Alibaba Group (NYSE:BABA) reported mixed financial results for the second quarter, with earnings ahead of estimates but revenue falling short.
The China-headquartered online marketplace said its revenue increased 4% to $33.47 million, missing the Street consensus estimate of $34.81 billion.
Revenue from its China retail business fell 2% year-over-year to $14.78 billion and direct sales and other revenue was down 9% at $3.76 billion.
Adjusted earnings per American Depositary Share (ADS) were $2.26, down 5% year-over-year but beating estimates of $2.13.
Net income fell 29% from the year-ago quarter to $3.34 billion, attributed by the company to a decrease in income and an increase in impairment of its investments.
“Our results this quarter demonstrated our strategy at work. Our focus on enhancing user experience by offering quality products at attractive prices with great service led to stabilizing market share of Taobao and Tmall Group as we returned the business on the growth trajectory,” Alibaba CEO Eddie Wu said in a statement.
“The cloud business achieved positive revenue growth momentum, driven by public cloud and AI-related product adoption as we continue to invest to maintain our market leadership.”
Alibaba’s US-listed shares traded down 0.6% at $79 post-earnings.