Alibaba Group Holding Limited (NYSE:BABA) Q1 2020 Earnings Conference Call Transcript

Aug 15, 2019 • 07:30 am ET

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Alibaba Group Holding Limited (NYSE:BABA) Q1 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to Alibaba Group's June Quarter of 2019 Results Conference Call. [Operator Instructions]. After Management's prepared remarks, there will be a Q&A session.

I'll now like to turn the call over to Rob Lin, Head of Investor Relations of Alibaba Group. And we apologize for any disturbances. Please go ahead.

Executive
Robert Lin

Hi. Good day, everyone, and welcome to Alibaba Group's June Quarter 2019 Results Conference Call. Before I get started, I just wanted to see if people on the line can listen well.

Maybe you could take one question, operator, to make sure that someone on the line can answer that they can hear well, because there is some technical issue here on this side.

Okay. I think we'll proceed. Okay. Sorry about that.

So with us today are Joe Tsai, our Executive Vice Chairman; Daniel Zhang, Chief Executive Officer; Maggie Wu, Chief Financial Officer. This call is being webcast from our IR section of the corporate website. A replay of the call will be available on our website later today.

Now, let me quickly cover the Safe Harbor. Today's discussion will contain forward-looking statements. These forward-looking statements involve inherent risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual results on Form 20-F and other documents filed with U.S. SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we do not undertake any obligation to update these statements, except as required under applicable law. Please know that certain financial measures that we use on this call, such as adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA margin, marketplace-based core commerce adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share or EPS, and free cash flow are expressed on a non-GAAP basis.

Our GAAP results and reconciliation of GAAP to non-GAAP measures can be found in our earnings press release. Unless otherwise stated, growth rate of all metrics mentioned during this call refers to year-on-year growth versus the same quarter last year.

With that, I would now turn the call to Joe.

Executive
Joseph Tsai

Thank you, Rob. Thank you all for joining us. Alibaba's business continues to do well in an uncertain economic environment, characterized by slower global growth and the trade war.

In the last quarter, I explained why Alibaba is on the right side of all the solutions that could help us address issues in the trade war. If you haven't, please go back and read my speech from the last quarter. In this quarter, our core commerce business, comprised of China retail, wholesale, international commerce, logistics and local consumer services, performed exceptionally well with overall year-on-year revenue growth of 44% in this segment.

The question that is invariably asked is how does Alibaba's business, which is consumption driven, continue to deliver robust growth despite challenges in the broader economy. I want