Alibaba's Q4 2024: Financial Growth and Strategic Alliances Propel Future Prospects
- GordonGekko
- Feb 24
- 3 min read
Updated: Mar 7
Alibaba Group has reported a robust performance for the December quarter of 2024, demonstrating resilience amid economic shifts and technological transformations. With an 8% year-over-year revenue growth, Alibaba is showing its ability to navigate an evolving business landscape.
Additionally, recent strategic alliances, such as the partnership with Apple, and political developments, including Jack Ma’s renewed ties with Beijing, may further strengthen the company’s position in China’s business ecosystem.
Key Financial Performance: Strong Revenue and Profitability
Alibaba’s total revenue for Q4 2024 reached RMB280.2 billion (US$38.4 billion), an 8% year-over-year increase. The company reported an adjusted EBITA of RMB54.9 billion (US$7.5 billion), up 4% from last year, demonstrating steady profitability.
The group's net cash position stood at RMB378.5 billion (US$51.9 billion) as of December 31, 2024, ensuring strong liquidity for future investments and operational growth.
Alibaba also made strategic moves to streamline operations by divesting its interests in Sun Art and Intime, aiming to refocus on core e-commerce and technology businesses.
In addition, the company repurchased 119 million ordinary shares (worth US$1.3 billion), reflecting confidence in its long-term growth.
Revenue Drivers: E-commerce and Cloud Expansion
E-commerce: Taobao & Tmall See Strong Growth
China commerce retail revenue grew 5% YoY to RMB129.5 billion (US$17.7 billion).
Customer Management Revenue (CMR), which includes merchant fees and advertising, increased 9% YoY, reflecting improved monetization of Alibaba’s e-commerce platforms.
The 88VIP loyalty program continues to expand, with membership surpassing 49 million, reinforcing Alibaba’s customer retention strategy.
Cloud Business: AI Fuels Expansion
Alibaba’s Cloud Intelligence Group saw a 13% revenue increase to RMB31.7 billion (US$4.3 billion), with AI-related revenue achieving triple-digit growth for the sixth consecutive quarter.
The company continues to invest heavily in AI infrastructure, with its Qwen family of models becoming one of the largest open-source AI model families globally.
International Expansion: Cross-Border Success
Alibaba’s international businesses, grouped under Alibaba International Digital Commerce (AIDC), grew 32% YoY to RMB37.8 billion (US$5.2 billion). AliExpress and Trendyol were major contributors, as Alibaba continued expanding into Europe and the Gulf region.
Strategic Alliance: Partnering with Apple
In a significant development, Alibaba has partnered with Apple to integrate AI features into iPhones sold in China. This collaboration aims to enhance iPhone functionalities by leveraging Alibaba's AI capabilities, potentially boosting Apple's competitiveness in the Chinese market.
The partnership is expected to address the growing demand for advanced AI services among Chinese consumers.
Political Support: A New Chapter for Alibaba?
Beyond financial results, Alibaba appears to be gaining renewed political favor. Jack Ma’s reported meeting with Chinese President Xi Jinping suggests a possible warming of relations between Alibaba and Beijing.
Given that Alibaba has previously faced regulatory scrutiny, this development could pave the way for more government support and regulatory stability—key factors that could further enhance investor confidence.
Outlook: A Promising Future for Alibaba
Alibaba’s growth in e-commerce, cloud expansion, and strategic partnerships position it well for 2025. While geopolitical and regulatory challenges remain, the company's focus on monetization, AI, and cross-border commerce is likely to sustain its growth momentum.
With a solid financial base, strategic alliances like the one with Apple, and renewed political goodwill, Alibaba looks set to continue leading China’s digital economy.
Note: This article incorporates information from Alibaba's Q4 2024 financial results and recent news reports.
Disclaimer: This article is for educational and informational purposes only and should not be considered financial or investment advice. All investments carry risks, including potential capital loss. Readers should conduct their own research and consult a qualified financial professional before making any investment decisions. The author and publisher are not responsible for any financial losses incurred based on the information provided.
