 26.549 billion, an increase of 6% year-on-year. Among them, AI-related product revenue grew by triple digits, and public cloud business achieved double-digit growth.

This remarkable achievement is attributed to the in-depth implementation of Alibaba Cloud's "AI-driven, public cloud-first" strategy.

The price reduction strategy for large models such as Tongyi Qianwen has greatly stimulated the usage of Alibaba Cloud AI products, resulting in a more than 200% increase in the number of paying users of AI platform Bailian in just one quarter.

For Alibaba, capturing AI models is equivalent to capturing the most important cloud customers. During the earnings call, Alibaba CEO Wu Yongming said, "We are confident that Alibaba Cloud's revenue from customers outside of the Alibaba Group will resume double-digit growth in the second half of the fiscal year and gradually accelerate, maintaining sustained profitable growth amidst high-intensity R&D investment, and becoming an AI cloud service provider with healthy profitability and a leading market share."