Alibaba Group Holding Ltd. (NYSE: BABA) on Thursday reported raised its full year forecast after the company reported better-than-expected quarterly earnings.
The Chinese e-commerce giant said revenue rose 61 percent to 55.12 billion yuan ($8.34 billion) in the quarter ended September. Analysts polled by Reuters had projected revenue of 52.2 billion yuan. The revenue growth rate is the fastest rate since its IPO in 2014.
Net income jumped 132 percent to 17.7 billion yuan, also beating analysts’ forecast of a 50 percent increase.
"We had an outstanding quarter. Our consumer insights and technology innovation were the key drivers behind our customer value proposition across the Alibaba economy," said Daniel Zhang, Chief Executive Officer of Alibaba Group. "We are seeing the early results from our efforts to integrate online and offline with our New Retail strategy, and consumers have benefited from access to high quality products, improved customer experience and the tremendous convenience of shopping anytime, anywhere."
The better-than-expected earnings were boosted strong growth in its core e-commerce business. Revenue from e-commerce business rose 63 percent to 46.46 billion yuan.
Alibaba rose over 2 percent in the premarket trading. But it pared its gains in the early trading in New York. The stock was up over 110 percent this year.
The company also also raised its revenue guidance for the 2018 fiscal year to growth of between 49 percent to 53 percent, up from its previous forecast of between 45 percent to 49 percent.