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Alibaba Group generated $36 million in Q4 2022

The group’s latest financial report showcases a period of modest growth
Alibaba Group generated $36 million in Q4 2022
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Alibaba saw a 2% year-on-year increase in revenue in Q4 2022, rising to 247,756 million yuan ($35,921 million) compared to 242,580 million yuan ($35,167 million) in 2021.

The company’s latest financial report shows a period of modest growth for the firm, however in the context of the decline of the mobile and tech industries in 2022, both in China and worldwide, this modest growth highlights the strength of the company.

“We delivered a solid quarter despite softer demand, supply chain and logistics disruptions due to impact of changes in Covid-19 measures,” said Alibaba Group chairman and CEO Daniel Zhang. “Looking ahead, we expect continued recovery in consumer sentiment and economic activity. We are focused on driving growth for our customers amid the competitive landscape, and creating sustainable, long term value for our shareholders.”

Success in China

Operational income rose 396% year-on-year in Q4, standing at 35,031 million yuan ($5,079 million) compared to 7,068 million yuan ($1,024 million) in 2021. Alibaba attributes this growth to a 22,427 million yuan ($3,251 million) decrease in impairment of goodwill in relation to the digital media and entertainment segments.

Non-GAAP net income rose 12% year-on-year, reaching 49,932 million yuan ($7,239 million). Net cash provided by operating activities also rose, reaching 87,370 million yuan ($12,668 million), representing an increase of 9% compared to 80,366 million yuan ($11,650 million) in Q4 2021.

“During the past quarter, we continued to improve operating efficiency and cost optimization that resulted in robust profit growth,” said Alibaba Group CFO Toby Xu. “Our net cash position remains strong and we continue to generate healthy cash flow. During the quarter ending December 31, 2022, we repurchased 45.4 million ADSs for approximately $3.3 billion under our share repurchase program as part of our ongoing commitment to improve our shareholder return.”

Despite the modest increases throughout 2022, it appears that Alibaba has fallen in-line with another notable trend of the last year: staff layoffs. The report notes that the company had 239,740 employees on December 31 2022, compared to 243,903 on September 30, a decrease of 4163. The South China Morning Post reports that the company’s workforce shrank by more than 20 thousand employees over the course of the year amid tight regulations, slow growth, and increasing competition.

Last month, Blizzard reportedly entered the final stage of negotiations with a new Chinese partner following its split with NetEase, with Alibaba among the contenders for the lucrative partnership.